What is Money? - Well today in England the currency is 'Bank Notes' but there is one very important difference with the notes issued these days and Knowledge is Power will explain why;
These notes are issued by the private company called "The Bank of England" (which is as good a name for a company as any other name). However, if you were to take one of their bank notes to the premises of that company and ask for it to be cashed, all that they would do is give you another note with the same number of pounds written on it, or alternatively, some other notes with smaller numbers printed on them! This is because, unlike the original bank notes, there is nothing of any physical value backing up the bank notes of today - they are only worth the physical paper on which they are printed.
Ridiculous?...WELL IT GETS WORSE!
What happens most commonly nowadays is that they do not even bother printing those pieces of paper. Now, they just tap some numbers into a computer record, or if they are old-fashioned enough, they write the numbers into a ledger. What do those numbers represent? Nothing at all - they have no actual value, in other words, just as much value as if you typed them into your own computer - quite meaningless. And yet, a bank or other financial institution will merrily "lend" you those numbers in return for years of your work - now isn't that really generous of them!?
Actually, this is not at all funny, because if you don't keep paying them money earned by your very real work, then they will attempt to take your house and possessions away from you. This won't happen if you understand that what they lent you was actually valueless. Take the case of Jerome Daly of Minnesota in America. In court, Jerome challenged the right of the bank to foreclose on his home which had been purchased with a loan from the bank. Jerome argued that any mortgage contract required that both parties (that is, himself and the bank), to put up a legitimate form of property for the exchange. In legal language, that is called a legitimate "consideration" put forward by both parties to the contract.
Jerome explained that the "money" was in fact, not the property of the bank as it had been created out of nothing as soon as the loan agreement was signed. That is, the money does not come out of the bank's existing assets as the bank is simply inventing it and in reality, the bank is putting up nothing of it's own, except for a theoretical liability on paper. As the court case progressed, the President of the bank, Mr Morgan, took the stand and admitted that the bank, in combination with the (privately owned commercial company called) "The Federal Reserve Bank", created the entire amount of the loan in credit in it's own books by means of a bookkeeping entry, the money and credit coming into existence when they created it. Further, Mr Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and must be tendered to support the loan agreement. The jury found that there had been no lawful consideration put forward by the bank and so the court rejected the bank's application for foreclosure and Jerome Daly kept his home!
That is exactly the situation with all British mortgages. When someone makes an application for a mortgage or any other loan, the applicant's signature is required on the application form before the loan is approved. That signed application is a valuable piece of paper which the bank can lodge in it's accounts as a credit to the bank for the amount of the loan. The bank could just keep that application form and stay £100,000 or whatever, ahead, but they want more, much more. They want the borrower to pay them that same amount again, funding it by years of work, and not only the amount of the supposed "loan" but significant extra in interest. Why do you think that they are so keen to lend you "money" - they are even willing to lend to people with very poor credit records as there is no way that the bank can lose out on the deal, no matter what happens.
This is why, if a company starts demanding payment of large sums of money, you start by asking them to provide the "accounting" for the deal. In other words, you are asking them to show in writing that they provided something of genuine worth as their side of the loan contract. As they invented the money as numbers in their books with no real worth attached to those numbers, they are in deep trouble as they can't comply with your demand to see their accounting for the deal. Did you ever wonder how the average bank manages to make hundreds of millions of pounds profit every year? Well, you are looking right at where a large chunk of it comes from!
This next part of the information may be a little difficult to understand. When any business is being run, the accounts are recorded as money coming in and money going out. For a bank, the money coming in is called a "Credit" and money going out is called a "Debit". The objective is to have these two amounts match each other for any customer. Not everything done in banking is immediately obvious to the average person and so it may be a little difficult to understand how everything works in this area.
FOR INSTANCE;
If you have an account with a bank and you deposit £500 to open the account, the bank enters that in it's books as a Credit. The Credit on your account is £500 and the Debit is £0 and so the balance has a positive, or Credit value of £500.
If you were to withdraw £600, then the bank would record this as a Debit of £600 and as the Credit balance on your account is £500, the balance on your account would be £100 in Debit, that is, overdrawn by £100 right?
If you were to lodge a further £100 and then close your account, the bank would not have any problem, other than the fact that they would like to keep you on as a customer. As far as the accounting goes, your account is balanced and the bank is satisfied with the state of affairs, £600 has come in and £600 has gone out, the books balance - case closed.
NOW, if you were to apply for a loan (mortgage or otherwise) for £100,000 from the bank, they would give you an application form which is set out in such a way that you have to fill in the Legal Fiction / Strawman's name rather than your own - separate boxes with one of them containing "Mr" or "Mrs" etc and they may even require you to fill the form in using block capitals. You may think that the capitals are so that they can read you writing or perhaps, to make it easier for it to be entered into a computer, but the name in those capital letters belongs to the Legal Fiction / Strawman and not to you! All you have done is actually made an application on behalf of the Legal Fiction / Strawman and not on behalf of yourself!
