Tag: promise to pay

Episode 54 – The Truth

Plainly expressed, the Truth is simple, which is in marked contrast to the falsehoods that are so manifestly pumped out right now, largely by the state-institutions of propaganda but also by individuals who put their rhetoric before the grammar (the data) and logic (reason).

However, the Truth is always a beautiful thing for when it is expressed, there is a resonance in our bodies by which we intuit it to be correct.

As John Keats expressed it in his Ode on a Grecian Urn,

When old age shall this generation waste,
                Thou shalt remain, in midst of other woe
Than ours, a friend to man, to whom thou say’st,
         “Beauty is truth, truth beauty,—that is all
                Ye know on earth, and all ye need to know.”

Please join me on this impromptu RogueCast in which I distinguish between those who are simply morons and those who are gobshites.

Edit: this episode is dedicatd to one of my lovely supporters, Dina whose birthday it is today. Many Happy Returns, my dear and thank you for your generous support.

If you haven’t already, then please take the time to  read these articles on promissory notes and the one on the promise to pay in order to add context to what I am discoursing upon.

Please note also that I will shortly be offering a Saturday night webinar, An Introduction to the Trivium, in which I will take the audience through a practical application of this keystone of the 7 Liberal Arts which stands as the most effective method for uncovering the truth.

Many thanks to all those who have helped to keep my work going via their donations through the ‘Buy me a Coffee’ button https://www.buymeacoffee.com/modb

As stated in the RogueCast, I have been denied any form of credit across a variety of platforms – I am currently banned from accessing my Faceborg account and Google/YouTube is literally blocking me from uploading my latest RogueCasts, so please like and share this post as far and wide as you are able and be sure to subscribe to the Rogue Male email list for all notifications.

Thank you for watching – yours,  In Truth and Honour, Michael

Further reading and listening:

The Promissory Note

A Promise to Pay

If you haven’t seen it already, then the Great British Mortgage Swindle can be viewed for free at the link provided.

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Episode 53: Credit Where Credit is Due

Credit creation and the Deception of Banking.

In this ramble through the woods adjacent to Beauvale Priory, in Nottinghamshire, I examine the issue of banking and fake debt, with particular reference to the swindle inherent in every mortgage. The entire edifice of what we call money is, 100% credit based, as detailed in my previous articles, A Promise to Pay and The Promissory Note.

I encourage all viewers to first read the articles at my site, www.roguemale.org in order to avail yourselves of the unassailable facts of the matter. Each of the references can be read in yesterday’s post.

As stated previously, I will be offering a Webinar which will cover each aspect of this work on the financial servitude of modern day banking.

Many thanks to all those who have helped to keep my work going via their donations through the ‘Buy me a Coffee’ button https://www.buymeacoffee.com/modb

Please note, in a somewhat ironic turn of events, I have been denied any form of credit across a variety of platforms – I am currently banned from accessing my Faceborg account and Google/YouTube is literally blocking me from uploading my latest RogueCasts, so please like and share this post as far and wide as you are able and be sure to subscribe to the Rogue Male email list for all notifications.

Appendix and further references:

Authorities and References:

Rose and Hudgins (2013), Bank Management and Financial Services, McGraw-Hill

Ellinger, Lomnicka and Hare (2011), Elllinger’s Modern Banking Law, 5th edition, Oxford University Press

Henry Dunning Macleod (1906), The Theory and Practice of Banking, 2nd Volume, 6th impression, Longmans, Green & Co.

Richard A. Werner, D.Phil. (Oxon), various publications

1. Rose and Hudgins (2013), Bank Management and Financial Services, McGraw-Hill

p. 539

“Chapter 16, Lending Policies and Procedures

“16-7 Parts of a Typical Loan Agreement

“The Promissory Note

“When a lending institution grants a loan to one of its customers, such an extension of credit is accompanied by a written contract with several different parts. First, the promissory note, signed by the borrower, specifies the principal amount of the loan. The face of the note will also indicate the interest rate attached to the principal amount and the terms under which repayment must take place (including the dates on which any instalment payments are due).”

p. 540

“The promissory note is a negotiable instrument. This customer-signed note represents that part of the loan process where money is created. When a borrower defaults, lenders generally sue for recovery of their funds based on the content of this note.”

2. Ellinger, Lomnicka and Hare (2011), Elllinger’s Modern Banking Law, 5th edition, Oxford University Press

p. 389

“Promissory notes are used to crystallize the maker’s promise to pay a given amount (often a specific instalment payable under a facility) to the payee. They are widely used in respect of all types of lending contract…”

p. 445

Promissory Notes

“… are principally issued to secure the repayment of loan instalments or sums due…”

“The principal advantage of a promissory note for the payee is that he may either receive early payment by discounting the instrument to a third party or sue for the face value of the instrument if dishonoured at maturity. In the latter case, the payee may obtain summary judgment for the amount of the instrument, as the defences that arise out of the underlying transaction are not necessarily available to an action on the note…”

“…promissory notes and bills of exchange differ in form – the latter involves the drawer giving the drawee an order to make payment, whilst the former involves the maker giving a promise to pay – so that an instrument taking the form of a bill of exchange may be reclassified as a promissory note and vice versa.

