By: David Deschesne

Money, as a representation of wealth, is anything that is universally recognized that will trade among people and has value - that is human labor, already added into it. When our Union was formed, gold or silver coinage was adopted in the Constitution as the only form of lawful money because it represented human labor already expended (to mine, transport, refine, and mint a coin.) Since 1933, however, our money no longer comes from the ground, but rather is literally created out of thin air as a ledger entry at a bank - the same way a counterfeiter plies his craft. This “money” has no labor added into it; rather, it has the future expenditure of labor promised against it - a far cry from the original money system of the Constitution.

When a bank writes a “loan” to a “borrower” they are not really loaning any of their own pre-existing money. They are actually exchanging with the customer in an even exchange of credit digits for a promissory note via a process called “Ledger Entry Accounting.”

In other words, they merely enter digits on a check that has no money in its account and proclaim there to be money. Since the bank never puts up any of its own money to fund a loan, whenever they foreclose on a person or otherwise repossess their property, they have been unjustly enriched.

Suppose you had some Russian rubles. You can not take those rubles to a grocery store and purchase your food because it is not a recognizable form of money. You must first go to a bank and exchange them for American dollars. When you go to the bank, you set the Rubles on the counter and the clerk sets dollars on the counter. Both of you swap currencies at the value the two were determined to be to each other (less a transaction fee). There is an even exchange and the bank does not require you to pay back those dollars, because they received Rubles in exchange for them. You can then take those dollars to the grocery store and, because they are a recognizable form of money here in the United States, purchase your food.

The bank then accepts that promissory note, a.k.a. ‘negotiable instrument,’ for a certain value as an asset on their books. They then create brand new “money” in the form of a bank check/bank credits the amount of which is governed by the Reserve Requirements established by the Federal Reserve Bank (which is owned and operated by a private consortium of banks - not our Federal government.) This bank check has no actual "money" in its account because the bank never loans its own money or its depositors.’ Under the Reserve Requirements, banks must keep 10% of their assets (on average) as cash on hand. That “cash” is the depositors’ accounts. They can then create an additional 90% above that amount in the form of ledger-entry bank credits based upon the promissory notes they accept on their books. When the “borrower” signs a promissory note, the bank enters it on their books as an asset, writes a check against it and new money is born. Because it was the borrower’s signature that gave the note value, the borrower has, in effect, funded his/her own loan - the bank extended none of its own capital in the process.

It is because of this slight of hand, that the banks perpetrate on unwitting “borrowers,” that most never realize that, since the banks never loaned any of their own money, they are never “damaged” as a result of non-payment. Banks, upon foreclosure of property, can take $50,000 worth of property to satisfy an alleged debt of $50,000 from a "loan" of money that was never theirs and never existed to begin with. Rather, it was newly created at the time the promissory note was signed and exchanged.

Whether a loan for a car, boat, home or land, the banks create money from nothing and upon foreclosure/repossession are allowed to steal that property because they never gave anything tangible in exchange for it to begin with.

Police allow this legalized theft to continue because they don’t understand the nature of borrowed money and that the banks never used any of their own money to fund a “loan.”

This bogus, fraudulent money system was endorsed by the U.S. Congress in 1913 and continues to enjoy their support, the support of police and judges to this day.

Because all courts today are administered by a private cabal of bank-friendly lawyers and judges - the BAR Association - who make a lot of money from the banking industry, they will never rule on behalf of We the People fighting foreclosure with this defense because that would upset the current debt-driven monetary system sooner than it was designed to be upset.