Out of Credit Card Debt - Without Filing Bankruptcy
To be out of credit card debt is your
dream and youre tired of the redundant advice to live
within your means. Look no further.
Most people that give advice about how
to get out of debt, have absolutely no clue why things
are the way they are. None of them have ever looked
to the source of the financial debt problem in this
country, but they sure like to give advice about the
superficial, getting out of credit card debt.
The superficial problem is simply too
much debt due to overspending. Overspending is considered
wastefulness, excessiveness, lavishness or reckless
spending. Now, if you want out of credit card debt,
its not likely that you bought yourself one too many
Ferraris, or mink coats, is it? No!
What are they talking about?
All you might have bought with your
credit cards is one television, maybe a stereo, or
computer, some furniture, clothes and then food. All
of which are necessities in this world. None are extravagances,
or wasteful.
I mean, are you supposed to get by without
your computer and be left in the stone-ages
when it comes to information? I dont think so.
Over the past 23 years I have done nothing
but research money. How it works, who has it, how
they got it and where it comes from. What changed
my life and is about to change yours too is learning
about how money is created. It is by far the most
important aspect for anyone to learn who wants
to get out of credit card debt.
Before you learn how to get out of credit
card debt, I invite you to take a look at a
history of money and debt. It will be worth your
time to read.
The real problem is not your wastefulness,
excessiveness, lavishness or reckless credit card
spending. The current gross national debt is $7,940,401,262,636,
so everybody wants out of credit card debt, but there
is only $753 Billion in currency in the whole U.S.
economy, so something doesn't add up, right?
Who funds the credit card and how
the money is created. The answer to these questions
will show you why you can be out of credit card debt
fast and easy.
First in order to get out of credit
card debt, we must start with the agreement or contract
you intended to enter into with the credit card (or
loan) issuer. You agreed to borrow money from them
via the medium of a credit card (or loan check) and
pay it back with the agreed upon interest. Thus they
provide something of value and you provide something
of value, easy enough right? WRONG!!!
Remember were dealing with reality not
supposition, or speculation.
Out of Credit Card Debt - The Form
The form of the agreement (the credit
card agreement) gives the appearance of one thing,
the usage of the credit card seems to reinforce that
thing, and the monthly receipt of the credit card
statement seems to place it all beyond speculation.
As lawyers know however, there is a
legal maxim (a self-evident truth) that says: A
THING SIMILAR IS NOT EXACTLY THE SAME.
The form, the papers and items discussed
above i.e. the agreement, the statements etc. are
different from the substance of the agreement. The
form is the appearance, while the substance is what
really occurred.
Out of Credit Card Debt - The Substance
The important thing that many have realized
in understanding the substanceis that the bank did
not fulfill their end of the agreement. People who
enter into this agreement with the bank do not
receive a loan from the bank regardless of
what they may think.
All (FDIC), federally insured banks
must follow what are called the Generally Accepted
Accounting Principles. How do we know this? It is
written in the public statutes. It can be found at
12 USC Section 1831n(a)(2)(A). It reads as follows:
12 United States Code, Section 1831n
Accounting objective, standards, and requirements:
(a) In general
(1) Objectives
Accounting principles applicable to
reports or statements required to be filed with Federal
banking agencies by insured depository institutions
should
(A) result in financial statements and
reports of condition that accurately reflect the capital
of such institutions;
(B) facilitate effective supervision of the institutions;
and
(C) facilitate prompt corrective action to resolve
the institutions at the least cost to the insurance
funds.
(2) Standards
(A) Uniform accounting principles consistent with
GAAP Subject to the requirement of this chapter and
any other provision of Federal law, the accounting
principles applicable to reports or statements required
to be filed with Federal banking agencies by all insured
depository institutions shall be uniform and consistent
with Generally Accepted Accounting Principles.
So, what do we learn from this law,
as someone who wants out of credit card debt or any
debt for that matter, that the banks have to follow?
1) That there are certain accounting
principles that must be followed by (FDIC) insured
banks and financial institutions.
2) That certain reports or statements must be filed
with federal banking agencies by insured depository
institutions.
3) That these reports and or financial statements
must accurately reflect the capital of these institutions.
4) That the institutions accounting principles shall
be uniform and consistent with Generally Accepted
Accounting Principles.
We have before us a copy of the Generally
Accepted Accounting Principles (GAAP). This edition
is a GAAP 2003 edition published by Wiley. It can
be ordered new online for $75.00 or used for around
$8.00.
