The bank then withdraws your money (after forging your signature), and issues you a check from the Liability side of its ledger, pretending that the "loan" came from the bank. In fact, the whole deal never cost the bank a cent; they effectively plundered your labor of a lifetime, as in the case of a large loan. That means that 20 or 30 years of onerous toil and endeavor can be summarily stolen from you by a bankster with a stroke of a pen -- or a few clicks of a mouse. And if you default on the payments he will come and steal your property as well, aided and abetted by the courts and the police. Is that a diabolical scheme or what?
Some people wonder what gives value to their signatures on promissory notes. A lot of it goes back to the early 1930s when America became insolvent, soon followed by the rest of the world, but we'll explore that in more detail in Part 2 of this trilogy.
In short, what makes a promissory note valuable is the fact that you are pledging your future labor to pay off a loan. Your signature is worth a lot of money. And, in the case of a mortgage, you are consenting to pledge security such as your house, which gives significant tangible value to the document. Quite often, the banks will sell your promissory note to another financial institution, even before you receive a cent of your "loan".
Your signed promissory note is similar to an IOU, just like the $20 note in your pocket, or -20 or --20, depending on whatever fiat currency operates where you happen to live. And just like the notes in your pocket your promissory note has a stated denominational value. If private banks can create money as IOUs that will never be paid , why can't you? If private banks are never called upon to honor or redeem their IOUs, why should you?
It should be noted, and further explored, that some researchers (particularly Canadian) speculate that a bank can make some 300% profit or more on a mortgage by: a) monetizing the loan application form, b) securitizing the mortgage deed, c) receiving upfront credits from the central bank for principal plus total interest, and d) charging the straw-man fund account. (More about that in Part 2.)
The Judiciary As Willing Dupes Of The Banksters
We mentioned earlier that the banksters are aided and abetted by the legal system in conveyancing titles and in foreclosures of mortgages. Most borrowers are told not to date the Mortgage Deed/Title Deed whenever they sign up for a loan. Did you ever wonder why?
The short answer is that you cannot pledge something as security when you don't own it. It is illegal. Imagine if your neighbor pledged your house as security for a loan that he took out with your local bank. Would you call the police?
When you are in the process of buying a property and are asked to sign the Mortgage Deed, you are giving a charge on that property to the bank. But you don't own the property at that particular time of the mortgage process. How can you legally authorize a charge on property that does not belong to you? You can't.
Before you can authorize a charge on the property, the seller must convey the property to you free of all liens and encumbrances. How can he pay off existing mortgages or charges if he hasn't received any money from you yet? He can't.
In short, how can you legally mortgage the property to the bank as collateral when neither you nor the seller has received a cent of the "loan" promised by the bank? You can't. It is impossible for the seller to obtain clear title if he has not been paid any money and it is impossible for you, the buyer, to mortgage a property that does not belong to you.
This could be sorted out very easily if the bank used its own money to pay the seller. The bank would then have a legitimate claim to the property and would be entitled to hold your promissory note as security to protect its risk. Such a process would be crystal clear and transparent. In fact, that's what most borrowers believe happens today when they take out a loan.
But the whole procedure is a lot more complex and devious than that. The deceitful loan practices employed by banks leaves them and their attorneys with a legal conundrum to solve: how do they transfer title from the seller to you without using the bank's money and without alerting you to the scam?
What they do is issue a check from the proceeds of your promissory note (converted, or monetized, from your loan application form) to pay off the seller's liens and charges. The seller does not know that his property, still legally in his name, has now been cleared of all debts.
The next step is to convey the property to you now that the title is clear and free of all liens and encumbrances. When that's done, the property is now yours and has no debts attached. You paid for it with your promissory note. It did not cost the bank a cent. But they do not tell you that.
The bank won't inform you that you legally own the property until they can get a legal charge registered in their name. They then compel you to assign them an interest in your property, even though they contributed nothing of value to the deal. It was your money that funded the entire process.
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