KK wrote: “Most of the money the banks lend out doesn’t exist. So if it doesn’t exist you probably don’t have to pay it back.(?)”
GG replied: “Lol…. I wish I could say that to the bailiffs! All the money they lend is created out of thin air by them. As soon as you sign a loan contract they create the cash. Then you pay interest on it for the next 30 years! Sucker!”
JR (“the Jedi troll”) offers his fascinating and insightful comments:
Let’s review what happens when someone signs a contract. Let’s say that I signed a contract with a phone service provider for 12 months or a landlord for a lease. Did my signature just create a legal debt? Yes. Was any currency created? No (not yet at least).
Hysterical reformers typically overlook this very simple point. The signature can create a legal debt. I may be legally obligated to pay another 11 months as agreed in the contract. However, creating a legal debt does not result by itself in any increase in the total amount of currency in circulation. If I file bankruptcy and then the officer of a bankruptcy court cancels my lease or my phone contract, then still there is no change to the total amount of currency in circulation.
Again, the signature that binds the contract did not increase the amount of currency in circulation. “Discharging” the contract in a bankruptcy proceeding does not decrease the amount of currency in circulation.
So what was GG talking about? He was talking about the monetization of certain contracts, such as mortgages (or even leases or phone service contracts).
Can the Federal Reserve in the US extend credit to a bank based on the bank presenting a mortgage contract as collateral? In exchange for the Fed being granted a “security interest” in the expected proceeds of the mortgage contract, then the Fed can lend the bank some Fed credits (which the bank is under contract to repay plus interest). The Federal Reserve can extend credit based on absolutely anything that they wish. They can extend credit just like a phone company can extend credit or a utility company when services are provided prior to payment (and a bill will be sent later).
Now in a casino, can a casino print tokens and extend credit or gift some amount of plastic tokens to people? Can the phone Company give me a coupon or apply a credit to my bill? Of course they can.
So if the Federal Reserve invents currency or not is simply no ones business but there’s they are, after all, a private organization with no Government having authority over them. Can a government choose to do business with the Federal Reserve? Of course.
In the case of the US in 1913, there was a shift of power. It was not an open, obvious shift like when the US invaded northern Mexico and annexed that territory which we now call Texas.
Rather than a military invasion, there can be assassinations, blackmail, bribery and other forms of diplomacy. A treaty can be entered by the US. Specifically, under the terms of a contract known as the US Constitution, there is a section called “the supremacy clause.” In that clause, that document (which is so sacred to so many US citizens) has a very explicit statement that “the supreme law of the land shall be this Constitution AND all treaties made in pursuance thereof. “
As a former reactionary hysterical patriot, I took some time to read that document. I also took some time to study the history of human interaction and governments as well as psychology and the psychology of hysterical patriots such as myself. In case it was not clear, I no longer demonstrate the behavioral habits that I would classify as a hysterical patriot.
What exactly is a hysterical patriot? I will say more about that below.
First, it might be interesting to note that there could be a concerted, planned program by the CIA and other government agencies (such as the KG or MI-6 or the Mossad) to publicize the idea that money does not exist and so we should not pay it back. I have been down that road before.
To simplify the issue, how do courts relate to money and debt? Tax courts can legally confirm the debts invented by legislators and kings and so on. The courts will also declare certain sacred objects to be accounted as money in that court ritual, but not other sacred objects (which may be accepted in some other court jurisdiction, such as pesos or euros or yen).
The court can say “in order to pay, you need a gold coin minted by our network and bearing the face of a dead president or a dead Monarch.” The courts can evaluate what they will accept as payment for the debts that they are authorized by legislation (or kings) to invent (or confirm).
So, courts create demand for those sacred objects through their network of coercion. If a particular court system is no longer effective at creating an extortion system of taxes and fines and fees, then demand for their sacred object will decrease. When the northern part of Mexico was invaded by the US military and renamed as Texas about 170 years ago, perhaps the demand in Texas decreased for the Mexican currency and rocketed for the sacred currency of the US (which was suddenly accepted by courts there).
Anyway, the idea that money is not real is part of the demoralization program of groups like the KGB which they use to confuse and shame pseudo-intellectuals (and turn them in to “useful idiots” that unknowingly serve the interests of the programmers). People who have been programmed with anxiety and shame in their youth May become perfectionists with a patriotic fixation. They want to be the heroes that save the holy nation from the villains and reform the government to conform to the ideals programmed by the government in their youth. In fact, the panicking patriots will relate to saving the nation as something they must do in order to avoid a hell of shame and in order to compensate for their perceived inadequacy and earn their way into heaven so that Santa Claus will give them the good stuff when they die.
On the other hand, is there a way to trigger an “off-button” in their court rituals? Some allege that there is (though many of them may be CIA or Jesuit “agent provocateurs”).
If a person “figures eventually out the occult secrets to the ritual court theatrics,” will they just be left alone? Will the rulers simply withdraw and say to themselves “that was not the droid that we were looking for?” Or, will the military simply be sent in to “liberate” the Texans from Mexico?