Banking as Fraud

Money is created as debt by private banks. But it is created in a way that breaks all the basic principles of Contract Law. A simple application for a loan is actually a ‘cheque’ for a certain amount of money granted to a bank by the borrower. Why? Because the signature on it allows the bank to create a fictional electronic ‘deposit’ of that sum of money in the borrower’s account - just by keying in the numbers on a computer. Yet besides being purely electronic money this money is fictitious also because it did not exist until the borrower applied for the loan. Putting your signature to a loan application without being told this, without full disclosure of the fact you yourself have signed the money you are borrowing into existence - is a breach of ‘Full Disclosure’ – one of the basic principles of Contract Law. It is also a breach of the principle of ‘Equal Consideration’ – since the banks themselves are offering no  ‘consideration’ of their own – nothing of intrinsic value - to the loan contract (for example gold or capital reserves). Finally, since all credits issued by banks are signed into existence by the borrower, and since these loans or credits count as assets on the bank’s account (understandable – since just as ‘money is debt’ so also ‘debt is money’) the borrower has been defrauded by a four-step ‘scam’.
1.       The borrower effectively gives an amount of money to a bank by applying to borrow it – effectively signing that money into existence.
2.       The bank then demands that the borrower give the bank the same amount of money once again as ‘repayment’.  
3.       The bank asks for even more money from the borrower in the form of interest on the loan.
4.       The bank makes huge amounts money by selling its loans to other banks and the financial markets. In fact people have a right to claim back this money made from loans to them.
Basically however, no one has any legal or ethical responsibility to pay back a bank loan - since the loan is a fraudulent contract. It is fraudulent not only for the reasons given above but also because in reality THERE IS NO CONTRACT. A joint contract requires the signature of two parties. But where is the signature from the bank that would make the loan a mutual ‘contract’?  The bank can’t sign such a contract because it only exists as a fictitious legal ‘person’ – a corporation, and not a real person who can be held responsible for their side of the contract. It might be argued that a bank loan is a legal form of unilateral contract established by one party (the borrower) accepting a contractual offer from the other (the lender). This is highly questionable however given that the loan ‘offer’ is not for money that actually exists as ‘Consideration’ before the lender accepts that offer. All that is ‘offered’ then is a so-called ‘financial service’ but one lacking in the Full Disclosure necessary to regard it as a lawful contract.  Finally, even the idea of payable ‘interest’ on a loan is essentially a fiction. Thus if an economy consisted of ten friends of yours to whom you loaned £100.00 each with 5% interest there would be a total of £1000.00 in circulation – not enough for all your friends to pay this back plus the interest. In other words, there is not – in principle – any possibility of paying of the Interest on the ‘sum of all ‘Principal’ loan amounts.

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