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Debt Elimination
Last Updated  Wednesday, February 24, 2016                   

Eliminate Debt Totally  

100% Cancelled, Terminated

Most important, you must understand that the debt is not yours personally. Since you began doing money transactions, you've functioned as a voluntary fiduciary representative for a trust account, paying its bills with your energy. When you set up your first checking account, you accepted this relationship with the trust the government had set up in your name. You have not had control of this trust because you never claimed it and your parents didn't know. Debt elimination begins with knowledge.
One way to see this in action is to notice how the "System" maintains the illusion by deception. Look at your checkbook. How did they present your name? ALL CAPS. Odd, isn't it? Then try to have them CHANGE that to normal capitalization of only the first letters of your name. They can't do it because their data input will not permit that. Bank personnel don't understand.  Sometimes they insist on ALL CAPS because they would like to be very clear and allow no mistakes? The clue to that answer is  the line on which you sign your name. It's not a line. It's nearly microscopic words, some of the finest fine print you might ever encounter. It generally says something like "ONLY AUTHORIZED REPRESENTATIVE". So you the human being has been given authority to sign the checks of your trust, which is an incorporated entity, a fiction.

If you are heavily in DEBT to credit card companies, we can help you eliminate credit card debt. Student loans or tax liens? Discharge these debts quickly, painlessly, legally and without damaging your credit report. This might be the easiest form of debt elimination.

In 2005 there were over 1.3 million bankruptcies, the majority caused by unmanageable credit card debt. Debt elimination might have made bankruptcy unnecessary. They didn't know that they could eliminate credit card debt totally. What these credit card holders didn't realize is that when banks approved their credit card and established their credit limit; the banks used their name and signature to create the money to fund the card. So, in essence, it was the their own money! That fraud makes it possible to eliminate credit card debt.

How can such a con game be allowed? A few generations back, just as a new Congress and President were about to take office, and when many congressmen had left Washington, DC for their Christmas holiday, laws drafted by international bankers to set up the Federal Reserve System were passed hurriedly with little debate. Most people don't realize this, but the Federal Reserve also owns and controls the IRS. The Federal Reserve is a private corporation and IS NOT a part of the government. The Federal Reserve is no more "Federal" than Federal Express. This fraud also makes it possible to eliminate credit card debt, student loans, and taxes.

Banks, credit card companies, and other financial institutions advertise that they are in business of lending money, but this is false and their own accounting system shows that the exact opposite is true.  They are not permitted to lend their own money OR the money of depositors. Knowledge is our strength and we show you how to use it to your advantage in correcting such predatory lending practices through debt elimination. You CAN eliminate credit card debt totally, not through debt consolidation, not by debt counseling...eliminate credit card debt now, cancel credit card debt legally.

In the past few years, we've helped many folks, just like you, to lawfully and morally "unload," terminate, "zero-out" and CANCEL millions of dollars in credit card debts. Now that's real debt elimination! If you've been looking for a way to eliminate credit card debt,  you'll discover valuable facts very few Americans know, knowledge you can use to get started now canceling your credit card debt! Debt elimination is an administrative process you can use to obtain real freedom.

Does that sound incredible to you? That you could actually eliminate credit card debts and never make another payment? More than a few of the people who have come to us for help have felt that way, too:

Eliminate Credit Card Debt and More

Bankruptcy laws have changed.  Many former bankruptcy attorneys have gone on to other legal arenas. This debt elimination process is not about bankruptcy. This has nothing to do with "debt counseling" or reduced payment plans! Debt elimination is notabout the  consolidation or management of your credit card debts. This is about not making payments right away and making the lenders pay for lying to you. Learn how the banks really work and how the entire money system has been rigged.  You’ll be surprised and maybe a little upset! But we’ll help you turn it to your advantage with easy to follow debt elimination steps to real freedom as you eliminate credit card debt.

How are debt elimination programs different from bankruptcy? What our debt elimination programs provide is more than debt forgiveness.  There are multiple tools to take back your power as an individual, as a human being.  And perhaps your dignity, too.  Bankruptcy requires you to tacitly admit that you screwed up. These debt elimination programs use the law and statutes to obtain your freedom and take back the power you don't even know you lost yet.  Some people have the lenders pay for the program.  You finally owe nothing for the program and sweet justice prevails. When you eliminate credit card debt, you are actually striking a blow for real freedom through debt elimination.

