The Greatest Scam On Earth
Douglas V. Gnazzo
seek power by servility to the people is a disgrace,
May 31, 2006
but to maintain it by terror, violence, and oppression is not
a disgrace only, but an injustice." -Plutarch, circa 45-125 A.D
The word mortgage is derived from mort gage: dead
pledge; mort; dead, and gage; pledge. It represents
a pledge of property as security for payment of a debt.
The most common use is in the buying, selling, and borrowing
for a home where the mortgage refers to the debt secured by the
mortgage. It can also refer to the legal document used in securing
Let's take a close up look as how this process works.
"The creditor has legal
rights to the debt secured by the mortgage and often make a loan
to the debtor of the purchase money for the property."
"The debtor or debtors must meet the requirements of the
mortgage conditions (and often the loan conditions) imposed by
the creditor in order to avoid the creditor enacting provisions
of the mortgage to recover the debt." 
There are two main types of
mortgages: mortgage by demise and mortgage by legal charge.
"In a mortgage by demise,
the creditor becomes the owner of the mortgaged property until
the loan is repaid in full (known as "redemption").
This kind of mortgage takes the form of a conveyance of the property
to the creditor, with a condition that the property will be returned
"In a mortgage by legal charge, the debtor remains the legal
owner of the property, but the creditor gains sufficient rights
over it to enable them to enforce their security, such as a right
to take possession of the property or sell it.
To protect the lender, a mortgage
by legal charge is usually recorded in a public register. Since
mortgage debt is often the largest debt owed by the debtor, banks
and other mortgage lenders run title searches of the real property
to make certain that there are no mortgages already registered
on the debtor's property which might have higher priority."
The Tax Man
"Tax liens, in some cases,
will come ahead of mortgages. For this reason, if a borrower
has delinquent property taxes, the bank will often pay them to
prevent the lienholder from foreclosing and wiping out the mortgage."
Notice how in all of these
definitions that instead of becoming simpler with each explanation
it is instead becoming more complicated with increasing legal
terms and ramifications.
"A tax lien is a lien
imposed on property by law to secure payment of taxes. Tax liens
may be imposed for delinquent taxes owed on real property or
personal property, or as a result of failure to pay income taxes
or other taxes." 
Internal Revenue Code section
"Sec. 6321. LIEN FOR TAXES.
If any person liable to pay any tax neglects or refuses to pay
the same after demand, the amount (including any interest, additional
amount, addition to tax, or assessable penalty, together with
any costs that may accrue in addition thereto) shall be a lien
in favor of the United States upon all property and rights to
property, whether real or personal, belong to such person."
Are you getting a quesy feeling
down in the pit of your stomach yet? If not just wait, there
is much more user friendly legalese to come. First we will delve
"Foreclosure is the legal
proceeding in which a bank or other secured creditor sells or
repossesses a parcel of real property (immovable property) due
to the owner's failure to comply with an agreement between the
lender and borrower called a "mortgage" or "deed
of trust". Commonly, the violation of the mortgage is a
default in payment of a promissory note, secured by a lien on
the property. When the process is complete, it is typically said
that "the lender has foreclosed its mortgage or lien."
The further we progress into
the issue the more complicated it becomes. This is why a lawyer
is needed in the conveyance of property.
"Conveyancing is the act
of transferring the ownership of a property from one person to
another. The buyer needs to ensure that he or she gets good 'title'
to the land; i.e., that the person selling the house actually
has the right to sell it." 
A deed is a legal instrument used for transferring title
to real estate from one person to another although it
can be used in other proceedings. Now we are getting closer to
the bone as it is said.
We are all familiar with the terms deed and title, as such legal
instruments are used in the conveyance of all real estate. Anyone
that owns property such as their home and land have heard
these terms before. Let's take a little closer look, as these
legal instruments are very important and carry specific encumbrances
"Fee simple, also known
as fee simple absolute, is an estate in land in common law. It
is the most common way real estate is owned in common law countries,
and is ordinarily the most complete ownership interest that can
be had in real property short of allodial title, which is often
reserved for governments.
Fee simple ownership represents absolute ownership of real property
but it is limited by the four basic government powers of taxation,
eminent domain, police power, and escheat.
How ownership is limited by these government powers often involves
the shift from allodial title to fee simple such as when uniting
with other property owners acceding to property restrictions
or municipal regulation."
