Out of Credit Card Debt - Without Filing Bankruptcy
To be out of credit card debt is your dream and you're 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, it's not
likely that you bought yourself one too many Ferrari's, 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 don't 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 we're 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 institution's 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!
Let's 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 Money 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 borrower's 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 "depositor's
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 "depositor's (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 what's 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 depositor's 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 institution's 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 customer's 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 customer's 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 doesn't
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 people's
money, and that's 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 out of credit
card debt together. Once and for all.
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