January 2009

BEHIND HOW THE BANKING MONEY SCAM REALLY WORKS

I have personally been involved with banking and lending in the United States for many years.  I have climbed the corporate ladder, I have met powerful individuals and more importantly I was allowed into a “community” that my favorite President, Andrew Jackson, called a “Den of Vipers”.  Jackson was referring to the banking community when he stated this in Washington D.C. during his Presidency when he completely shut down the Centralized Bank in the U.S.  There have actually been three (3) centralized banks in the history of the U.S.  The first two only lasted about 20 years each because Washington and the American People realized the danger to their future by allowing them such power.  The last and most recent, the Federal Reserve, has been around for almost 100 years now and look at what danger and shaky future we have as Washington tries to make excuses for the power the Federal Reserve has on us and now more than ever; our children.

I left banking and lending in 2006 and began this company to help people understand the basics of credit, debt and finances.  It wasn’t until I left the banking and lending world that I really and truly began to understand the entire fraudulent scheme behind our financial system.  Below I will give you an example of a court case and explain in detail how money is unlawfully borrowed and lent in this Country.  It will help explain with FACTS why so many families are being financially fleeced nationwide.  More details, FACTS and explanations will follow in other newsletters.

In a Minnesota case (First National Bank of Montgomery, Plaintiff, vs. Jerome Daly, Defendant, IN THE JUSTICE COURT, STATE OF MINNESOTA, COUNTY OF SCOTT, TOWNSHIP OF CREDIT RIVER, JUSTICE MARTIN V. MAHONEY) the court stated in their “FINDING OF FACT, CONCLUSION OF LAW, JUDGEMENT AND DETERMINATION, that, As is evidenced from the book: “The Federal Reserve System; Its Purposes and Functions”; (1^st Ed) pages 74 to 78 and 177 and 180, put out by the Board of Governors of the Federal Reserve System, Washington D.C., 1963, the said Federal Reserve Banks and National Banks create money and credit upon their books and exercise the ultimate prerogative of expanding and reducing the supply of money or credit in the United States. See especially page 75 of the Manual. This creation of money or credit upon the Books of the Banks constitutes the creation of fiat money by bookkeeping entry. Ninety per cent or more of the credit never leaves the books of the Banks as the Banks produce no specie as backing. When the Federal Reserve Banks and National Banks acquire United States Bonds and Securities, State Bonds and Securities, State Subdivision Bonds and Securities, mortgages on private Real property and mortgages on private personal property, the said banks create the money and credit upon their books by bookkeeping entry. The first time that the money comes into existence is when they create it on their bank books by bookkeeping entry. The banks create it out of nothing… The Federal Reserve Notes are unlawful and void!

            In the JUDGEMENT AND DECREE, in this court case, the court states that the Banker, Mr. Morgan, “…admitted that all of the money or credit which was used as a consideration was created upon their books, that this was a standard banking practice exercised by their bank in combination with the Federal Reserve Bank of Minneapolis, another private bank, further that he knew of no United States Statute or Law that gave the Plaintiff the authority to do this…”

            The Federal Reserve Bank is boisterous about the fraud they inflict on Sovereign United States Citizens. “The actual process of money creation takes place in the banks.” (Modern Money Mechanics, Federal Reserve Bank of Chicago, page 3) This pamphlet uses an example of $10,000 being deposited from the Federal Reserve Bank to “Bank A” and shows how that develops into an increase in assets to the amount of an additional $90,000. From another Reserve Bank publication, this time from page 8 of Philadelphia’s The National Debt, “The Federal Government, with the cooperation of the Federal Reserve, has the inherent power to create money-almost any amount of it. This power makes technical bankruptcy out of the question.” So not only are the banks committing fraudulent activity in the sense that they claiming asset value from their debt and secondly loaning out more than they have borrowed, they are protected from any risk of bankruptcy courtesy of creating money out of thin air.

            Essentially the Federal Reserve simultaneously creates an asset and liability of the same amount with a private bank. The net sum is zero. This money is “deposited” in the banks federal reserve account. The private bank can then use this money as a reserve through which they can lend out additional money to the public. This reserve rate is generally 10%. Thus, a “deposit” of the USFed of $10,000 will transform into the private bank being able to loan out $90,000.  

If I borrowed $1000.00 from a private party and unknown to me this party went into the back room and “created” the $1000.00 and presented me with counterfeit money. This party required me to put up a piece of personal property as collateral for the loan. In the course of the next few days and weeks I spent the money and those who I had purchased items from accepted the money the same as I had originally. Only later did I learn that the money I had originally borrowed was counterfeit and the loan had been created fraudulently. I would not be required to repay to the lender a loan that in actuality never existed. Instead the law would require me to report said fraud to the proper authorities. In turn, the piece of property required as collateral for the fraudulent loan would be free and clear because the “loan” never existed.