ROL_2014-01-31_16k_Hr1-2.timecode

[00:00.000 --> 00:07.000]  This is the Liberty Beat, your daily source for Liberty news and activist updates.
[00:07.000 --> 00:14.000]  Online at LibertyBeat.com. I'm Brian Hagan with your Liberty Beat for Friday, January 31, 2014.
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[01:20.000 --> 01:28.000]  New revelations stemming from documents released by whistleblower Edward Snowden show Canada's most secretive spy agency
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[02:04.000 --> 02:10.000]  Mayor Bill de Blasio made the announcement Thursday, reversing the policies of former mayor Michael Bloomberg.
[02:10.000 --> 02:24.000]  Last August, Judge Shira A. Scheinlin of Federal District Court in Manhattan ruled on the unconstitutionality of the programs, as well as a policy of indirect racial profiling.
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[03:26.000 --> 03:33.000]  Bad boys, bad boys, whatcha gonna do? Whatcha gonna do when they're coming for you?
[03:33.000 --> 03:41.000]  Okay, bad boys are back. Randy Kelton, Steve Skidmore, we love radio.
[03:41.000 --> 03:48.000]  And this is Friday, January 31.
[03:48.000 --> 03:59.000]  The 12th of the year would be gone already. This is scary business. My mother warned me about how fast this would go, especially when we're having so much fun.
[03:59.000 --> 04:08.000]  And we're going to start out tonight talking about a case that just came down that...
[04:08.000 --> 04:14.000]  Steve, will you address that? I haven't read the documents well enough.
[04:14.000 --> 04:19.000]  Yes, Sims v. Carrington. Sims v. Carrington.
[04:19.000 --> 04:29.000]  Sims is still an ongoing case, but I think we can discuss the ruling that was handed down and let me pull that link up.
[04:29.000 --> 04:39.000]  I've had some... I apologize for having a lag here. I had blown out a circuit breaker tonight and had to reroute everything in the house to do the show.
[04:39.000 --> 04:44.000]  But let me go back to where... there he is.
[04:44.000 --> 04:59.000]  Okay, the Texas Supreme Court argument is up and you can find that at Sims if you'll do an internet search for Sims et al v. Carrington Mortgage Service.
[04:59.000 --> 05:07.000]  You will come up with a video recording of the oral argument.
[05:07.000 --> 05:13.000]  And let me find... here we go.
[05:13.000 --> 05:19.000]  Now, there's a few issues here on the table.
[05:19.000 --> 05:44.000]  What the Supreme Court decided was that anytime there is a mortgage, this case was over a home equity loan, anytime there's a mortgage, the borrower must be brought to the table.
[05:44.000 --> 05:59.000]  That it cannot be done via power of attorney. The power of attorney problem creates... it says here, notice the focus on collateralizing the homestead.
[05:59.000 --> 06:20.000]  The court is saying that engaging in the transaction may ultimately lead to your home being taken away from you in foreclosure. It is so important under the Texas Constitution that the court cannot write exceptions into the plain language of the Constitution.
[06:20.000 --> 06:35.000]  What's been happening is people have been signing over power of attorney to loved ones, to friends, to attorneys, and not going to the closing on home equity loans.
[06:35.000 --> 06:52.000]  Now, this... there's no meeting of the minds here is basically what it's getting to. It also goes on... this article goes on further to say that we have argued the same points strenuously in the Sims case.
[06:52.000 --> 07:06.000]  The modification, that's loan modification, that increases the principal balance of the loan have no effect, or I'm sorry, have the effect of collateralizing the homestead.
[07:06.000 --> 07:35.000]  Accordingly, even if having to originate a new equity loan is... even if having to originate a new home equity loan is inconvenient or a hardship, it is precisely that process that, quote, sobers, end quote, the borrower's decision and gives them all of the disclosures they need in order to understand what's happening.
[07:35.000 --> 07:50.000]  So, if somebody is signing over power of attorney for another individual to sign off on a HELOC or a mortgage modification, they're not being made aware of everything that's going on.
[07:50.000 --> 08:07.000]  I've known of several cases where somebody goes through a modification and their payments increase. Their payments increase and it adds more money to the balance of the loan.
[08:07.000 --> 08:15.000]  That's not the purpose of a modification. The purpose of a modification is to make it more affordable so you can stay in the home.
[08:15.000 --> 08:25.000]  I mean, correct me if I'm wrong. You know, anybody is seeking a loan modification, which first I go to the default question, how do you modify fraud?
[08:25.000 --> 08:50.000]  But, you know, all that set aside, the addition of any principle to an existing loan further damages the homeowner and puts them in... it puts them closer to losing their home than it actually... it adds insult to injury, to put it in plain English.
[08:50.000 --> 09:08.000]  And this is exactly what the Supreme Court's saying. They're coming just shy of saying the way that modifications are being done is not...
[09:08.000 --> 09:20.000]  Article XVI, or is that 16? Article 16, Section 50 of the Texas Constitution.
[09:20.000 --> 09:28.000]  Yeah, we were addressing education earlier. That's Article 16. You had to think about that. Shame on you.
[09:28.000 --> 09:29.000]  Yeah.
[09:29.000 --> 09:33.000]  I only had to think about it for 45 seconds.
[09:33.000 --> 09:39.000]  Okay. Well, when in Rome, count by letters. When in America, count by numbers.
[09:39.000 --> 09:54.000]  My concern here is if, since the court ruled this procedure unconstitutional, that has incredibly dramatic implications.
[09:54.000 --> 10:03.000]  Absolutely. Yes, there's hundreds, literally hundreds of thousands of mortgages on the line here.
[10:03.000 --> 10:11.000]  Yeah, everyone that has been done this way is subject to being rendered void.
[10:11.000 --> 10:14.000]  Absolutely. Absolutely.
[10:14.000 --> 10:24.000]  You know, we signed the... the lender signed the... through his agent signed the note and the security instrument.
[10:24.000 --> 10:29.000]  So what are we left with? Now we have the bank here holding what?
[10:29.000 --> 10:31.000]  Fraudulent instruments.
[10:31.000 --> 10:36.000]  How do they adjudicate their claim? There has to be a remedy for this.
[10:36.000 --> 10:49.000]  Say I was a lender and I acted in good faith, reliance on competent authority and in accordance with standard practices.
[10:49.000 --> 10:58.000]  And was invested a considerable amount of money into a long term contract.
[10:58.000 --> 11:07.000]  And now the Supreme Court says, you know, the way you've been doing things for the last 20 years, why you can't do it that way anymore.
[11:07.000 --> 11:10.000]  And it was all unconstitutional when you did it.
[11:10.000 --> 11:13.000]  Yeah. Couldn't have done it from the start.
[11:13.000 --> 11:23.000]  So if it was void ab initio, what do we do now? There has to be equity here.
[11:23.000 --> 11:33.000]  The bank actually did produce something of value to secure the warranty deed.
[11:33.000 --> 11:36.000]  And I say it that way because a lot of people are going to say they don't have any money in it.
[11:36.000 --> 11:42.000]  We don't want to get into the Federal Reserve fractional lending issue.
[11:42.000 --> 11:50.000]  But they supplied something of value to the contract in order for there to be a contract.
[11:50.000 --> 11:57.000]  Now they're saying that the way they created the contract was unconstitutional.
[11:57.000 --> 12:05.000]  Say I trade you a car for a whiz bang computer.
[12:05.000 --> 12:13.000]  Now, the bank comes back and says you can't trade that car for that whiz bang computer.
[12:13.000 --> 12:15.000]  Not a fair trade.
[12:15.000 --> 12:17.000]  Yeah. Well, I'm sorry. I didn't. That's not a good example.
[12:17.000 --> 12:22.000]  Say I give you a lot of money for a whiz bang computer.
[12:22.000 --> 12:26.000]  A client came against the whiz bang computer.
[12:26.000 --> 12:32.000]  And the bank comes back and says you can't enter into that kind of agreement.
[12:32.000 --> 12:34.000]  So your agreement is void.
[12:34.000 --> 12:43.000]  Now, you got the whiz bang, in this case, the bank gave out a lot of money
[12:43.000 --> 12:49.000]  or a lot of value of some sort to secure the warranty deed and gave it to you
[12:49.000 --> 12:51.000]  based on a promise that you would pay them.