Although a bit complicated,
it sounds like once you wade through all the legelease and you
pay off your mortgage, that you own your property and are in
possession of the title for it.
But how many people ever pay their mortgage off in full to begin
with? If the mortgage doesn't get paid off, then we do not have
the title to the property in our possession. The title remains
with the lender. So the lendor actually owns the land until
the mortgage is paid off.
"Ownership is the state
or fact of exclusive possession or control of property, which
may be an object, land/real estate, intellectual property or
some other kind of property."
"At common law, an estate is the totality of the legal rights,
interests, entitlements and obligations attaching to property.
In the context of wills and probate, it refers to the totality
of the property which the deceased owned or in which some interest
was held. It may also refer to an estate in land."
Well that doesn't sound too
bad, if once again the mortgage has been paid off in full. I
wonder if there is a difference between possession and exclusive
possession in the above definition of ownership.
"At common law, a mortgage
was a conveyance of land that on its face was absolute and conveyed
a fee simple estate, but which was in fact conditional, and would
be of no effect if certain conditions were not met --- usually,
but not necessarily, the repayment of a debt to the original
Hmm, now it's gone from complicated
to very conditional, as in the difference between exclusive ownership
Now we find that a conveyance of land that on its face was absolute
(kind of like exclusive) was in fact conditional and could
be of NO EFFECT.
It almost sounds like none of us really owns anything outright,
as in allodial title, which is reserved for governments
or the Royal Family, which are the same. Complicating matters
even more is the law of bankruptcy:
"Under the law of bankruptcy
in the United States, the "estate" is defined by the
Bankruptcy Code as all assets or property of any kind belonging
to the debtor which is available for distribution to creditors.
The bankruptcy estate is defined at 11
U.S.C § 541. In some cases, the person with legal
responsibility for the estate is the trustee." 
The creditors have more rights to the property than the individual
who "bought" the property and is paying off the mortgage.
In fact, the debtor does not retain the title to the property
until the mortgage is paid in full. In the mean time, the creditor
owns and has possession of the title.
The poor borrower is at the back of the line regarding
ownership of any property; as before him, in the eyes of the
court, is the lender; and ahead of the lender is the State. The
buyer is last in line. Yes - I know, it is hard to believe. So
here is a bit of evidence:
Document No. 43
ownership of all property is in the state; individual so-called
ownership' is only by virtue of government, i.e., law, amounting
to a mere user; and use must be in accordance with law and subordinate
to the necessities of the State." 
One could reasonably argue
that it makes perfect sense that the creditor or lender owns
the title and the property; until such time when the borrower
(buyer) pays off his loan from the creditor, especially if the
lender can show proof that he paid in full for
the property and holds a legal title. Now the fun part begins,
as we are going to look a bit closer at this thing called lending.
When one decides they want to buy a house or property, they go
to their friendly banker to take out a loan to purchase the real
estate. Just for the sake of an example, let us say we are going
to buy a $1,000,000.00 house. We have to come up with a deposit
and the required proof that we can reasonably be expected to
pay off the loan, which runs for a period of 30 years.
The "proof" usually includes having a good job with
an income large enough to not only service the debt for the house,
but to also supply adequate resources to pay all the other necessary
bills to survive in today's modern world. Any other existing
debt is of consequence, as well as our history regarding paying
Credit by Mortgage
If we pass inspection, our friendly banker says that if we put
down a 10% deposit of $100,000.00 dollars, then he will loan
us the balance of the money needed to purchase the house. The
banker offers to extend us credit via a mortgage.
This on the surface sounds straightforward and innocuous. Millions
of people have done it, and millions more do it each day. Nevertheless,
let us dig beneath the surface a bit to see what we can discover.
The price of the house is $1 million dollars. We are going to
put down a 10% deposit of $100,000.00. The difference of $900,000.00
the banker is going to loan to us. Of course, he will charge
us interest on the loan, as that is what bankers do - they collect
their hard earned vig, as do all good collectivists.
So, we sign the mortgage and take out the loan. We also get a
schedule of monthly payments for the next 30 YEARS. These are
our mortgage payments, which include not only the $900,000.00
but the monthly charge of interest on it as well.
Note: when we sign on the dotted line of a 30 year
mortgage, we obligate ourselves to work for the next 30 years,
to earn enough income to service our newly acquired debt: the
To get possession of the title we must pay off the loan; in
consequence, we have accepted a large obligation that
lasts for most of our adult life. Faust must be smiling.
