Bankrupt Nation > Money is "Valueless" > Mortgage Scam

[Madchapelier]

I've been researching this topic for well over a month, attempting to find any little piece of information through the masses of misinformation and deceit. I came here to see what SOTT readers may know about this, and if nothing else spread some awareness.

Do you have a mortgage? Everything seemed legit, though ridiculously unfair at such high interest rates, but was it legitimate after all?

Here's what we think happened:

Bank agrees to loan a specific amount with a fixed time period to repay the debt. We sign the loan agreement and receive our check to buy the home we want. We begin paying back that debt plus interest for the next 15-30 years.

Here's what really happens:

Bank agrees to loan a specific amount with a fixed time period to repay the debt. We sign the loan agreement and receive our check to buy the home we want. However, the bank never signs the loan agreement because they never front the money to pay it. Why? because the mortgage note in itself is considered money. How? Because we live in a bankrupt country, and under the law of bankruptcy a mortgage note acts like money. The mortgage note is worth its face value, that is the amount that it claims the bank is lending you. So if you had a $100,000 mortgage, the note itself is worth $100,000 as soon as you put your signature to it.

Let me pause here for a moment. Is any of this true, you may ask yourself? Yes, actually it is. The bank took your mortgage note and deposited it into an account under your name without your authorization or knowledge. They then withdrew the money they deposited into this account, supplied by the mortgage note, without your authorization or knowledge and they had to forge your signature to do it. They cut you a check for that amount and call it the loan. The bank claims the money was theirs all along, which in law is fraudulent conversion (Fraudulent conversion means the action of taking into possession another man’s money or property and converting or using them fraudulently for one’s own use and benefit or for the use and benefit of a third party to whom the property or money does not belong, http://definitions.uslegal.com/f/fraudulent-conversion).

This money was used to issue you the check that you used to pay for your home. This money did not come from the bank, nor any third party. It was your money from the moment you signed the mortgage note. They robbed you and had the gall to "lend" it back to you plus interest.

In addition to this, the banks demand that you cannot use the same currency to repay the "loan" (promissary notes or mortgage notes) and expect you to use Federal Reserve Notes, which is our current currency which we recognize bearing dead presidents. Now you are laboring to earn bank currency to pay back the bank that stole your money in the first place and lent it back to you, free of cost to them.

A $100,000 mortgage note then becomes a $100,000 profit to the bank because they paid nothing, which they made when they took your mortgage note and sold it for its face value. THEN they make $100,000 plus interest in addition to this. a $200,000+ profit for a "loan" they never paid a dime into.

Oh, and get this, if you cannot keep current with these "loan" payments, they will use the money they made from your original mortgage note and "buy back" your house in the foreclosure process.

Bankrupt Nation people, changes the laws and changes what seems like common sense into a twisted perversion of law that typically favors the elite. This is why we have inflation, because of the banks. They are creating money out of thin air, with our mortgage notes and other "credit lines" using our signature to do it, and then stealing it away instead of that money paying off what it should have in the first place.

Think about it, people refinance their homes all the time, creating a new contract, creating new money that the banks keep instead of giving to you as they should have, and flooding the economy with more money. Why is the price of everything so high? Why are the richest getting richer and the poorest getting poorer? Because of this... research it if you don't believe me.. research it if you do believe me!! But don't just sit there and with a snarled lip and think this isn't happening...

"All that is necessary for evil to triumph is for good men to do nothing" - Edmund Burke

Here is an addendum for those who feel that the information above is somewhat convoluted:

Okay, let's take a checking account for instance:

You deposit $10,000 into the bank

In their ledger there are two sides... the Asset side and the Liability side. They must always balance out to Zero

The reason for the liability is that you can pull that asset out at any time.

You write a check for $5,000 and it gets removed from the asset and liability sides... you paid for something and no new money was created. Yay, Economy stability...