[12:51.000 --> 12:56.000]  And now the government just said that promise to pay you is void.
[12:56.000 --> 13:03.000]  So you got the property. You got the money.
[13:03.000 --> 13:06.000]  How does the bank find remedy?
[13:06.000 --> 13:12.000]  It would seem to me that inequity, not in law but in equity,
[13:12.000 --> 13:18.000]  that the only thing they could do is refinance the whole thing.
[13:18.000 --> 13:20.000]  Bring the borrower.
[13:20.000 --> 13:24.000]  You come to me to refinance? Screw you, Bubba.
[13:24.000 --> 13:27.000]  I got the property. You don't have a call.
[13:27.000 --> 13:33.000]  Now what? They could refinance the property if I agreed to it.
[13:33.000 --> 13:34.000]  Right, right.
[13:34.000 --> 13:37.000]  Why would they do a stupid thing like that?
[13:37.000 --> 13:42.000]  And here we go down that slippery slope, but in equity,
[13:42.000 --> 13:46.000]  you said there's got to be an equitable remedy.
[13:46.000 --> 13:51.000]  In equity, all they can do is do what they promised to do from the start
[13:51.000 --> 13:54.000]  and reduce the principal, reduce the interest,
[13:54.000 --> 14:01.000]  put the people in their home in a loan that they can afford, providing...
[14:01.000 --> 14:05.000]  Wait a minute. I'm backing up to the original loan.
[14:05.000 --> 14:07.000]  If it wasn't done...
[14:07.000 --> 14:10.000]  Okay, okay. I was going off the modification after the fact.
[14:10.000 --> 14:17.000]  If the original loan was done in your living room,
[14:17.000 --> 14:19.000]  and I've got a number of those.
[14:19.000 --> 14:25.000]  We've got... I hope we have our listener from D.C.
[14:25.000 --> 14:28.000]  We have a listener from D.C. that I worked with,
[14:28.000 --> 14:36.000]  and this is exactly how the loan was consummated in her living room
[14:36.000 --> 14:38.000]  and is subsequently foreclosed, and she fought them.
[14:38.000 --> 14:43.000]  And now with this decision, is this a Texas state or a Supreme?
[14:43.000 --> 14:45.000]  Yeah, Texas Supreme Court.
[14:45.000 --> 14:50.000]  Okay, then she's in D.C. so it won't help her there.
[14:50.000 --> 14:55.000]  Unless there is a similar article and section in the D.C. Constitution.
[14:55.000 --> 15:01.000]  I don't think there is because home equity loans and such were authorized there forever.
[15:01.000 --> 15:04.000]  Texas is the only one that held out.
[15:04.000 --> 15:11.000]  So if you're in Texas and you signed the loan papers in your house
[15:11.000 --> 15:18.000]  or you had an agent in your house that you talked to and made the agreement with
[15:18.000 --> 15:23.000]  and they went to closing for you, now the bank has a problem.
[15:23.000 --> 15:25.000]  Yeah, big time.
[15:25.000 --> 15:28.000]  If anybody is interested in reading this article,
[15:28.000 --> 15:34.000]  the URL for the article itself is about 40 yards long and it would take a half hour to convey it,
[15:34.000 --> 15:38.000]  but you can do an online search for,
[15:38.000 --> 15:47.000]  Texas Supreme Court continues to enforce Section 50 as written.
[15:47.000 --> 15:55.000]  And that was published this morning, January 31, 2014.
[15:55.000 --> 16:00.000]  And this decision was handed down today.
[16:00.000 --> 16:04.000]  If you'd like to get a little deeper into the article, let's start from the beginning.
[16:04.000 --> 16:09.000]  Today the Supreme Court returned to its Norwood decision of 2013
[16:09.000 --> 16:19.000]  and reiterated that even if the requirements of Texas Constitution Article 16, Section 50 are inconvenient,
[16:19.000 --> 16:28.000]  they must be enforced as written unless and until the people of Texas amend them.
[16:28.000 --> 16:31.000]  So right there they're saying in order to do things the way the banks want to do it,
[16:31.000 --> 16:34.000]  we take an amendment to the Constitution.
[16:34.000 --> 16:37.000]  I hear the music in the background.
[16:37.000 --> 16:40.000]  Are we going to open the phones up, Randy?
[16:40.000 --> 16:41.000]  Yes.
[16:41.000 --> 16:46.000]  512-646-1984 is the number to dial.
[16:46.000 --> 16:49.000]  If you'd like to join us in conversation, the phone lines are open.
[16:49.000 --> 16:50.000]  We'll be back.
[16:50.000 --> 16:53.000]  This is Steve Skidmore with Randy Kelton on Rule of Law Radio.
[16:53.000 --> 17:01.000]  See you in a minute.
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[18:00.000 --> 18:05.000]  Are you being harassed by debt collectors with phone calls, letters, or even lawsuits?
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[19:31.000 --> 19:40.000]  I see justice, yeah, whoa, the world is spinning like it's out of control
[19:40.000 --> 19:44.000]  on the edge of a hole inside a deep dark hole
[19:44.000 --> 19:50.000]  I'm always going to look out for something to soothe my soul
[19:50.000 --> 20:03.000]  So I sit back and I watch the evidence unfold, and I see justice is the goal
[20:03.000 --> 20:08.000]  Okay, we are back, Randy Kelton, Steve Skidmore, Rule of Law Radio,
[20:08.000 --> 20:19.000]  and remember tonight is the last night of our funding drive and drive for the drawing.
[20:19.000 --> 20:23.000]  And Steve is pulling up the page to give you the specs on the Ruger
[20:23.000 --> 20:28.000]  and the old-timey rifle that we have up for drawing.
[20:28.000 --> 20:38.000]  If you purchase Eddie's traffic seminar, you'll get 10 chances in the drawing,
[20:38.000 --> 20:44.000]  and for every $25 you donate, you'll get a chance in the drawing for these weapons.
[20:44.000 --> 20:50.000]  Okay, we're going to go to, and let's go over what's being given away.
[20:50.000 --> 20:55.000]  We got for first prize, first prize, excuse me, proper English,
[20:55.000 --> 21:02.000]  a Ruger LC-9 with laser and a laser scope, or I'm sorry, laser sight and holster.
[21:02.000 --> 21:10.000]  Second prize is a Mosin M1891-30, I believe that'd be a.30 caliber with a bayonet,
[21:10.000 --> 21:13.000]  and that is one beautiful rifle.
[21:13.000 --> 21:19.000]  I really do like that. It's a bolt-action rifle, good-looking, good-looking weapon.
[21:19.000 --> 21:22.000]  And it really is from the 1800s.
[21:22.000 --> 21:26.000]  We don't know if this was actually made in the 1800s,
[21:26.000 --> 21:33.000]  but that's when this particular weapon was designed, 18, what was it, 1891?
[21:33.000 --> 21:39.000]  1891, very sleek, very slim, nice-looking rifle.
[21:39.000 --> 21:46.000]  Okay, now we're going to go to Chris in Pennsylvania. Hello, Chris.
[21:46.000 --> 21:48.000]  Hello, Randy. How are you?
[21:48.000 --> 21:51.000]  I am good. What do you have for us tonight?
[21:51.000 --> 21:53.000]  I have...
[21:53.000 --> 21:56.000]  Don't believe him. He ain't worth killing.
[21:56.000 --> 22:11.000]  I have in my attempt to put together my remedy for this assignment, showing a declaratory judgment we spoke about.
[22:11.000 --> 22:13.000]  Yes.
[22:13.000 --> 22:22.000]  I have something I wanted to pass by you to see if you could direct me in the right direction as an accordance with law on this.
[22:22.000 --> 22:32.000]  Now, I was looking, researching this yesterday, and I came across a spot where if an assignment of mortgage is done while,
[22:32.000 --> 22:39.000]  or cannot be done while a mortgage is in foreclosure, is that correct?
[22:39.000 --> 22:45.000]  Not that I know of. It raises issues.
[22:45.000 --> 22:47.000]  That's all it does?
[22:47.000 --> 23:04.000]  If there is an assignment while the note is in foreclosure, then the entity receiving the assignment can't complain about the default.
[23:04.000 --> 23:11.000]  Because the default didn't occur while they held it. They accepted a defaulted note.
[23:11.000 --> 23:16.000]  So there's an argument there, but that's not really a very good argument to make.
[23:16.000 --> 23:27.000]  The argument we want to make about the assignment is who did the assignment and what authority they have to do it.
[23:27.000 --> 23:36.000]  Didn't you contract with me to do an evaluation for you that I didn't do yet?
[23:36.000 --> 23:38.000]  Chris?
[23:38.000 --> 23:40.000]  Yes. Are you there?
[23:40.000 --> 23:44.000]  Yeah. Did you contract with me to do an evaluation for you?
[23:44.000 --> 23:45.000]  Yes, I did.
[23:45.000 --> 23:48.000]  Oh, okay. And I hadn't done it yet.
[23:48.000 --> 23:50.000]  Not yet. Not yet. I've been talking to you.
[23:50.000 --> 23:53.000]  Oh, don't say that. Wait, wait, wait. Don't say that on air.
[23:53.000 --> 23:55.000]  Okay. I'm sorry.
[23:55.000 --> 24:00.000]  I'm just kidding. I didn't even have that on my list.
[24:00.000 --> 24:09.000]  Before the show started, I was trying to work up an online, thinkable, shareable calendar so I could get all of this straight.
[24:09.000 --> 24:18.000]  Okay. First thing we need to do before we do anything is we need to walk down what has been filed in the record.
[24:18.000 --> 24:20.000]  Okay.
[24:20.000 --> 24:23.000]  Okay. You have a mortgage. You have a warranty deed and a mortgage.
[24:23.000 --> 24:25.000]  Yep.
[24:25.000 --> 24:31.000]  When I start through them, the first thing I look at is, okay, when was the mortgage dip done?
[24:31.000 --> 24:34.000]  Because that tells me how much equity you have in the property.
[24:34.000 --> 24:40.000]  Generally, I don't know how much down payment you have, but I can tell how much you paid the note down.
[24:40.000 --> 24:45.000]  And then I look at who was the lender.
[24:45.000 --> 24:46.000]  Okay.
[24:46.000 --> 24:53.000]  The first thing I do when I see the lender's name, if I don't recognize it as current, then I go on the Internet and see, you know,
[24:53.000 --> 24:58.000]  if it's one of these small mortgage companies and see if the lender is still in business.
[24:58.000 --> 25:06.000]  And if he's not in business, I want to know when he went out of business or if he was bought out by some other company.
[25:06.000 --> 25:14.000]  Because if he's bought out by some other company, he would have had to have transferred the note to that company.
[25:14.000 --> 25:15.000]  Okay.
[25:15.000 --> 25:20.000]  Then I look to see, is your note an FHA loan?
[25:20.000 --> 25:21.000]  Yes.
[25:21.000 --> 25:25.000]  If it's an FHA loan, there's no authorization to sell.
[25:25.000 --> 25:28.000]  Actually, it's FHA.
[25:28.000 --> 25:30.000]  Okay.
[25:30.000 --> 25:33.000]  Was it FHA, though?
[25:33.000 --> 25:35.000]  I don't know.
[25:35.000 --> 25:37.000]  It would be in the footer.
[25:37.000 --> 25:44.000]  You look in the footer on the deed of trust, I mean, the mortgage, and it will say if it's an FHA loan.
[25:44.000 --> 25:48.000]  If it was FHA, it should be in GiniMay, not Fannie.
[25:48.000 --> 25:52.000]  GiniMay is the entity that backs the pools.
[25:52.000 --> 25:53.000]  Correct.
[25:53.000 --> 25:59.000]  If it's in a pool at all, it should be, GiniMay doesn't actually hold it,
[25:59.000 --> 26:07.000]  but it will be put in the pool based on GiniMay's requirements.
[26:07.000 --> 26:12.000]  And since we brought up GiniMay just quickly, the important thing about GiniMay,
[26:12.000 --> 26:18.000]  the thing that for a long time I didn't understand is how the pools work.
[26:18.000 --> 26:26.000]  The lender creates the pool, he creates pools for notes, and he puts notes into pools.
[26:26.000 --> 26:37.000]  And then he takes those pools that he creates, and he negotiates the right to collect the income stream.
[26:37.000 --> 26:40.000]  Somebody's getting some background noise.
[26:40.000 --> 26:43.000]  I'm going to mute you just for a second, Chris.
[26:43.000 --> 26:53.000]  He negotiates the beneficial interest in the note into a pass-through trust.
[26:53.000 --> 27:03.000]  Well, it will normally be sold to a, what's it called, Steve?
[27:03.000 --> 27:04.000]  A tranche?
[27:04.000 --> 27:10.000]  No, before it gets to that, I keep losing words.
[27:10.000 --> 27:11.000]  A remic.
[27:11.000 --> 27:18.000]  No, the guys who put together the original notes, I'll take up here in a second.
[27:18.000 --> 27:21.000]  Oh, the broker?
[27:21.000 --> 27:23.000]  No, it'll come to me.
[27:23.000 --> 27:32.000]  The guys accumulate a lot of money, they get funding, and then they purchase notes
[27:32.000 --> 27:40.000]  and accumulate them into a different trust, a larger pool.
[27:40.000 --> 27:47.000]  They buy the pools from the lenders and then aggregate those into a larger pool,
[27:47.000 --> 27:52.000]  and then they consolidate that pool into a remic.
[27:52.000 --> 27:58.000]  And then tranches are sold off of that larger pool.
[27:58.000 --> 28:08.000]  Well, the confusion was when they convert the note to a security and sell it to the pool.
[28:08.000 --> 28:12.000]  That's not exactly how it works.
[28:12.000 --> 28:15.000]  They don't sell the note to the pool.
[28:15.000 --> 28:19.000]  They don't convert the note into a security.
[28:19.000 --> 28:26.000]  They convert the beneficial interest in the note into a security.
[28:26.000 --> 28:33.000]  The note never leaves the possession of the guys on the front end.
[28:33.000 --> 28:35.000]  I'll explain that here in a second.
[28:35.000 --> 28:41.000]  The confusion people, a lot of the confusion they were having is this term security instrument.
[28:41.000 --> 28:45.000]  In Chris's case, his security instrument is called a mortgage.
[28:45.000 --> 28:49.000]  Here in Texas, it's called a deed of trust.
[28:49.000 --> 28:58.000]  And when I do any kind of written documentation, I always call that a security instrument.
[28:58.000 --> 29:07.000]  So it's not, you don't have a confusion between mortgage and deed of trust because back up before that,
[29:07.000 --> 29:16.000]  a mortgage in every state is the note, the warranty deed, and the security instrument.
[29:16.000 --> 29:19.000]  You see the problem here, we have overlapping terms.
[29:19.000 --> 29:23.000]  The whole group is a mortgage.
[29:23.000 --> 29:31.000]  And if you're in a judicial state, the security instrument is also called a mortgage.
[29:31.000 --> 29:36.000]  But it's also called a security, it is a security instrument by its nature.
[29:36.000 --> 29:39.000]  And we'll pick this up on the other side.
[29:39.000 --> 29:48.000]  I'll try to make sense of all of this, but it will also make sense of why a lot of these arguments being brought are frivolous.
[29:48.000 --> 29:49.000]  Show me the note.
[29:49.000 --> 29:51.000]  We'll get to that when we come back.
[29:51.000 --> 30:01.000]  This is Randy Kelton, Debra Stephens, Steve Skidmore, Radio or call in number 512-646-1984.
[30:01.000 --> 30:02.000]  Pressure.
[30:02.000 --> 30:07.000]  We usually associate it with stress and negativity, but sometimes a bit of pressure can be healing.
[30:07.000 --> 30:11.000]  I'm Dr. Catherine Albrecht, and I'll be back to tell you how conditions like nausea can be cured
[30:11.000 --> 30:15.000]  using the traditional Chinese therapy known as acupressure.
[30:15.000 --> 30:17.000]  Privacy is under attack.
[30:17.000 --> 30:21.000]  When you give up data about yourself, you'll never get it back again.