Out of Credit Card Debt Anything
Accepted by a Bank for Deposit is Considered Cash
On page 41 under the section Cash
and Cash equivalents the reader learns ANYTHING
ACCEPTED BY A BANK FOR DEPOSIT WOULD BE CONSIDERED
AS CASH. This is a crucial statement. Why? Because
we challenge the banks based in part upon this clear
statement; that they are owed nothing according to
their own books!
Lets look at the simple statement, Anything
accepted by a bank for deposit would be considered
as cash. You could take a Savings Bond to the
bank, and they could exchange it for cash, or deposit
the amount into your checking account.
Out of Credit Card Debt - Who Funded
the Loan
The entire process works like this:
Banks accept credit card agreements and promissory
notes and deposit them and they are considered
as cash to fund your account. So, the original agreement/promissory
note that you signed added electronic dollars to the
banks books and YOU FUNDED YOUR OWN LOAN.
So if you were approved by a credit
card company for a credit card with a $5,000.00 credit
limit, the agreement/promissory note is deposited
into a transaction account under your name at
that credit card company.
So, they never loose a dime even if
the consumer maxed out the card and never pays them!!!
But, not only do they not risk or loose a cent, they
gained a full $5,000.00 because they received this
from the original agreement that you signed.
If you never use the card they made
$5,000.00 from your promissory note/credit card agreement
alone! And, every time you use the credit card they
make the exorbitant interest (which is never created)
they charge on top of that.
In summary they make $5,000.00 when
you are approved, plus all the interest which is usually
three to 10 times what you charged!
You may be in disbelief if you've been
trying to get out of credit card debt by making payments
for years, and now you're reading this.
Out of Credit Card Debt - Federal
Publications
The Federal Reserve has also been very
clear in their circulars that banks do not really
lend money.
To understand the significance of this
revelation in their official circulars one example
that could be cited is a reference in statutory law.
For instance the Uniform Commercial Code (UCC), which
governs all commercial law, {and virtually every state
has adopted and codified it in their state statutes}
reads in the section on commercial paper which includes
promissory notes Regulations of the Board of Governors
of the Federal Reserve System and operating circulars
of the Federal Reserve Banks supersede any inconsistent
provision of this Article to the extent of the inconsistency.
UCC 3-102(c)
So, we can see that the circulars of
the FED banks and the regulations of the Board of
Governors of the FED have the power to override statutory
law in commercial relations when there is a conflict
between that law and the circular or regulation of
the FED in a particular section.
That said, what have they said about
banks lending money? I think two examples will suffice
to prove the point, although many more could be offered.
Probably the most oft-quoted reference
on the internet is the Federal Reserve publication,
Modern
Mon ey Mechanics.
On page 6 it says in rather clear language,
Of course, they (banks) do not really pay out
loans from the money they receive as deposits. If
they did this no additional money would be created.
So, the question that we would ask while
looking at getting out of credit card debt is if they
do not really pay out loans from the money that they
receive as deposits, where do they get the money to
pay out loans?
The FED tells us in no uncertain terms
in the next sentence. What they do when they make
loans is to accept promissory notes in exchange
for credits to the borrowers transaction accounts.
So an exchange occurred!!! Why does
the credit card agreement and statement present it
as a loan, and charge interest? Does the agreement
ever mention that an exchange was happening?
The FED adds fuel to the argument in
their publication, Two Faces of Debt. In this publication
on page 19 the FED tells us that a depositors balance
rises when the depository institution extends credit-either
by granting a loan to or by buying securities
from the depositor.
In exchange for the note or security,
the lending or investing institution credits the depositors
account or gives a check that can be deposited at
yet another depository institution. In this case no
one else looses a deposit the money supply is increased.
New money has been brought into existence.
So, here again we see the word exchange
being associated with the so called loan. Notice that
the quote says clearly that a depositors (YOU) balance
rises when a depository institution extends credit
by granting a loan or by buying securities from a
depositor (evidence the agreement, promise to pay,
or promissory note is deposited). How does that happen
according to the circular? In exchange for the note
the lending institution credits your account etc.
Then we are told something that proves
the bank or financial institution really did not lend
you their money as they implied or agreed. We are
told that as a result of this transaction no one
loses a deposit (thus no other person who had
money deposited at the institution lost any deposit)
that the money supply increased, and that new
money has been brought into existence.