There are at least 3 debt elimination procedures that can be used administratively to eliminate credit card debt:

1. challenge the validation of the debt

2. file a commercial lien against YOUR trust

3. novation of contract
Validation as a debt elimination process to eliminate credit card debt

First you must understand that in our money system there are no funds because there is technically, no money. There is only debt and the debt instruments that are used in place of money. The credit card lender did not loan you any money. They didn't even lend you their credit. They aren't allowed to do that. They used YOUR credit to authorize the use of the card. You can very simply establish this by demanding that they validate the debt. That is, someone in a position of authority at the "lending" corporation would have to sign an affidavit under oath that the debt that they claim you owe is a valid debt. They can't and they won't. They have actually committed fraud and now you are asking them to sign for it. No way they want to stick their neck in THAT noose. Failing to sign the affidavit, they just write the debt off as a loss. This normally takes a series of communications and eventually you paint them into a corner and they quit. If they try to have a collection agency get involved, you simply remind them that the collection agency is not a party to the contract and cannot speak for the "lender." They might have an attorney get involved, but the attorney would have to validate the debt, as well, and handled very promptly, exactly and professionally, your process grinds them to a halt.

Filing a commercial lien against your own trust to eliminate credit card debt

Another version of this debt elimination process picks up on the fact that there are no funds, just debt money. Look at a dollar bill. It does say Federal Reserve NOTE, right? It's a debt instrument that's being used as though it were real money. When you agreed to use the credit card, they used your assent, your signature to create the credit. They used your name to create a trust with themselves named as trustees, and they have used that trust as collateral on the national debt.

That collateralization is in an asset account for the trust after it was monetized on the world money market. Eliminate Debt Process #3 establishes YOUR right as the trustorand takes that trust back under your control. Under your control you can transfer trust assets to the trust debt account, thereby discharging the debt. Debt elimination by discharging debt.

You next must understand that the debt is not yours personally. You have, since you began doing money transactions, functioned as a voluntary fiduciary representative for that trust account, paying its bills with your own phony debt money. When you set up your first checking account, you accepted this relationship with the trust the government had set up in your name. You have not had control of this trust because you never claimed it and your parents could not control it for you because they were wards of the State like you and had never claimed it..
One way to see this in action is to notice how the "System" maintains the illusion by artifice and deception. Look at your checkbook. How did they present your name? ALL CAPS. Odd, isn't it? That's similar to your name but you most likely don't spell it with all capital letters. What I did a few years back when I needed more check blanks was to ask the people at the bank to CHANGE my name to normal capitalization of the first letters of my name. She COULDN'T do it because her computer would not permit that. The bank personnel will be unaware of why that is. I just shrugged my shoulders, grinned and told her that that was OK, go ahead and do it the way it was. Do they insist on ALL CAPS because they would like to be very clear and allow no mistakes? The clue to that answer is in the line on which you sign your name. It's not a line. It's nearly microscopic words, fine print, some of the finest fine print you might ever encounter. It generally says something like "ONLY AUTHORIZED REPRESENTATIVE".
If you are familiar with the corporate world, you know that only AUTHORIZED personnel are permitted to sign corporate checks. The AUTHORIZED REPRESENTATIVE of the corporation alone has this role. So you the human being has been given authority to sign the checks of your trust, which is an incorporated entity, a fiction.
For over 125 years, corporations have had many of the attributes of human citizens. Making a fictitious entity that has real attributes of a living person in the law, they can deceive you the real human whose name the bank corporations have appropriated from your birth certificate. The birth certificate represents an Official Certificate of Manufacturer that in the hands of the government can be pledged on a debt, the national debt. The IRS is the collection agency for this pledge. Its roots are not in the United States Code but in the necessity of the Federal Reserve and its parent corporation, the IMF, to collect on the debt instrument they hold. This ALL CAPS name is how the US corporation, State corporation, County corporation, or School District corporation can communicate with you through this Corporate YOU. Interesting, isn't it. It gets better.
When you place a commercial lien against the Corporate YOU for what it owes you for paying its bills or simply because it is yours and you have the birth certificate, drivers license, etc to prove it, then and only then do you take back the power that they had usurped from you at birth. The Constitution says that they cannot levy a tax directly on the citizens of a State. So they don't. They levy a tax on a corporation which they control and send the bill to wherever you reside knowing that you will never figure it out. And you will pay and pay obediently.
Similar to The Matrix, you are trapped in a system that extracts your energy through a fiction and fools the real you into identifying with that fiction. As long as you identify with that fiction they can continue to control the real you in many ways because you are chattel for their purposes. Your children can be taken away, sent off to fight in wars, forced to bow to the demands of the System. That's why debt elimination is the path to real freedom. Are you starting to get the picture?
It's all commerce. That's why witnesses in court testify in the "dock." They are vessels. That's why the flag displayed in the courtroom has all that gold braid and fringe. It's an admiralty court that administers the law of commerce. No, the government might not wish to release you from your debt slavery but when you have taken the necessary legal steps to discriminate between you, the real person, and the fictitious person, they cannot by law expect you to pay the bills assessed to the fiction because you have declared that IT owes you and before ANYONE gets paid, you get paid. It's a commercial lien on a debtor entity. You are following THEIR rules to obtain YOUR freedom and independence.
It's not YOUR poor spending habits. It's not even YOUR national debt to be repaid. The malfeasance and misfeasance of the government is at fault. Since they took all of the REAL money away, and took your energy through fraud, they left no means to ACTUALLY pay your bills.  When you agreed to the use of any or all credit cards, YOU, the living human being, created the "money" to pay the bills. The Federal Reserve Bank (a private institution with NO reserves) deposited that fake "money" in THEIR account and has demanded that you pay interest on it until you have obtained sufficient debt instruments ('money") to exchange for the discharge of the debt. That credit card is not yours, either, you know. Look at the name. Take out your credit cards and look at the name...ALL CAPS. The debt is owed by the fiction even though you have had use of the merchandise or services. The fault lies in a government that has coerced, cajoled, or was complicit in extorting energy from you and intentionally or unintentionally fumbling away your heritage and the future of your family. When you finally TAKE RESPONSIBILITY for yourself instead of remaining a ward of the state, you mark your maturity as a real human being who is the creator of government, not its chattel. When you eliminate credit card debt you are also doing your patriotic duty to the real united States of America. 