[30:21.000 --> 30:26.000]  And once your privacy is gone, you'll find your freedoms will start to vanish too.
[30:26.000 --> 30:31.000]  So protect your rights, say no to surveillance, and keep your information to yourself.
[30:31.000 --> 30:34.000]  Privacy, it's worth hanging on to.
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[30:45.000 --> 30:49.000]  Acupressure is an ancient practice that uses finger or hand pressure
[30:49.000 --> 30:52.000]  to cure everything from headaches to constipation.
[30:52.000 --> 30:54.000]  The pressure is applied to points known as meridians
[30:54.000 --> 30:57.000]  that are believed to control the flow of energy in the human body.
[30:57.000 --> 31:02.000]  Acupressure offers a simple cure for nausea you might try the next time you get a queasy stomach
[31:02.000 --> 31:04.000]  or a case of motion sickness.
[31:04.000 --> 31:07.000]  Simply apply moderate pressure to the point known as P6.
[31:07.000 --> 31:12.000]  You'll find it on the inside of your wrist, about two fingers width down from your palm.
[31:12.000 --> 31:18.000]  Placing pressure on the P6 point works on the same principle as those pricey anti-nausea wristbands,
[31:18.000 --> 31:21.000]  but this relief is free and always on hand.
[31:21.000 --> 31:30.000]  I'm Dr. Catherine Albrecht. More news and information at CatherineAlbrecht.com.
[31:30.000 --> 31:36.000]  This is Building 7, a 47-story skyscraper that fell on the afternoon of September 11.
[31:36.000 --> 31:38.000]  The government says that fire brought it down.
[31:38.000 --> 31:43.000]  Over 1,500 architects and engineers concluded it was a controlled demolition.
[31:43.000 --> 31:46.000]  Over 6,000 of my fellow service members have given their lives.
[31:46.000 --> 31:48.000]  Thousands of my fellow first responders are dying.
[31:48.000 --> 31:50.000]  I'm not a conspiracy theorist.
[31:50.000 --> 31:51.000]  I'm a structural engineer.
[31:51.000 --> 31:52.000]  I'm a New York City correction officer.
[31:52.000 --> 31:53.000]  I'm an Air Force pilot.
[31:53.000 --> 31:55.000]  I'm a father who lost his son.
[31:55.000 --> 31:57.000]  We're Americans and we deserve the truth.
[31:57.000 --> 32:01.000]  Go to RememberBuilding7.org today.
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[33:03.000 --> 33:14.000]  You're listening to the Logos Radio Network at logosradionetwork.com.
[33:14.000 --> 33:25.000]  Yeah, I got a warrant and I'm gonna solve them to the head of government then prosecute them.
[33:25.000 --> 33:27.000]  Okay.
[33:27.000 --> 33:29.000]  Okay, we are back.
[33:29.000 --> 33:34.000]  Randy Helton, Steve Skidmore, Rule of Law Radio, and we're talking to Chris in Pennsylvania.
[33:34.000 --> 33:41.000]  And I was talking about how this pooling and servicing agreements come about.
[33:41.000 --> 33:47.000]  And special purpose vehicle was the term I was trying to think of earlier.
[33:47.000 --> 33:55.000]  The lender creates a bunch of notes and he aggregates them into pools.
[33:55.000 --> 34:02.000]  And each pool has to have a loan with the same interest rate.
[34:02.000 --> 34:07.000]  He can have as low as three notes in a single pool.
[34:07.000 --> 34:11.000]  And then he files those with Jenny Mae.
[34:11.000 --> 34:18.000]  And in order to do that, he must send all the documentation to a document custodian.
[34:18.000 --> 34:25.000]  And the document custodian will certify to Jenny Mae that the notes meet Jenny Mae's requirements.
[34:25.000 --> 34:33.000]  And then the document custodian must maintain possession of all of the documents until termination of the contract.
[34:33.000 --> 34:39.000]  So all of this stuff about show me the note, that's a rabbit hole.
[34:39.000 --> 34:45.000]  The bank's been sending us down that rabbit hole because the note's frivolous.
[34:45.000 --> 34:47.000]  The note doesn't mean anything at this point.
[34:47.000 --> 34:54.000]  It's what Joe Esquivel calls the tangible note, the piece of paper.
[34:54.000 --> 34:57.000]  And all it is is a worthless piece of paper.
[34:57.000 --> 35:00.000]  And the document custodian has it.
[35:00.000 --> 35:01.000]  They know exactly where it's at.
[35:01.000 --> 35:06.000]  Normally, the document custodian will be the servicer.
[35:06.000 --> 35:11.000]  So he has the note and all the documentation's had it the whole time.
[35:11.000 --> 35:25.000]  What they negotiate into the pool, what they negotiate to the special purpose vehicle is the income stream.
[35:25.000 --> 35:32.000]  If anybody out there has ever been in their own business, they will probably understand the concept of factoring.
[35:32.000 --> 35:37.000]  I used to have a construction company.
[35:37.000 --> 35:45.000]  And I would get a job, and I'd start doing the job, and I'd have to put out my funds for materials and labor.
[35:45.000 --> 35:51.000]  And if I'm running low on funds to finish this job, I'm not getting paid back.
[35:51.000 --> 35:54.000]  I'm running out of funds to complete it.
[35:54.000 --> 36:01.000]  The bank can say, hey, I got these invoices that haven't paid me yet.
[36:01.000 --> 36:04.000]  I want to sell them to you.
[36:04.000 --> 36:06.000]  Now, I don't sell them to paper.
[36:06.000 --> 36:09.000]  They're not interested in the paper.
[36:09.000 --> 36:19.000]  But I'll sell the right to collect the income from these invoices to you for, say, 75% of face value.
[36:19.000 --> 36:23.000]  And the bank, by the way, they generally do it like 8% or 10%.
[36:23.000 --> 36:26.000]  And for 8% or 10%, they will front you the money.
[36:26.000 --> 36:28.000]  It's just like a short-term loan.
[36:28.000 --> 36:30.000]  You don't have to pay it back.
[36:30.000 --> 36:35.000]  When the money comes in for these invoices, the bank collects it, and everybody goes home happy.
[36:35.000 --> 36:39.000]  That's essentially what they're doing with your note.
[36:39.000 --> 36:46.000]  They keep the note and the deed of trust or the mortgage, and they sell the right to collect the income stream.
[36:46.000 --> 36:51.000]  That's what's turned into a security fee.
[36:51.000 --> 37:01.000]  Now, to be confused with the security instrument, the note securitizes the income stream.
[37:01.000 --> 37:07.000]  The security instrument securitizes the note.
[37:07.000 --> 37:12.000]  That was the part that we had a lot of trouble getting sorted out.
[37:12.000 --> 37:17.000]  So we really don't care who has the note.
[37:17.000 --> 37:23.000]  We don't care who has the right to the income stream, because if this was a table-funded note,
[37:23.000 --> 37:28.000]  and it was funded by the – if you got it through Washington Mutual,
[37:28.000 --> 37:33.000]  and it was funded by the Mexican and Colombian drug cartels,
[37:33.000 --> 37:43.000]  Washington Mutual came to the table and presented themselves as the trustworthy licensed lender.
[37:43.000 --> 37:53.000]  And you, as a unsophisticated consumer, which you are by statute with that regard to what you know,
[37:53.000 --> 37:58.000]  when you purchase a property for the purpose of consuming it by living inside it,
[37:58.000 --> 38:05.000]  you are a consumer, and therefore, by statute, you are a unsophisticated purchaser.
[38:05.000 --> 38:12.000]  You only dealt with licensed professionals who were subject to governmental oversight,
[38:12.000 --> 38:20.000]  so you had a reasonable – had a right to hold a reasonable expectation of good faith
[38:20.000 --> 38:22.000]  and fair dealing from these people.
[38:22.000 --> 38:28.000]  What they didn't tell you, what they implied at closing is,
[38:28.000 --> 38:36.000]  since I'm a big-time bank, and I'm the guy who's posing as the lender,
[38:36.000 --> 38:40.000]  in order to secure your warranty deed, I'm going to go to the Federal Reserve window,
[38:40.000 --> 38:44.000]  and I'm going to say, I got this promissory note here.