You might wonder why they would want to do that!?...After all, what could they ever get from the Legal Fiction / Strawman? Well, you might be surprised. When the Legal Fiction / Strawman was incorporated they assigned a large monetary value to it, possibly £100,000,000 and they have been trading on the stock market on behalf of the strawman ever since, and you know how many years that has been. So, very surprisingly, in their opinion, the little fellow is really very rich, and you have just authorised them to take the amount of your loan application from the Legal Fiction / Strawman's account!
So before the bank passes you any money, it has already got it's money from the Legal Fiction / Strawman account and entered it in it's books as a £100,000 Credit to your loan account. They then place £100,000 into your loan account as a Debit. Interestingly, that loan account is now balanced and could easily be closed off as a completed deal.
THIS IS WHERE THE EVEN SNEAKIER PART COMES IN!...To get the money out of your account, you have to write and sign a cheque for £100,000 on that account. What does the bank do with cheques which you sign? It assigns them to the account as an asset of the bank, and suddenly, the bank is ahead by £100,000 because the cheque is in the name of the Legal Fiction / Strawman who can supply the bank with almost any amount of money. But it doesn't end there, as the bank is confident that you know so little about what is going on that you will pay them anything up to £100,000 over the years, against what you believe you owe them!...If that happens, then they have made yet another £100,000 for the bank. To make things even better for them, they want you to pay them interest on the money which you (don't actually) owe them. Overall, they make a great deal of money when you borrow from them, so perhaps you can see now why banks make hundreds of millions in profit each year!?
If the loan was used to buy a property, then the bank probably insisted that you lodged the title deeds with them as soon as the property deal was completed. If you then fail to keep paying them, they are likely to attempt to foreclose on the "loan" and sell your property quickly for an even greater profit. And to add insult to injury, if the property sale did not exceed the amount of the "loan" plus the charges for selling it, then they are likely to claim that you owe them the difference!!
Perhaps you can now see why Jerome Daly told them to go take a running jump at themselves, and why your asking for "the accounting" for any loan made to you, puts the bank in an impossible situation. If the bank then just writes and says that the "debt" is fully discharged, they have still made a massive profit on the operation and they also hope that the vast majority of customers will not catch on to the fact that they are paying far too much or even that there is a Legal Fiction / Strawman involved.
Please don't feel that you are ripping the banks off if you don't pay them!...what they are asking you to pay - they have already recovered everything paid out to you before you start paying them, for the second or third time.
SO THERE YOU HAVE IT! - Knowledge is Power - UK.
Ridiculous?...WELL IT GETS WORSE!
What happens most commonly nowadays is that they do not even bother printing those pieces of paper. Now, they just tap some numbers into a computer record, or if they are old-fashioned enough, they write the numbers into a ledger. What do those numbers represent? Nothing at all - they have no actual value, in other words, just as much value as if you typed them into your own computer - quite meaningless. And yet, a bank or other financial institution will merrily "lend" you those numbers in return for years of your work - now isn't that really generous of them!?
Actually, this is not at all funny, because if you don't keep paying them money earned by your very real work, then they will attempt to take your house and possessions away from you. This won't happen if you understand that what they lent you was actually valueless. Take the case of Jerome Daly of Minnesota in America. In court, Jerome challenged the right of the bank to foreclose on his home which had been purchased with a loan from the bank. Jerome argued that any mortgage contract required that both parties (that is, himself and the bank), to put up a legitimate form of property for the exchange. In legal language, that is called a legitimate "consideration" put forward by both parties to the contract.
Jerome explained that the "money" was in fact, not the property of the bank as it had been created out of nothing as soon as the loan agreement was signed. That is, the money does not come out of the bank's existing assets as the bank is simply inventing it and in reality, the bank is putting up nothing of it's own, except for a theoretical liability on paper. As the court case progressed, the President of the bank, Mr Morgan, took the stand and admitted that the bank, in combination with the (privately owned commercial company called) "The Federal Reserve Bank", created the entire amount of the loan in credit in it's own books by means of a bookkeeping entry, the money and credit coming into existence when they created it. Further, Mr Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and must be tendered to support the loan agreement. The jury found that there had been no lawful consideration put forward by the bank and so the court rejected the bank's application for foreclosure and Jerome Daly kept his home!
That is exactly the situation with all British mortgages. When someone makes an application for a mortgage or any other loan, the applicant's signature is required on the application form before the loan is approved. That signed application is a valuable piece of paper which the bank can lodge in it's accounts as a credit to the bank for the amount of the loan. The bank could just keep that application form and stay £100,000 or whatever, ahead, but they want more, much more. They want the borrower to pay them that same amount again, funding it by years of work, and not only the amount of the supposed "loan" but significant extra in interest. Why do you think that they are so keen to lend you "money" - they are even willing to lend to people with very poor credit records as there is no way that the bank can lose out on the deal, no matter what happens.