BEA 1882, s.5(2). See also Mason v. Lack (1929) 45 TLR 363; Haseldine v. Winstanley [1939] 2 KB 101.

“…the Bill of Exchange Act 1882 in general applies with the necessary modifications to promissory notes.

“The legal requirements for a valid promissory note are the same as for bills of exchange: there must be an unconditional promise in writing signed by the maker to pay a sum certain at a fixed or determinable future time to the order of a specified payee or to bearer. Haseldine v. Winstanley [1939] 2 KB 101. s.83(1). See also City Link Melbourne Ltd. v Commissioner of Taxation [2004] FCAFC 272, [33]

“This definition can cover an ‘IOU’ embodying a promise to pay, a bank cheque, or any other document howsoever named that fulfils the statutory definition. See Linac v. Lehmann [2001] DCR 718, [33]-[35]

“As regards payment, there is no requirement to present a promissory note to the maker…

3. Henry Dunning Macleod (1906), The Theory and Practice of Banking, 2nd Volume, 6th impression, Longmans, Green & Co.

(Henry Dunning Macleod, Barrister at Law, Inner Temple)

p. 311
“…the business of banking is not to lend money, but to create Credit.

p. 370
“…all banking advances are made, in the first instance, by creating credit.

p. 372
“A banker never lends money, in the first instance; we have already explained that the very essence of banking is to create Credit, or liabilities payable to bearer on demand.
… All banking advances, then, are made by creating Credit, or Deposits; and whether this Credit is transferred from one person to another … in no way affects its nature or its quantity.

p. 480
“Hence credit or debt in legal, commercial and economical language, means a right of action against a person for a sum of money. Such a right, credit or debt is a chose-in-action, and is included under the terms goods and chattels.

p. 482
“Definition of Instruments of Credit or Debt
Any written record of a fact is termed an Instrument. Any written evidence of a debt is termed an Instrument of Credit or of Debt.
A written contract by which one person is bound to pay (1) a certain sum of money; (2) to a certain person; (3) at a certain time; is termed an Obligation, or Security for Money, or a Valuable Security.
…
A written Promise made by one person to pay absolutely and at all events (1) a certain sum of money; (2) to a certain person; (3) at a certain time; is in modern language termed a Promissory Note, or, shortly, a Note.

…
A mere acknowledgement of a debt, not containing a promise to pay, is usually termed an I O U.

A Bill, Note or I O U is always a chose-in-action, that is, it operates as a charge, or Credit, against the person of the Debtor.

p. 407

“If a customer wants an advance, the banker discounts his customer’s Promissory Note; … He does this in exactly the same way as he discounted a bill. He buys the Promissory Note from his customer, and in exchange for it he creates a Credit in his favour in his books, which is termed a Deposit.

p. 408

“These banking Credits are… in fact, Capital created out of Nothing.

“Thus the student must carefully observe that in the technical language of commerce a “banker” is a trader who issues his own credit, in various forms, for money and debts. This species of business, no doubt, originated with the money changers: but yet money changing is not “banking”. Nor are “bankers” money lenders: in all cases whatever they issue nothing but their own credit…

4. Richard A. Werner, D.Phil. (Oxon)

Empirical evidence that banks do not lend money but create credit:

Werner, Richard A. (2016), A lost century in Economics: Three theories of banking and the conclusive evidence, International Review of Financial Analysis, 46, July, 361–379, online: http://www.sciencedirect.com/science/article/pii/S1057521915001477 https://doi.org/10.1016/j.irfa.2015.08.014

Werner, Richard A. (2014). Can Banks Individually Create Money Out of Nothing? – The Theories and the Empirical Evidence, International Review of Financial Analysis, 36, 1-19, http://www.sciencedirect.com/science/article/pii/S1057521914001070 https://doi.org/10.1016/j.irfa.2014.07.015

Details on just how banks are able to ‘create money out of nothing’, while non-bank firms cannot do so:

Werner, Richard A. (2014). How do banks create money, and why can other firms not do the same? An explanation for the coexistence of lending and deposit-taking, International Review of Financial Analysis, 36, 71-77, http://www.sciencedirect.com/science/article/pii/S1057521914001434 https://doi.org/10.1016/j.irfa.2014.10.013

The above publication shows that the credit is created by the bank incorrectly and without obvious justification re-classifying one type of liability (its accounts payable liability arising from its obligation to ‘lend money/sums’ to the borrower in the loan contract) as another type of liability called ‘customer deposit’ – the latter being a form of credit that is commonly used to pay for transactions. No customer nor the bank made this deposit.

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A Promise to Pay

The inherent honour of making a promise is that the individual should fulfill it. By tendering a valid form of payment in the shape of a Promissory note made payable on demand to the bearer, the individual is fulfilling his promise, under the Bills of Exchange Act, 1882: this act is the cornerstone of the financial system under and through which the licenced credit broker (the mortgage company/’bank’) creates the credit which is used to buy the house in the first place.