[38:44.000 --> 38:53.000]  I want to draw X number of funds from my Federal Reserve account, my fractional reserve account,
[38:53.000 --> 39:01.000]  to purchase this warranty deed with the implication of when I get paid back,
[39:01.000 --> 39:03.000]  I will return these funds to you.
[39:03.000 --> 39:08.000]  You hear this argument about there is no money, that there never was any money in the loan.
[39:08.000 --> 39:12.000]  Well, this is how it really works.
[39:12.000 --> 39:19.000]  The Federal Reserve puts a mark on a ledger, and they create this money out of thin air,
[39:19.000 --> 39:25.000]  with the understanding that when the loan is paid back,
[39:25.000 --> 39:29.000]  this money will go back to the thin air from which it came.
[39:29.000 --> 39:37.000]  So they do not increase the volume of money that would have the effect of causing runaway inflation.
[39:37.000 --> 39:42.000]  They simply increase the velocity of money.
[39:42.000 --> 39:48.000]  They allow the trade to be made without people having to take Federal Reserve notes,
[39:48.000 --> 39:52.000]  and use Federal Reserve notes for the only purpose they were created for,
[39:52.000 --> 39:56.000]  and that's to transfer value between banks.
[39:56.000 --> 40:01.000]  They didn't have to move these physical dollars, they just put marks on a chart.
[40:01.000 --> 40:05.000]  They're created out of thin air, it's paid back, it goes back to the thin air.
[40:05.000 --> 40:09.000]  That was the implication, but that's not what happened.
[40:09.000 --> 40:17.000]  Washington Mutual was actually getting the funding from the Colombian and Mexican drug cartels,
[40:17.000 --> 40:22.000]  Washington Mutual, Deutsche Bank, Wachovia, Bank of America,
[40:22.000 --> 40:26.000]  and Wells Fargo being investigated for just exactly that right now,
[40:26.000 --> 40:31.000]  largest money laundering scheme in the history of mankind.
[40:31.000 --> 40:39.000]  So they would take the funds from the drug cartels, purchase the warranty deed with it,
[40:39.000 --> 40:45.000]  and nobody knows that that's where it's coming from, you think it's coming from the Federal Reserve account.
[40:45.000 --> 40:54.000]  Then the note is purchased by these special purpose vehicles, which essentially were the drug cartels,
[40:54.000 --> 41:02.000]  and then they were aggregated into an investment conduit,
[41:02.000 --> 41:07.000]  and filed with the Internal Revenue Service as a real estate mortgage investment conduit.
[41:07.000 --> 41:15.000]  And this was all done based on a perspective for the pass-through trusts.
[41:15.000 --> 41:19.000]  Yes, I was just going to add, they're granted a pass-through tax status,
[41:19.000 --> 41:24.000]  which means they don't have to pay income taxes on anything that they make off of these things
[41:24.000 --> 41:27.000]  until they withdraw their interests.
[41:27.000 --> 41:34.000]  And it is the investors who withdraw the interest, so they miss the taxes altogether.
[41:34.000 --> 41:37.000]  Well, lost my place.
[41:37.000 --> 41:38.000]  Okay.
[41:38.000 --> 41:39.000]  I'm sorry.
[41:39.000 --> 41:46.000]  Okay, then they sell tranches off of this, or slices off of this large pool.
[41:46.000 --> 41:53.000]  One percent, two percent, five percent, and they may have three or four of these pools going.
[41:53.000 --> 41:58.000]  One's producing profit, another's not producing profit.
[41:58.000 --> 42:02.000]  So what they want to do is take a tranche off this one that's profitable
[42:02.000 --> 42:05.000]  and move it over to this one that's not profitable,
[42:05.000 --> 42:13.000]  so that they all produce at a rate that doesn't generate any income or limits their tax liability.
[42:13.000 --> 42:15.000]  And here's the problem with that.
[42:15.000 --> 42:25.000]  If you have 10,000 notes in this pass-through trust, or this investment conduit,
[42:25.000 --> 42:31.000]  and you take a slice off of it, you have affected,
[42:31.000 --> 42:38.000]  you have transferred a portion of the interest in 10,000 notes.
[42:38.000 --> 42:48.000]  And in order to comply with the RESPA, Real Estate Settlement Procedures Act,
[42:48.000 --> 42:54.000]  you're required to file that change of interest with the clerk of the court
[42:54.000 --> 43:00.000]  and notice the bar for each one of these.
[43:00.000 --> 43:06.000]  At 25 or 30 bucks a pop just for the filing fees,
[43:06.000 --> 43:08.000]  you got 10,000 of these.
[43:08.000 --> 43:16.000]  It's going to cost you $200,000 or a quarter of a million dollars to take 10% off this thing.
[43:16.000 --> 43:19.000]  That's why they invented MERS.
[43:19.000 --> 43:26.000]  Exactly. So that MERS stands up as the straw holder.
[43:26.000 --> 43:33.000]  MERS is the agent for the holder and all of his successors and assigns.
[43:33.000 --> 43:41.000]  He stands up in front of everybody as the holder and he is always the straw holder.
[43:41.000 --> 43:49.000]  So it felt like they could hide the fact that they were doing transactions behind MERS.
[43:49.000 --> 43:54.000]  That's as succinct as I can kind of put these pieces together and hope all that makes sense.
[43:54.000 --> 44:00.000]  This is Randy Kelton, Steve Skidmore, Wheelbar Radio. We'll be right back.
[44:00.000 --> 44:05.000]  My name is Jessica Arman. I'm an activist, a GCN listener and mother of three.
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[44:59.000 --> 45:04.000]  Are you the plaintiff or defendant in a lawsuit?
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[46:14.000 --> 46:23.000]  Thank you very much.
[46:45.000 --> 46:50.000]  Okay, we are back. Randy Kelton, Steve Skidmore, Rule of Law Radio.
[46:50.000 --> 46:53.000]  We have James. We're going to bring him in in a bit.
[46:53.000 --> 47:00.000]  He's going to correct some of my errors in my presentation here.
[47:00.000 --> 47:04.000]  If anybody can do it, it'd be James.
[47:04.000 --> 47:07.000]  The presentation wasn't intended to be exhaustive,
[47:07.000 --> 47:12.000]  but I'm trying to put this in a way so the flow makes sense.
[47:12.000 --> 47:18.000]  So I'm cushioning the blow for when James tells me how full of crapola I am.
[47:18.000 --> 47:19.000]  Okay.
[47:19.000 --> 47:22.000]  But in the meantime, we've got Chris in Pennsylvania,
[47:22.000 --> 47:27.000]  and Chris, I kind of hijacked things and ran away from you.
[47:27.000 --> 47:30.000]  No, that's fine. You were going right in the right direction.
[47:30.000 --> 47:33.000]  Okay. Did we answer your issue?
[47:33.000 --> 47:36.000]  What was your question? I didn't forgot what it was.
[47:36.000 --> 47:40.000]  Well, we were talking about what we were going to do with your...
[47:40.000 --> 47:42.000]  Okay. Okay. Got it. Got it.
[47:42.000 --> 47:44.000]  Okay. Before we could go into it,
[47:44.000 --> 47:50.000]  before we want to go to any particular assignment or any particular appointment,
[47:50.000 --> 47:57.000]  we want to go back and I'll try to have yours knocked out by this weekend.
[47:57.000 --> 48:03.000]  At least I'll have knocked out a statement of facts.
[48:03.000 --> 48:07.000]  You've got some serious noise in the background.
[48:07.000 --> 48:12.000]  Okay. We'll have knocked out a statement of facts,
[48:12.000 --> 48:16.000]  and we'll have the links of how everybody fits together,
[48:16.000 --> 48:19.000]  and then I'll know where the breaks in the chain are,
[48:19.000 --> 48:23.000]  because that is the most important part.
[48:23.000 --> 48:29.000]  It amazes me that most of these people advocating foreclosure help
[48:29.000 --> 48:33.000]  never talk about the county record.
[48:33.000 --> 48:39.000]  Okay. Chris, you have got tremendous background noise.
[48:39.000 --> 48:42.000]  So, okay, if I've answered your question, I can't go back to it.