However, during a mortgage loan (or any loan from a bank) this process changes:

They deposit your personally signed mortgage note of $100,000 creating a $100,000 asset and $100,000 liability. Instead of loaning you against the asset account (the real money), they loan you against the liability account (not real money; it is essentially their credit for your asset that is in your account)

So now they get $100,000 from the asset (your mortgage note) as well as the Principle + Interest payments

when the principle is paid off, the liability is restored back to $100,000 and the account is back to 0, and then it is dissolved. Your money came from "nowhere" and disappeared into "nowhere" leaving the bankers with pockets full of your interest payments when and if you ever get it paid off.

meanwhile they have all this time to use your asset to make money, your principle payments and interest to make money. To cover their tracks, when it's paid off the money disappears back into the ether.

that's why they are all too happy to refinance your home for another 30 years so they can keep making money off of your asset. And if you attempt to defy them and not make payments, they will just take YOUR asset and buy your house to resell. It's a mega-profitable situation for them, paid for by our labor and our credit. It's FRAUD.

FROM WIKIPEDIA > (Financial Accounting) Liability

Money deposited with a bank becomes a liability of the bank, because the bank has an obligation to pay the depositor the money deposited; usually on demand. The money deposited is an asset for the depositor. (The bank will record an ASSET when money is deposited, and their double-entry accounting correspondingly records an equal LIABILITY since the bank doesn't own the ASSET.)

The Mortgage Note is YOUR asset, not the banks. They know this, which is why they open an account in YOUR NAME to deposit the note into. Then, they forge your signature to withdraw the funds to loan to you. Fraudulent Conversion!!! It was your money, your asset, but they lent you their credit instead of your asset, because they cannot lend you your asset because it is not their to lend, it is YOURS!! And it’s illegal for a bank to lend you their credit, they must lend you from their assets.

This about it, there is fraud going on or else every time we deposit $50 into the bank, suddenly there would now be $100 ($50 asset + $50 liability) in the economy.

Which means that when they sell the note to other investors, they are committing fraud as well, because they should only be capable of doing so with your knowledge and permission, but that didn't stop them during the previous step so why should it stop them now?

If this process were reversed, then money would begin pouring back into the economy, into the hands of those who actually work to make a living. If this process were reversed, then banks could not create money out of thin air to loan, they would have to use their own money and actually take a risk… however as it currently stands the bank stands to lose nothing in case of default, since they just use the money you gave them to buy whatever you were attempting to mortgage. It's time to end this “Be our slave or lose everything” prison planet.

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Any feedback/input into this is greatly appreciated :)

 

[Mr.Anderson]

Thanks for that. Very informative. I think from experience you are correct about this. I remember the bank not sighing the note as you said.

Madchapelier, welcome to the forum. I hope you will post an introductry note and check out the search function to see other realted info.

 

[Al Today]

Isn't accounting wonderful??? One fellow I worked with had books for the owner, books for the gubemint, and books for himself to know what the hell is really going . Some I know consider accounting as a pseudo-science. I call it slight of hand like magician fakery. And... Statistics also fall into this category of pulling wool over the sheeples eyes. After the first day of an intermediate level accounting level course, 50% of the students dropped out because it's difficult to rewire a brain and hard work to understand and accept this pseudo-science of trickery.



edit: typos again, and again... :P :P :P

 

[Laura]

Wow! That is just NUTS! But I'm afraid you are right, crazy as it sounds. That's psychopathic thinking for ya!

 

[Madchapelier]

Thanks for that. Very informative. I think from experience you are correct about this. I remember the bank not sighing the note as you said.

Yup that means the contract is void ab initio, void from the start. I don't understand how this information has never been used (as far as my research has shown) in court. They always rely on the "Show me the note" as if it were valid and legitimate.

Isn't accounting wonderful??? One fellow I worked with had books for the owner, books for the gubemint, and books for himself to know what the hell is really going . Some I know consider accounting as a pseudo-science. I call it slight of hand like magician fakery. And... Statistics also fall into this category of pulling wool over the sheeples eyes. After the first day of an intermediate level accounting level course, 50% of the students dropped out because it's difficult to rewire a brain and hard work to understand and accept this pseudo-science of trickery.

