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The Soon Coming Judgment Of God Upon America and How To Escape It 311
While checks, money orders and bank notes are not legal money, this does not prevent
individuals from using them as a medium of payment. But because they are not legal money, no
one is obligated to accept them as such. Additionally, Since checks, and debt are not legal
money, banks are not authorized to charge interest.
Astoundingly, banks aren't even aloud to lend their credit. This means that if they create
money through ledger entries and they are the guarantor, which they must be, they cannot lend
that created money out. In 1908 the US Court of Appeals ruled: “A national bank... cannot lend
its credit to another by becoming surety, indorser, or guarantor for him. It cannot for the
accommodation of another indorse his note or guarantee the performance of obligations in which
it has no interest. Such an act is an adventure beyond the confines of its charter...” (Merchants
Bank v. Baird, 160 F. 642; 1908 U.S. App. LEXIS 4236) The court again confirmed this in 1926
ruling: “In the federal courts, it is well settled that a national bank has not power to lend its credit
to another by becoming surety, endorser, or guarantor for him.” (Farmers and Miners Bank v.
Bluefield Nat Bank, 11 F.2d 83; 1926 U.S. App. LEXIS 2434)
Hence, the courts have well established that the general banking practices of the US are
not only unjust and unfair, they are also illegal.
An Insurmountable Debt
This form of banking has enabled the Federal Reserve to increase the money supply to
$5.463 trillion
1245
Yet the total US debt (government, corporate, private business and consumer)
is a mind boggling $34 trillion.
1246
The total US debt exceeds the money supply by a whopping
$28.5 trillion. If we used the entire money supply to pay off all private, corporate and
government debt, there would be no money left and there would still be a debt of $28.5 trillion.
This means the US is bankrupt.
Note, the money supply consists of ledger entries in a computer, the money doesn't really
exist. Actual currency in circulation is approximately $580 billion. There is no way to ever pay
back the $28.5 trillion deficit; it will only continue to get larger. The entire money supply and
economy is dependent on people borrowing money in ever increasing amounts.
$34.0 trillion (Total US Debt)
- $ 5.5 trillion (Total M-2 Money Supply
$28.5 trillion (Unredeemable US Debt Balance)
While there is $580 billion in currency, it has no more value than the trillions of dollars in
ledger entries. It is very difficult to believe but the $580 billion in paper money, the stuff we
carry around, is not really money but debt. Look at the top of any US bill of any denomination.
They all say at the top “Federal Reserve Note.” That debt obligation is not to you; know one has
promised to pay you anything. The notes are not redeemable or convertible into anything of
value.
The word “Note” wasn’t used by chance. A note is a promise to pay a debt. For example
there are promissory notes, bank notes, mortgage notes, etc. The Federal Reserve Note is not
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