[48:42.000 --> 48:46.000]  It's way too much noise back there, but I will get that.
[48:46.000 --> 48:50.000]  Why don't you send me an email so that it's at the top of my email list.
[48:50.000 --> 48:55.000]  I'll make sure I get that thing cranked out so we can move ahead.
[48:55.000 --> 49:01.000]  Where I have the biggest issues come up when going through these
[49:01.000 --> 49:08.000]  is I have something like, I've got one here where the deed of trust
[49:08.000 --> 49:12.000]  was issued to Washington Mutual Bank,
[49:12.000 --> 49:21.000]  and then an appointment of substitute trustee was done by JPMorgan Chase.
[49:21.000 --> 49:28.000]  Now, we all have heard the stories about how Washington Mutual
[49:28.000 --> 49:35.000]  Bank was caught by the CIA competing with them for the drug trade,
[49:35.000 --> 49:40.000]  and got put out of business, and JPMorgan Chase took over all their assets.
[49:40.000 --> 49:45.000]  So what? That's stuff we think we know.
[49:45.000 --> 49:47.000]  We don't really know that. We just heard that.
[49:47.000 --> 49:49.000]  That's all hearsay. We don't really know that.
[49:49.000 --> 49:56.000]  What we do know is that according to the documents in the court record,
[49:56.000 --> 50:05.000]  Washington Mutual Bank is the only entity with authority to file documents
[50:05.000 --> 50:07.000]  affecting title.
[50:07.000 --> 50:13.000]  There's nothing in the record showing that JPMorgan Chase has authority
[50:13.000 --> 50:16.000]  to file a document affecting title.
[50:16.000 --> 50:29.000]  In Texas, 51-901, Section C defines a document of that nature as fraudulent.
[50:29.000 --> 50:33.000]  Now, that doesn't necessarily mean you're committing fraud,
[50:33.000 --> 50:40.000]  but that's the definition for this document in this focused circumstance.
[50:40.000 --> 50:47.000]  A document filed in the record where there is no document granting this entity
[50:47.000 --> 50:53.000]  the authority to make claims against title is considered to be fraudulent.
[50:53.000 --> 50:56.000]  So we look for that.
[50:56.000 --> 51:04.000]  Now, if JPMorgan has a claim against the borrower,
[51:04.000 --> 51:10.000]  if when Washington Mutual sold to JPMorgan Chase,
[51:10.000 --> 51:14.000]  when the government transferred the assets,
[51:14.000 --> 51:21.000]  if Washington Mutual had not sold the beneficial interest to somebody else
[51:21.000 --> 51:26.000]  for that note, then JPMorgan may hold the beneficial interest
[51:26.000 --> 51:29.000]  because it was an asset of Washington Mutual Bank.
[51:29.000 --> 51:34.000]  But for the most part, they immediately sold the beneficial interest.
[51:34.000 --> 51:36.000]  That was the whole idea.
[51:36.000 --> 51:43.000]  So JPMorgan Chase got from Washington Mutual what Washington Mutual had,
[51:43.000 --> 51:45.000]  is some pieces of paper.
[51:45.000 --> 51:52.000]  However, the piece of paper for the security instrument
[51:52.000 --> 51:57.000]  in order for JPMorgan Chase to be able to enforce it
[51:57.000 --> 52:05.000]  would have had to have been transferred to JPMorgan Chase from Washington Mutual.
[52:05.000 --> 52:10.000]  But Washington Mutual was a fictional entity.
[52:10.000 --> 52:17.000]  In law, Washington Mutual was a person, and that person died.
[52:17.000 --> 52:22.000]  After the person died, you can't make the transfer.
[52:22.000 --> 52:28.000]  And that's why the first thing I look for is, is the original lender still in business?
[52:28.000 --> 52:30.000]  I get these all the time.
[52:30.000 --> 52:33.000]  I've got one now.
[52:33.000 --> 52:37.000]  Southern Star Lending, 05, issued a note.
[52:37.000 --> 52:39.000]  07 went out of business.
[52:39.000 --> 52:42.000]  09, Deutsche Bank issued a loan modification.
[52:42.000 --> 52:52.000]  2012, MERS transferred the note and security instrument to Deutsche Bank from Southern Star.
[52:52.000 --> 52:56.000]  Sorry, guys, Southern Star is a dead guy.
[52:56.000 --> 52:59.000]  You can't be an agent for a dead guy.
[52:59.000 --> 53:06.000]  Because for the agent to take this action, the dead guy would have to instruct him to take the action.
[53:06.000 --> 53:09.000]  But he's a dead guy, so he can't.
[53:09.000 --> 53:11.000]  There's no instruction to follow.
[53:11.000 --> 53:14.000]  JPMorgan Chase has the same problem.
[53:14.000 --> 53:19.000]  They didn't do the filings they were required to do.
[53:19.000 --> 53:30.000]  And every state is going to have a statute similar to what we have in Texas under 13.001 property code.
[53:30.000 --> 53:39.000]  I've got every one of them listed on prosaforclosure.wordpress.com, state by state.
[53:39.000 --> 53:52.000]  Okay, look up this statute that empowers the records in the county registrar's office.
[53:52.000 --> 53:57.000]  Without this statute, those records are worthless.
[53:57.000 --> 53:59.000]  So every state is going to have it.
[53:59.000 --> 54:06.000]  If you have a claim against property and you have not properly filed it in the county record,
[54:06.000 --> 54:09.000]  it is voidous to the holder.
[54:09.000 --> 54:12.000]  Every state is going to have it.
[54:12.000 --> 54:20.000]  So that I could go look in the record and see what claims are valid against this property.
[54:20.000 --> 54:28.000]  If you don't have your claim filed there, you can't assert the claim against the property.
[54:28.000 --> 54:31.000]  So this is mainly what we look for.
[54:31.000 --> 54:35.000]  Who did the appointment of substitute trustee?
[54:35.000 --> 54:41.000]  Was that company properly assigned the note and security instrument
[54:41.000 --> 54:46.000]  by some entity that had authority to make the assignment?
[54:46.000 --> 54:48.000]  Okay.
[54:48.000 --> 54:52.000]  Let me go back to Chris for a moment to see if he's got the background noise done.
[54:52.000 --> 54:53.000]  Chris.
[54:53.000 --> 54:54.000]  Yes.
[54:54.000 --> 54:56.000]  Oh, much better, much better.
[54:56.000 --> 54:57.000]  Yes.
[54:57.000 --> 55:00.000]  And then what you just brought up was the exact account.
[55:00.000 --> 55:08.000]  You're going to have Wachovia giving an assignment to Wells Fargo two years after Wells Fargo died.
[55:08.000 --> 55:10.000]  Wachovia died.
[55:10.000 --> 55:11.000]  Wachovia died.
[55:11.000 --> 55:18.000]  Wachovia was caught red-handed laundering money for, I think, a Mexican drug cartels,
[55:18.000 --> 55:21.000]  $385 million or billion.
[55:21.000 --> 55:22.000]  Trillion.
[55:22.000 --> 55:25.000]  No, not trillion.
[55:25.000 --> 55:26.000]  It wasn't that much.
[55:26.000 --> 55:27.000]  It was less than I thought it was.
[55:27.000 --> 55:28.000]  I think it was 300.
[55:28.000 --> 55:33.000]  This is just what they caught them red-handed with, was $385 million.
[55:33.000 --> 55:36.000]  But they just shut them down.
[55:36.000 --> 55:40.000]  So they were, in fact, doing exactly what we said they were doing.
[55:40.000 --> 55:42.000]  Question for you, Chris.
[55:42.000 --> 55:49.000]  When you entered into the note, if you had known that your note was actually being backed
[55:49.000 --> 55:56.000]  by a Mexican drug cartel, would you have entered into that contract?
[55:56.000 --> 55:58.000]  Well, definitely not.
[55:58.000 --> 56:01.000]  Non-disclosure.
[56:01.000 --> 56:04.000]  Fraud by non-disclosure.
[56:04.000 --> 56:10.000]  Anyway, send me an email, and I'll try to have yours out.
[56:10.000 --> 56:13.000]  It generally takes me a couple of days to do these.