If a borrower takes the full 30 years to pay off the mortgage
loan, by the time all is said and done, they will have paid the
banker almost 3 times the original purchase price of $1,000,000.00
- a total of almost $3,000,000.00. Oh yes, we get to pay property
taxes as well.
Needless to say, the banker makes out quite well. Come to think
of it, he must be very rich to be able to lend so many people
so much money. I wonder where the banker got all the money to
loan out to everyone.
Where's The Money
The truth of the matter is that the banker does not lend any
of "his" money. In fact, the banker does not lend any
money, as the money does not really exist. All the banker does
is extend credit. He simply marks in his ledger (computer
screen) that he is loaning you $900,000.00 dollars.
"Mr. Patman warns us to
remember that: "The cash, in truth, does not exist and never
has existed. What we call `cash reserves' are simply bookkeeping
credits entered upon the ledgers of the Federal Reserve Banks.
These credits are created by the Federal Reserve Banks and then
passed along through the banking system." 
Does the banker or the bank
have this money on deposit in reserves at the bank? No, they
do not. The money did not exist until the banker created
it by the very act of lending it to you, and marking it in his
The extension of credit, whereby money is created - is nothing
more than a bunch of double-entry bookkeeping figures. Tough
work if you can get it.
"Modern Money Mechanics
publication from Chicago, once again: "Deposits are merely
book entries...demand deposits are liabilities of commercial
banks. The banks stand ready to convert such deposits into currency
or transfer their ownership at the request of depositors."
That is all our monetary system
is under the thumb of paper fiat debt-money: empty, hollow promises
to pay - promises that can never be kept. How could they be -
there is no money. It is all just a scam, a fraud - an illusion
Debt Equals Money
How can this possibly be true, the reader must be asking. Our
government would not allow this - would they? Yes, they would,
and yes, they have.
"And, from further testimony
from the Federal Reserve itself: In a publication from the Federal
Reserve Bank of Chicago, entitled "Two Faces of Debt,"
-- "Currency is so widely accepted as a medium of exchange
that most people do not think of it as debt." 
On June 5, 1933, Congress passed
the House Joint Resolution 192 to suspend the gold standard and
the redeemability in gold of paper money. Since that time, it
has been impossible to lawfully pay off a debt. The resolution
" . . . Whereas the holding
or dealing in gold affect the PUBLIC INTEREST, [STATE-Corporate
Interest] and are therefore subject to proper regulation and
restriction: and whereas the existing emergency has disclosed
that provisions of obligations which purport to give the obligee
a RIGHT TO REQUIRE PAYMENT in gold or a particular kind of coin
or currency . . . ARE INCONSISTENT WITH THE DECLARED POLICY OF
CONGRESS IN THE PAYMENT OF DEBTS . . . PAYMENT in gold or a particular
kind of coin or currency, or in an amount in money of the united
States measured thereby, IS DECLARED TO BE AGAINST PUBLIC POLICY:
. . . AND . . . EVERY OBLIGATION, HERETOFORE OR HEREAFTER INCURRED,
SHALL BE DISCHARGED upon payment, dollar for dollar, in any coin
or currency which, at the time of payment, is legal tender for
public and private debts . . ." 
This statute accomplishes four
unbelievably corrupt acts. The first two are: it dismisses what
was left of the hard currency monetary system of the Constitution
(gold & silver coin), for being inconsistent with
the declared policy of Congress; and it declares the constitutional
mandate to accept gold as legal tender to be against public
Constitution & Law
These acts are not in keeping with the Constitution, and can
only be changed by a constitutional amendment - which has not
occurred. We are hereby reminded, why any law, if not in pursuance
of the Constitution, is null and void, as if it never occurred;
and consequently, is not part of The Supreme Law of the Land.
It also allows for debts to be discharged WITHOUT
the use of the hard money currency of gold and silver coin of
the Constitution, thereby allowing for the use of paper fiat
debt-money in the discharge of debt - or what the Federal
Reserve refers to as: monetizing the debt.
Credit Equals Money Equals Debt
Lastly, by instituting a paper fiat debt-money system, whereby
credit and debt and money are one and the same - it is issuing
debt obligations that are backed by the credit extended by
the acceptance of all mortgages on our homes, and other private
"The Federal Reserve Notes,
therefore, in form have some of the qualities of government paper
money, but, in substance, are almost purely asset currency possessing
a government guaranty against which contingency the government
has made no provision whatever." 
