a friend sent this in an email. he's quite aware of these things having spent his long life living in the world he writes about but not from the bankers point of view. he has discovered the twists and turns of this world and attempts to educate the rest of us about it, most of the time with little or now success. its complicated and guaranteed to attract attention most of us have no time or understanding with which to proceed along these lines. at any rate here's the skinny in case you have what it takes to involve yourself with/in;
Some of you have heard me talk about how credit cards are funded. This
article goes into detail as to how they make their money from an
unsuspecting public. So-called 'bank loans' that create a mortgage are
exactly the same.
Over 20 years ago I ran up almost 90K in Credit Card debt and realized I
couldn't continue to make all those payments. Since I was aware of how
their system worked and that the CC companies weren't going to lose a
dime of theirs, I just told them I was unable to continue paying them. I
got a few grumbles from them but nothing ever happened as far as any
type of legal action. I knew they wouldn't sue me because I owned
nothing in the Straw Man Estate's [SME] NAME. My autos, property, and
bank accounts were all in common Law Trusts that I wrote so there was
nothing to take from the SME which was the party in whose NAME all the
different cards were issued.
I was aware that once I did this I would have a hard time getting credit
for awhile as any defaults go into the SME's credit report. A couple of
months later I got an offer from First Union---"You have have qualified
for a First Union Credit Card with a $5,000 limit". With my default I
knew this was a con job but decided to make the application knowing well
in advance that they would actually turn me down. What they were after
was my SS# and signature so they could make a quick $5000. I sent in
the app. and a couple of weeks later got their sad letter that, all of
the sudden, I didn't meet their qualifications for a card. Since I had
merely loaned them my signature, just like you 'loan' your signature to
the bank when you apply for a home loan, I wrote back to them demanding
the return of my signature which I knew they no longer had. They wrote
back and said that due to technicalities, they couldn't return my
signature for 1 year. That was over 20 years ago and I never heard from
First Union again.
Your application for a credit card is just like your application for a
home loan. What you are signing in that application is a promissory
Note. Here is an example: You find a piece of property you want to buy
for $125,000 [good luck in today's world]. You've saved up $25,000 for
the down payment and you call your buddy down at BoA and ask him if he
will lend you the $100 to buy the property. He says he'll call you on
Wednesday. He can't tell you right now because he needs to check your
slave score, er, I mean credit score. On Wed. he calls and tells you to
come in on Friday for the closing. You show up and put your $25k on the
table and that gets shoved over to the seller. Then you sign the Deed
of Trust and the Promissory Note for $100K, hand it to the banker and he
writes a check to the seller for $100K and the seller signs off on the
property. Where did the $100K come from the banker just gave to the
seller. The banker just wrote a check for $100K on an account that had
zero in it and the account was in the NAME of your SME. That would be a
felony but he's not worried because the minute you leave he can cover
his butt. He has 2 ways to do that. He can take your P.N. and deposit
it as a cash item just like it was a Federal Reserve Promissory Note
[cash] into the account that he just wrote the check out of, or he can
wire it to the Fed who will create $100K out of thin air and wire it
back to the bank. Bingo, his butt is covered and he will make a nice
$300,000 over the next 30 years at 8% interest and you think you got a
loan.
Not only did you not get a loan from the bank, you didn't get the
property either because the deed is issued to the SME that government
created, named, and owns, but not to worry because you are now the
renter on that property with a duty to pay government rent [taxes] for
the use of it as long as you continue to make the monthly mortgage
payments on the property that government now owns. And that is the
system we exist under.