Secret Weapon Against Lawsuits, the IRS, and More!

Banks rarely go to the trouble and expense of attempting to sue someone who has stopped paying on their credit cards, and that's under normal circumstances!  When they know you have evidence that they've violated Federal law it's very unlikely that they will file suit. They certainly don't wish to sign their names to any affidavit of validation. They must obey the regulations that prevent predatory lending in consumer protection laws.


The non-adversarial, administrative approach shows you how to use 3 different ways to use the UCC administrative processes for those who are not in default or in danger of default. All are non-adversarial ways to eliminate credit card debt and cost the same no matter the number of credit cards, the amount owed, or the number of times you wish to use the process to eliminate credit card debt. We show you how to use a commercial filing of a lien against a constructive trust account at the US Treasury which with proper forms and procedures gives you status as First Creditor. Transferring assets within the national bankruptcy you can discharge your debt as you reduce the national debt. You might be able to continue to use the credit card....and keep on discharging it! The third wau to eliminate credit card debt utilizes the law of contract to change the contract the same way the credit card "lender" often changes it without you knowing it. This third process to eliminate credit card debt is called Novation.

So you have 3 excellent choices to eliminate credit card debt: validation, commercial lien, and Novation. You get to choose how you will eliminate credit card debt.


Eliminate Credit Card Debt by Novation, creating a new contract to replace the first


Purpose:   It is the purpose of the credit card dispute and Novation Contract program to eliminate credit card debt and 
to clean up your credit record using procedures permitted by contract common law, 

The Uniform Commercial Code, the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.

NOVATIONS UNDER THE LAWA Novation is a new agreement and is recognized in the law.  

The definition of Novation from Bouvier’s 1856 law dictionary illustrates:NOVATION, 

civil law. 

1. Novation is a substitution of a new for an old debt. The old debt is extinguished by the new one contracted in its stead; a novation may be made in three different ways, which form three distinct kinds of novations. 

2. , The first takes place, without the intervention of any new person, where a debtor contracts a new engagement with his creditor, in consideration of being liberated from the former.  
This kind has no appropriate name, and is called a novation generally.

Your Novation Contract substitutes a new debt (zero) and a new engagement for the one claimed by the credit card company.