[56:13.000 --> 56:18.000]  There's a lot of stuff in there, and I take them apart in tiny pieces.
[56:18.000 --> 56:23.000]  I not only look for breaks in the chain of title.
[56:23.000 --> 56:31.000]  I also look for violations of covenants of the security instrument.
[56:31.000 --> 56:33.000]  That goes to default.
[56:33.000 --> 56:43.000]  The lender comes to foreclose based on an alleged default of a covenant of the security instrument.
[56:43.000 --> 56:50.000]  If you could show that prior to your alleged default, they had already defaulted on the contract,
[56:50.000 --> 56:55.000]  and primarily you go to the governing law and serviceability clause,
[56:55.000 --> 57:00.000]  where when both parties agree to abide by all relevant law,
[57:00.000 --> 57:04.000]  you could show where they failed to give a proper notice.
[57:04.000 --> 57:06.000]  That violates the Real Estate Settlement Procedures Act.
[57:06.000 --> 57:10.000]  You can't make the claim under the Real Estate Settlement Procedures Act
[57:10.000 --> 57:15.000]  because they set the statute of limitations for making the claim so short.
[57:15.000 --> 57:18.000]  It makes the consumer protection laws worthless.
[57:18.000 --> 57:22.000]  They're just song and dance and seltzer down your pants.
[57:22.000 --> 57:28.000]  However, it does violate Covenant 16.
[57:28.000 --> 57:30.000]  That's a breach contract.
[57:30.000 --> 57:35.000]  In a breach contract, you don't have to show harm just that they breached it.
[57:35.000 --> 57:39.000]  Then you can claim default.
[57:39.000 --> 57:42.000]  Anyway, we'll look for those kinds of issues.
[57:42.000 --> 57:46.000]  These are a lot easier issues for a judge to wrap his head around.
[57:46.000 --> 57:49.000]  When you ask the judge to wrap his head around,
[57:49.000 --> 57:55.000]  whether or not a bank can do something that they always do
[57:55.000 --> 58:00.000]  so that if he renders the ruling, it changes the world as he knows it,
[58:00.000 --> 58:02.000]  good luck on that.
[58:02.000 --> 58:06.000]  Judges hate to do that.
[58:06.000 --> 58:11.000]  Okay, hang on, we're about to go to our top of the hour break,
[58:11.000 --> 58:14.000]  so it'll be a little longer, but hang on.
[58:14.000 --> 58:16.000]  We'll finish up with Chris on the other side.
[58:16.000 --> 58:20.000]  I don't want to go to James because he's going to do some correction.
[58:20.000 --> 58:25.000]  Then we'll go to Mark Darlene, Jaya.
[58:25.000 --> 58:27.000]  I think that's Jaya.
[58:27.000 --> 58:30.000]  I don't know if that's a J or not.
[58:30.000 --> 58:31.000]  I don't know.
[58:31.000 --> 58:33.000]  He'll tell me how to pronounce it.
[58:33.000 --> 58:35.000]  Gary and Joe.
[58:35.000 --> 58:39.000]  Okay, Randy Kelton, Steve Skidmore, Ruval Radio.
[58:39.000 --> 58:44.000]  I'll call it number 512-646-1984.
[58:44.000 --> 58:46.000]  Give us a call, get in line.
[58:46.000 --> 58:50.000]  We'll be right back.
[58:50.000 --> 58:54.000]  Would you like to make more definite progress in your walk with God?
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[01:00:10.000 --> 01:00:15.000]  I'm Brian Hagan with your Liberty Beat for Friday, January 31, 2014.
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[01:01:22.000 --> 01:01:26.000]  New revelations stemming from documents released by whistleblower Edward Snowden
[01:01:26.000 --> 01:01:30.000]  show Canada's most secretive spy agency illegally collected the metadata
[01:01:30.000 --> 01:01:34.000]  of unsuspecting airline passengers by their Wi-Fi connections
[01:01:34.000 --> 01:01:36.000]  during a two-week period.
[01:01:36.000 --> 01:01:40.000]  Personal information, such as political views, social relationships,
[01:01:40.000 --> 01:01:44.000]  and daily habits can be obtained from customer cellular metadata.
[01:01:44.000 --> 01:01:46.000]  Internet security experts are calling the sweep
[01:01:46.000 --> 01:01:49.000]  a direct violation of Canada's constitution.
[01:01:49.000 --> 01:01:53.000]  Check out thelibertybeat.com for the full report by Julie Wilson.
[01:01:53.000 --> 01:02:00.000]  New York's new mayor has decided to drop the appeal of a court decision
[01:02:00.000 --> 01:02:03.000]  that ruled the New York Police Department's stop-and-frisk program
[01:02:03.000 --> 01:02:05.000]  was unconstitutional.
[01:02:05.000 --> 01:02:08.000]  Mayor Bill de Blasio made the announcement Thursday,
[01:02:08.000 --> 01:02:11.000]  reversing the policies of former mayor Michael Bloomberg.
[01:02:11.000 --> 01:02:15.000]  Last August, Judge Shira A. Scheinlin of Federal District Court in Manhattan
[01:02:15.000 --> 01:02:18.000]  ruled on the unconstitutionality of the programs,
[01:02:18.000 --> 01:02:21.000]  as well as a policy of indirect racial profiling.
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[01:02:51.000 --> 01:02:56.000]  This is the Liberty Beat for Friday, January 31, 2014.
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[01:03:00.000 --> 01:03:19.000]  It's all according to the will of the Almighty.
[01:03:19.000 --> 01:03:47.000]  Thank you very much.
[01:03:47.000 --> 01:03:49.000]  Okay, we are back.
[01:03:49.000 --> 01:03:52.000]  Randy Kelton, Steve Skidmore, Rubelaw Radio.
[01:03:52.000 --> 01:03:55.000]  And sorry for the delay.
[01:03:55.000 --> 01:03:57.000]  It was my fault.
[01:03:57.000 --> 01:03:58.000]  It's always your...
[01:03:58.000 --> 01:04:00.000]  Well, it might not be your fault.
[01:04:00.000 --> 01:04:02.000]  You're an easy one to blame it on.
[01:04:02.000 --> 01:04:04.000]  That'll work.
[01:04:04.000 --> 01:04:10.000]  Okay, Chris, have we pretty well answered the questions you have?
[01:04:10.000 --> 01:04:14.000]  Yeah, I had one other thing that I was looking at over the week,
[01:04:14.000 --> 01:04:16.000]  and I just wanted to get your opinion on it.
[01:04:16.000 --> 01:04:19.000]  You were talking about MERS earlier,
[01:04:19.000 --> 01:04:24.000]  and we were talking about entities that were no longer in business.
[01:04:24.000 --> 01:04:29.000]  And I was wondering if there was a possibility that something might have
[01:04:29.000 --> 01:04:33.000]  occurred that way with MERS when they changed their name back in 99 to MERS
[01:04:33.000 --> 01:04:39.000]  Corp, Inc., and were no longer going under the heading MERS Inc.
[01:04:39.000 --> 01:04:40.000]  No.
[01:04:40.000 --> 01:04:42.000]  Nothing like that.
[01:04:42.000 --> 01:04:45.000]  Same corporation, just name change.
[01:04:45.000 --> 01:04:51.000]  Yep, and MERS never held a beneficial interest anyway.
[01:04:51.000 --> 01:04:52.000]  Okay.
[01:04:52.000 --> 01:04:53.000]  Right.
[01:04:53.000 --> 01:04:55.000]  So it didn't make any difference.
[01:04:55.000 --> 01:05:01.000]  There's actually a federal court judge, you know him on a personal basis,
[01:05:01.000 --> 01:05:06.000]  Randy, up there in the Fort Worth area who actually had a ruling,
[01:05:06.000 --> 01:05:09.000]  or actually not a ruling, but in his opinion from the court,
[01:05:09.000 --> 01:05:13.000]  he said that MERS could not claim an interest in the note because they were
[01:05:13.000 --> 01:05:18.000]  never a party to it.
[01:05:18.000 --> 01:05:22.000]  Yeah, that's my buddy McBride.
[01:05:22.000 --> 01:05:23.000]  That's him.
