All debts fall ultimately to the people and to future generations. When banks are “too big to fail” they are bailed out by governments imposing further debt on the people. When governments have a debt crisis, they devise more ways to tax the people. This is because the people are the “credit of the nation”.
When a bank extends credit, for a credit card or a mortgage, it’s your credit, not theirs. Banks do not loan their customers’ deposits, or their bank reserves. Instead, they record your credit as a bank liability on the private side of the ledger (which is hidden), and as a bank asset on the public side of the ledger (which is visible). Just like the Mafia, the banks have two sets of books.
A common misconception, taught in some economic textbooks, is that commercial banks function as intermediaries, lending their customers’ deposits whenever the bank makes a “loan”. This deception has been exposed by money reformers advocating sovereign money issuance, supported by considerable evidence, and ultimately confirmed by the administrators of the Bank of England in their first quarterly bulletin of 2014:
“Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.” – Bank of England, Quarterly Bulletin, 2014, Q1
Because of this instant money creation process, it has been said that banks create money “out of thin air”. But bank credit has value in the real economy, so where does that value come from?
If the source of that value was the bank, then the bank would not need customers – commercial banks could simply create as much credit as they wanted. And if the source of that value was somewhere else in the economy other than the people, then again the bank would not need customers – commercial banks would go straight to that source. But commercial banks DO need customers in order to issue credit, so what is it that the customers provide to the bank?
There is only one thing the loan manager in a commercial bank wants from a customer – their signature. The customer’s signature on a “promissory note” is what creates the credit by providing “commercial energy”. The bank issues the “loan” in “exchange” for the customer’s valuable “promissory note”. The “promissory note” represents the “commercial energy” of a living man or woman, which has value, and this energy can be sold and traded.
So, where is the loan? It’s a quid pro quo — an equal value exchange. The bank deposits your promissory note in an account in YOUR NAME without your consent and writes you a check out of your own account. They “loaned” you your own money back to you in the form of another negotiable instrument, a check. The DO NOT loan you anything.
Why does your “promissory note” have value in the real economy?
Money represents innate human credit as labor and ideas, backed by Nature, and as such it is a medium of exchange for valuable goods and services. In essence, money is “energy” that “circulates” as “currency”, being “charged” and “discharged”. Your credit is only limited by your living energy, your knowledge, and by Nature. You are born with a lifetime of credit, because you have “promise”, and other people can have “faith” in your “promise”. Therefore you can make a “promissory note” with your credit. As the “originator” of your credit, you are the living “principal creditor”.
Any medium of exchange, that allows the flow of productive energy between people, can function as money. There is no need for money to have an intrinsic value because it is simply an “energy token”.
Money is a community invention that enables trade between various parties without direct barter. Therefore, money is a “utility”, and to remain useful and stable, it should be issued and limited by the community, or nation, that uses it.
Historically, the supply of money has been limited by using a “bimetallic standard” in which the monetary unit is defined as equivalent to a certain amount of gold or silver. Unfortunately, whoever controls such commodity money wields extraordinary economic and political power.
The corruption of the medium of exchange by commodification, and by private issuance as interest-bearing debt, has hi-jacked the credit (commercial energy) of the people. The international bankers have captured the state’s sovereign power of money issuance, and upon bankruptcy they have installed a debt-money system using legal “person” Trusts as “surety”.
The Birth Certificate is a “bond” issued in the NAME of a Trust/Estate. When a living man or woman unwittingly acts in “joinder” to a Trust resembling their lawful name, they take on the liabilities of the Trust as a Trustee, or an “accommodation party”. In the debt-money system, the international bankers have literally become parasitic controllers of the peoples’ credit, having engineered the alleged “loan” “contract”.
Banks can “lend” at interest as long as people, and governments on behalf of the people, are willing to “borrow”.
When you go into a bank for a “loan”, you are taking your credit in the form of your “promise to pay” evidenced by your signature.
On the alleged “loan” contract, your signature transfers your “intellectual property” to the bank, so that the note can be securitized and hypothecated on the market. Your property includes your “power of attorney” which is also surrendered, allowing the bank to access, and trade on, the Birth Certificate Security Bond issued when you were born. The Birth Certificate Bond is issued in the NAME of a Trust/Estate.
A living man or woman is a Grantor / Agent / Executor / Beneficiary / Heir to the NAME Trust/Estate. But when they surrender their “power of attorney” they lose their living standing, becoming liable as a Trustee/Debtor for the Trust/Estate, which is Surety for the national corporate debt. The bank can now access the Birth Certificate Security Bond. No one “signs” for the bank because it is a Trust agreement, not a contract. You walk in the door as a Creditor, and walk out as a Debtor.
Banks do not use Generally Accepted Accounting Principles (GAAP), the standard framework of guidelines for financial accounting. Instead, banks use a double entry system that accounts for both creditor assets, and debtor liabilities.
When we look at both sides of the ledger, we can see that men and women are creditors, not debtors. That’s right, we loan the bank our credit, and they multiply it in a number of ways. Banks really do “extend credit”, but it’s your credit that is extended for their benefit. You are shown only the side of the ledger that records you as a debtor, while the side of the ledger that records you as a creditor is hidden. The banker elites who designed the system did not want you to know that.
On the bank’s asset side of the ledger, publicly visible, showing accounts receivable, you are the debtor and the bank is the creditor, while on the banks liability side of the ledger, privately hidden, showing accounts payable, you are the creditor and the bank is the debtor.
Now you know why all debts fall ultimately to the people – you are a creditor, but only when living in your “private capacity” as a man or woman.
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