It took me several weeks of almost constantly thinking about this for my mind to wrap around just the way things are worded. Legalese is written at 40+ reading level, whereas the majority of people are only capable of understanding between 10-15. If it weren't for my determination to understand what this meant I would have tossed it aside because there were many nights where I couldn't sleep because I couldn't get my brain to shut off. The whole criminal aspect of this stuff implores my conscience "Is this for real?!" which it regretfully replies "The evidence speaks for itself."

Wow! That is just NUTS! But I'm afraid you are right, crazy as it sounds. That's psychopathic thinking for ya!

I think it's psychopathic that this happens every single day, hundreds if not thousands of times per day, and very few people step up and say anything about it. It's got to be one of the largest scams in all of history that the general populace has been programmed to believe it legitimate. When I try to talk to people I know about this, presenting all of the evidence I have found of fraud, they tell me "You can't get something for nothing" yet that's exactly what the banks are doing. It's inconceivable to most people that they have spent nearly their entire adult lives paying into a scam. It doesn't matter what country you are from; if there is a central banking system, then the rules are written almost exactly the same way, and the game is played exactly the same way.

I'm hoping that my research into this topic will allow people to have the legal grounds necessary to finally bring down this parasitic institution.

 

[Al Today]

[...]
The whole criminal aspect of this stuff implores my conscience "Is this for real?!" which it regretfully replies "The evidence speaks for itself."
[...]

Yup, 'tis real. This is kind of like psychopathy, people have a hard time accepting something they think just cannot be.

[...]
I'm hoping that my research into this topic will allow people to have the legal grounds necessary to finally bring down this parasitic institution.
[...]

Banging heads with the "man" may give very very large headaches. For example: Many have tried fighting the usa tax code for years on it's UNconstitutionality and few barely make it out of the courtroom with two pennies to rub together. Bringing information to the people is a valiant endeavor and perhaps may eventually come up with this apparant global awaking going around the world. All is Open.

 

[Laura M. C.]

Hi Madchapelier,

Thank you so much!

I don'tknow about numbers but with this information, I can now understand what is going on, thank you for sharing this.

 

[Jeremy F Kreuz]

madchapelier,

thanks for this, very revealing. About liability, I have always been told that banks need to hold a certain percentage of the money that clients deposit in their account - I think it is 10 % - as people do withdraw money - but it is assumed that not all of the clients will withdraw their money at the same time (therefore fear for a run on the bank). With the 90 % I was told the bank can then lend or invest and make profit. It this actually correct? You seem to indicate that when I depost 50 $ in the bank the bank has to keep this money in the bank and cannot use it for anything without my permission. So to say I just pay them a small fee to keep it safe (which I think was the original idea of storing money in the bank) Did I understand this correctly? You say that liability and asset team up to create the double and all that money can be used for profit making from the bank?

 

[Madchapelier]

madchapelier,

thanks for this, very revealing. About liability, I have always been told that banks need to hold a certain percentage of the money that clients deposit in their account - I think it is 10 % - as people do withdraw money - but it is assumed that not all of the clients will withdraw their money at the same time (therefore fear for a run on the bank). With the 90 % I was told the bank can then lend or invest and make profit. It this actually correct? You seem to indicate that when I depost 50 $ in the bank the bank has to keep this money in the bank and cannot use it for anything without my permission. So to say I just pay them a small fee to keep it safe (which I think was the original idea of storing money in the bank) Did I understand this correctly? You say that liability and asset team up to create the double and all that money can be used for profit making from the bank?

From my understanding, a bank can only lend it's own assets, not the assets of its depositors (at least not without their knowledge and permission per instance). The fractional reserve banking system is a quirky thing. To my knowledge, a bank cannot lend you its credit, it must loan you from its own assets. To do this, however, would be unproductive to the bank as they wouldn't be creating new money. They would make a pittance on the interest, and in the game of profiteering its best not to risk ones actual assets. So the bank lends you against the liability on your note (fraudulent conversion), because they do not own the asset that you deposited.

