Credit To The People
(413) 329-3200​

~ Helping people understand and take responsibility 
for using credit and money for the benefit of all ~

To: The Joint Committee on Financial Services: My testimony for February 26, 2014 at the State House, Room A-2 at 1 p.m. for HB 938: A petition calling for a 10-year moratorium on foreclosures.

Thank you for holding this hearing on various petitions from various petitioners. 

My name is David Snieckus. I am petitioning for House Bill 938: A call for a 10-year moratorium on foreclosures. I am a Macrobiotic Counselor living in Newton, MA with my life partner Margaret and our 11 year old daughter Abigail. I am a Vietnam Veteran and a former employee of NSA. I co-founded the Massachusetts Foreclosure Defense League that meets every month. I am an advocate for Public Banking, and I’m a member of Credit to the People, who are educating the public on money and credit.

In my humble opinion, we need a 10-year moratorium on foreclosures to clean house in the banking and mortgage industry once and for all! We need a “time out” to prevent another devastating foreclosure in Massachusetts. Foreclosures are happening more because of a mathematical phenomenon, not necessarily because people can’t pay!

In our current debt based, usurious, and unsustainable monetary system, banks only issue the principal of a so called loan and not the interest, so, in the aggregate, it is mathematically impossible to pay back principal and interest resulting in the inevitable foreclosures and bankruptcies. All the interest owed has to come from new principal someone else has borrowed and that is why the national debt just keeps rising exponentially. 

In addition, the interest or usury is automatically transferring the wealth from the 99% who pay more interest than they receive to the 1% who receive more interest than they pay.

Do you see how this might NECESSITATE PERIODIC JUBILEES?

Furthermore, bankers, lawyers, appraisers, judges, legislators, lobbyists, brokers, and investors have not been honest in their dealings with the public at large, right from the onset, causing massive and devastating foreclosures in Massachusetts. 

THAT STATEMENT MAY SOUND OUTRAGEOUS, but it is based on the following understanding and research regarding the money deception of our banking system and mortgage process, which most bankers do not even understand:

Banks don’t lend money!

No money is actually loaned by banks. Instead, banks monetize, through an accounting entry, homeowners' credit, which is their promise to pay the bank money based on real value. The homeowners are expected to sign at the closing an adhesion contract obligating them to turn this credit into money based on real value plus pay interest to the banks. This is usurious, outright exploitive, and has led to our current foreclosures and austerity problems!

Homeowners are paying a debt they do not owe.

Once the mortgage note is securitized, bought by an investor, or assigned, the obligation of the original borrower of the original mortgage note is cancelled, but the homeowner is NOT notified that their debt was discharged!

Homeowners are paying a debt they should not owe.

The homeowner’s promise to pay on the initial signed mortgage note is what creates the “NEW” money in the banks’ accounting ledgers. When the bank charges interest on their so-called bank credit, which in reality is based not on real money, but on a homeowner’s promise to pay, the homeowner has, in essence, been conned and exploited by the banks. In reality, the borrowing homeowner, the so-called debtor, is actually the creditor, the one providing the value, and shouldn’t have to pay any interest at all. To fully understand this; how money is created and how unjust a process it is, go to: 

Most all foreclosures are illegal.

a) Most of the current 63,000 foreclosures in Massachusetts have already been paid off by insurance companies, resulting in mortgages being discharged by law, but various foreclosing entities have continued to foreclose on homeowners. 

b) MERS, as nominee, inserted in the mortgage contract, renders the mortgage null and void. MERS, therefore, has no standing to foreclose.

c) One researcher in Massachusetts sees these events: Misleading statements, documentation, affidavits, and assignments have been submitted to the courts, predatory loans have been given where the borrower’s financial information was distorted by the mortgage brokers to make the loans work, and worse, he says, “Praying on the elderly and the unsophisticated citizen of the Commonwealth of Massachusetts to sell toxic loans to fill the toxic pools of mortgage backed securities is criminal.”

When you follow the money, the mess created by our ignorance of money is huge. 

1. Our current debt-based monetary system has resulted in securities investments that are not backed by legal mortgages. 
2. Fraudulently signed affidavits have been submitted to the Registry of Deeds and to the Courts of Massachusetts. 
3. Various existing and pending legislation tries to symptomatically cover up various aspects of banking, including the LIAR LOANS. 
4. Our unsustainable usurious monetary system that requires constant expansion to be fed and kept alive results in wars, poverty, crime, plutocracy, environmental destruction, pollution, loss of the middle class, and a host of other problems.

There is an URGENT, IMMEDIATE, and definite need for a 10 year moratorium to clean up this mess. A Jubilee Act could help do this and create a more prosperous and honest society. Let’s go from foreclosing to forgiving!

We also need to educate ourselves by answering the following questions:

1. What is money actually? 
2. How is money created?
3. How do banks make money?
4. How do We the People regain control of how money is issued and managed?

I urge the Legislation to stand up and protect the people with a 10 year moratorium, to find out what EXACTLY bankers, lawyers, brokers and servicers have been doing, and to reclaim our rights to how money is issued and managed, which should be controlled by We the People and a representative government, not by the bankers and the corporatocracy.

In addition to the 10 year moratorium, I propose assembling a TEAM (i.e. homeowners, visionaries, bankers, economists, lawyers, brokers, financial planners, legislators, appraisers, researchers) for a series of roundtable meetings to establish a more honest mind-set and flush out the necessary ACTION steps to ensure an honest, transparent, and sustainable mortgage institution and overall monetary system.

Thanks for hearing me today! 

David Snieckus
99 Crescent Street
Newton, MA 02466

p.s. For future updates and educational tools on money and credit, especially the home page Prezi by John Root Jr., check out this website: