An Understanding of Banking
The following is an explanation for the current way banking is carried relating to mortgages based on my understanding. I do not say its absolutely correct and if anyone wants to make a suggestion please do so but try to be constructive in your comments. We're all here to learn.
Several thousand years ago money as such did not exist barter was the only means of doing business, this was a haphazard way for doing business if one party did not have what the other wanted a trade did not take place. Moving on someone came up with the plan to use a valued metal such as gold as a means of exchange. This was a better means of doing business and trade began to flourish over time. There were however two problems, gold was heavy if carried in any kind of amount and there was a problem with robbery. So the goldsmith who minted the coins offered to store them in a safe for security and issue receipts in lieu of them. This system was successful beyond the goldsmiths wildest dreams. The gold in the goldsmith's safe was hardly ever moved save for some 10 % which typically moved year in and out. It occurred to the goldsmith that he could issue receipts not backed by gold and he would be paid back principal and interest and no one would be the wiser, he was not too greedy at first but through the years and human nature being what it is his successors began to 'loan' ever growing amounts of receipts not backed by anything. Time went by and the goldsmith's business became banking and the receipts became currency, the amount of gold backing the currency became less and less and so we are faced with the situation today where most paper based currency is not backed by gold.
When a person wants to get a mortgage for a house they must comply with a banks requirements of being able to pay the loan back etc. The person signs the mortgage documents this brings the loan into existence by being willing to work for 20 to 30 years of labour to pay back the money which is given value by their labour. This 'money' was printed off by the central bank it is backed by nothing but the labour of the people who will make the repayments.
Currently we are now faced with what is a depression and banks are seeking to take control of houses as everyone knows. A person may ask a bank for an invoice for the amount they the bank lost through the loan not being paid but of course the bank was not at a loss at all as the money was just printed off.
Playing devil's advocate for a moment it might be argued that the customer got the loan to buy the house they paid the house owner for the house, took possession of it and surely there is a duty to pay the loan or vacate the house. On the surface that would appear to be the case but as mentioned the bank produced the money from nothing so there was no loss to the bank therefore they cannot reclaim the house.
Another important thing about the central banks of the world is that 90 % are privately owned contrary to popular opinion, the Irish central bank act was passed in 1942 while Sean T O'kelly was Minister for finace. The bill was passed when only a few members of the Dail were present. The setting up of the Federal Reserve - the US central bank happened in 1913 when there were only a few members of congress present - it was Christmas time. So basically the money is produced out of thin air 'loaned to people and the people's labour is what gives it value these loans are repaid to the central bank with full value. As mentioned 90 % of the central banks of the world are hybrids having the outward appearance of being public entities but are actually privately owned. Usually the guy at the top of the pyramid ie the central bank knows of the scam as he needs to in order to fulfill the deception. The owners of the central banks are the international banksters the Rothchilds, the Rockefellers, Kuhn & Loeb, Lazard brothers the Warburgs, the Oppenheimer etc
The interest payment on the loans given by the central banks are paid for by your income tax.
You get the idea ? - enslavement.
Several thousand years ago money as such did not exist barter was the only means of doing business, this was a haphazard way for doing business if one party did not have what the other wanted a trade did not take place. Moving on someone came up with the plan to use a valued metal such as gold as a means of exchange. This was a better means of doing business and trade began to flourish over time. There were however two problems, gold was heavy if carried in any kind of amount and there was a problem with robbery. So the goldsmith who minted the coins offered to store them in a safe for security and issue receipts in lieu of them. This system was successful beyond the goldsmiths wildest dreams. The gold in the goldsmith's safe was hardly ever moved save for some 10 % which typically moved year in and out. It occurred to the goldsmith that he could issue receipts not backed by gold and he would be paid back principal and interest and no one would be the wiser, he was not too greedy at first but through the years and human nature being what it is his successors began to 'loan' ever growing amounts of receipts not backed by anything. Time went by and the goldsmith's business became banking and the receipts became currency, the amount of gold backing the currency became less and less and so we are faced with the situation today where most paper based currency is not backed by gold.
