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Time to fight back the banking system?


After watching the Ed Griffin video lecture, it dawns on me that we are contributing to the perpetual inflation of the monetary base by even having a regular checking or savings account at commercial banks. Is it time to pull out your hard earned dollars from the commercial bank accounts? And put it in credit unions which I believe is a more sane way of sharing resources?
I mean your dollars are now being reloaned out right after you deposit them and put to work by the receiving banks in a 9:1 ratio and you are essentially getting nothing back for it but a measley check book and a plastic card that allows you to draw fake money. Will this kind of protest movement put pressure on the politicians? And might just send a loud message to the banks to stop messing with us who are in fact the only true producers and they are just reaping profits from us by them having a money monopoly.
What are your thoughts on this?

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If you want to have an effect of banks, pay off bank loans.

Repayment of a loan is the opposite of borrowing in the first place.

When you borrow from a bank, they create a checking account balance for you out of thin air and loan it to you. This increased the money supply because checking account balances are part of the money supply.

You feed the banks when you let them earn interest from you.

When you pay back a bank loan, you write a check to the bank and this cancels the note you signed when you originally borrowed, but it also eliminates your checking account balance. Since your checking account balance is part of the money supply, eliminating that balance by repayment of a bank loan also reduces the money supply. The money goes back into the netherworld from whence it was originally created.

When you borrowed and spent the money originally, that contributed to economic activity and helped to drive up prices (drive down the value of money). When you repay the loan, the opposite happens; you contribute to economic contraction and to driving down prices. So repayment of bank loans bring the nation that much closer to financial collapse and the destruction of the fractional reserve banking system. Slower economic conditions deprives the federal government of some of their tax revenue and puts pressure on them to borrow. More government borrowing brings us closer to eventual collapse of the federal government into bankruptcy, and hopefully its dissolution.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.

America needs to wake-up BAD!

The Federal Reserve as we all know creates money out of thin air....But so do the banks! But the banks have to do it a little different. The banks create money through borrowing. Yes debt! For every credit card, car loan, mortgage all types of bank loans are created when the borrower signs the promissory note or contract agreement. At that point the bank takes the note/contract deposits it into a account then turns around and gives it back to the borrow as a loan! You see the money did not exist until the borrow signed the note/contract. The borrower has funded is own loan with his future labor! This is how the Fed and the banks have made every American their debt slave! Now if you stop paying....the bank gets your house for free! Or if you keep your payments up the bank gets your labor for free! So its a win win for the banks!

Want proof that this is real? Ask yourself the following questions:

1. Were you told that the Federal Reserve Bank Policies and Procedures as well as the Generally Accepted Accounting Principles (GAAP) requirements imposed upon all Federally-insured (FDIC) banks in Title 12 of the United States Code, Section 1831(a), prohibit banks from lending their own money from their own assets or from other depositors? Did the bank tell you where the funds for the loan were to come from?

2. Were you told that the contract you signed, the promissory note, was going to be converted into a 'negotiable instrument' by the bank and become an asset on the bank's accounting books? Did the bank tell you that your signature on that note, makes it 'money', according to the Uniform Commercial Code (UCC), sections 1-201(24) and 3-104?

3. Were you told that your promissory note would be taken, recorded as an asset of the bank, and then sold by the bank for cash, without "valuable consideration" given to obtain your note? Did the bank give you a deposit slip as a receipt for the promissory note you gave them, just as the bank would normally have to provide when you make a deposit to the bank?

4. Were you told that the bank would create a new account at the bank that would contain this money that you gave them?

5. Were you told that a check from this new account would be issued with your signature, without your knowledge, and that this new account would be the source of the funds behind the check that was given to you as a "loan"?

If you answered "No" to any of these questions, YOU HAVE BEEN CHEATED! How does that make you feel? It is now up to you to demand your deposit back and to challenge the validity of this bank loan Agreement. Since the banks and other lending institutions cannot allow "full disclosure" of your loan Agreement and cannot answer your challenges about it, their silence is the key, along with other necessary steps that can be learned by you, to get your deposit back and/or "payoff" their alleged loan to you.

What is the difference between you having a bank account

with a commercial bank or your credit union having a bank account with a commercial bank. The answer is no difference. The commercial bank still has the same reserves and the same ability to create new money out of thin air and loan it out at interest. If you move your money from a commercial bank to a credit union all you have done is make it easier for your credit union to create new money and more difficult for your former commercial bank to create new money.

