| The following article should probably be considered for | | | | this." Thus, the lending of the money to Daly in the form |
| educational or entertainment purposes only. It is rare to | | | | of a mortgage did not constitute valid consideration. |
| find such a knowledgeable judge working for | | | | The bank did not even have the authority to create |
| government that puts the interest of the individual over | | | | money out of thin air according to any known law or |
| the financial interests of the banks and their system of | | | | statute. |
| credit and money creation. Homeowners facing | | | | This case has been suppressed far more than argued |
| foreclosure should absolutely be aware of this case | | | | against, and it has not been overturned. What this |
| and the arguments, but taking any of this as actual | | | | means to homeowners facing foreclosure is that they |
| legal advice should be warned against. | | | | may not even owe their bank any money, and the |
| I first stumbled across the very curious case of | | | | lender is trying to take the home to pay an illegal |
| Jerome Daly through an article by Ellen Brown, author | | | | contract. This case is, quite possibly, a get out of |
| of the book Web of Debt. It concerns a foreclosure | | | | debt-jail free card. |
| case in Minnesota in 1968 that has yet to be | | | | But that does not mean that the local judges will allow |
| overturned, and the issues go straight to the heart of | | | | these kinds of rational arguments in their courtrooms. |
| the sleight of hand that the banking system is built | | | | Just because mortgage contracts can be proven |
| upon. The case also presents an optimistic view of | | | | invalid and the lending system a scam does not mean |
| how individuals can take back the power to create | | | | that corrupt judicial systems will allow the truth to be |
| money from the private banks. | | | | told about the equally-corrupt banking system. Political |
| Jerome Daly was a homeowner living in Minnesota | | | | power and money work hand-in-hand. |
| who stopped paying his mortgage. The lender, First | | | | Thus, it should not be surprising that people who have |
| National Bank of Montgomery, of course, sued the | | | | used the Daly arguments to protect against |
| man for foreclosure. Daly presented his argument | | | | foreclosure have not always been successful in finding |
| before a jury as to why he did not owe the bank | | | | a court to listen to them. Rubber stamping foreclosure |
| anything. | | | | lawsuits generates good money for lawyers in the |
| Essentially, he argued that the bank had not provided | | | | form of legal fees and for local county courts in the |
| any consideration for Daly's promise to pay back the | | | | form of filing fees. (Of course, neither of these parties |
| loan. Consideration is one of the requirements for a | | | | seem to be aware that the money they are helping to |
| valid contract, and without it, a contract is void. Daly | | | | steal was created out of thin air itself, and they are |
| was arguing that the mortgage contract was void and | | | | selling out fellow human beings to an illusion.) |
| did not need to be repaid because the bank had not | | | | Homeowners, as I mentioned above, should be aware |
| actually given him any money. The lender had created | | | | of this argument, because it shows the banking |
| the money out of thin air in response to the promise to | | | | system to be the scam that it is. Now that so many |
| repay the loan. | | | | more homeowners were given bad loans and are |
| This credit, argued Daly, was not real money that | | | | losing their houses because of them, will more of them |
| counted as consideration and therefore did not need | | | | rely on the argument of a void mortgage contract and |
| to be paid back. Without valid consideration, the | | | | the unconstitutionality of the monetary system itself? |
| mortgage contract was null and void and nothing was | | | | That remains to be seen, but it is a convincing, rational, |
| owed to the bank. Astoundingly enough, the jury | | | | and very interesting argument that Daly put forth. Even |
| agreed with him and declared that the mortgage was | | | | more interesting is that the judge and jury agreed with |
| not a valid contract. | | | | him. |
| The judge and a representative testifying on behalf of | | | | But, on the less interesting side will always be the |
| the bank also agreed with Daly's argument, in effect. | | | | corrupt judges, lawyers, and others who benefit from |
| The bank's president, Mr. Morgan, admitted that the | | | | the banking scam. As one of them stated in regards |
| money did not exist until Daly was given the mortgage, | | | | to this issue, "If I let you do that -- you and everyone |
| and the money was created out of thin air. | | | | else -- it would bring the whole system down... I cannot |
| The judge wrote a supporting decision in the case | | | | let you go behind the bar of the bank... We are not |
| agreeing with Daly, writing "The money and credit first | | | | going behind that curtain!" The "whole system" |
| came into existence when they created it. Mr. Morgan | | | | supports the banks and the government -- why should |
| [the bank's president] admitted that no United States | | | | we expect them to help people defend against |
| Law or Statute existed which gave him the right to do | | | | unlawful acts and contracts? |