Recap: Where Does the Fraud Begin?
Back to: Understanding the Fraud
Recap of: Where Does the Fraud Begin?
Note 1 Page references are the 12 page numbers received after
printing the Understanding the Fraud.
Note 2 Comments in brackets, [ ], are by Jim Costa and are outside of the original article.
U. S. Bankruptcy
The United States government filed bankruptcy in 1933 under Franklin Roosevelt. (p. 3)
The United States seized all property and gold from private citizens in 1933 as collateral for the bankruptcy. (p. 2)
In exchange for the taking of property, the citizens received a promise that " all of the needs [of the people] would be met by the government". (p. 3)
The promise to pay all needs is referred to as a "Prepaid Treasury Account" [established for each citizen]. (p. 5)
The government never told us how we could access and use what we were entitled to after the bankruptcy [Prepaid Treasury Account ]. (P. 4)
[The U.S. was able to come out of the bankruptcy in 1999 but chose not to. That decision might be because the government: 1. Would go back under common law. 2. Lose control over the people. 3. Reveal all of the fraud that has occurred. 4. Create a lot of bad ill will. ] (outside of article)
Currency & Money
Money can actually be in different forms other than what we are accustomed to thinking. (P. 4)
The definition of “money” according to the Uniform Commercial Code: "Money" means a medium of exchange authorized or adopted by a domestic or foreign government and includes a monetary unit of account established by an intergovernmental organization or by agreement between two or more nations. (P. 4)
[In 1913 the Federal Reserve, a private corporation, began printing "Federal Reserve Notes" (debt) to eventually replace all U.S. mineral backed currency.] (outside of article)
There is absolutely no gold or silver backing the Federal Reserve Notes that we refer to as “money” today. (P. 2)
There has been no lawful money in the United States since 1933. (P. 2)
[All of the Treasury bills were phased out and replaced by the Federal Reserve Notes]
Currency is "debt" as in Federal Reserve Note. When you make a purchase with a Federal reserve Note, you are purchasing with a "Promise to pay". (P. 3)
How Money is Created in the U.S.
“In the federal courts, it is well established that a national bank has no power to lend its credit to another by becoming surety, endorser, or guarantor for him.” Farmers and Miners Bank v. Bluefield Nat ‘l Bank, 11 F 2d 83, 271 U.S. 669; “A national bank has no power to lend its credit to any person or corporation.” Bowen v. Needles Nat. Bank, 94 (P. 4)
[Banks can't create money. Only private citizens can create money. ]
Banks actually convert signatures into money. (P. 4)
You can deposit the “Federal Reserve Note” (a promise to pay) with a denomination of $10 at the bank and they will credit your account in that same amount [thus a promise to pay creates money]. (P. 3)
[As you will soon see, your debt creates money]
The Mortgage Process We Were Taught
We are led, by all involved, to believe that we are, in fact, borrowing money from the “lender” which is then paid to the current owner of the property as compensation for them relinquishing any “claim of ownership” to the property and transferring that “claim of ownership” to us as the purchaser. (P. 1)
After the “closing” everyone is all smiles and you believe you have a new home and have to repay the “lender”, over a period of years, the money which you believe you have “borrowed”. (P. 1)
The “borrower” is led to believe that the “Mortgage Note” that he signs is a document that binds him to make repayment of “money” that the “lender” is loaning him to purchase the property he is acquiring (P. 2)
Why do we need a Deed of Trust? What exactly IS a Deed of Trust or other similar “Security Instrument”? It spells out all the details of the contract that you are signing at the “closing”, including such things as insurance requirements, preservation and maintenance and all of the financial details of how, when, where and why you are going to make payments to the “lender” for years and years (P. 4)
The Real Mortgage Process
Unknown to almost everyone, there is something VERY different that happens with your “Mortgage Note” immediately after closing. (P. 3)
Your “Mortgage Note” is endorsed and deposited in the bank as a check and becomes “MONEY”. The document that you just gave the bank with your signature on it, that you believe is a promise to pay them for money loaned to you, has just been converted to money in THEIR ACCOUNT. You just gave the “lender” the exact dollar value of what they said they just loaned you! (P. 3)
You actually just paid for your own home with your promissory “Mortgage Note” that you gave the bank and the bank gave you what in return? NOTHING! (P. 3)
For any contract to be valid there must be consideration given by both parties. But don’t they tell you that you must now pay back the “Loan” that they have made to you? (P. 3)
Is there disclosure to the “borrower” to the effect that the “lender” is not really loaning any of their money to the “borrower” and therefore is taking no risk whatsoever in the transaction? (P. 2)
[It is not] disclosed to the “borrower” that according to FEDERAL LAW, banks are not allowed to loan credit and are also not allowed to loan their own or their depositor’s money. (P. 2)
Why is it that when you tender your “Note” at the closing that they don’t tell you that your home is paid for right on the spot? (P. 3)
We have already found out that the “Note” doesn’t go into the vault for safe keeping but instead is deposited into an account at the bank and becomes money. (P. 5)
Your “Mortgage Note” is then used to access your Treasury Account (that you know nothing about) and get credit in the amount of your “Mortgage Note” from your “Prepaid Treasury Account” (P. 5)
They then turn around and bundle the “Note” and sell it to investors on Wall Street and get paid again! (P. 5)
The “Deed of Trust” or similar “Security Instrument” after you have signed it. You may be quite surprised to know that not only does it not go into “safekeeping” it is immediately SOLD as an INVESTMENT SECURITY (P. 5)
What happens is the “Deed of Trust” or other similar “Security Instrument” is bundled and SOLD to a buyer and the BANK GETS PAID FOR THE VALUE OF THE MORTGAGE AGAIN!! (P. 5)
[It is fraud to photocopy obligations and securities for the intent to defraud.] (P. 5)
[But what they are doing is selling several "originals" of your signed documents fraudulently.]
Could this be the reason that MERS (Mortgage Electronic Registration Systems) was formed in the 1990’s as a way to supposedly “transfer ownership of a mortgage” without having to have the “original documents” that would be required to be presented to the various county recorders? Could it be they KNEW THEY WOULDN’T HAVE THE ORIGINAL DOCUMENTS FOR RECORDING and had to devise a system to get around that requirement? (P. 7)
[Perhaps MERS was created to conceal the fraud. This might explain the sudden loss of original signed documents]
“Party having superior knowledge who takes advantage of another's ignorance of the law to deceive him by studied concealment or misrepresentation can be held responsible for that conduct.” Source: Supply, Inc. v. Abilene Nat. Bank, 726 S.W.2d 537, 1987 (P. 4)
It is well established law that Fraud makes void any contract that arises from it. (P. 4)
To foreclose they must have BOTH the “Mortgage Note” and “Deed of Trust” or other similar “Security Instrument” ORIGINAL DOCUMENTS in their possession at the time the foreclosure action is initiated. (P. 5)
They have, instead, submitted a COUNTERFEIT SECURITY to the Court as their “proof of claim” to attempt to unjustly enrich themselves through a blatantly fraudulent foreclosure action. (P. 8)
Could it be that this whole entire process could be “studied concealment or misrepresentation (P. 8)
We don't owe the banks, the banks owe millions of dollars to each of us.
The banker's manual contains more fu**ing positions in it than the Kama Sutra.
The problem is that we
are were the unwitting fu**ees.
[Currently, 140 countries have joined together to end the central banks stranglehold on us. We are now in an unseen global war for humanity's freedom.]