EVERY credit card company uses the novation contract process.  

Any time you get a Notice of an update to the terms and conditions of your credit card agreement, 
this update is in fact an offer to enter into a novation contract (a new agreement).  
When you use the credit card after receiving the new update, you have agreed to the new terms.  
Your act of using the card is anacceptance of the new agreement.  
How else could they change your credit card agreement?  

Insurance companies use this also, such as when you have a claim for $20,000 for damage and they send you $3,000.


You can use the same process to enter into a new agreement with a card company, under your terms and conditions, by making the company an offer, which it can accept with an act.  

Simply, you send the card company a check for some amount, say $25, with the stated condition that by accepting the check, it agrees to your new terms and conditions (your Novation Contract).  When the card company accepts the check by cashing it, it has agreed to your new Novation Contract.  And you eliminate credit card debt in a simple, legal procedure. 
Get out of debt by using their law to your advantage.Your notice of debt dispute and Novation Contract is designed to do the following:   

(1) Bind your credit card company to the terms and conditions of your Novation Contract which include but are not limited to:  

a) the cancellation of any and all prior in-force agreements;
b) its admission that the debt and all prior agreements are now paid in full; 
c) its waiver of all claimed right of arbitration against you; 
d) its obligation to report the account in dispute as “paid as agreed” to credit reporting agencies;
e) its agreement to not take any collection activity against you and to inform any assignees of the account that it has agreed that the account is “paid as agreed”; 
f) the requirement that it verify under oath the amount of debt you allegedly owe in any correspondence to you; and
g) its agreement that any breach of the terms of the Novation Contract by them will injure and damage you and that it will be liable for all damages; 

(2) Upon notice, bind any and all collection agents of your credit card company and third party collection companies to your Novation Contract;.

(3) Establish a legal basis for a claim of zero liability for the disputed credit card account;

(4) Establish a legal basis for declaring invalid any and all allegations of debt made against you that are associated with the credit card account and sent through the U.S. mails;

(5) Establish a legal basis for claiming injuries and damages should the credit card company or any collection agency breach the terms and conditions of your Novation Contract; and, 

(6) Destroy any legal basis for the credit card company or any collection agent  to ignore your card dispute and Novation Contract by your: 

a) choosing and using a procedure permitted and recognized by contract common law, the Uniform Commercial Code, the Fair Debt Collection Practices Act, and the Fair Credit Reporting Act; 

b) establishing the card company’s obligation and third party collector’s obligation to verify under oaththe amount of any debt they allege you owe; 
c) removing any controversy between your demand for verification of any alleged debt and any and all presentments by third parties containing unverified allegations of debt against you; and, 
d) removing any presumption that you willfully avoided a known debt. 


1.  In every legal dispute, one side is considered to have the "presumption of truth" and the other side is considered to have the "burden of proof".  
As an example, if a person is accused of a crime the law presumes s/he is innocent until the accuser proves s/he is guilty of the crime beyond a reasonable doubt. 

2.  In contract law, the presumption of truth says a party is presumed to have entered into a contract (in this instance entered into by an implicating act) knowingly and willingly and for an exchange of adequate and sufficient consideration.

3.  It cannot accept the benefit of your offer without accepting the obligations of your offer.  This doctrine is set forth in cases, Aetna Inv. Corporation v. Chandler Landscape and Floral CO., 227 Mo.App. 17, 50 S.W.2d. 195, 197 andIn re Larney’s Estate, 148 Misc. 871, 266 N.Y.S. 563. 
By sending your Novation offer and notice of your card dispute: 

A.  Your contract is supported with adequate and sufficient consideration in the form of a check made to your credit card company for an amount between $25.00 and $100.00;

B.  You detail with clear language the consequences of the card company accepting your offer;

C.  You declare the legal basis for claiming zero liability for the account or for any debt alleged through a prior agreement once your offer is accepted; and,

D.  You state the adverse consequences to the card company of any collection activity that does not contain sworn verified proof of your obligation as a debtor.


