In 1969, there was a Minnesota court case with a man named Jerome Daly, who was challenging the foreclosure of his home by the bank which provided the loan to purchase it. His argument was that the mortgage contract required both parties each put up a legitimate form of property for the exchange, which in legal terms is called consideration. Daly explained that the money wasn't the property of the bank, because it was created out of nothing as soon as the loan agreement was signed. The money doesn't come out of their existing assets, the bank is simply inventing it, putting up nothing of it's own, except a theoretical liability on paper.
The banks president, Mr. Morgan, took the stand, and in the judges personal memorandum, he recalled that the plantiff (bank president) admitted that in combination with the Federal Reserve bank, did create the money and credit upon its books by book-keeping entry. The money and credit first came into existence when they created it, and Mr. Morgan admitted that no US law or statute existed which gave him the right to do this. A lawful consideration must exist, and be tendered to support the note. The jury found that there was no lawful consideration, so the court rejected the banks claim for foreclosure.
This means that everytime you borrow money from a bank, whether a mortgage loan or credit card charge, the money given to you is not only counterfeit, but an illegitimate form of consideration, and hence voids the contract to repay, for the bank never had the money as property to begin with. Unfortunately this is suppressed and ignored, and the game of perpetual wealth transfer and debt continues.
During the Civil War, president Lincoln bypassed the high interest loans offered by the European banks, and decided to do what the Founding Fathers advocated-- create an independent, and inherently debt free currency, called the Greenback. Shortly after this measure was taken, an internal document circulated between private British and American banking interests, which stated:
"...slavery is but the owning of labor, and carries with it the care of laborers. While the European plan...is that capital shall control labor by controlling wages. This can be done by controlling the money. It will not do to allow the Greenback...as we cannot control that."
-- "The Hazard Circular", July 1862
The fractional reserve system is in fact a system of modern slavery. Money is created out of debt, and what do people do when they're in debt? They submit to employment to pay it off. But if money can only be created out of loans, how can society ever be debt free? It can't, and that's the point.
It's the fear of losing assets coupled with the struggle to keep up with the perpetual debt and inflation inherent in the system, compounded by the inescapable scarcity within the money supply itself, created by the interest that can never be repaid, that keeps the wage slave in line, running on the hampster wheel, in effect powering an empire that truly benefits only the elite at the top of the pyramid.
At the end of the day, you're working for the banks, because money is created in them, and ends up in them. They are the true masters, along with the corporations and governments they support. Physical slavery requires people to be housed and fed, but economic slavery requires people to house and feed themselves.
It's one of the most ingenious scams for social manipulation ever created, and at it's core it's an invisible war against the population. Debt is the weapon used to conquer and enslave societies, and interest is it's prime ammunition. As the majority walks around oblivious to this reality, banks, in collusion with governments and corporations, continue to expand their tactics of economic warfare, spawning new bases such as the World Bank, and International Monetary Fund.
edit on 16-12-2011 by TupacShakur because: (no reason given)
Always wondered how this works. Always thought the government can print as much money it wants to and now I think I'm right. This
applies to most other countries too right?
