Fraudulent Finance for Dummies
11.04.2009 14:57 in money
Extracted from the longer post on inflation and deflation at the same time.
[Last Edit: 11 Apr 2009]
Fraud in High Places
"Loss of reputation for honorable dealing will bring us unending humiliation. The impending legal and moral chaos is appalling.” Chief Justice Reynolds, in delivering the dissenting minority opinion on the 1935 Supreme Court decision that upheld president Roosevelt’s confiscation of the people’s gold
Unmitigated fraud in high places has resulted in war, death and destruction of liberty, honour, capital, savings and private property and the rule by force of arms by the criminals themselves.
Humanity is at a crossroads, mostly due to its failure to distinguish between a liability for a good and the good itself; as well as its failure to distinguish between what is lawful and what is legal.
This is what led to the 1920s stock boom, the default by the British on their gold obligations on September 20th 1931; the brazen theft by FDR; the last war of distraction from the theft by fraud - WWII; the theft of most or all the US treasury gold, the fight by the parasites over the Japanese spoils of war in Asia - the bars of gold in and around the Philippines; Nixon's default in 1971; the 1990s stock boom followed by the real estate boom followed by 911, Enron and the unfolding failure of money-based-on-nothing.
Christopher Story has a quick summary on fraud at the end of each news item here:
LEGAL TUTORIAL: The Steps of Common Fraud:
When you start with fraud, everything turns to theft via deception and fradulent conveyance. Some examples:
Note 1: Literally they have been fooled: made into a fool.
Note 2: The liability of the fool to pay FRN is circulated by the bank (i.e. to the seller of the property and then onward) and further, the "asset" i.e. the mortgage is bundled and sold on to other banks. The "sub-prime" crisis is so named not because of the interest rate, but because of it stinks like rotten meat. There is no honour amongst thieves.
Note 3: There is no private property in America, only title-by-lease from the local town corporation. Stop paying the rent a.k.a property tax, and you are evicted.
Note 4: The banks risked no capital in "lending" to credit card borrowers and to merchants who sold them goods. The entire "industry" runs on fraud. Can you imagine revealing your swiss bank account number to merchants to pay themselves with?! That the whole thing "works" is a testimony to the honesty and integrity of a majority of participants - save the banks who convey the fraud that they are extending real money and the bottom-dweller credit-card infomation thieves that the banks love so they can recover the principal from the merchant, bump up his discount rate and get $50 from the hapless consumer.
F R A U D and its Roots
There was an old lady1, she chartered a fraud,
Humpty Dumpty sat on a wall
"The old order changeth, yielding place to new,
And God fulfils himself in many ways,
Lest one bad custom should corrupt the world."
The Act of chartering a bank or granting a bank license is itself an act of Ultra Vires - for one or a group of mortal men2 has no power to grant another the privilege of lending money they do not have. Further, it is an inducement to commit fraud, both on the part of the person who applies for a bank license/charter and for the person who grants it. It is an artifice for the chartered bank to suspend running of limitations, planned to prevent lawful inquiry and to escape investigation.
The Act of a bank to monetize and circulate the promissory notes4 of its customers, by deceiving the borrower into thinking that he is borrowing money when he is executing a promissory note that is called a "loan" which funds a deposit account in the name of the borrower in the nominal units, is fraud in the inducement. Further,the act of concealing the existence of such deposit account, is fraudulent concealment; the act of stamping and taking the promissory note on deposit on the books of the bank is fraudulent conveyance; and the entire process is theft by deception and duress.
Note 1: Any inference that this is a particular person, is solely in your own imagination; and just as in the children's poem where the old lady swallows a fly, spider and so forth, this initial fraud requires the maintenance of an an endless array of regulators, compliance officers, crooked administrative courts and the "law" and order that flows from the barrel of a gun.
Note 3: The evil intent includes the inducement of others to write fraudulent promissory notes, to conspire to circulate those liabilities by fraudulent conveyance; and further to defraud the victims of their inherent sovereignty and liberty, and further to steal via fraudulent deception the gold and other treasure from the treasury of any remaining bastions of liberty8; to obtain resources - such as a world dominating military force - that is beyond the ability of the perpetrators of the fraud to obtain by honest means.
Note 4: Fraudulently represented to be "loans" to the "borrower" who is the actual funder of the loan. Ask ye in court: "should the funder of the account be repaid", and call for the books of the bank as evidence.
Note 7: If you have sworn to uphold the constitution of the united States of America, or believe that this is what you have sworn to do, by having been informed of this criminal state of affairs, it becomes your duty to render justice or face Misprison of Felony. You have in this still standing decision of the highest lawful court of the constitutional republic all the authority to proceed. Further details on the fraud are here and cached here .
Note 8: Clearly the evil intent of the banksters includes fomenting war, including but not limited to the "American Civil War", World War I and II, the Vietnam and Gulf wars, the cold wars in order to in debt the constitutional government of the united States of America, until it has now morphed via fraudulent acts into the UNITED STATES OF AMERICA, a corporation with no lawful organic authority, that is clearly at war with "its own" people who are its "enemy combatants". Those who have obtained the gold from the Treasury by conspiring to defraud it - have stolen funds. All funds that are checking account liabilities of banks are tainted by fraud9.
F R A U D Fallout
Like nuclear fallout, the post-fraud-bubble fallout proceeds apace with the other side of the fraud equation. From the preceding discussion, it should be clear that banks loan "money" into existence, literally whipping money out of thin air. The corollary of this that every loan repayment takes "money" out of circulation. It literally goes "poof" and vanishes into thin air.
So, the mechanics of the accounting is thus: The UNITED STATES OF AMERICA borrows "money", i.e., "dollars" into existence, a.k.a., the deficit, and promises to pay back with interest. The moment this new "money" is on deposit at the prime banks, they can lend against this to retail banks, several times this deficit amount. The retail borrower is induced by fraud to collude with the retail bank to write a promissiory note that circulates as new dollar liabilities of the banking system. A the bulk of these new banking system liabilities are spent on goods from outside the USA. These liabilities are held as the profits of producers overseas - WHO HAVE SOLD GOODS FOR NOTHING!
When the banks and thrift institutions, and the people, went hog wild creating money, then stopped because no one would buy the toxic waste as it became apparent in court that they do not have a contract to enforce, and creation of new dollar liabilities stopped.
Every successful mortgage payment reduces the amount of USD liability in the USA banks, and the amount of such "currency" available to be earned. The people of the USA who produce nothing to exchange for the goods that they purchase and have purchased in the last three decades face an every decreasing amount of USD liabilities in domestic bank circulation to repay their loans and their tax obligations. It is MECHANICALLY IMPOSSIBLE for all of them to repay their loans. They will be homeless and on the street. It is impossible for the UNITED STATES OF AMERICA to repay its Treasury bills without a war for worldwide expansion of its tax base.
The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an enemy to all banks discounting bills or notes for anything but Coin. If the American People ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered. -- Thomas Jefferson.
As homes become cheaper as fewer checking account dollars are available to purchase the homes, the value of the dollar increases - the "strong dollar policy". This keeps a lid on commodity prices as well.
Watch for commodities, especially gold and silver to become cash settled at the behest of the Fed - they have prepared very carefully for this - keeping cash bills small (unlike the ECB), re-issuing $50 and $20 bills to get a tab on their current exposure, and using the drug war to advantage to get physical cash out of the country, and instituting "money laundering", compliance and cash reporting laws to make cash all but useless for most people.
Thus, the banksters prepare the population for war, just as they did before and during WWII.