This is why, if a company starts demanding payment of large sums of money, you start by asking them to provide the "accounting" for the deal. In other words, you are asking them to show in writing that they provided something of genuine worth as their side of the loan contract. As they invented the money as numbers in their books with no real worth attached to those numbers, they are in deep trouble as they can't comply with your demand to see their accounting for the deal. Did you ever wonder how the average bank manages to make hundreds of millions of pounds profit every year? Well, you are looking right at where a large chunk of it comes from!
This next part of the information may be a little difficult to understand. When any business is being run, the accounts are recorded as money coming in and money going out. For a bank, the money coming in is called a "Credit" and money going out is called a "Debit". The objective is to have these two amounts match each other for any customer. Not everything done in banking is immediately obvious to the average person and so it may be a little difficult to understand how everything works in this area.
FOR INSTANCE;
If you have an account with a bank and you deposit £500 to open the account, the bank enters that in it's books as a Credit. The Credit on your account is £500 and the Debit is £0 and so the balance has a positive, or Credit value of £500.
If you were to withdraw £600, then the bank would record this as a Debit of £600 and as the Credit balance on your account is £500, the balance on your account would be £100 in Debit, that is, overdrawn by £100 right?
If you were to lodge a further £100 and then close your account, the bank would not have any problem, other than the fact that they would like to keep you on as a customer. As far as the accounting goes, your account is balanced and the bank is satisfied with the state of affairs, £600 has come in and £600 has gone out, the books balance - case closed.
NOW, if you were to apply for a loan (mortgage or otherwise) for £100,000 from the bank, they would give you an application form which is set out in such a way that you have to fill in the Legal Fiction / Strawman's name rather than your own - separate boxes with one of them containing "Mr" or "Mrs" etc and they may even require you to fill the form in using block capitals. You may think that the capitals are so that they can read you writing or perhaps, to make it easier for it to be entered into a computer, but the name in those capital letters belongs to the Legal Fiction / Strawman and not to you! All you have done is actually made an application on behalf of the Legal Fiction / Strawman and not on behalf of yourself!
You might wonder why they would want to do that!?...After all, what could they ever get from the Legal Fiction / Strawman? Well, you might be surprised. When the Legal Fiction / Strawman was incorporated they assigned a large monetary value to it, possibly £100,000,000 and they have been trading on the stock market on behalf of the strawman ever since, and you know how many years that has been. So, very surprisingly, in their opinion, the little fellow is really very rich, and you have just authorised them to take the amount of your loan application from the Legal Fiction / Strawman's account!
So before the bank passes you any money, it has already got it's money from the Legal Fiction / Strawman account and entered it in it's books as a £100,000 Credit to your loan account. They then place £100,000 into your loan account as a Debit. Interestingly, that loan account is now balanced and could easily be closed off as a completed deal.
THIS IS WHERE THE EVEN SNEAKIER PART COMES IN!...To get the money out of your account, you have to write and sign a cheque for £100,000 on that account. What does the bank do with cheques which you sign? It assigns them to the account as an asset of the bank, and suddenly, the bank is ahead by £100,000 because the cheque is in the name of the Legal Fiction / Strawman who can supply the bank with almost any amount of money. But it doesn't end there, as the bank is confident that you know so little about what is going on that you will pay them anything up to £100,000 over the years, against what you believe you owe them!...If that happens, then they have made yet another £100,000 for the bank. To make things even better for them, they want you to pay them interest on the money which you (don't actually) owe them. Overall, they make a great deal of money when you borrow from them, so perhaps you can see now why banks make hundreds of millions in profit each year!?
If the loan was used to buy a property, then the bank probably insisted that you lodged the title deeds with them as soon as the property deal was completed. If you then fail to keep paying them, they are likely to attempt to foreclose on the "loan" and sell your property quickly for an even greater profit. And to add insult to injury, if the property sale did not exceed the amount of the "loan" plus the charges for selling it, then they are likely to claim that you owe them the difference!!
Perhaps you can now see why Jerome Daly told them to go take a running jump at themselves, and why your asking for "the accounting" for any loan made to you, puts the bank in an impossible situation. If the bank then just writes and says that the "debt" is fully discharged, they have still made a massive profit on the operation and they also hope that the vast majority of customers will not catch on to the fact that they are paying far too much or even that there is a Legal Fiction / Strawman involved.
Please don't feel that you are ripping the banks off if you don't pay them!...what they are asking you to pay - they have already recovered everything paid out to you before you start paying them, for the second or third time.
SO THERE YOU HAVE IT! - Knowledge is Power - UK.