Banks Do NOT Lend Money

For the time being we are going to ignore the fact that the US dollar is currency and does not qualify as money. And we are going to move on to the explore a very astounding fact about banks and loans: banks do not lend their own money to borrowers. 

Me lending money to Sally Sue is very different from when a bank lends money to Sally Sue

You see, when I lend money to Sally Sue, I take currency out of my holdings and give them to Sally Sue. A bank does not do that.

When a loan is authorized, the Federal Reserve Manufactures NEW currency out of thin air - the bank DOES NOT move money from it's books to yours. Thus the loan lacks "Consideration" and is fraudulent.

This is why challenging a lender to validate an unsecured debt leads to the amount owned being discharged - because they will not sign an affidavit affirming the debt is legitimate. A valid loan requires offer, acceptance and consideration. And nothing of value left the banks books to make it a geniune loan.

YOU the depositor, are the creditor for the bank

When you deposit $100 into a bank, the bank is authorized lend out $90. This is known as fractional reserve lending. And it's why you see these people stuck outside a bank in Cyprus : the bank told them: regardless of how much capital you have deposited, you can only withdraw 300 euro per day. Why? Because fractional reserve lending backfired on them.

And note well, the bank was authorized to lend out $90 because YOU deposited YOUR currency - the bank just rakes in profits when someone pays back the loan.

Authoritative Resources Supporting the Fact That Banks Do Not Lend Their Money

  • The Affidavit of Walker Todd, attorney for the Federal Reserve is a good starting point.
  • The decision of the court case First National Bank of Montgomery vs Jerome Daly allowed Jerome Daly to prevent foreclosure on his house.
  • "Top Secret Bankers Manual" by Thomas Schauf

Use this knowledge wisely

The credit system has been a lifesaver for me and others. It has also ruined many people. The purpose of this site is true financial freedom. As such, it is best to use this information and share it skillfully not to harm or attack. 

Your mission should be to leverage credit wisely to move into true money and true transcontintal freedom. And if you are suffering from debt, then use this information package to nullify the debt. People have been hit with lawsuits by banks as a form of intimidation. Yet they have had to stop dead in their tracks when confronted with this knowledge.