I believe we have the best government in the world. I personally believe that neither government officials nor the voters understand banking procedures and money transactions the way bankers do. I have talked to Certified Public Accountants who were themselves confused, so we can certainly see how Congress and the President could be confused. This book is designed to clear up the confusion, giving you the method to cancel bank loans without going to court.

To best illustrate the problem, I present the following hypothetical story. This book will prove that the economic and political effect illustrated in this story has happened in America.

An invitation went out to the top bankers in the world, asking them to meet and discuss how they could work in unison to increase bank profits. A month later, a dozen of the top bankers met in secret. Before the meeting began, they stood around talking about the good old days. One of them said, "If only we

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could create money and loan it out. That would increase profits.'' Another replied, "If only we could become money changers, exchange $100 for $100 and charge $100 plus interest for the exchange." Yet another spoke up and said, "How about making the borrower deposit $100 while we withdraw the $100 and give it back to him as a $100 loan."

Doubting Thomas said, "People would never be so stupid as to allow us to do that."

Richard, who called the meeting, rebuked him, saying, "You're wrong Thomas. I have devised a plan to do exactly that, without the people ever suspecting what's being done. Everyone please be seated and I will explain how we can end up owning nearly all the wealth of the globe without ever loaning one cent of other depositors' money." He went to the front of the room and explained the following: "Gentlemen I have a bill in my hands that I wrote, and that the Congress and the President will pass, making it legal for us to convert the property of the world into our hands without people ever realizing it. Today the people own their homes, cars, farms, and businesses debt-free because the government prints money like President Lincoln did. We will stop Lincoln's successors and ensure that only the banks can create money. We will then loan it out at interest. Every time someone receives a $100,000 bank loan, the bank will create $100,000 of money and loan it out. The people will have $100,000 of new debt that never existed before, while the bank will have a lien on their house or farm. If they do not repay the loan, we get the real estate for free. When someone buys a house, they are dependent on obtaining a bank loan to purchase it. The average house sells every 7.5 years, so in less than 10 years the banks will have these counterfeit liens on most homes. Every loan from a bank will ensure that the people will have more debt, not only in principal balance but also by paying us interest. If they do not pay us the interest, we foreclose and take their property. In short, the bank creates the money and buys up the nation's assets, ending up owning nearly everything. Today, people can own a $100,000 house debt-free because of Lincoln. Tomorrow, the same house will have a $90,000 mortgage on it and the bank will receive 10% interest.

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Each year, we will receive $9,000 of the homeowner's income for free, simply because Congress and the President will make it legal. We will have to breach the loan agreement, but, since no one understands banking, no one will sue. Credit cards, student loans, car loans, house loans, commercial loans, and government loans will be financed by the money we create and loan out at interest.

The new law will create a new personal income tax (IRS) so that the government will have the money to pay interest on the national debt that the banks will receive for free. The bank will pay 2.5¢ for $100 of cash. The bank will then loan the cash to the government to finance the government deficit. The government will give the bank back a $100 government bond and then tax the citizens $8. The government will give the $8 to the bank in the form of 8 percent interest ($8.00) on the $100 government bond that the bank received for 2.5¢. It will be like the government giving banks the cash as a gift, and the banks returning the money back as a loan. Soon, the government will create a $5 trillion deficit by overspending, forcing the people to pay nearly 40 percent of their IRS tax to the bankers.

We will force the wives to work as much as their husbands so that the banks can receive more profit. If a family has an income of $50,000, they will pay $10,000 in income tax. Forty percent of the tax ($4,000) will be paid to the banker for interest on the government bonds they received for 2.5¢. The family will have a $100,000 house with a $90,000 mortgage, paying the bank 10 percent interest. So, there again, the bank will receive $9,000 for free. Two car loans, student loans, and credit cards would mean another $30,000 of debt at 10 percent interest, giving the bank another $3,000 for free. The banks will receive an average of $16,000 from this family alone. Today the banks get nothing, but when we get this bill through, we could get 32 percent of an average family's income for free."

