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    Posted July 14, 2008 by
    Tampa, Florida
    This iReport is part of an assignment:
    The Situation Room: Your political resolutions

    Bank Honesty


    Today I have watched the several reporters talking about the latest bank failure and how loans are processed on the world market.


    Said "banks exchange the notes for securities and the notes and securities are bundled and sold on the open market." No I am not the sharpest knife in the drawer, but I see the real trouble involved with the process described above:



    (1) the banks never even loan the borrower the money; and



    (2) the note is the money which is deposited into an account by the bank; and



    (3) Once the note is in the possession of the bank, bankers, through their back room activities SELL the loan to Freddie and Fannie Mac; and



    (4) Freddie and/or Fannie Mac then EXCHANGE the note for US Bonds that are then sold on the open market to countries lie China.



    Is this pretty much the case?? If it is it is the biggest scam upon the American people in the history of man! Consider this:



    The bank of Chicago states "a note is considered cash at face value: id @ Modern Money Mechanics, a Workbook on Bank Reserve and Deposit Expansion, published by the Federal Reserve Bank of Chicago, What is Money? pp 2.1.; and next we see on the next page it is explained that the bank does not actually loan its money to the borrower. "....bankers discovered that they could make loans by giving their promise to pay, or bank notes, to borrowers." Who creates money? pp 3.10, then in paragraph 11 it states "it was a small step from printing notes to making book entries crediting DEPOSITS of borrowers, which the borrowers could in turn "spend" by writing checks, thereby "printing" their own money." Finally on page 6 it is explained in detail how the borrower creates hi/her own funds through the loan process and that the NOTE is deposited into the banks account at face value! On pp6.6 we are advised "What they do when they make loans is to accept PROMISSORY NOTES in EXCHANGE for CREDITS to the BORROWERS TRANSACTION ACCOUNT." Then on the same page at paragraph 2 we see that those NOTES are EXCHANGED 'through the trading desk' for Treasury Bills from a dealer in U.S. Government securities." also referenced is foot note #3.



    So to recap sir, the bank never actually loans the borrower any money, the bank merely processes the paperwork and creates an account to make the credit entry. Then then deposit the note as CASH into the account. Then get a security (called a "lunge") against the note in the form os a U.S. Bond, then sell the bond on the open market to.....lets say China.



    How can this be called a "loan" if the borrower created the money through a banking process? How can the bank claim they :loaned" the borrower anything if they never actually provide the borrower with the funds they allegedly borrowed?? Then the term "interest" becomes a question: A man who loans another money is rightfully due a little compensation for the use of said money. The government has set bans against lenders charging "unreasonable" intrest for its use. Now wouldn't you say that ANY INTEREST on NOTHING is EXCESSIVE??? The bank never loaned the borrower anything they merely processed the note then SOLD the note on the open market....that have been PAID for the NOTE when the bank SOLD it.........yet the borrower is still expected to continue paying the BANK as if they still hold the NOTE. What is wrong with this picture???



    Now, you people at CNN are speculating on why the bans are failing....... get it right: The banks are failing because that practiced deceits and deception in the loan process, and CONTINUE to mae loans under this failing process. It only works when those "bundled notes and attached securities" are actually BOUGHT by someone or some country. Now we see that the notes have lost value and are being sold/traded at a reduced value. Few new notes are being bought. This stalls the "process" thereby causing the banks to fail. It is not entirely the borrowers "default on the alleged loan" that caused the banks failure. Hell, the bank is being paid TWICE, plus interest, on an alleged loan they NEVER even paid one cent on. Then the bank has the nerve to take the borrower to court trying to repossess a house/property they never actually loaned a cent on....and on a NOTE they sold on the open market.... What a farce! What a scam on the American people.



    Now, I have all the documentation to support my claim here. Why don't you actually repost the loan process the way it actually is. Send a CNN reporter by, or I could meet him, and I will lay it all out in black and white...in the bank's own publications, that they never actually loans the borrower one red cent on the NOTE. Why are the bans broke or even close? They are getting all their money for free.... a 200% return, plus interest,......on NOTHING. (200% return you say? yes, they sold the note so don't own it any more, so they were PAID for the note, and are still collecting monthly from an unsuspecting borrower as if they did...plus interest).



    If you pride yourself on reporting honesty, then report this.... if your stones are big enough. The facts are all available to you...and you have as much as admitted the process on CNN today.



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