Page 148 - Fruits from a Poisonous Tree

132 Fruit from a Poisonous Tree
HOW THE BANKERS SWINDLE YOU ON A HOME MORTAGE

Now apply what we have just learned about money and banking to
buying a home. Let us presume that after years of saving and months of
looking you finally find and select a home in which you want to raise your
family. Interest rates vary from bank to bank, so you must shop around until
you find the best deal. We are all nervous when we sit before the loan officer
at the bank. But you have always paid your debts and for years have had
excellent credit, so there should be no problem getting the loan. The loan
officer calls you a week later with the news that you are a new homeowner
(you and the bank).
In a few weeks, you go to the scheduled closing and are greeted
with a mountain of papers in triplicate. After forty-five minutes, you
have finished the paper work and the home is yours and the bank’s. Now
the hard part begins – paying for it!
Your loan was for $85,000 at 8.5% interest, agreeing to pay it back at
$653 per month for the next 30 years. In the next 30 years (assuming that
you earn $10 per hour), 23,500 hours of your labor will go toward paying for
that house. This works out to about 11 3/4 years at 40 hours per week.
This is the system of usury in all of its evil glory and this is how it
works.
What you did not know and would never have believed is that the bank
just defrauded you. This is how they did it. As a typical bank customer,
you presumed that the money you borrowed from the bank came from its
depositors or investors. That is what the bank wants you to believe. But that is
not the truth.
Before you took out the loan from the bank, that money did not exist.
The bank took your loan application and renamed it a “promissory note.”
The bank then took your “promissory note” and attached it to the title of the
property. Using the home as collateral, the bank wrote a check.
The moment the bank wrote the check, it created the money out of thin
air. If you doubt that the bank is writing checks to create money using your
promissory note as an asset read the following again. In the Federal Reserve
Bank’s own words:
“Bankers discovered that they could make loans merely by giving their
promises to pay, or bank notes, to borrowers. In this way, banks began to
create money.”
Returning to our example, the bank made a check payable to the seller.
The seller accepted the check and deposited it back into the system. No
armored cars ever delivered money to anyone.