Another man, Frank, spoke up, explaining how the state, county, and city governments need loans just like the federal government. "The banks," he said, "will create money and loan it to the state, county, and local governments so that the American people must pay taxes to cover the interest on the money

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the banks create and loan out. Government is the biggest monopoly. All we have to do is get the money for free and loan it to the monopoly. Then we use the judges and police to collect the taxes, and we get nearly half of it back for free. To get the judges, police, and lawmakers to join us, we will show them how to profit from foreclosures. Sheer greed will enforce this banking system. The law will allow us to take from the Americans, putting their money and wealth into our hands without ever loaning one cent of other depositors' money. Many states have a 7% sales tax and a 3 to 5% income tax. The banks could get much of this tax once we get the monopoly into enough debt. Gasoline tax, utility tax, sales tax, real estate tax, and state income tax could be as high as 10% of a family's income. The banks could receive nearly 40% of the tax for free, which is 4% of families' income. Add the 4% to the 32% calculated earlier and the banks could receive about 36% of an average family's income for free."

Doubting Thomas continued to argue that the people would never allow this, and that the media would expose it even if it got through Washington D.C.

In response, Richard explained, "The major media is easy to control. They cannot exist without bank loans either. They know that if they upset the banks, they will not get the loans they need to stay in existence. With all the bank profit and retirement money to invest, we can own a portion of the major media and publishing companies as well. Anyone speaking against the banks will be labeled as a conspiracy nut or an anti-government group. That will shut people up.

If we collect nearly 36 percent of the income from families, we have plenty of money to be one of the largest political funders of Presidents, Congress, judges, sheriffs, and other officials. They need the media and money to get elected. Let everyone argue over the little issues, but never allow this secret to be revealed. Anyone running for political office to correct our banking system will never receive favorable major media attention and will never get elected. Any lawmaker opposing the banks will be taught a lesson by having the media favor their opponent in the next election. The banking interests will sim-

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ply withdraw financial support from those who oppose them and give financial support to political candidates who help us continue our banking system. Other lawmakers will learn by example, thus keeping them in line.

"We have to sell the idea to the American people without them understanding the truth. We will give the bank a name to make it sound governmental, making the people think it is federal, but it will be privately owned. The central bank will give back to the government any profit, but the government cannot audit the bank and the bank pays no IRS tax. We simply load up the bank expenses so there is little profit to give back to the government. Whether or not we give back profit is irrelevant. This just makes it look good to the public so they will not get wise and vote us out. The profit is in the local banks creating money and loaning it out. We will simply deceive the people. Today, people think they can only deposit cash, checks, drafts, and wire transfers into checking accounts. The new banking law will allow us to deposit the bank loan agreement or promissory note (contract borrower signed agreeing to repay the loan) into a checking account. A $100,000 promissory note can be sold for $100,000 of cash or government bonds, so depositing a promissory note is just like depositing cash. The bank will receive a $100,000 promissory note from the borrower, deposit the promissory note, or sell the promissory note for $100,000 cash and deposit the cash. Then the bank withdraws the funds and returns it back to the same borrower, calling it a bank loan check. The bank never invests or loans one cent to obtain the promissory note. The promissory note acts like new money because it can be sold for money. The promissory note is deposited, creating a new checking account balance (bank liability owing money). It has the economic effect of $100,000 of counterfeit money, or of stealing the $100,000 promissory note and returning the value of the stolen property back to the victim as a loan.

Economically speaking, it is similar to stealing the victim's (borrower's) future payroll checks, used to repay the loan, depositing the payroll checks, and returning the money back to the victim as a loan instead of a return of the capital earlier

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deposited. The bank loans nothing of value, but obtains the promissory notes, liens on the nation's homes, cars, farms, and businesses, for free. For every $100,000 loan, the people have an additional $100,000 of debt that did not exist before. If people loan their neighbors' money, or if banks loan other depositors' money, $100,000 is not shifted from the people to the banks for free. The bank loan agreement is the problem. We cannot explain the truth in the agreement. The bank must conceal and omit the part about the borrower being the lender, creditor, or depositor. If people understand the truth, they will never agree."