Essentially, it comes down
to the fact that we borrow money that does not really exist as
it did when gold and silver coin was money. Back then the hard
currency existed. Today, most of what is called the money supply,
as well as the supply of credit, is nothing more than numbers
on the ledger of the lender's books.
In addition, the lender gets to create more money or credit -
by simply offering it to us. When we accept the offer, money
and debt are created by the act of accepting credit.
Money, debt, and credit are one in the same in a paper fiat land,
as opposed to a hard currency monetary system of Honest Weights
and Measures, as stated in the Constitution and the Coinage Act
of 1792. Then silver and gold coin circulated as the currency.
"Mariner Eccles, former
chairman of the Federal Reserve Board, held the following exchange
with Congressman Patman before the House Banking and Currency
Committee on September 30, 1941:
Congressman Patman: "Mr. Eccles, how did you get the money
to buy those two billions of government securities?"
Mr. Eccles: "We created it."
Patman: "Out of what?"
Mr. Eccles: "Out of the right to issue credit money."
A paper fiat monetary system of debt-money also insures that
there is a perpetual national debt, which insures a
perpetual service of interest payments to the elite collectivist.
"They should not have
foisted that kind of currency, namely an asset currency, on the
United States Government. They should not have made the government
liable on the private debts of individuals and corporations and,
least of all on the private debts of foreigners." 
It is nothing more than monetary
prostitution of our freedom and liberty, as well as our children's
and their children's.
Payment or Discharge
This is why Joint Resolution 192 switches from payment of
debt to the discharge of debt. With real money of
gold and silver coin, one can pay debts - hell that is the purpose
for having money. However, when you do away with real money,
you no longer have any real way to pay off debts - so now they
are simply discharged by, or transferred to, others.
Perhaps this is why Congressman Long stated the following:
"That is the equity of
what we are about to do. Yes, you are going to close us down.
Yes; you have already closed us down, and have been doing it
long before this year. Our President says that for 3 years we
have been on the way to bankruptcy. We have been on the way to
bankruptcy longer than 3 years. We have been on the way to bankruptcy
ever since we began to allow the financial mastery of this country
gradually to get into the hands of a little clique that has held
it right up until they would send us to the grave." 
It appears that Congressman
Patman understood it all too well when he said:
"I want to show you where
the people are being imposed upon by reason of the delegation
of this tremendous power. I invite your attention to the fact
that section 16 of the Federal Reserve Act provides that whenever
the Government of the United States issues and delivers money,
Federal Reserve notes, which are based on the credit of the Nation
-- they represent a mortgage upon your home and my home, and
upon all the property of all the people of the Nation -- to the
Federal Reserve agent, an interest charge shall be collected
for the Government." 
There is much more to say on
this, however, this is a good start. More will follow in due
course, especially by what ways and means land was originally
obtained, and just what is this thing called Common Law.
without a name
If the above is true, which I believe to be the case, we all
must take a stand on the issue of Honest Money by using our power
to vote. We need to vote the right people into position to make
the overhaul of a pernicious system happen.
It cannot be done all at one time - but a journey of 1000 miles
begins with one step, and is further advanced, one step at a
time. If man can build the Great Pyramid, thousands of years
ago - we can at least institute the mandates of the Constitution,
including Honest Money.
There is a saying that if all good men do nothing, then
evil can endure. If all good men cast their Light as beacons
of truth - evil dissipates, as all it is - is the absence of
Is free from all external aim.
With no desire, at rest and still,
All things go right as of their will." 
Revenue Code Section 6231
Document No. 43, "Contracts payable in Gold" written
Reserves "Two Faces of Debt"
Join Resolution 1933
Banking & Currency Meeting Records - 1941
Long - Congressional Records
Record, Congressman Patman, March 13, 1933
Teh King by Lao-Tzu
-Douglas V. Gnazzo
email: Douglas V, Gnazzo
is CEO of New England Renovation LLC, a historical restoration contractor
that specializes in restoring older buildings that are vintage historic
landmarks. He writes for numerous websites and his work appears
both here and abroad. Just recently he was honored by being
chosen as a Foundation Scholar for the Foundation for the
Advancement of Monetary Education (FAME).
In March 2006 Douglas V. Gnazzo started his own Honest Money
Gold & Silver Report website. Read the Open
Letter to Congress.
©2006 Douglas V. Gnazzo. All Rights Reserved