I recently made mention of the fact that we are dealing with lawless money in the united States due to the Federal Reserve Act. It’s called fiat money, or as Webster’s 1828 Dictionary defines it: Fiat is merely a “decree; command to do something.” In other words, since the paper IOU notes we carry around are merely ordered to be money, they are not lawful. Why is that? The Constitution provides the reason in Article I, Section 10:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
In the US, ONLY gold and silver coin is considered lawful money, period.
However, there is a curious story that many have never heard about and it occurred in 1969 to man by the name of Jerome Daly. Daly’s house was foreclosed by First National Bank of Montgomery. However, Daly would go on to prove and even get the bank to admit that no money was ever loaned at all. In fact, the credit for the mortgage was created out of thin air on their books.
A short post on Reddit does give the highlights of what took place. You can read other full reports online.
Results of the Montgomery vs. Daly lawsuit: A Minnesota Trial Court’s decision holding the Federal Reserve Act unconstitutional and VOID; holding the National Banking Act unconstitutional and VOID; declaring a mortgage acquired by the First National Bank of Montgomery, Minnesota in the regular course of its business, along with the foreclosure and the sheriff’s sale, to be VOID.
First national bank of Montgomery vs. Daly (1969) was a courtroom drama worthy of a movie script. Defendant Jerome Daly opposed the bank’s foreclosure on his $14,000 home mortgage loan on the ground that there was no consideration for the loan. Daly, an attorney representing himself, argued that the bank had put up no real money for his loan. Associate Justice Bill Drexler recorded the courtroom proceedings; he said his role was to keep order in the courtroom.
In his court memorandum, Justice Mahoney stated: “Plaintiff admitted that it, in combination with the Federal Reserve Bank of Minneapolis. did create the entire $14,000.00 in money and credit upon its own books by bookkeeping entry. That this was the consideration used to support the Note dated May 8, 1964 and the Mortgage of the same date. The money and credit first came into existence when they created it. Mr. Morgan admitted that no United States Law or Statute existed which gave him the right to do this. A lawful consideration must exist and be tendered to support the Note.”
Daly wrote in a local news article that: “This decision, which is legally sound, has the effect of declaring all private mortgages on real and personal property, and all U.S. and State bonds held by the Federal Reserve, National and State banks to be null and void. This amounts to an emancipation of this Nation from personal, national and state debt purportedly owed to this banking system. Every American owes it to himself . . . to study this decision very carefully . . . for upon it hangs the question of freedom or slavery.”
The decision that was made has not been implemented at all. Although at that time judges and courts were not dependants. After exposing this secret of banks Justice Mahoney lived for less than six months and in mysterious accident that appeared to involve poisoning he died. Since that time a number of defendants are attempting to avoid loan defaults using the defense that Daly raised; but they have met with only limited success. As one judge said off the record:“If I let you do that – you and everyone else – it would bring the whole system down. I cannot let you go behind the bar of the bank. We are not going behind that curtain!”
Now, consider that the judge in the case was poisoned shortly after the ruling as mentioned in the above paragraph. HubPages reported:
It is now twenty eight years since this “Landmark Decision,” and Justice Mahoney is quoted more often than any Supreme Court justice ever was. The money boys that run the “private Federal Reserve Bank” soon got back at Mahoney by poisoning him in what appeared to have been a fishing boat accident (but with his body pumped full of poison) in June of 1969, less than 6 months later.
Consider that all credit given is really based on the person asking for credit. In other words, these banks other institutions are engaging in beguiling their customers to make them think the client is the borrower and the bank is the lender, but the reality is that the customer is the actual creditor even though he is acting like a borrower.
Below is a full report on the case and the final ruling by Judge Mahoney.
Jerome Daly v First Nationa… by Tim Brown
Judgment for Jerome Daly vs First National Bank of Montgomery by Tim Brown on Scribd
Listen to my recent radio show where I exposed that even the Federal Reserve, in their own publication, says the dollar is nothing more than paper and it only has value because YOU believe it has value.
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