Rudimentary Principles of Banking!

[fulltitle]

WITHOUT PREJUDICE

A bank always begins with zero money.
A bank always ends with zero money.
All money’s must come in through the front door and be recorded as an increase.
All money’s must leave through the front door and be recorded as a decrease.
What a bank has must always equal to what it owes.
The banking corporation who runs the bank is just another customer of the bank.
There can be no conflict of interest between the banking corporation and the bank.
A banker is a fudiciary of other people’s money and nothing more.

Lawful bank bookkeeping consists of two columns. The left side is called the asset side and the right side is called the liability side. The asset side is the money, the thing of value. The liability side is just a score card of what the banker owes. It is valueless. On paper it looks like this....

Assets................|...................Liabilit ies

For the principles outlined above to hold an entry must be made in both columns and in the exact same amount. In other words the asset side and liability side are married and cannot be separated.

What happens when you deposit $5000 cash? The entries are thus.......

Assets................|...................Liabilit ies
$5000 cash...........................$5000 DDA

The banker takes the cash and puts it in the vault. He sets up a checking account (Demand Deposit Account) in your name. The account and the numbers in it are not the money. They are just a record of how much money the bank owes you.

What happens when you write a $1500 check? The entries are thus.......

Assets................|...................Liabilit ies
$1500 DDA.........................$1500 check

It means the banker lost an asset worth $1500 via a checking account and the bank’s evidence that it does not owe you the money anymore is your check. A check is an order to pay money. It is not money. It is important to understand that money or real federal reserve notes are not transferred from one bank to another. All that happens is that the liability is transferred.

How does a so-called loan appear?

Assets................|...................Liabilit ies
$10,000
promissory
note...................|....................$10000 DDA

Looks just like Example 1. Mr. Banker gets to accept your "promise to pay" and record it as an asset and then he merely creates a deposit account in your name and you get to act as if you have that amount of money as long as you agree to call it a loan from the bank to you. In reality it is a deposit from you to the bank! This is why the Federal Reserve Corporation calls Federal Reserve Notes a liability. Their source is the liability column. Now wait a minute. Didn’t I say and isn’t it true that the money was on the Asset side and that the Liability side was valueless? Didn’t I say and isn’t it true that a bank liability is just a record of how much the bank owes? Yep I sure did and now you should be seeing the problem. It is your promissory note that is the source of the funds and if this is true and I assure you it is then no loan was made from the bank to you. In fact a loan was made from the so-called borrower to the bank! Where does it say all this in those so-called loan agreements?

What happens at the receiving bank if you take the check to it and make a deposit?

Assets................|...................Liabilit ies
$10,000 check....|..................$10000 DDA

A brand new $10000 just came into being simply because you promised Mr. Banker you would pay him back.

All so-called money in America comes into being in this manner including the money the federal government spends. In their case the promissory note is called a bond.

[More (near the bottom)...]

[charlesa6]

Thanks for the info.

[More (near the bottom)...]

I clicked the link, and found a volume number at the top, so ventured back one / mark to the next page and low and behold, up came the intro to the website...


Now to those others that have read that page...
If you trust in volume 19, then read the site introduction:

http://members.aol.com/rmckin6412/liberty/

then if you are still convinced of the sincerety or usefulness of the information, you can read the entire set of volumes at:
http://members.aol.com/rmckin6412/liberty/archive.htm

personally, from a worldly stand point, I can see where some of the info would be useful, but that intro really puts goosebumps up and down my back.

Jerry.

[mrg]

Nice info.

I have had some conversations on this forum with people who seemingly will deny this (the promissory note) to their dying breath, but cannot offer any refutation other than saying "the courts have consistently ruled....,"

Originally Posted by fulltitle

WITHOUT PREJUDICE












[More (near the bottom)...]

[idknow]

Originally Posted by mrg

Nice info.

I have had some conversations on this forum with people who seemingly will deny this (the promissory note) to their dying breath, but cannot offer any refutation other than saying "the courts have consistently ruled....,"

guys, that's an awesome and cogent explanation of the whole game!!!

Eggzellent to all three of you!

[fulltitle]

Originally Posted by jerrypitts

[More (near the bottom)...]

I clicked the link, and found a volume number at the top, so ventured back one / mark to the next page and low and behold, up came the intro to the website...


Now to those others that have read that page...
If you trust in volume 19, then read the site introduction:

http://members.aol.com/rmckin6412/liberty/

then if you are still convinced of the sincerety or usefulness of the information, you can read the entire set of volumes at:
http://members.aol.com/rmckin6412/liberty/archive.htm

personally, from a worldly stand point, I can see where some of the info would be useful, but that intro really puts goosebumps up and down my back.

Jerry.

WITHOUT PREJUDICE
Good point JP. I definitely dont endorse the things the guy says. But the stuff about banking is worth a look. I was definitely not suggesting taking he says for gospel or agreeing with any of his religious or political opinions. The delimma was quoting the reference without giving a reference.

Thats one thing about links/books, spin doctors (or others) could poise one as endorsing an entire ideology simply from quoting a book.

Originally Posted by fulltitle

WITHOUT PREJUDICE
Good point JP. I definitely dont endorse the things the guy says. But the stuff about banking is worth a look. I was definitely not suggesting taking he says for gospel.

Thats one thing about links/books, spin doctors (or others) could poise one as endorsing an entire ideology simply from quoting a book.

Just an observation. Everyone has to walk that valley alone... no-one can guide them... as they will ultimately do what seems most advantageous. I suppose it really is a matter of separating the chaff from the wheat.

Jerry.

[fulltitle]

WITHOUT PREJUDICE
pledge Pronunciation (plj)
n.
1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity.
2.
a. Something given or held as security to guarantee payment of a debt or fulfillment of an obligation.
b. The condition of something thus given or held: put an article in pledge.
3. Law
a. Delivery of goods or personal property as security for a debt or obligation: a loan requiring a pledge of property.
b. The contract by which such delivery is made.
4. A token or sign: "fair pledges of a fruitful tree" Robert Herrick.
5. A person who has been accepted for membership in a fraternity or similar organization and has promised to join but has not yet been initiated.
6. The act of drinking in honor of someone; a toast.
7. A vow to abstain from alcoholic liquor: ex-drinkers who have taken the pledge.
v. pledged, pledg·ing, pledg·es
v.tr.
1. To offer or guarantee by a solemn binding promise: pledge loyalty to a nation. See Synonyms at devote, promise.
2. To bind or secure by or as if by a pledge: pledged themselves to the cause.
3. To deposit as security; pawn.
4.
a. To promise to join (a fraternity or similar organization).
b. To accept as a prospective member of such an organization.
5. To drink a toast to.
v.intr.
1. To make a solemn binding promise; swear.
2. To drink a toast.

[mrg]

Originally Posted by jerrypitts

Just an observation. Everyone has to walk that valley alone... no-one can guide them... as they will ultimately do what seems most advantageous. I suppose it really is a matter of separating the chaff from the wheat.

Jerry.

It looked to me like a sort of smorgasbord of info.

All I am interested in was the banking info.

[joseph sugarman]

The balance sheet for any business, including banks, does consist of two columns; but they contain three entries. The Assets column must always balance with the Liabilites + Equity column. Seems to me you have left Equity out of your thinking. Joseph Sugarman, design@dream-home.com