To verify proof of your alleged debt liability, the collection entity must provide to you verification by sworn statement of the amount of lawful money loaned to you and that the claim, demand or request arose from a contract which supercedes your Novation Contract.  It is further noticed that pursuant to the Fair Debt Collection Practices Act, 15 U.S.C. Sec. 1601 et. seq., and the terms and conditions of your Novation Contract, that any collection attempt by it or any agent that does not include the verification of debt conditions will result in breach of your Novation Contract and an admission by them that you have no liability regarding the account in dispute.You will probably receive a response that will constitute an invalid response, and therefore a default and a breach of your Novation Contract, thereby setting the card company up for your claim of damages against it. 


The Big “3” credit reporting bureaus, Equifax, Experian and Trans Union, keep personal information on your credit worthiness.  
They are a “third party” supplier of that information and have not only a legal duty to assure its accuracy but a fiduciary duty as well to maintain the information accurately. This fiduciary role is your friend.  Once it is established that your credit card company has knowingly and willingly entered into a Novation Contract with you, you have a legal basis for requiring the bureaus to designate your account with the credit card company “paid as agreed”.

You send out a Sworn Notice with verified evidence along with a demand to the reporting bureaus that they must remove all negative information from their records unless the credit card company can provide the reporting bureau with VERIFIED proof that your Sworn Notice to it is false or inaccurate.  

This never happens as you have already established and shown the reporting bureau that there is no evidence available or forthcoming that would overcome and outweigh the evidence of the Novation Contract. As a consequence of the fiduciary duties of the reporting bureaus under common law and their obligations under the Fair Credit Reporting Act, the credit reporting bureaus are under a legal duty and obligation that if they receive no verified evidence to overcome and outweigh your Sworn Notice, to designate in their records that the account with the card company is “paid as agreed”.  

They must do this no later than 30 days after they receive your Sworn Notice.  


One process of Mortgage Elimination has provided a highly confidential administrative procedure that had been 100% effective for several years. A non-confrontational way to insure there's no litigation, over 400 homeowners obtained  clear title. However, in the past year or so, the banks reneged on their agreement to reconvey the deed after the debt was discharged. New procedures are needed to complete this administrative remedy.

How serious is it? Nearly EVERY mortgage or deed of trust has 25-35 violations of the statutes and regulations. The best we have seen was only 9 violations. Usually half of these violations are "title issue" which mean that they are so serious that such violations can lead to the lender being forced to give up security interest in the property....your home free and clear of debt. In addition each violation can result in fines against the lender up to $2000 each. You do the math.  Banks COULD lose their banking charter over this and, after all, what bank would be dumb enough to want to take their own fraud into court with someone who knows their secrets and how to deal with them?

Nevertheless, this consumer protection process only addresses the SUPER-greediness of the lenders. There is still an underlying fraud you should be aware of as well. The "lending" techniques that are used are beyond brilliant. It took some very, very smart people to figure out how to appear to be lending money, but in actuality have the value supplied by the person applying for a loan. And that is what is happening.

If you're an honest, ethical person who believes that the party who funds a loan should be repaid, then we can help you. When you discover the truth, you will be happy to be repaid for funding your own loan and wonder why the bankers thought they should be paid.

It's only fair to receive equal protection under the law, equal protection under the bank loan agreement, and for the whole truth about the bank loan agreement to be revealed. The whole truth is NOT revealed to the borrower. The bank or other lending institution does NOT disclose to you that your promissory note is actually an asset to the bank - which they deposit as THEIR asset.

The bank does not let you know that a promissory note is actually a "negotiable instrument" under the Uniform Commercial Code, and that it will be deposited to fund your loan. Nor did they tell you that the bank has a liability to you of approximately the amount of the loan. (The bank owes you by their own bookkeeping entries!)

The bank does NOT tell you that you actually provided the real cash value for your own loan! Thus, the bank onlyappears to be lending you anything.

That's right: banks and lending institutions only appear to lend money. Let's take a quick look at how money is created at the "government" level, then we'll see how this applies to you and your alleged debt.

But is it money? Where did the Federal Reserve get the money to exchange for the government bonds? It made a bookkeeping entry. That's it! Money is created by the banks out of thin air! Our government gave them that power when it created the Federal Reserve System. The Federal Reserve creates money out of nothing; this is usury, the payment of interest on pretended loans; the true cause of the hidden tax called inflation; the way in which the Fed creates boom-bust cycles.  This technique was developed by political and monetary wizards to create money out of nothing for the purpose of lending. This is not an entirely accurate description because it implies that money is created first and then waits for someone to borrow it. 

