09. The Morals of Credit Card Debt Elimination.

I’m often asked about the morals of credit card elimination – and I wondered about it for a long while myself. How can it be morally justified to get something for nothing?

The answer is you’re not. When you signed the credit card, or bank loan application form, the bank was immediately able to lend ten times the amount to somebody else (see fractional banking). Your signature was worth ten time the amount they were ‘lendng’ you. Unless you defaulted immediately, it is likely that you have paid back at least 10% of the loan amount over the course of the transaction, so the bank or credit card company has made a profit anyway. (That 10% is worth ten times its value to the bank because it is real money added to their reserves which, because of the fractional banking system, enables them to lend ten times the value of their reserves).

Your loan cost the bank nothing. The money simply came into existence when you put your signature on the application form. It did not come from the bank’s reserves – it did not exist before you signed the form.

Even if you paid back nothing, you gave them your signature, which they were then able to use to make ten times the amount they were ‘lending’ you. If that is not a good deal for them, I don’t know what is!

I hear you say: “But you have to pay back your loans, don’t you?” If you take a loan from a private person, you are borrowing their own money and of course they have every right to be paid back. Banks don’t do that – it’s not their money they are lending. The money does not exist until your signature enables it. Your signature is the real value.

In the recent sub-prime mortgage fiasco, which brought the world to its knees, the banks did not care whether the loans could be paid back or not – all they wanted was the signatures. When the borrower defaulted, the bank got the house anyway and it didn’t matter to them if they only got a low price for it because it had cost them nothing in the first place. It can then be mortgaged by another sucker.

Wish I’d thought of a business like that.

So, ask yourself: who is morally in the right – you or the bank? You gave them something of value to them (your signature), which was worth ten times the value of what they gave you. Not content with that, they want you to pay ‘back’ money that goes to their reserves and enables them to lend out ten times its worth to somebody else.

Bank transactions are totally unlike normal commercial transactions. The bank simply cannot lose and it’s this process that enabled them to bounce straight back with record profits in the recession, while other businesses and individuals suffer from their actions. They have got so sure of themselves that they no longer even work within the law. They have treated us shamefully and I personally have no compunction about getting my own back at every opportunity. That’s why I delight in using the law that is supposed to control their activities in order to bring them to heel.

If you are still doubtful, watch this video – everybody needs this information and you won’t get it from the government.

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