Michael Tellinger, best known as the author of Slave Species of God, with the support and assistance of the New Economic Rights Forum, is on the brink of possibly setting a landmark legal precedent in South Africa.
Despite it’s considerable significance, having wound it’s way through at least one appeal, and successfully meeting a requirement to gather 20,000 signatures in order to bring it to the highest court in South Africa, this case has been entirely ignored by the mainstream media. No surprise there. If Mr. Tellinger succeeds with this case, he will have exposed the fraudulant loan activities of the banks in South Africa (which are ultimately anglo-american owned institutions), and we may well see a similar scenario to that which has been playing out in Iceland for the past few years. The house of cards is looking very shaky, and is about to fall.
For the first time, a full bench of 11 judges, 22 registrars, eight clerks, four joined advocates and four additional researchers will hear a case that goes to the heart of the banking system. With so much financial turmoil overseas, a case like this has been destined to break. We believe that South Africa is the one country that has the right mix of variables to make a case like this possible.
1. Banks do not “loan” money as their prolific advertisements claim. Money loaned is actually money created, via an elaborate scheme of paper shifting and number crunching. This involves the use of loan application forms and negotiable instruments, the result being debit and credit book entries that have no liquid money value. It can be said that banks make money out-of-thin-air under the “pretence” of a loan, but in reality it is not a loan at all. This is deceptive and misleading as very few South Africans know the truth.
2. It is a common legal principle in our law that one must possess that which one loans. For reasons above, the banks are unable to meet this, a fundamental criteria for a valid borrower / lender contract.
3. Banks are failing to provide simple information to their customers that should be easy to access. Examples include a certificate of balance, audited proof that a lawful “deposit” was actually made and the physical location of original documents, promissory notes and other negotiable instruments. Instead of providing the customer with this information, they choose to take legal action, and foreclose on homes and assets with remarkable alacrity.
4. The banks are acting as intermediary / agent between the customer and other parties. It is a requirement that an agency relationship be fully disclosed up front to the customer. The banks do not disclose this relationship and, as a result, most people are under the complete illusion that they are borrowing from their bank in the ordinary sense of the word.
5. Banks engage in a widespread and common practice called securitisation. Instead of borrowing from the Reserve Bank on our behalf, banks bundle many loans together and then sell these bundles to investors whereby the loans become securities. This process caused the stock market crash of 2008 and threatens the global economy as we speak. In fact, the betting game being played by the banks, called the derivatives market, is currently estimated to be 20 times larger than the GDP of the entire planet. Rather than slowing down, its sheer propensity for profit has led to a rampant growth of the industry in South Africa. The Banks Act makes it crystal clear that securitisation falls outside the business of a bank. Therefore, it is a blatant breach of the Bank Act for a bank to engage in this practice, and rightly so.
6. Banks refuse to disclose the securitisation process to the customer, who has a legal right to this information. When a customer asks for disclosure, the banks do not even bother responding, or respond using unintelligible legal jargon. The entire securitisation process is kept tightly secret while it provides huge profits to those behind the scenes. Instead of securitisation providing a benefit to the customer by way of lower interest rates, the reverse occurs: banks swiftly and relentlessly foreclose on assets in order to satisfy the needs of their investors. It should also be mentioned that banks have been known to securitise a debt several times, and that should a person default those investors are protected by an insurance policy.
7. We have written confirmation from the South African Reserve Bank that, once a bank sells a loan into a securitisation pool, they lose the legal right to that asset. This means that literally tens, if not hundreds of thousands of homes and other assets have been taken away from South Africans illegally because the wrong entity is suing in court.
8. Banks do not use “money,” they use negotiable instruments. These instruments are defined clearly in the Bills of Exchange Act and have been used by trading merchants for thousands of years. It is the constitutional right of every South African to have an explanation of how our instruments are being used, traded, and exploited by the banks.
9. Banks are foreclosing on people’s homes and assets by using the contract as a shield. Their argument is simple: “you signed a contract, so you must pay.” By sticking to the age old axiom: the-agreement-is-king, anyone attempting to look behind the shield is prohibited from doing so. This loan agreement, which is a series of one-way payments with absolutely no risk whatsoever to the bank, is somehow enough to allow them to win in court. We believe that granting summary judgment in such a manner, without the courts listening to the counter argument that the contract is not valid due to malicious deception, is unconstitutional.
10.It is illegal for banks to claim more than double the amount loaned from any borrower (the in duplum rule). However, banks are not only breaking this rule, but they are also forcing people to pay the interest on loans up front. In other words, the interest is paid back first, before the principal. This is plainly illegal.
The summary document runs to another couple of pages and is well worth reading in its entirety. This is very encouraging news – the cracks are definitely starting to show as is evidenced by many similar cases to this occurring in other parts of the world.
The Freemen and Freewomen of South Africa are starting to make their stand against economic tyranny!