On the other hand, textbooks on banking often state that money is created out of debt. This also is misleading because it implies that debt exists first and then is converted into money. In truth, money is not created until the instant it is borrowed. It is the act of borrowing which causes it to spring into existence. And, incidentally, it is the act of paying off the debt that causes it to vanish. There is no short phrase that perfectly describes that process. So, until one is invented along the way, we shall continue using the phrase "create money out of nothing" and occasionally add "for the purpose of lending" where necessary to further clarify the meaning. 

So, let us now...see just how far this money/debt-creation process has been carried -- and how it works. 

The first fact that needs to be considered is that our money today has no gold or silver behind it whatsoever. The fraction is not 54% nor 15%. It is 0%. It has traveled the path of all previous fractional money in history and already has degenerated into pure fiat money. The fact that most of it is in the form of checkbook balances rather than paper currency is a mere technicality; and the fact that bankers speak about "reserve ratios" is eyewash. The so-called reserves to which they refer are, in fact, Treasury bonds and other certificates of debt.

    Former Congressman Louis McFadden, chairman of the House Committee on Banking and Currency remarked about the Federal Reserve Bank: "A super-state controlled by international bankers and international industrialists acting together to enslave the world for their own pleasure."

Debt elimination through knowledge of the statutes is an essential part of real freedom

Our money is "pure fiat" through and through. Money by decree.

The second fact that needs to be clearly understood is that, in spite of the technical jargon and seemingly complicated procedures, the actual mechanism by which the Federal Reserve creates money is quite simple. They do it exactly the same way the goldsmiths of old did except, of course, the goldsmiths were limited by the need to hold some precious metals in reserve, whereas the Fed has no such restriction. 

The Federal Reserve is candid. The Federal Reserve itself is amazingly frank about this process.

A booklet published by the Federal Reserve Bank of New York tells us:

Currency cannot be redeemed, or exchanged, for Treasury gold or any other asset used as backing. The question of just what assets 'back' Federal Reserve notes has little but bookkeeping significance.

Elsewhere in the same publication we are told: "Banks are creating money based on a borrower's promise to pay (the IOU)...Banks create money by 'monetizing' the private debts of businesses and individuals.

In a booklet entitled Modern Money Mechanics, now withdrawn, the Federal Reserve Bank of Chicago says:

In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely book entries. Coins do have some intrinsic value as metal, but generally far less than their face amount.

What, then, makes these instruments -- checks, paper money, and coins -- acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and real goods and services whenever they choose to do so. This partly is a matter of law; currency has been designated "legal tender" by the government -- that is, it must be accepted. 

In the fine print of a footnote in a bulletin of the Federal Reserve Bank of St. Louis, we find this surprisingly candid explanation:

Modern monetary systems have a fiat base -- literally money by decree -- with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as reserves. The decree appears on the currency notes: "This note is legal tender for all debts, public and private."

While no individual could refuse to accept such money for debt repayment, exchange contracts could easily be composed to thwart its use in everyday commerce. However, a forceful explanation as to why money is accepted is that the federal government requires it as payment for tax liabilities. Anticipation of the need to clear this debt creates a demand for the pure fiat dollars

Debt Elimination-Money today arises from debt and
Federal Reserve Notes are debt instruments.
"Money" would vanish without debt.

It is difficult for Americans to come to grips with the fact that their total money-supply is backed by nothing but debt, and it is even more mind boggling to visualize that, if everyone paid back all that was borrowed, there would be no money left in existence. 

That's right, there would not be one penny in circulation -- all coins and all paper currency would be returned to bank vaults -- and there would be not one dollar in any one's checking account. In short, all money would disappear. 

Marriner Eccles was the Governor of the Federal Reserve System in 1941. On September 30 of that year, Eccles was asked to give testimony before the House Committee on Banking and Currency. The purpose of the hearing was to obtain information regarding the role of the Federal Reserve in creating conditions that led to the depression of the 1930s. 

Congressman Wright Patman, who was Chairman of that committee, asked how the Fed got the money to purchase two billion dollars worth of government bonds in 1933. 
This is the exchange that followed.

ECCLES: We created it. 
PATMAN: Out of what? 
ECCLES: Out of the right to issue credit money. 
PATMAN: And there is nothing behind it, is there, except our government's credit? 
ECCLES: That is what our money system is. If there were no debts in our money system, there wouldn't be any money.