To be more clear... A bank ONLY makes money off of loans (and fees, though loans are their bread and butter). That money can be considered their asset, but they won't lend against their own assets because then they would actually be risking something. Plus, if they lend to you against the liability of YOUR asset then they can create MORE MONEY out of thin air for themselves. Since no one has called them out on this foul practice, there is no perceived risk to them for performing this illegal action.

Everyone just assumes the banks are lending against their own assets and that everything is legitimate, but that's not what is happening. It would be LEGAL (though ridiculously unlawful) if the fractional reserve banking system worked as they say it does and as the general populace believes that it does. However, the illegal practices that take place in lieu of the legal practices go unnoticed by the populace, allowing for those illegal practices to persist until such time that someone stands up and brings it to everyone attention.

Please keep in mind, too, that under bankruptcy law your mortgage note is your PAYMENT for the home. There is no need for a loan, as the mortgage note is an agreement to pay for something in real money when no real money is available to pay with, therefore under current conditions it acts as a Bill of Exchange and everything should be good to go. Loans under bankruptcy law are like selling sand in the desert. It makes no sense to those with open eyes.

 

[Jeremy F Kreuz]

Madchapelier:

thanks for the explanation... makes sense

can you indicate since when (and which countries) are under this bankcruptcy law, as this seems to be the core of the whole scam. Thanks in advance

 

[thevenusian]

I'm still learning about this subject matter myself, but it may be helpful to take a few steps back and take an even wider view to see how the entire monetary system is essentially designed, controlled and maintained to maximize benefit to those who control it. Commercial banks are just one part of the whole process. One source that helped me understand how some of this works is G. Edward Griffin's The Creature From Jeykll Island. Here is a relevant excerpt:

THE MANDRAKE MECHANISM: A DETAILED VIEW

...As we have already shown, every dollar that exists today, either
in the form of currency, checkbook money, or even credit card
money—in other words, our entire money supply—exists only
because it was borrowed by someone; perhaps not you, but someone.
That means all the American dollars in the entire world are earning
daily and compounded interest for the banks which created them. A
portion of every business venture, every investment, every profit,
every transaction which involves money—and that even includes
losses and the payment of taxes—a portion of all that is earmarked as
payment to a bank. And what did the banks do to earn this perpetu-
ally flowing river of wealth? Did they lend out their own capital
obtained through the investment of stockholders? Did they lend out
the hard-earned savings of their depositors? No, neither of these
were their major source of income. They simply waved the magic
wand called fiat money...


Start with...

GOVERNMENT DEBT
The federal government adds ink to a piece of paper,
creates impressive designs around the edges, and calls it
a bond or Treasury note. It is merely a promise to pay a
specified sum at a specified interest on a specified date.
As we shall see in the following steps, this debt eventu-
ally becomes the foundation for almost the entire
nation's money supply.2 In reality, the government has
created cash, but it doesn't yet look like cash. To convert
these IOUs into paper bills and checkbook money is the
function of The Federal Reserve System. To bring about
that transformation, the bond is given to the Fed where it
is then classified as a ...

SECURITIES ASSET
An instrument of government debt is considered an
asset because it is assumed the government will keep its
promise to pay. This is based upon its ability to obtain
whatever money it needs through taxation. Thus, the
strength of this asset is the power to take back that which
it gives. So the Federal Reserve now has an "asset"
which can be used to offset a liability. It then creates this
liability by adding ink to yet another piece of paper and
exchanging that with the government in return for the
asset. That second piece of paper is a ...

FEDERAL RESERVE CHECK
There is no money in any account to cover this check.
Anyone else doing that would be sent to prison. It is
legal for the Fed, however, because Congress wants the
money, and this is the easiest way to get it. (To raise
taxes would be political suicide; to depend on the public
to buy all the bonds would not be realistic, especially if
interest rates are set artificially low; and to print very
large quantities of currency would be obvious and con-
troversial.) This way, the process is mysteriously
wrapped up in the banking system. The end result, how-
ever, is the same as turning on government printing
presses and simply manufacturing fiat money (money
created by the order of government with nothing of tan-
gible value backing it) to pay government expenses. Yet,
in accounting terms, the books are said to be "balanced"
because the liability of the money is offset by the "asset"
of the IOU. The Federal Reserve check received by the
government then is endorsed and sent back to one of the
Federal Reserve banks where it now becomes a ...

