Banking & you It happened once... There was a Minnesota court case involving a man named Jerome Daly, who was challenging the foreclosure of his home by the bank, which provided the loan to purchase it. His argument was that the mortgage contract required both parties, being he and the bank, each put up a legitimate form of PROPERTY for the exchange. In legal language, this is called consideration. . Mr. Daly explained that the money was, in fact, not the property of the bank. For it was CREATED OUT OF NOTHING, as soon as the loan agreement was signed. What they do, when they make loans,is to accept promissory notes, in exchange for credits. Reserves are unchanged by the loan transactions. But, deposit credits constitute new additions to the total deposits of the banking system. In other words, the money doesnt come out of their existing ASSETS. The bank is simply INVENTING it, putting up nothing of its own, except for a theoretical liability, on PAPER. . As the court case progressed, the banks president, Mr. Morgan, took the stand. And in the judges personal memorandum, he recalled that the Plaintiff, banks president, ADMITTED that, in combination with the Federal Reserve Bank did CREATE the money and credits upon its books by book-keeping entry. The money and credit first came into EXISTENCE when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful CONSIDERATION must exist and be tendered to support the Note. . The Jury found that there was no lawful consideration. He also poetically added: Only God can create something of value, out of nothing. And, upon this revelation, the court rejected the banks claim for foreclosure and Daly kept his home.
Posted on: Wed, 09 Jul 2014 15:26:45 +0000
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