It must be realized that, while money may represent an asset to selected individuals, when it is considered as an aggregate of the total money supply, it is not an asset at all. A man who borrows $1,000 may think that he has increased his financial position by that amount but he has not. His $1,000 cash asset is offset by his $1,000 loan liability, and his net position is zero. Bank accounts are exactly the same on a larger scale. Add up all the bank accounts in the nation, and it would be easy to assume that all that money represents a gigantic pool of assets which support the economy. Yet, every bit of this money is owed by someone. Some will owe nothing. Others will owe many times what they possess. All added together, the national balance is zero. What we think is money is but a grand illusion. The reality is debt. 

Robert Hemphill was the Credit Manager of the Federal Reserve Bank in Atlanta. In the foreword to a book by Irving Fisher, entitled 100% Money, Hemphill said this:

If all the bank loans were paid, no one could have a bank deposit, and there would not be a dollar of coin or currency in circulation. This is a staggering thought. We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash, or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp of the picture, the tragic absurdity of our hopeless situation is almost incredible -- but there it is.

With the knowledge that money in America is based on debt, it should not come as a surprise to learn that the Federal Reserve System is not the least interested in seeing a reduction in debt in this country, regardless of public utterances to the contrary.

Here is the bottom line from the System's own publications. The Federal Reserve Bank of Philadelphia says:

"A large and growing number of analysts, on the other hand, now regard the national debt as something useful, if not an actual blessing....[They believe] the national debt need not be reduced at all."

The Federal Reserve Bank of Chicago in Modern Money Mechanics adds:

"Debt -- public and private -- is here to stay. It plays an essential role in economic processes.... What is required is not the abolition of debt, but its prudent use and intelligent management." 

More on Equal Protection

Our founding fathers knew about this type of banking. That's why there were provisions in the Constitution of the united States of America to stop this type of banking system to infest our nation. 

Article 1, Section 8, clause 5 states: 

"Congress shall have the power to coin money, regulate the value thereof, and of foreign coin, and fix the standard of weights and measures." 

Article 1, Section 10 in part states: 

"No state shall use any Thing but gold and silver coin as a tender in payment of its debts;" 

Is it more difficult to create money with "creative bookkeeping," (or as President Bush says, "Cookin' the Books") by depositing your promissory note and not telling you? Or is it more difficult to mine the gold and silver to mint the money? 

Mining is difficult and expensive. Bookkeeping entries cost virtually nothing. 

Take a look at the definition of "Bank" in the 4th Edition of Black's Law Dictionary:

"An institution, of great value in the commercial world, empowered to receive deposits of money, to make loans, and to issue its promissory notes (designed to circulate as money, and commonly called 'bank notes' or 'bank-bills,') or to perform any one or more of these functions."

If a promissory note is designed to circulate as money, like money it can be deposited into a checking account, can't it? You bet. 

That was never disclosed in the bank loan agreement, was it? No. 

See, if gold and silver coin were the money, the current banking system could not exist. Our founding fathers knew that. 

Since the promissory note is a negotiable instrument, per the Uniform Commercial Code, at what point did the bank "own" the promissory note? A note is an IOU. It says "I owe you $X, which is to be repaid on this or that date, or through payments." 

Did you give the bank permission to turn your "promise to pay" into money? Probably not. By the bank altering the note and turning it into a negotiable instrument, they changed the cost and the risk to you and them. Before they deposit the note into a checking account, you thought the agreement was that they were going to loan you money. They were the ones at risk. It's your duty to pay them. 

When the bank deposited the note, the entire cost of the loan was funded by you, and you're now supposed to pay them? That's not what you agreed to, is it? Because of this banking system, you are in "debt" with "money" that you provided the value for.

Debt Elimination-bank fraud is pretending to loan money
and charging interest for the pretense. What's wrong with a little debt?

There is a kind of fascinating appeal to this theory. It gives those who expound it an aura of intellectualism, the appearance of being able to grasp a complex economic principle that is beyond the comprehension of mere mortals. And, for the less academically minded, it offers the comfort of at least sounding moderate. After all, what's wrong with a little debt, prudently used and intelligently managed? The answer is nothing, provided the debt is based on an honest transaction. There is plenty wrong with it if it is "based upon fraud".

