Debt Resolution is an area that many do not understand. After all, how can you just get rid of debt? Our Debt Resolution program is designed to assist you in avoiding collection by collectors while re-achieving a good credit rating. Believe it or not, this can be done.

Many consumers today are finding themselves strapped with the burden of extreme credit card debt. Debt that seems to have no end because interest builds faster than payments. Some even find themselves being sued by collectors for these debts.

Understanding Credit Card Debt?

    We all know that when we use our credit cards, we receive a bill each and every month from the credit card company demanding money. Most of the time, they are neat and tidy explanations of where and how we spent money. If you were asked "When you use your credit card to make a purchase, where does the money come from?" how would you reply? Most people would answer "The bank provided it." However, this could not be farther from the truth. What if I were to tell you that banks do not lend money? You might say that I was out of my mind. Well let's explore that possibility for a moment. The American Bankers Association sells a set of books,  Money & Banking, 5 th Edition, by Michael H. Friedman and Money & Banking, 5 th Edition, Instructor's Manual, by the same author. Both volumes of this text are training tools for new bank officers and explain how banks do not lend money but create it in a transaction ledger from the applicant’s promise to pay. You will find this analysis in Chapter Three of each volume. You can find out how to purchase these books at www.aba.com . Did you know that according to the Federal Reserve Act of 1913, banks are PROHIBITED from extending credit? So how can there be "credit" cards and where does this money come from? To view the Federal Reserve Act click HERE. 

We are certainly are not the first to know about how the credit industry works. It is now becoming mainstream media. Please see what PBS's Frontline reported. You can view the entire show from HERE.

 

CREDIT CARDS FACT AND FICTION

 

     One question is invariably raised when the FACT of the Federal Reserve Act of 1913 is brought up which prohibits banks from extending credit. "If extending credit is illegal why are banks allowed to operate?" R & G marketing, LLC. is not claiming the banks are doing anything illegal. They have found a very clever way of interpreting this law, which was actually enacted as a benefit for the banks. This will be covered in just a moment. Right now let’s explore some more facts and fictions concerning credit cards.

 

FACT - There is no difference in operation between your Visa Check\Debit Card and your credit cards.

FACT - Money that funds your credit cards comes from an account that is in YOUR name.

FACT - The money in your "credit" account NEVER existed before you applied for it.

FACT - The money in your "credit" account was monetized from YOUR application and signature.

 

FICTION - The bank loans you money when you use your credit card.

FICTION - Banks lose money from their assets when you do not pay your credit card bill.

FICTION - Merchants lose money due to people entering debt resolution programs.

FICTION - Debt resolution is immoral.

 

CREDIT, CREDIT CARDS AND THE FEDERAL RESERVE

     Here’s one myth that needs to be done away with up front, the Federal Reserve IS NOT a part of the Federal Government. The fact is, they are a PRIVATE corporation. Although, on their web site, you will see them refer to themselves as a "government agency" when indeed they are not. Now, where does the Federal Reserve fit into the big picture? Believe it or not, they deposit the money into an account in YOUR name which actually funds your credit card. Wow! How does this work? It really is very simple and a very clever way to by-pass the law which prohibits banks from extending credit. This is how the Federal Reserve and banks benefit. Every bank MUST come to them for money. Where does this money come from? The question to that question is very simple: THEY CREATE IT OUT OF THIN AIR.

When you apply for a credit card with any bank or credit card company, they monetize your application according to the powers given to the Federal Reserve. Although they are a private corporation they have been given certain powers by Congress. One of those is the power to "monetize". This means they can declare YOUR application legal currency. The money to fund YOUR "credit" account NEVER existed until that point in time. This money is then moved into YOUR account. At no time does this money become an asset or property of the bank or credit card company. It can't. That would be a violation of the Federal Reserve Act. If your "credit" account is treated as it actually is, it is a checking account with YOUR money in it. From the time your application is monetized, the money is YOURS! There is no loan. There is no "fronting" of money. IT IS YOUR MONEY!

To learn more about the Federal Reserve System, please click here.