By now you should be feeling hope that
there really is a way to get out of credit card debt,
legally, lawfully, and ethically.
Out of Credit Card Debt Non Consideration
How was the new money brought into existence?
By the deposit of your agreement/promissory note.
Now this is a crucial point because as any attorney
knows, for an agreement or a contract to be valid
both parties must provide whats called valuable
consideration. In other words each party must
provide something of value in return for the thing
of value that they receive.
Now we would ask the simple question:
What did the bank lend that I should repay? If according
to the FED, whose regulations they must follow:
1) the bank did not use others depositors
money,
2) banks do not really pay out loans from this money,
3) they accept my agreement/promissory note in exchange
for credits in a transaction (checking) account,
4) and they issue a check or wire transfer from this
account.
What did they lend? The wire
transfer, credit or check is issued from the deposit
of the promissory note. Remember what GAAP says. Anything
accepted by the bank as a deposit is considered as
cash. This concept one must never forget: the promissory
note is an asset. An asset is something that has
value. It can be bought and sold.
This explains why the FED says new money
is brought into existence with the deposit of your
promissory note. It is money that was not in the bank
or financial institution prior to the deposit of the
promissory note.
Thus we are told in Two Faces of Debt
page 19, Such newly created funds are in addition
to funds that all financial institutions provide their
operation as intermediaries between savers and users
of savings.
These funds are in addition to their
other funds. What does addition mean? It means to
add. The agreement/promissory note is an increase
of the financial institutions funds! Thus from an
economic standpoint you were far from getting a loan,
you were making a deposit. And, what does the FED
say about that? Again we read from page 19, Two Faces
of Debt A DEPOSIT CREATED THROUGH LENDING IS
A DEBT THAT HAS TO BE PAID ON DEMAND OF THE DEPOSITOR,
just the same as the debt rising from a customers
deposit of checks or currency in a bank.
This is very powerful, clear, and concise
statement. What can we learn from it?
1) When a bank or financial institution
makes a loan they incur debt.
2) This debt must be paid on demand of the depositor
(of the promissory note).
3) It is the same as the debt the lending institution
owes a person who deposits checks or currency or checks
in a bank.
So when we deposit our paycheck or cash
into the bank, or other financial institution, the
institution has to record it as a debt owed to us
on their books. So, it looks like you might already
be out of credit card debt!
Two Faces of Debt page 19 puts it this
way: Again checkable deposits in commercial banks
and savings institutions are debt-liabilities of these
depository institutions to their depositors As we
have seen the promissory note is a checkable deposit
because, A deposit created through lending is a
debt that has to be paid on demand of the depositor,
just the same as the debt rising from a customers
deposit of checks or currency in a bank.
Out of Credit Card Debt - Contract
Law
Next, in order to get out of credit
card debt, we have Contract Law which is a
very universal law that applies to everyone in the
United States and around the globe. Contract law states
that when an agreement is made between two parties,
you must be given full disclosure of what is about
to happen. An agreement is not valid if the other
party holds back or doesnt tell you something pertinent.
They cannot mislead you in any way.
So the credit card company never explained
to you what we have just explained to you that they
were not loaning you anything for that credit card?
And, that you were exchanging a promissory note which
has a real cash value of $5,000 which was used to
fund the supposed loan for $5,000. And, you were made
to assume that they were loaning you other peoples
money, and thats not even close to the truth, they
never told you the truth, and they blatantly hid the
truth from you. Well, according to contract law, that
agreement is null and void due to non-disclosure,
because you were misinformed.
Now another major fact is that the clerk
at the bank altered the original agreement with you
by stamping the back of it with Pay to the Order
of, which gave the promissory note a specific
dollar value in cash. This single action alone constitutes
Forgery which is the process of making or adapting
objects or documents with the intention to deceive,
and Fraud which is the crime or offense
of deliberately deceiving another in order
to damage them - usually, to obtain property or services
from him unjustly.
So, you are already out of credit card
debt because you funded your own loan and they
committed several crimes in the transaction itself.
Not to mention the extortion they committed
against you with the continued threats of ruining
your credit report. Now, being that they have control
of all of our money, we must proceed cautiously when
it comes to getting out of credit card debt as far
as the cancellation of it is concerned.
Banks know what they have done, and
are ready to wipe out the novice debt canceller. It's
time for all of America to stand up and get Modern
Mon ey Mechanics together. Once and for all.
