The truth about banking

Banks are being thought of intermediaries, but this is not really what’s happening. Banks are creators of the money supply.Banks are thought of as deposit-taking institutions that lend money. The legal reality is banks don’t take deposits and banks don’t lend money.

Now this can apply to many situations where money is lent including large amounts of money including district attorney in criminal case where the district attorney is using a negotiable instrument the warrant for arrest which there a penal sum attached and acting as a financial agency Pursuant to 31 U.S. Code § 5312

Now take into account there is a fundamental difference between "paying" and "discharging" a debt. To pay a debt, you must pay with value or substance (i.e. gold, silver, barter or a commodity you need look no further then the United States criminal justice system which required you give up a home or car or something with

With federal Reserve notes( FRNs) you can only discharge a debt pursuant to UCC 3-604 You cannot pay a debt with a debt currency system. You cannot service a debt with a currency that has no backing in value or substance. No contract in Common law is valid unless it involves an exchange of "good & valuable consideration. Hence why there is a bail bonds system in in place

That when you deposit money into a bank account according to 12 U.S.C. § 1813 The term “deposit” mean according to title 12 section 1813 subsection (L) the unpaid balance of money or its equivalent received or held by a bank or savings association in the usual course of business and for which it has given or is obligated to give credit, either conditionally or unconditionally, to a commercial, checking, savings, time, or thrift account, or which is evidenced by its certificate of deposit this means money is actually done in credit that money is no more then a potential of money paid that this is a for of credit that are moved from ledgers to ledger

Because what we call a deposit, is simply the bank’s record of its debt to the public. Now it also owes you money [for the promissory note] and its record of the money it owes you is what you think you’re getting as money [as a loan].Customers lend money to the banks, and that becomes an asset to the bank. The bank then creates an account (payable) showing how much the bank owes the customer. The account that I think is mine, is really a bookkeeping entry The bank will say you’ll find it in your account with us. That would be technically correct. If they say, we’ll transfer it to your account, that’s wrong because no money is transferred, at all, from anywhere inside the bank or outside the bank does not place the funds into the customer’s existing account. The bank creates a new account

As deposit is not actually a deposit. It’s not a bailment. And it’s not held in custody.At law, the word deposit is meaningless. The law courts and various judgements have made it very clear if you give your money to a bank even though it’s called a deposit, this money is simply a loan to the bank. So there is no such thing as deposit. It’s a loan at a bank A customer completes a bank loan application that is really a promissory note. Since a note has value, since someone is promising to pay an amount in the future. The note becomes an Asset on the bank’s books. On the Liabilities side of the bank’s balance sheet, the bank adds an accounts payable an accounts payable liability arising from the loan contract having purchased your promissory note – as a customer deposit. But nobody has deposited any money.this some through double entry book keeping

Many people are wrong when they say that the banks or Federal Reserve create money out of thin air. Well, it’s actually the customer that created the money when the customer signed the promissory note. Federal Reserve notes represent the promised dollars of loan applicants.that’s right, we loan the bank our credit, and they multiply it in a number of ways. What the Banks really do “extend credit”, but it’s your credit that is extended for their benefit. Though double-entry book-keeping.

Whenever a bank makes a loan, it interest rates in the economy, including those on bank loans.

simultaneously creates a matching deposit in the

In exceptional circumstances, when interest rates are at their borrower’s bank account, thereby creating new The bookkeeping entries tend to prove that banks accept cash, checks,

drafts, and promissory notes/credit agreements (assets) as money deposited to create

credit or checkbook money that are bank liabilities, which shows that, absent any

right of setoff, banks owe money to persons who deposit money.. Cash (money of exchange) is money, and credit or promissory notes (money of account) become money when banks deposit promissory notes with the intent of treating them

like deposits of cash. See, 12 U.S.C. Section 1813 (l)(1) (definition of “deposit” under Federal Deposit Insurance Act)

The actual process of money creation takes place

primarily in banks.' As noted earlier, checkable liabilities of banks are money. These liabilities are customers' accounts. They increase when customers deposit currency and checks and when the proceeds of loans made by the banks are credited to borrowers' account under the present

system banks do not have to wait for depositors to appear and make funds available

before they can on-lend, or intermediate, those funds. Rather, they create their own

funds, deposits, in the act of lending. This fact can be verified in the description of the

money creation system in many central bank statements5

, a

This is actually a violation of state and federal law and is a violation of the Truth In Lending Act, and Regulation Z as the Truth in Lending Act was passed to prevent unsophisticated consumer from being misled as to total cost of financing. Truth in Lending Act, Section 102, 15 U.S.C. Section 1601. Griggs v. Provident Consumer Discount. 680 F.2d 927, certiorari granted, vacated 103 S.Ct. 400, 459 U.S. 56, 74 L.Ed.2d 225, on remand 699 F.2d 642.

That In the federal courts, it is well established that a national bank has not power to lend its credit to another by becoming surety, indorser, or guarantor for him.” Farmers and Miners Bank v. Bluefield Nat ‘l Bank, 11 F 2d 83, 271 U.S. 669.

A bank can lend its money, but not its credit.” First Nat ‘I Bank of Tallapoosa v. Monroe, 135 Ga 614, 69 SE 1124, 32 LRA (NS) 550

This means .the bank is allowed to lend money upon personal security; but it must be money that it loans, not its credit.” Seligman v. Charlottesville Nat. Bank, 3 Hughes 647, Fed Case No.12, 642, 1039.

It can not use the consumer credit It is not within those statutory powers for a national bank, even though solvent, to lend its credit to another in any of the various ways in which that might be done.” Federal Intermediate Credit Bank v. L ‘Herrison, 33 F 2d 841, 842 (1929).

Under truth in lending regulation providing that disclosure of consumer credit loan shall not be “stated, utilized or placed so as to mislead or confuse” consumer, placement of disclosures is to be considered along with their statement and use. Truth in Lending Regulations, Regulation Z, Section 226.6(c), 15 U.S.C. following section 1700 .Geimuso v. Commercial Bank & Trust Co. 566 F.2d 437. That Any violation of the Truth in Lending Act, regardless of technical nature, must result in finding of liability against lender. Truth in Lending Regulations, Regulation Z Section 226.1 et seq., 15 U.S.C. Section 1700; Truth in Lending Act Section 130 (a, e), IS U.S.C. Section 1640 (a, e). In Re Steinbrecher. 110 BR. 155, 116 A.L.R. Fed. 881.

This means that your bank are issuing credit on your name and have been using your identityto draw these funds and this is how the banks are doing that federal Reserve dollar is not more then just a paper credit

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