Money As Debt II: Promises Unleashed Page #8

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and the courts will

enforce the obligation.

Today, debt contracts come in a myriad of forms,

including and especially loans and mortgages.

It's significant to know that just as these

common law restrictions were been removed,

the brand new Bank of

England was been established.

The first banks were state-authorized

to create money out of thin air.

The new laws fit in perfectly, making the new bank's

empty contracts enforceable against the so-called borrower.

The bank hath benefit of interest on all

moneys which it creates ouf on nothing.

William Paterson

founder, Bank of England

Those who've discovered the true

nature of their own bank loans...

and have attempted to challenge the validity

of their debt contracts in modern courts...

have discovered to their dismay that this commercial

contract law is still the bedrock defence of money as debt.

The bank would have sold the original loan

agreement to a third party for value...

and even though that third party is

often just a sister company of the bank,

all that matters to the judge is who posseses the

document, what it says and whose signature is on it.

The bank's failure to inform the borrower

about the true nature of the loan contract...

and the absence of any actual money

loan on the bank's part is not relavant.

So, to conclude our investigation...

it appears that modern banking practise

rests on several dinstict violations of...

common law, common sense

and natural justice.

The first violation is the fraud the borrower commits, by

pledging as collateral property, the borrower does not yet own.

and the bank is complicit, as it knowingly accepts the

fraudulent pledge, as backing for the credit it creates

The second violation, is the failure of the

bank, to disclose the true nature of the contract

The bank calls it..a LOAN.

Leading the borrower to believe...

the he or she is receiving

a loan of existing money

But the bank knows full well, that it has provided a brand

new promise to pay, simply typed in, on a computer screen.

A promise that a bank knows it

will probably never have to fulfill

Thirdly, the loan

agreement should be invalid.

Because impossible

contacts are legally invalid

The bank is creating an impossible contract, because the conditions

required to guarantee that the borrower's have the opportunity to pay off

the principal, plus interest are NOT met. Unless the system

enforces 100% recycling of both principal and interest

which emphatically does NOT. Some borrowers

are going to default and lose their collateral

simply due to the

systemic shortage of money

The fourth violation, is the violation

of natural law, by the law of contracts.

Which confers automatic legitimacy of title on any contract, if

the contract is sold to a third party for valuable consideration

This violates the principle that one can not

give better title to someone than one has.

But perhaps, the biggest fraud of all...

is that most of the people, who produce

the real wealth of the world, are in debt

and in risk of losing everything they

worked for, to bankers who fabricate money...

out of mere promises to pay

and where does this leave us?

We are hostages, in an economy,

that must grow faster and faster

to keep up with an ever growing money supply

or the entire system collapses in ruin.

The money system as currently

structured, refuses to recognize

that the real economy is limited by

the capacity of the planet to provide

the raw materials and waste

disposal services the economy needs

The planet is finite and

therefore it should be obvious

that the economy can not grow

in an accelerating pace for ever

Our current money system, runs

like the bus in the movie "Speed"...

It could not slow down or the bomb

planted on the bus, would go off

and our situation, is even worse,

because the rate of debt creation

must forever accelerate or

the entire economy crashes.

The notion that infinite, perpetually

accelerating growth is possible...

is a great fallacy of modern economics

its a fatal delusion, born of greed.

An economic, social and environmental crash of

unprecedented proportion is surely inevitable.

In this monetary system is utterly and

hopelessly incapable of adapting to it.

No wonder monetary reformers around the world, insist that the

entire monetary system needs to be rebuild, from the ground up.

"Banking doesn't involve fraud, banking IS fraud."

Tim Madden, Monetary Historian & Consumer advocate

So what is the solution?

One idea, as many people suggest, is to return

back to days where money was backed with gold

Gold they argue is the true money,

because its inherently valuable

The underlying principle here, is that money is

valuable due to its scarcity, as gold is scarce.

There's a general rule, those who hold this view of money,

also believe that money, should exist independent of government.

Another school of thought,

diametrically opposite,

is that the creation of money, should be

the exclusive prerogative of governments

Government, which represents all the people, should

spent money into existence, in the public interest..

thus backing the currency,

with what is was spend on

having taken back the power to

simply spend money into existence...

government would never need to

go into debt or pay interest

Off course governments spending without

limit, will result in a worthless currency

to prevent inflation, money

would also need to be extinguished

This could be accomplished using a wide variety

of taxes, resource royalties and user fees.

Government spending and taxes would therefore be interdependent

and would equal each other in a perfect equilibrium

However, the goal of taxation

is to achieve price stability..

as the government would have no need

for tax revenues, in order to operate.

Over the centuries, both the gold based system and

various government credit money systems, have been used

But the gold based system,

prevailing well into the 20th century.

This wasn't because government

credit money did not work

It did, withing the country itself,

where it was accepted in payment of taxes.

But until the invention of

modern currency exchanges..

international trade had

to be carried out in gold

In addition, gold has almost a supernatural

fascination for humans for a very long time

We have been conditioned for millennia, to think

of money, in terms of portable inherent wealth.

As in gold coin.

However, this is not the

only way to think of money

Nor, in the era of runway debt

money, is it any longer accurate

Money is, at its root an idea. An idea that humans invented, in

order to transform simple subsystems into complex civilizations.

Thus the development of money, that

made possible specialization of labor

and the indirect exchange

of goods and services

Through out money's evolution, direct barter, to standard trade

goods and on to standard coins, to paper promises of precious metal..

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