You are also incorrect in thinking that credit union don't create money out of thin air also. They operate on the fractional reserve system too. They don't loan out your money to other customers; what they loan out is new checking account balances they create out of thin air, and they use their reserves to meet demands for clearing any checks drawn against the checking account balances.

I think it is huge misunderstand that bank reserves come from customer deposits. If you look at individual banks this is true since if you move your money from bank A to bank B it has the effect of reducing reserves at bank A and increasing them at bank B, but if you look at the system as a whole, bank reserves have not changed by any check that you might write. For the system as a whole, reserve increased come from operations of the federal reserve bank when they buy government bonds (either new ones or existing ones) or when they make loans to commercial banks, both of which increase the balances in checking accounts that commercial banks have with the Federal Reserve Bank.

What exactly are bank reserves? The Federal Reserve Notes in a commercial bank's vault are part of its reserves. They hold these as a reserve to meet demands from customers when the customers "cash a check". But the biggest part of bank reserves are the checking account balances they have at the Federal Reserve Bank. They have these checking accounts as reserves to meet the demands for clearing of checks drawn on them by their customers that are deposited in other commercial banks. Essentially bank reserves in the US banking system are the liabilities on the books of the Federal Reserve Bank that are owed to commercial banks. These liabilities are "Federal Reserve Notes" and checking account balance owned by commercial banks (look at liability section of the Federal Reserve Bank's balance sheet).

So anything that increases the total of the commercial banks' balances in checking accounts at the federal reserve bank also increases bank reserves. Quit thinking that the banking system gets its reserves from customers. It gets them from expansion of the Federal Reserve Bank's balance sheet.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.

There are Big Differences Between Credit Unions and Banks

Henry, I agree with your comments about the fundamental operation of federal credit unions verses commercial banks. As you wrote, they both:

1. Participate in fractional reserve banking
2. Are required to hold reserves by law

Now, please consider these facts about federal credit unions:

(for details, see: http://www.frbsf.org/education/activities/drecon/2005/0503.html and http://www.ncua.gov/DataApps/Pages/SI-FAQs.aspx)

1. They are "not for profit" meaning excess revenue beyond expenses is paid back to the membership in the form of owners’ dividends or goes back into the cooperative.

2. They are owned by the membership not individual or institutional investors, so there is no outside pressure (e.g., "Wall Street") to maintain high earnings.

3. They are not regulated by the Federal Reserve. They are regulated by the NCUA (National Credit Union Administration).

4. They do not make loans to non-members.

5. They are self-insured through the NCUSIF (National Credit Union Share Insurance Fund) not the FDIC (Federal Depositors Insurance Fund). In 2011, 26 credit unions were closed or put in receivership by the NCUA (see: http://www.ncua.gov/Legal/Regs/Pages/Closed2011.aspx ). All assets were covered by the NCUSIF. Conversely, 91 commercial or savings banks closed in 2011 (see: http://www.fdic.gov/bank/individual/failed/banklist.html ).

6. Credit unions generally borrow short-term funds (less than 1 year) from the CLF (Central Liquidity Facility) of the NCUA. They can only borrow money for liquidity purposes and must be collateralized using the assets of the cooperative. They cannot establish a line of credit.

7. Credit unions compete against commercial banks for depositors’ money and as such offer a market based alternative to the for-profit banks that have failed the country.

As you can see from the above, the differences are significant and in my opinion outweigh depositing money in a commercial bank account verses a credit union.

dacharlie's picture

Correct me if I am wrong

From some quick research on Google I did, I thought that we get dividends from becoming a shareholder depositor in a credit union from the shared profits vs just a poor sap depositing his cash in a commercial bank that is operating for its own profits that we don't ever see returning to us.

Also I thought the credit unions are more limited and cautious in its own investing locally with minimal or no adventurous ventures overseas like the big banks. So the unions don't have FDIC but national credit union shared insurance funds for deposit insurance.
It is true that due to legal tender laws, we are stuck with the Fed reserve notes even in the credit union accounts but we can't help it on that account unless we have parallel currencies.

Anyways, It is wise to diversify your assets anyways and stop taking any loans out period to dry up the credit pool in general. And also educate friends and family on these very important points. I am doing that now as we speak as long as they listen but I warn you most will call you crazy at first. Their blind trust in the Fed note and the banks is astounding!

Some Credit Unions..........

Just ask them what the requirements are. I asked one, and they went on about union this and that.

