Here’s a short and sweet video that reports on court case (Daly v First National Bank of Montgomery) in which it was clearly shown how banks create money by making loans, and the illegitimacy of that process.
And if you are facing foreclosure on your mortgage, the three magic words that might forestall the action are “produce the note.” This Fox news report explains it.
Beyond Money 
I confess to some confusion over this notion of money being created ‘out of nothing’. Firstly, I should state that I define money as ‘credit’. Thus, as I see things, money is never created out of nothing. It is actually created on the foundation of a promise to repay.
Now, there are certainly all kinds of questions in respect of who gets to issue the credit, on what basis, to whom, and whether or not the application of ‘interest’ can ever be considered legitimate when applied to credit? But one factor must always remains constant – the credit issued (a debt in other words) must be repaid. Widespread default or refusal to repay will simply ensure the swift collapse of whatever constitutes the financial edifice. .
The Mr Daly featured within the video voluntarily used a credit instrument to purchase an asset. He was ultimately either unable or unwilling to repay his debt and sought to renege via a legal technicality. Looking at the outcome, it is actually Mr Daly who finished up with full value via ownership of an asset for which he had only partly paid. So, please explain to me, who exactly was the victim and who the beneficiary in this particular instance? In reality, is not Mr Daly the party who has created ‘something (ie: – value) out of nothing’, with the wider community, by means of the excess of circulating credit being the ultimate loser?
The notion that a bank must have the ‘money as property’ prior to making a loan in order to confer legitimacy on the transaction is simply an argument for full reserve banking where existing, deposited wealth is loaned out – and on which by the way, interest can then legitimately be charged on the basis of compensation for loss of usage or a measure of the degree of risk involved.
If ‘consideration’ as defined within the video is alone the necessary condition for any loan, then surely it’s goodbye to credit, and cheerio to a key that unlocks a huge amount of economic activity.
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Hi Tom;
Long time…been in seclusion…writing about the need to understand that Debt is nothing more than an enslavement tool…that we need to agree upon a course of creating Value based money, transparently, to free society from the tyranny of our present controllers. any thoughts? Do you still hold on to the thought that Debt is a reality? I’ll be back on the main land in April. Do you know where you will be? Love to touch base again, since you are one of those who originally set my path. Keep fighting the good fight Tom and we will meet on the other side.
In Lak’ech Love&Peace David.
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David,
“any thoughts?” What do you think I’ve been writing and speaking about for the past 30 years?
Debt is a reality for those who believe it is legitimate.It is our sense of honor and obligation that keeps us enslaved so long as we are unable to distinguish legitimate debt from illegitimate debt.
Read my latest article, 50 Ways to Leave the Euro: Greece and the Global Crisis.
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Derivatives – The Unregulated Global Casino for Banks!!! 😉
http://demonocracy.info/infographics/usa/derivatives/bank_exposure.html
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We’ve been had. We The people need to take money creation out of the hands of the crooks and put I back where it belongs.
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