Did You Know All Debts Are Prepaid and Fraudulent?

Authored or posted by | Updated on | Published on January 12, 2015
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I originally wrote and published this article on my other website to inform readers about the unlawful activities of banks. It is a must read for people who care about their freedom and financial future. Due to the very controversial topics in this article, I’m not publishing the full version here. To read the full version, visit my other website OmniThought.org.

Shortly after the Federal Reserve (Fed) was established in the USA in 1913, the international Banksters changed the process of how banks lend money to the American people and the rest of the world. They did this by removing the gold backed US dollar and replaced it with fiat currency that is backed by the good faith and credit of the American people. This criminal act made every American a slave to the Banksters and has slowly destroyed the Western economy.

Did you know banks don’t lend real money?

Today, banks don’t actually lend out real money, but instead lend out notes or checks that are backed by a promise to pay. Before lending out these notes or checks, the borrower has to sign documents that have terms and conditions written on them along with a price tag (the amount of money the borrower agrees to pay back). A more specific name for these documents is “negotiable contracts,” “loan agreements,” or “promissory notes.” These negotiable contracts are basically IOUs with a natural person’s signature on them.

Due to the corruption in the financial system, central banks can legally create money out of thin air. However, they can’t lawfully create money. Unfortunately, the people have become too scared and ignorant to challenge the criminal banking system, and therefore the Banksters who control the banking system think they can do whatever they want.

Before I expose more secrets of the banking system, let us turn our attention to the two words lawful and legal. When it comes to the Western justice system, knowing the difference between these two words can either free you or enslave you.

From FamGuardian.org.

It is crucial to define the difference between legal and lawful. The generic Constitution references genuine law. The present civil authorities and their courts use the word legal. Is there a difference in the meanings? The following is quoted from A Dictionary of Law 1893:

Lawful. In accordance with the law of the land; according to the law; permitted, sanctioned, or justified by law. “Lawful” properly implies a thing conformable to or enjoined by law; “Legal”, a thing in the form or after the manner of law or binding by law. A writ or warrant issuing from any court, under color of law, is a “legal” process however defective. See legal. [Bold emphasis added]

Legal. Latin legalis. Pertaining to the understanding, the exposition, the administration, the science and the practice of law: as, the legal profession, legal advice; legal blanks, newspaper. Implied or imputed in law. Opposed to actual

“Legal” looks more to the letter [form/appearance], and “Lawful” to the spirit [substance/content], of the law. “Legal” is more appropriate for conformity to positive rules of law; “Lawful” for accord with ethical principle. “Legal” imports rather that the forms [appearances] of law are observed, that the proceeding is correct in method, that rules prescribed have been obeyed; “Lawful” that the right is actful in substance, that moral quality is secured. “Legal” is the antithesis of equitable, and the equivalent of constructive. 2 Abbott’s Law Dic. 24. [Bold emphasis added]

Here is another excerpt from a different website (SpoonFedTruth.ucoz.com) about the difference between lawful and legal.

In order to understand the difference in what is legal, and what is lawful we must understand how assumption, and presumption plays a major role in the fraud called “The Legal System”. As an example lets take a really basic event like marriage.

As we all know marriage is a “lawful” institution. People have been getting married for centuries. In fact in ancient times all it took for two people to marry was to stand in their village before their piers, and THEIR god (nothing about religion), and announce their intentions, and their vows to each other. Now they are married, and recognized as such under the natural law “Common Law”.

Let us now look at the process today. You decide to marry your soul mate. The first thing you must do (planning aside) is apply for a marriage license, which seems pretty straight forward right? Wrong! The need for a license is a presumption, or assumption on your part! This assumption results from the constant feeding of misinformation that you have been subject to throughout your life, and the way that the religious, government administered education systems have indoctrinated you during your growing years.

In simple terms, something that is lawful is above something that is legal. If something is legal, it doesn’t necessary mean that it is lawful. For example, killing someone is unlawful but can be legal. Lawful is more about natural rights (God given rights) and legal is more about rights given by man or the government.

When it comes to spiritual freedom, Natural Law is the most important knowledge you need to know. One of the most basic natural laws has to do with injury. This natural law simply states that as long as you don’t harm others or their properties, you are free to do whatever you want.

Once you know Natural Law and how to defend your natural rights, judges and attorneys will be scared to even look you in the eyes, because they know that you might know you are above their jurisdiction and statutory rules. For more information about Natural Law and how to defend your natural rights, read my empowering article titled Why You Need to Study Natural Law.