That is a fact that the ‘bank’ cannot get round –

Part IV Promissory Notes

83 Promissory note defined.

(1) A promissory note is an unconditional promise in writing made by one person to another signed by the maker, engaging to pay, on demand or at a fixed or determinable future time, a sum certain in money, to, or to the order of, a specified person or to bearer.

(2) An instrument in the form of a note payable to maker’s order is not a note within the meaning of this section unless and until it is indorsed by the maker.

(3) A note is not invalid by reason only that it contains also a pledge of collateral security with authority to sell or dispose thereof.

(4) A note which is, or on the face of it purports to be, both made and payable within the British Islands is an inland note. Any other note is a foreign note.

84 Delivery necessary.

A promissory note is inchoate and incomplete until delivery thereof to the payee or bearer.

85 Joint and several notes.

(1) A promissory note may be made by two or more makers, and they may be liable thereon jointly, or jointly and severally according to its tenour.

(2) Where a note runs “I promise to pay” and is signed by two or more persons it is deemed to be their joint and several note.

86 Note payable on demand.

(1) Where a note payable on demand has been indorsed, it must be presented for payment within a reasonable time of the indorsement. If it be not so presented the indorser is discharged.

(2) In determining what is reasonable time, regard shall be had to the nature of the instrument, the usage of trade, and the facts of the particular case.

(3) Where a note payable on demand is negotiated, it is not deemed to be overdue, for the purpose of affecting the holder with defects of title of which he had no notice, by reason that it appears that a reasonable time for presenting it for payment has elapsed since its issue.

87 Presentment of note for payment.

(1) Where a promissory note is in the body of it made payable at a particular place, it must be presented for payment at that place in order to render the maker liable. In any other case, presentment for payment is not necessary in order to render the maker liable.

(2) Presentment for payment is necessary in order to render the indorser of a note liable.

(3) Where a note is in the body of it made payable at a particular place, presentment at that place is necessary in order to render an indorser liable; but when a place of payment is indicated by way of memorandum only, presentment at that place is sufficient to render the indorser liable, but a presentment to the maker elsewhere, if sufficient in other respects, shall also suffice.  https://www.legislation.gov.uk/ukpga/Vict/45-46/61/part/IV

In yesterday’s article, I provided a number of citations, including those of Professor Richard Werner which testify to the unassailable validity of this all-encompassing legislation,  which is relevant to each and every English speaking country around this realm and even India.

The financial ring that controls it all is not backed by anything other than the Promise to Pay on the simple basis that the currency is all fiat – meaning it is not backed by anything of substance. In the case of the ‘UK”, the gold standard upon which the Great British Pound was backed was removed in 1931. The Bank of England has openly stated this is the case and that,

Debt consists mainly of debt securities and bank loans, but also includes trade credits, currency and deposits and loans by multilateral institutions. P31, https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2008/quarterly-bulletin-2008-q1.pdf

Credit Where Credit is Due

In the above cited first quarterly bulletin from the Bank of England, the author, Charles Bean, Chief Economist and Executive Director for Monetary Policy, Bank of England states in his conclusion,

Summary and conclusions

Let me try to pull together some of my central themes.

I have stressed that we should take care to avoid talking about money when we mean credit. In a similar spirit, we should be clear when we mean total credit and when bank lending, but without assuming the two are divorced.

Notice how he conflates credit and lending when the two are manifestly not the same thing. This is the sleight of hand that underpins the operations of the credit facilitators and it is what Woodrow Wilson was lamenting some time after he had signed the Federal Reserve Act of 1913 which placed credit-creation in the hands of the Rothschilds and their associates. Any country with a ‘Central’ Bank is under the same octopus of control,

“I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men.”

Naturally, the question which should arise in the mind of anyone who has a mortgage over his home is this:  should I deliver a promissory note to my mortgage company in order that it be deposited in a special account from which the credit can be created to zero the balance on my void mortgage?

Well, why not? After all, the entire racket is predicated on the promise to pay, as set in stone by the Bills of Exchange Act, 1882, and, irrespective of the cogniitve dissonance of the ‘bank’ staff, it is a lawful remedy that is available to us all. Were that not the case, there would be no dead pledge – mortgage – in the first place.

I would also add that it is important to stay in honour – tendering a valid form of a deposit in the shape of a negotiable instrument called a Promissory Note to settle a purported debt is, in my view, an entirely honourable act, as exemplified by the Bills of Exchange Act, 1882.

Should you deliver the note to the CEO of the lender and some bean counter at the ‘bank’ claims that they cannot accept it, then they are lying to you. Further, in each instance, the note will not be returned to you. Why? It has value.

Either way, you have them by the short and curlies – after all, when a valid payment is refused, the debt is discharged.

Quite literally, you have nothing to lose.

Anyone wanting assistance is welcome to drop me a line and keep your eyes open for an upcoming Webinar in which I will expand further on this most interesting of possibilities.

Many thanks to all those who have helped to keep my work going via their donations through the ‘Buy me a Coffee’ button. I am currently banned from accessing my Faceborg account and Google/YouTube is preventing me uploading my latest RogueCast, so please like and share this post as far and wide as you are able and be sure to subscribe to the Rogue Male email list for all notifications.

 

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