strawman

on the term of the mortgage contract. This note is linked to the collateral through the
mortgage contract and as such, it is valuable to Magic Bank.
Magic Bank then goes to Bank of Canada or to another bank through it's accomplice,
the Canadian Payment Association to pledge the deal that they have just got from the
buyer for credit. Bank of Canada then gives Magic Bank the "credit". Remember, it is
not Magic Bank's credit, it was the buyer's credit who promised to pay Magic Bank if
and when the money is received by the buyer from Magic Bank, payable for up to 25
years or more.
Note: What happened above is basically a "swap", a transaction all banks do to
'monetise' security. In this case, the second promissory note that is linked to the
mortgage contract and signed by the buyer is a mortgage-backed security.
Magic Bank will then agree to pay Bank of Canada a certain percentage of interest over
"prime". Thus the buyer's loan package goes to Bank of Canada which credits Magic
Bank with the full amount of credit which is the total amount of the money Magic Bank
is entitled to receive after 25 years which is the amount of the principal plus all the
interest payments the buyer has promised to pay to Magic Bank for 25 years or more
which is usually three times the amount of the money promised by Magic Bank to the
buyer. By magic, Magic Bank just enriched itself and got paid in advance, without
using or risking it's own money.
Magic Bank's magician, the lawyer who holds the cheque that is backed by the buyer's
original promissory note, then writes a cheque to the seller as payment for the property.
In effect, the buyer paid the seller with his own money by virtue of the fact that it was
the buyer's own money (the promissory note) that made the purchase and sale possible.
Magic Bank just made a cool 300% profit without using or risking any capital of its own.
Neither was there any depositor's money deducted from Magic Bank's asset account in
this transaction.
What really happened was pure deception and if we the people tried to do this, we would
end up in prison being found guilty of fraud and criminal conversion not to mention that
the property would have been seized by the court.
This is only a crime if we, the people, do it to each other, as it would be an indictable
crime if we issue a cheque with no funds. There would not be any deal, no purchase
and sale agreement because there is no valuable consideration. In order to decriminalise
the transaction, we need Magic Bank and their cohorts to make the deal
happen. It is really a conspiracy of sorts but these "persons", the banks, the lawyers,
the land title offices or even the courts do not consider the transaction as fraudulent
transactions because these transactions happen all the time.
Such a contract is "void ab-initio" or "void from the beginning" which meant that the
contract never took place in the first place. Moreover, the good faith and fair dealing
requirement through full disclosure is non-existent which further voids the contract.
Magic Bank failed to disclose to the buyer that it will not be giving the buyer any
valuable consideration and taking interest back as additional benefit to unjustly enrich
the corporation. Magic Bank also failed to disclose how much profit they are going to
make on the deal.
Magic Bank led the buyer to believe that the money going to the seller would be coming
from its own asset account. They lied because they knew, or ought to have known, that
their own book or ledger would show that Magic Bank does not have any money to lend
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