Mike spoke up and explained that, if the bank was to be truthful in the bank loan agreement, it would say: "The bank loans no legal tender or other depositors' money to fund the bank loan check. The borrower agrees to loan the bank the $100,000 promissory note, and the bank loans the same $100,000 back to the borrower. The borrower must repay the loan back to the bank, but the bank never repays the loan from the borrower to the bank."

John was so excited he jumped up, interrupting Mike. "It is like the borrower asking for a $100,000 loan. The moment the borrower signs the $100,000 promissory note, they've created a paper that can be sold for $100,000 cash. Because the promissory note has interest, an investor will pay $100,000 for the $100,000 promissory note. The investor's money is safe because of the collateral, the lien on the house or car. If the borrower does not pay the loan, we foreclose and get our money. The bank loans nothing; it simply deposits the $100,000 and withdraws it again, returning it back to the borrower as a bank loan check. The new $100,000 acts like new money. The bank gets the $100,000 check and the $100,000 promissory note for free. The bank gets the borrower's future labor for free or the bank forecloses and gets his or her house for free. The bank does not give up $100,000; they receive $100,000 and return it as a loan to anyone stupid enough to give them $100,000 in the first place!"

Sam said, "Depositing the promissory note is like depositing cash, because it can be sold for cash. Banks sell depositors' cash for government bonds to get interest. So we will not only

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Joe explained what he loved most about the idea: "It is too confusing to explain this to a jury. If we foreclose, the victim has no money to take the bank to court and hire an attorney and expert witness."

Peter was sitting quietly in the back of the room, thinking. He said, "Let me get this straight. On a national level, the government gives us $100 cash for the cost of printing it, and we loan it back to the government who gave it to us for free or printing cost. And when local banks grant a $100,000 loan, the borrower gives the bank $100,000 for free, and the bank retums the $100,000 back to the borrower as a loan."

James interrupted and asked, "How can the bank receive $100,000 from the borrower for free when the borrower needs money and is going to the bank for a loan?"

Charles spoke up and said, "The minute the borrower signs the $100,000 promissory note, the note can be sold for $100,000 cash. When you deposit the cash or promissory note into a checking account, there is a new checking account balance of $100,000 that acts like money. It is like creating $100,000 of counterfeit money. Whatever is deposited, by law, becomes the bank's property. People use checks to buy things instead of cash, so we do not need cash, we need checkbook money.

James spoke up and said, "It is simple. The government or the people give us money or something that can be sold for money, and we get it for free. Then we return it back to the same person and call it a loan. The people will never figure it

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out because they think it is a loan. We will simply conceal the fact that we took the money we're lending from the borrower himself. If the borrower has no idea they gave us something and no idea what we did with it, we can do it all day long."

Richard said, "All we have to do is promise the politicians money to get elected. When they retire, we give them consulting fees and make them rich for passing the laws that take from the American pocket and put into our pocket for free. Money will control the media. Those who understand the system will become rich at the expense of the ignorant."

Debbie finally piped up and said, "You haven't even seen the best part yet. I used my economics background to write a bank manual showing banks how to expand and contract the money supply, forcing Americans into foreclosure and bankruptcy. Banks can create planned recessions and depressions to own the wealth of the nation for free. Our plan is to foreclose on all farms, ranches, homes, cars, and businesses. What Americans own today will be ours tomorrow, simply because a private organization will control the money."

Richard concluded the meeting by making everyone take a vow of silence on the subject.

One cannot prove that this secret meeting, or one like it, ever occurred. But one can look to see if the results predicted in such a meeting occurred. This book will prove that the economic effect of the plan discussed in this meeting has occurred in America.

Once you learn the banking secret, you can help foreclosure victims and legally divert money from the bankers' pockets, back to the citizens' where it belongs.

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