Another important fact you should be aware of is the difference between a lawful term and a legal term. Since I already explained the difference between lawful and legal, I’ll just give you an example of something that is a lawful term and something that is considered a legal term. For example, traveling is a lawful term and driving is a legal term. Traveling is a natural right and therefore you can’t be arrested for traveling. On the other hand, driving is a privilege. If a cop pulls you over and you consent to be driving, the cop can legally arrest you for breaking traffic statutes.

When we apply for a license (e.g., marriage license, driver’s license), what we are actually doing is asking the government permission to do something that is legal. However, we already have the natural right to marry or travel, so we don’t need permission from the government. In other words, we aren’t lawfully required to get any kind of license.

A license is basically a permission contract. Guess who often ask for permission before they do something? Children! Due to our irresponsible action of always asking permission to do something legal, the government views us as children and therefore the government thinks that it has the legal right to control us. One of the main reasons why the government has become corrupt and tyrannical is because we just don’t want to freaking grow up.

The secret process of how banks create “money”

Since you now have a general idea of the difference between lawful and legal, let us turn our attention back to the secrets of how banks create “money.”

When you go to apply for a loan at a local bank, if approved, the local bank gives you a piece of paper written with specific legal words on it to sign. Once you sign this piece of paper, it becomes a negotiable instrument with value. The only reason why this piece of paper has value is because you have agreed to pay back the bank with real money. To keep it simple, this piece of paper has now become a debt. Guess who is the collateral for that debt? You the borrower!

Because you signed the loan agreement, it becomes a valid promissory note. The local bank then deposits your promissory note into its account as money, which is actually your money. The local bank uses your promissory note to exchange for credits in your transaction account, and thereby creating new money. After the transaction, the local bank turns around and lend you that same money as a bank loan.

What the local bank did is fraud because it is lending you your own money. By lending you your own money, the local bank is making 100 percent profit every time you pay your monthly payment. If you add the interest into the equation, the local bank is making more than 100 percent profit. This is how banks are stealing your money without your knowledge.

The local bank will often place a lien against the loan contract and then sell it as a security on the stock exchange after three days. The bank does this because it knows that it is committing fraud. By selling it to other investors, the bank can relieve itself from certain obligations, while at the same time make some money.

The bank will often purchase an insurance policy for the loan contract, so that if you default on the loan, the bank can collect even more profit from the insurance company. Furthermore, if you used the loan to purchase a car, a house, or something with great value and can’t pay your monthly payment, the bank will eventually take you to court and try to take that property from you, so that it can sell the property for more money. What a bunch of crooks!

This process of how banks create and lend “money” is all based on trickery and deception. Banks don’t actually lend money because they create money out of thin air. Since they create money out of thin air and are committing fraud, these actions nullify their loan contracts and thus there is no debt! Do you realize now why banks are criminal organizations?

Why all debts are prepaid and fraudulent

Through our birth certificate, which is a bond that is traded as a security in the stock market, all of our current debt and future debt are pretty much prepaid. When the government securitizes our birth certificates, it also converts them into public trusts.

As described at DailyPaul.com.

So the ‘state’ or ‘government’ sends you back a copy of the Trust (birth certificate) that was created for you, by “THEM” and your mother; you go about your merry way using that birth certificate as a means of identity to obtain other adhesion contracts like your drivers license and ss card etc.

So the ‘state’ makes the presumption YOU are operating as a government employee; performing acts of government, etc. It’s your brand new-shiny Government Name Badge; makes you feel all warm and fuzzy inside, doesn’t it?

… The only problem with this little con is: They are treating you like a government employee by forcing their rules/regulations/statutes/taxes down your throat, but somehow seem to be forgetting one thing:

You’re not getting your government check! Did you ever dictate to them the hourly rate for your services? (Rod Class also explains this if you listen to his archived shows below).

… Why aren’t YOU getting paid? Why aren’t they taking care of all vehicle maintenance? Why are they charging you with an income tax? Why do they laugh at your “I’m a free man on the land arguments?”

Because YOU haven’t rebutted the presumption that YOU are a government employee; operating in that capacity.

You must rebut the presumption you’re operating as a government official; performing any act of government; and that you’re being paid to so.


No one can force you to work for free; not even your own government. So if they insist you’re a government employee because you haven’t rebutted THEIR claim, why aren’t they paying you your government check?

Once you know the process of how banks create money out of thin air and how your birth certificate is used as collateral for your debt and the national debt of your country, you should know that all debts are prepaid and fraudulent.

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Category: Economy & Finance, New World Order, Secret Societies

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