GOVERNMENT DEPOSIT
Once the Federal Reserve check has been deposited into
the government's account, it is used to pay government
expenses and, thus, is transformed into many ...

GOVERNMENT CHECKS
These checks become the means by which the first wave
of fiat money floods into the economy. Recipients now
deposit them into their own bank accounts where they
become...

COMMERCIAL BANK DEPOSITS
Commercial bank deposits immediately take on a split
personality. On the one hand, they are liabilities to the
bank because they are owed back to the depositors. But,
as long as they remain in the bank, they also are consid-
ered as assets because they are on hand. Once again, the
books are balanced: the assets offset the liabilities. But
the process does not stop there. Through the magic of
fractional-reserve banking, the deposits are made to
serve an additional and more lucrative purpose. To
accomplish this, the on-hand deposits now become
reclassified in the books and called ...

BANK RESERVES
Reserves for what? Are these for paying off depositors
should they want to close out their accounts? No. That's
the lowly function they served when they were classified
as mere assets. Now that they have been given the name
of "reserves," they become the magic wand to material-
ize even larger amounts of fiat money. This is where the
real action is: at the level of the commercial banks. Here's
how it works. The banks are permitted by the Fed to
hold as little as 10% of their deposits in "reserve." That
means, if they receive deposits of $1 million from the
first wave of fiat money created by the Fed, they have
$900,000 more than they are required to keep on hand
($1 million less 10% reserve). In bankers' language, that
$900,000 is called....

EXCESS RESERVES "
The word "excess" is a tipoff that these so-called
reserves have a special destiny. Now that they have been
transmuted into an excess, they are considered as avail-
able for lending. And so in due course these excess
reserves are converted into ...

| BANK LOANS
But wait a minute. How can this money be loaned out
when it is owned by the original depositors who are still
free to write checks and spend it any time they wish?
Isn't that a double claim against the same money? The
answer is that, when the new loans are made, they arc
not made with the same money at all. They are made
with brand new money created out of thin air for that
purpose. The nation's money supply simply increases by
ninety per cent of the bank's deposits. Furthermore, this
new money is far more interesting to the banks than the
old. The old money, which they received from deposi-
tors, requires them to pay out interest or perform serv-
ices for the privilege of using it. But, with the new
money, the banks collect interest, instead, which is not
too bad considering it cost them nothing to make. Nor is
that the end of the process. When this second wave of fiat
money moves into the economy, it comes right back into
the banking system, just as the first wave did, in the form
of...

MORE COMMERCIAL BANK DEPOSITS
The process now repeats but with slightly smaller num-
bers each time around. What was a "loan" on Friday
comes back into the bank as a "deposit" on Monday. The
deposit then is reclassified as a "reserve" and ninety per
cent of that becomes an "excess" reserve which, once
again, is available for a new "loan." Thus, the $1 million
of first wave fiat money gives birth to $900,000 in the
second wave, and that gives birth to $810,000 in the third
wave ($900,000 less 10% reserve). It takes about twenty-
eight times through the revolving door of deposits
becoming loans becoming deposits becoming more
loans until the process plays itself out to the maximum
effect, which is...

BANK FIAT MONEY = UP TO 9 TIMES GOVERNMENT
The amount of fiat money created by the banking cartel
is approximately nine times the amount of the original
government debt which made the entire process possi-
ble. When the original debt itself is added to that figure,
we finally have ...

TOTAL FIAT MONEY = UP TO 10 TIMES GOVERNMENT
The total amount of fiat money created by the Federal
Reserve and the commercial banks together is approxi-
mately ten times the amount of the underlying govern-
ment debt. To the degree that this newly created money
floods into the economy in excess of goods and services,
it causes the purchasing power of all money, both old
and new, to decline. Prices go up because the relative
value of the money has gone down. The result is the
same as if that purchasing power had been taken from us
in taxes. The reality of this process, therefore, is that it is
a...