"Are there any other ways to qualify?", I asked.

"Well, if you own an appliance, like a fridge or washing machine."

"Okay good, I got one of those."

Just ask them, be polite.

This was Mountain America Credit Union in Las Vegas, NV


I would love to..but from a

I would love to..but from a practical standpoint credit unions dont take just anyone...the each have special requirements. Sometimes its a minunum credit score...sometimes its you have to work for a certain company...sometimes you have to live in a certain area...it makes it difficult for the average person...but if you can get in one go for it, they have many advantages.

I fought for over a year with Citibank, CapitalOne, & Chase.

I told them all that they were illegally collecting money that they never gave to me. My signature was a promise to pay back and that note went to the Federal Reserve which gave those banks (printing money out of thin air) money to give to me which devalued the US dollar more. I finally ended up settling with Citibank & CapitalOne a year later for 35 cents on the dollar. I figured "ruffly" that I ended up paying back "just" the amount of purchases I made "only" with "no interest". Chase never went to the level of an attorney (just a collection agency) so I never paid them anything. It felt good fightly against these international bankers and getting a greater understanding of why the Federal Reserve needs to be demolished to save America.

"First they ignore you, then they laugh at you, then they attack you, then you win!"

"The belief is worthless if the fear of social and physical punishment overrides the belief."

People are already leaving

People are already leaving banks and going to credit unions. The pace is slow, but its happening.
Once I finally find an engineering job, I plan on getting an account at a credit union. I have no desire for any sort of money I have to be at risk because of some large bank.(hey, the dollar might be shitty, but it still buys stuff)

To climb the mountain, you must believe you can.

Pay off debts. Interest is an impatience tax.

Cash and carry.

Free includes debt-free!

dacharlie's picture

selective debt

It is true that you should pay off credit card debt ASAP and keep some cash on hand or prepaid Visa for ID, online purchases only. However larger debts like student loans and mortgage rates are so low that it wont make sense to pay it all off right away. You are better off buying gold or a small parcel of farm land and lock that in with today's prices. By the time they had to raise rates on those 2 type of loans they are forced to do it uniformly across the spectrum of debtors not like credit cards where they can raise yours only per their discretion. So by that time system had crashed and you have solid assets on hands. They can't take it away from you unless by force since everything is in chaos and good luck having them find your loan documents in their offices.

JP Morgan's secret to success.

He told Congress he had liquid assets to cover all his debts in two weeks.

Labor is not an asset in a climate where employment is 18% and rising. By 1980 metrics, 20% of the economy evaporated since 2000.

A potential student claimed that the government is offering military service as an alternative for those who default on their student loan. Be very careful with debt especially debt insured by the government.

What if the economy doesn't make it to the election as in 2008?

To each their own.

Free includes debt-free!

No question about it!

I have 1 account that is free checking so I can have a debit card when needed for proof of a "credit card" but my account balance remains under $5. I keep my cash in a fireproof safe with my pistol sitting on top and my shotgun leaning next to my bed.


Bring down the banks!

Still have bankaccounts

But i have never more money on them than necessary to pay monthly recurring bills.
The rest i have in cash, gold, silver, food. Of course land, house etc is already bought and paid for. We choose a small house we could pay off instead of a large nice one.
The good thing about living in a not western country (in my case Thailand) is that gold is still recognized as having value.
Ask your typical American or European person how much a gold coin of one ounce is and you will get answers between 5US$ and 10US$. A few exceptions of course from who does know.
As an example, i just bought a second hand car and paid 90% of that in gold. The rest in paper money because another ounce would have been too much.
Bankaccounts are still convenient to use and paper money is still worth something because everyday i use it to by food. It just is not holding its value and actually looses value rather quick through inflation.
Common things like sugar, salt, coffee, soap, shampoo, toilet paper, candles, oils etc you can buy in bulk and you will be suprised how much you can save doing that. Not only is the bulk price cheaper but inflation makes those products go up in price fast. And you don;t have to go shopping for food often. Saves on gas and more importantly saves a lot of time that can be used more effectively.

I have been with a Credit

I have been with a Credit Union for years now.They treat me good and don't have a lot of charges like the banks do.

I left Chase after the "crash" and went

to a credit union. Thought they are still tied into the Fed, screw the big banks...

I closed my accounts years

I closed my accounts years ago! Join me. Maybe we should start a big push for all liberty lovers to purge the system. Show them who is really in charge!

To arms! To arms! The Redcoats are coming!