An honest transaction is one in which a borrower pays an agreed upon sum in return for the temporary use of a lender's asset. That asset could be anything of tangible value. If it were an automobile, for example, then the borrower would pay "rent." If it is money, then the rent is called "interest." Either way, the concept is the same. 

When we go to a lender -- either a bank or a private party -- and receive a loan of money, we are willing to pay interest on the loan in recognition of the fact that the money we are borrowing is an asset which we want to use. It seems only fair to pay a rental fee for that asset to the person who owns it. It is not easy to acquire an automobile, and it is not easy to acquire money -- real money, that is. If the money we are borrowing was earned by someone's labor and talent, they are fully entitled to receive interest on it. But what are we to think of money that is created by the mere stroke of a pen or the click of a computer key? Why should anyone collect a rental fee on that? 

When banks place credits into your checking account, they are merely pretending to lend you money. In reality, they have nothing to lend. Even the money that non-indebted depositors have placed with them was originally created out of nothing in response to someone else's loan. So what entitles the banks to collect rent on nothing? It is immaterial that men everywhere are forced by law to accept these nothing certificates in exchange for real goods and services. We are talking here, not about what is legal, but what is moral. As Thomas Jefferson observed at the time of his protracted battle against central banking in the United States,"No one has a natural right to the trade of money lender, but he who has money to lend." 

Let us, therefore, look at debt and interest in this light. Thomas Edison summed up the immorality of the system when he said:

People who will not turn a shovel of dirt on the project [Muscle Shoals] nor contribute a pound of materials will collect more money...than will the people who will supply all the materials and do all the work.

Is that an exaggeration? Let us consider the purchase of a $100,000 home in which $30,000 represents the cost of the land, architect's fee, sales commissions, building permits, and that sort of thing and $70,000 is the cost of labor and building materials. If the home buyer puts up $30,000 as a down payment, then $70,000 must be borrowed. If the loan is issued at 11% over a 30-year period, the amount of interest paid will be $167,806. That means the amount paid to those who loan the money is about 2 1/2 times greater than paid to those who provide all the labor and all the materials. It is true that this figure represents the time-value of that money over thirty years and easily could be justified on the basis that a lender deserves to be compensated for surrendering the use of his capital for half a lifetime. But that assumes the lender actually had something to surrender, that he had earned the capital, saved it, and then loaned it for construction of someone else's house. What are we to think, however, about a lender who did nothing to earn the money, had not saved it, and, in fact, simply created it out of thin air?

So how does the bank loan actually work?

  1. You want a loan for your home.
  2. The bank advertises that they loan money.
  3. You "apply" for a "loan."
  4. They put you through the ringer and make you glad and relieved that you were able to be approved for a loan. (You know, like they are doing you a really big favor.)
  5. They have you sign a promissory note.

And here's the part you're never supposed to know

  1. Since your promissory note can be sold for money, it's an asset.
  2. The bank deposits the asset into an account for approximately the amount of the note.
  3. The bank cuts you a check from the deposit you never knew about (or transfers the money to those who should be receiving it).
  4. And you think you owe money back on a loan, when in fact all that was made was an exchange.

If the promissory note is an asset, what funded the bank's ownership of the note?" Answer: They still don't really own it. They made an exchange - Your promissory note (asset to the bank) was exchanged for approximately the amount of the loan. You gave the bank an asset worth $100,000 and the bank returned $100,000 to you. Where was the loan? There wasn't one. But you really do have to admit, it's brilliant.

As an honest, ethical person who believes that all loans should be repaid, do you agree that the bank should repay your loan to them? After all, they deposited your promissory note. Your promissory note is an asset that they exchanged for a check. Where's the loan?

Factually, there isn't one. And since all lenders should be repaid, shouldn't the bank repay your loan to them? If so, you wouldn't have the "debt" and would live better.

Quickly, when you deposit money in your checking account, does the bank now owe you that money when you want it? Yes. The bank has a new asset, the $100 you deposited into your checking account. The bank also has a new matching liability that says the bank owes you $100. Assets = Liabilities.

The bookkeeping entries are nearly identical for a deposit into your checking account and for a new loan. By lending, the banks now have more assets and liabilities. If you were to lend me $500, your "pool of money" would be smaller. When a bank "loans" money, their "pool of money" increases.



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