HIDDEN TAX = UP TO 10 TIMES THE NATIONAL DEBT
Without realizing it, Americans have paid over the
years, in addition to their federal income taxes and excise
taxes, a completely hidden tax equal to many times the
national debt! And that still is not the end of the process.
Since our money supply is purely an arbitrary entity
'' with nothing behind it except debt, its quantity can go
down as well as up. When people are going deeper into
debt, the nation's money supply expands and prices go
up, but when they pay off their debts and refuse to
renew, the money supply contracts and prices tumble.
That is exactly what happens in times of economic or
political uncertainty. This alternation between periods of
expansion and contraction of the money supply is the
underlying cause of...

| BOOMS, BUSTS, AND DEPRESSIONS
Who benefits from all of this? Certainly not the average
citizen. The only beneficiaries are the political scientists
in Congress who enjoy the effect of unlimited revenue to
perpetuate their power, and the monetary scientists
within the banking cartel called the Federal Reserve
System who have been able to harness the American
people, without their knowing it, to the yoke of modern
feudalism.

 

[seek10]

Thanks for that. Very informative. I think from experience you are correct about this. I remember the bank not sighing the note as you said.

Yup that means the contract is void ab initio, void from the start. I don't understand how this information has never been used (as far as my research has shown) in court. They always rely on the "Show me the note" as if it were valid and legitimate.

I remember seeing LOT's of you tube video's on the credit based banking system mechanism, which is basically creating the money from thin air. Sott also carried some video's too. the same is true with the tax system ( taxes we pay are unconstitutional) and there are people who went against IRS by not paying taxes. IRS couldn't prove it be constistutional instead they jailed them.

Yes, it is psychopathic from the beginning, but even during this internet age, it is not easy to convince people of this fraud, even when they are on the street for lack of shelter. People are programmed to be authoritarian followers by myraid ways.

Modify: spelling fix

 

[Madchapelier]

The goal of the Central Bank is to create a negative currency system (operating in debt), which bankrupts the nation allowing it to exist. Once the Central Bank is installed and the nation's currency converted to a negative currency, then the nation is bankrupt and then operates under bankruptcy law. I believe the last bastion for positive currency was Libya and the first thing that was established after the "rebels" took control was to set up a central bank.

Wikipedia had this list of international central banks (all are connected in some way): http://en.wikipedia.org/wiki/List_of_central_banks. Clicking on the linked bank names next to each country should detail when they came into existence.

The United States went bankrupt in 1933 and has been operating in bankruptcy since then, which just so happens to coincide with the passing of the Federal Reserve Act. This also established Federal Reserve Notes as the new currency. What's interesting is that the look of the old money was copied and altered just so slightly as to maintain almost no impact on the populace. According to the Federal Reserve's own "Modern Money Mechanics" these Federal Reserve Notes are "valueless" and simply exist to denote deposits and records in their books and ledgers. Therefore, even though the front of the FRN says for instance "One Dollar" there is no such thing, as the real dollars disappeared shortly after the passing of the Federal Reserve Act. Quite an illusion isn't it?

 

[Jeremy F Kreuz]

I believe the last bastion for positive currency was Libya and the first thing that was established after the "rebels" took control was to set up a central bank.

To my knowledge there are a few more countries with a state controlled central bank, meaning the state issues and controls the quantity of money : Iran, North Korea and Cuba. It also seems that in 2001 there were a few other countries with a state controlled central bank: Iraq, Afghanistan, Sudan and Libya. there seems to be a relation between having a state controlled central bank and being attacked for having it.

 

[SeekinTruth]

The United States went bankrupt in 1933 and has been operating in bankruptcy since then, which just so happens to coincide with the passing of the Federal Reserve Act. This also established Federal Reserve Notes as the new currency.

I think that's a typo, as the Federal Reserve Act was passed in 1913.

And yeah, the whole thing is an utter racket!