When a person wants to get a mortgage for a house they must comply with a banks requirements of being able to pay the loan back etc. The person signs the mortgage documents this brings the loan into existence by being willing to work for 20 to 30 years of labour to pay back the money which is given value by their labour. This 'money' was printed off by the central bank it is backed by nothing but the labour of the people who will make the repayments.
Currently we are now faced with what is a depression and banks are seeking to take control of houses as everyone knows. A person may ask a bank for an invoice for the amount they the bank lost through the loan not being paid but of course the bank was not at a loss at all as the money was just printed off.
Playing devil's advocate for a moment it might be argued that the customer got the loan to buy the house they paid the house owner for the house, took possession of it and surely there is a duty to pay the loan or vacate the house. On the surface that would appear to be the case but as mentioned the bank produced the money from nothing so there was no loss to the bank therefore they cannot reclaim the house.
Another important thing about the central banks of the world is that 90 % are privately owned contrary to popular opinion, the Irish central bank act was passed in 1942 while Sean T O'kelly was Minister for finace. The bill was passed when only a few members of the Dail were present. The setting up of the Federal Reserve - the US central bank happened in 1913 when there were only a few members of congress present - it was Christmas time. So basically the money is produced out of thin air 'loaned to people and the people's labour is what gives it value these loans are repaid to the central bank with full value. As mentioned 90 % of the central banks of the world are hybrids having the outward appearance of being public entities but are actually privately owned. Usually the guy at the top of the pyramid ie the central bank knows of the scam as he needs to in order to fulfill the deception. The owners of the central banks are the international banksters the Rothchilds, the Rockefellers, Kuhn & Loeb, Lazard brothers the Warburgs, the Oppenheimer etc
The interest payment on the loans given by the central banks are paid for by your income tax.
You get the idea ? - enslavement.
Replies to This Discussion
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Permalink Reply by Levi Badstar on -
the roman empire used ordinary metals such as bronze, copper and tin for it's coinage. this way there was money spread throughout the economy as there was not elitists hoarding large amounts of gold for the purpose of manipulating the currency.
in my opinion the biggest problem with the global monetary setup is the fractional reserve system and interest applied to the currencies. the gold standard is not a viable means of solving these problems, nor is the lack of gold standard the root cause of the financial tyranny in the world.
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Permalink Reply by Gabriel Donohoe on -
Brian,
You're on the right track and your understanding is spot on.
Money is used by the banksters to control the masses, aided and abetted by their poodles in government. Banks do not loan "money"; they don't have any to loan. They merely monetize your signature on an application form/promissory note and lodge it as an asset of the bank. To balance the books, they create a liability to you on their ledger (just as if you had lodged cash or a cheque). They then manufacture this 'liability' as a 'credit' to your account, pretending that the "money" came from their own pre-existing funds. They did not loan you money – they cleverly exchanged the full value of your promissory note for bank 'credit'. It cost them not a cent, but now you owe them the amount in question – plus interest. Is that usury or what?
Quite simply, you have funded your own loan.
The banks will not disclose that to you (breach of contract, if one ever existed) and your own government will not inform you. The government, whether it likes it or not, works primarily in the interest of the banks. (Our recent incoming government, like all governments before them, were put into power not to change things but to keep them as they are. Remember Obama's manifesto of Change? – he's more pro-bankster than Bush ever was!)
There are two kinds of money; Money of Exchange and Money of Account. Money of Exchange is represented by the notes and coins in our pockets. We have to toil long and hard to accumulate this money. Money of Account is represented by figures on a bank's computers . It was created at little or no cost to the banksters and only came into being when you signed your name on a piece of paper. When the banks effortlessly create "money" like this out of nothing, they demand that you pay them back in Money of Exchange, which may take years of your blood, sweat, and toil. The only true description for such a situation is SLAVERY!
If this sounds confusing, have a look at the latest article on my blog. There is a lot of research behind this article and I offer it in good faith and hope that people will do further research on their own and confront and overthrow this wicked institution that is modern banking.
http://foolscrow.wordpress.com
Gabriel of the ancient Clan of O'Donnchú
(aka Fools Crow)
© 2012 Created by Kev.
