ON EQUITY MATTERS:
All financial institutions that are licensed to
issue credit and to deal with the public, i.e. banks, do
not "loan money", they "issue credit". The difference
is important. You or I as private citizens are not
licensed to issue credit, hence if we loan money to
one another, one of us actually has to have possession
of the real debt dollars prior to making the
contemplated loan. Banks DO NOT LOAN MONEY
- THEY DO NOT LOAN DEBT DOLLARS - THEY
ISSUE CREDIT !!!! And there is nothing fraudulent
about it !!!!
Credit is a "book-keeping" entry. It is a legal
pretense and it is issued against the security of your
promise to pay/perform/be productive in the form of
a Promissory Note. The rationale for the bank’s
pretense being just and equitable is simply because
your Promissory Note is also a legal pretense until
you prove otherwise by your performance. It costs a
bank NOTHING to issue credit, except for a little ink
on paper, just like it costs you nothing to
issue/endorse the Promissory Note. Mortgages,
personal loans, credit cards, car loans, etc., are all
credit instruments and are all issued at no cost to the
issuing bank, and at no cost to the nominal borrower,
hence neither the issuing bank nor the borrower
HAVE ANY EQUITY in any of the transactions
upon inception.
Only the borrower has potential equity,
because only the borrower has promised to perform.
The bank is only licensed to act as fiduciary on
behalf of the Nation’s citizens (who all have a just
and equitable interest in maintaining the value of the
real Debt Dollars by monitoring the credit issue). The
Promissory Note is your true Bill of Exchange that
progressively becomes your equity as you pay for it.
Once you meet all of the obligations, you possess the
only claim to all of the debt money that was delivered
as proof of your performance.
Pursuant to the Act, your promise to pay
enables the bank to "issue credit". The bank "holds"
your promise to pay as security for your performance.
You perform and prove your performance by actual
delivery of payment, and only then does the bank
release your Promissory Note back to you. Then you
are supposed to endorse your receipted Promissory
Note (converted Bill of Exchange) back to the bank
in exchange for the debt money that YOU EARNED.
The Equity that is produced/delivered and receipted
belongs solely to you.
YOU EARNED IT and YOU DELIVERED
IT which proves that YOU OWN IT. You are the
only one that ever has any equity in the transaction.
The bank is merely licensed pursuant to the Act to
make sure you don't issue credit that you cannot
support. They are entitled to charge you their
standard administrative fees but the interest and
principal goes back to whoever provided the equity,
and that is you. The Act says so, and in a court of
equity, the court says so. Have you ever asked for
your equity after paying back YOUR credit that the
bank issued TO YOU, or have you just gifted it to the
bank like most others?
You convert the original "credit" or ledger
entry into equity, not when you earned it, but when
you deliver it to the credit-holder. That is what credit
is. It is a fiduciary issue of non-backed credit (not
money) to enable us to purchase an asset prior to
having earned the actual money to pay for it. The
fractional reserve system allows for you to be issued
$20 worth of credit so long as there is at least $1 real
pre-paid debt dollar on deposit. The credit is not
issued against that real dollar on deposit. The ratio is
simply an accounting requirement. The credit is
issued against the Promissory Note.
So when the credit entry is entered, it is
immediately "transferred" to the vendor of the
property being purchased and then they get to pretend
that it can be used just like it were real dollars. Now
if everyone that was following this legal pretense
actually tried to withdraw their non-existent dollars,
we would have a run on the bank. The banks are also
regulated to ensure that you have a minimum of 25%
equity in house mortgage credit issues, or if not you
must have mortgage insurance, and they are further
restricted in many areas of credit issue.
These types of things act to protect the
solvency of the system that the banks are licensed to
administer for us. It is our legal responsibility to
understand these things. If we do not understand
them and thus we feel taken advantage of or abused
by this system, then perhaps it is high time we looked
into trying to understand the system rather than
simply alleging it to be fraudulent. It is not
fraudulent, but many of us have been very easily
duped by it because we did not know the rules.
[above...written by Jack Harper -- kissin' cousin of Canada's Prime Minister, Stephen Harper]
vis a vis email:
From: Jack Harper
Sent: Tue 6/10/08 12:07 AM
To: xxxxxxxxxxxxxx