[01:05:23.000 --> 01:05:29.000]  I just affectionately refer to him as the stinker.
[01:05:29.000 --> 01:05:33.000]  Okay, Chris, you've got a lot of background noise.
[01:05:33.000 --> 01:05:35.000]  So we're going to move ahead.
[01:05:35.000 --> 01:05:37.000]  Send me that email.
[01:05:37.000 --> 01:05:46.000]  Now we're going to go to James in Texas for my dressing down.
[01:05:46.000 --> 01:05:48.000]  Okay, James, I'm ready.
[01:05:48.000 --> 01:05:50.000]  Let me have it.
[01:05:50.000 --> 01:05:52.000]  Stump the chump.
[01:05:52.000 --> 01:05:56.000]  Who wants to stump a chump?
[01:05:56.000 --> 01:05:58.000]  We were hoping you would.
[01:05:58.000 --> 01:05:59.000]  We like it.
[01:05:59.000 --> 01:06:05.000]  We like it when we do that because I don't get any smarter or any more
[01:06:05.000 --> 01:06:09.000]  knowledgeable when I'm telling people what I know.
[01:06:09.000 --> 01:06:14.000]  I get more knowledgeable when people tell me what I don't know.
[01:06:14.000 --> 01:06:18.000]  Well, it's more fun when you find out you got the wrong bag of bananas.
[01:06:18.000 --> 01:06:21.000]  There you go.
[01:06:21.000 --> 01:06:26.000]  Okay, for one thing, let's go back and start from the beginning.
[01:06:26.000 --> 01:06:30.000]  And this has never made sense from the seller of the property when he
[01:06:30.000 --> 01:06:35.000]  executes the warranty deed to transfer property to the buyer.
[01:06:35.000 --> 01:06:38.000]  It's usually a warranty deed with a vendor's lien.
[01:06:38.000 --> 01:06:41.000]  And he signs that vendor's lien over to the bank.
[01:06:41.000 --> 01:06:47.000]  Why in the hell would he want to leave himself naked without a resource to
[01:06:47.000 --> 01:06:53.000]  recover in case some crooked bank decided not to pay the seller?
[01:06:53.000 --> 01:06:55.000]  That I've never understood.
[01:06:55.000 --> 01:06:59.000]  And that's what a warranty deed does is it transfers rights of property.
[01:06:59.000 --> 01:07:03.000]  And you've got to have that warranty deed to transfer the right of the
[01:07:03.000 --> 01:07:08.000]  property so that this homeowner, and I'm going to use some technical terms
[01:07:08.000 --> 01:07:14.000]  here, the obliger, is able to sit there as the obliger on the note.
[01:07:14.000 --> 01:07:21.000]  It's able to be the trustor or the grantee of the security instrument.
[01:07:21.000 --> 01:07:25.000]  He has to have the rights to the property, which is what the warranty deed
[01:07:25.000 --> 01:07:32.000]  gives him so that he can secure this UCC Article 3 note.
[01:07:32.000 --> 01:07:38.000]  And without the rights to the property, which the warranty deed grants, he
[01:07:38.000 --> 01:07:42.000]  can't grant the deed of trust or the security instrument or the mortgage,
[01:07:42.000 --> 01:07:46.000]  however you want to define it and what state, whether it's Seattle or
[01:07:46.000 --> 01:07:49.000]  a lien theory state, it doesn't matter.
[01:07:49.000 --> 01:07:55.000]  But then from there it gets very interesting is because you have these
[01:07:55.000 --> 01:08:00.000]  promissory notes that are created and they're secured by this security
[01:08:00.000 --> 01:08:08.000]  instrument and instantly put liquidity or money back into the property.
[01:08:08.000 --> 01:08:11.000]  And Randy, I'll get to the BIC program in a minute.
[01:08:11.000 --> 01:08:17.000]  You dealt with that with the Federal Reserve of 10 to 1, the BIC program,
[01:08:17.000 --> 01:08:21.000]  which used to be the way it's done, but it's not done anymore because of
[01:08:21.000 --> 01:08:23.000]  MERS.
[01:08:23.000 --> 01:08:29.000]  But to go back to as soon as they signed this note and this security
[01:08:29.000 --> 01:08:36.000]  instrument securing it, Wall Street needed them so fast that they, like
[01:08:36.000 --> 01:08:42.000]  you said, sold the beneficial interest, the promise to the payment stream,
[01:08:42.000 --> 01:08:46.000]  and then they sit there and had all these contracting documents and say,
[01:08:46.000 --> 01:08:51.000]  well, to further secure this we're going to negotiate the note and this
[01:08:51.000 --> 01:08:57.000]  beneficial interest that they sold is under UCC Article 8 and they're going
[01:08:57.000 --> 01:09:03.000]  to try to use UCC Article 9 to say that the security instrument, the
[01:09:03.000 --> 01:09:10.000]  tangible security instrument secures this intangible obligation that was
[01:09:10.000 --> 01:09:17.000]  created by the lender, the original lender, who changed his hat, became
[01:09:17.000 --> 01:09:23.000]  the account debtor, and he became an account debtor when he created this
[01:09:23.000 --> 01:09:29.000]  intangible obligation payment stream and he sold it to the securities or
[01:09:29.000 --> 01:09:35.000]  to the trust, but then securitized it and they started selling these
[01:09:35.000 --> 01:09:40.000]  intangible certificates and this is why the investors of these certificates,
[01:09:40.000 --> 01:09:47.000]  they don't, they can't say who gets a modification or not because they only
[01:09:47.000 --> 01:09:52.000]  bought certificates that were sliced and diced of all these intangible,
[01:09:52.000 --> 01:09:56.000]  pooled, aggregated payments and its depositor was the name you were
[01:09:56.000 --> 01:09:59.000]  hunting for earlier, Randy.
[01:09:59.000 --> 01:10:05.000]  And once it gets to those certificates, now it gets even a lot more
[01:10:05.000 --> 01:10:11.000]  complicated because the sellers of the certificates and the insurers and
[01:10:11.000 --> 01:10:16.000]  the underwriters all want to make sure they don't suffer a loss, so now it
[01:10:16.000 --> 01:10:20.000]  comes into credit default swaps and the credit default obligations.
[01:10:20.000 --> 01:10:24.000]  The credit default obligations are to enhance it to where it looks better.
[01:10:24.000 --> 01:10:31.000]  Credit default swaps are there in case somebody defaults on it, but all of
[01:10:31.000 --> 01:10:36.000]  these people sit there and when they buy their group of it, they're going
[01:10:36.000 --> 01:10:41.000]  to go run out and they're going to buy leverage insurance or credit default
[01:10:41.000 --> 01:10:47.000]  swaps so that they don't suffer a loss, so when there is a payment stream
[01:10:47.000 --> 01:10:52.000]  break that the mortgage servicers declare, it's only a payment stream
[01:10:52.000 --> 01:10:55.000]  break on the intangible side.
[01:10:55.000 --> 01:10:59.000]  They haven't pooled anything on the homeowner side, so the trustee is
[01:10:59.000 --> 01:11:04.000]  going, wait a minute, it's the account debtor that's at fault, not the
[01:11:04.000 --> 01:11:06.000]  homeowner of the obligor.
[01:11:06.000 --> 01:11:12.000]  It's the intangible obligor that's at fault.
[01:11:12.000 --> 01:11:14.000]  Okay.
[01:11:14.000 --> 01:11:23.000]  Now I hope everybody understands why I explained that the way I did.
[01:11:23.000 --> 01:11:28.000]  I know what you're talking about, but I don't think most people do.
[01:11:28.000 --> 01:11:31.000]  That's why the show is archived.
[01:11:31.000 --> 01:11:36.000]  Yeah, I tried to go over the highlights.
[01:11:36.000 --> 01:11:40.000]  I deliberately didn't get into the credit default swaps.
[01:11:40.000 --> 01:11:44.000]  An easy way to explain that, they just bought insurance policies.
[01:11:44.000 --> 01:11:51.000]  Generally when I talk about Jenny Mae and these pools where the lender
[01:11:51.000 --> 01:11:58.000]  creates a pool and he may have three or four loans in each pool, well,
[01:11:58.000 --> 01:12:03.000]  that's not enough to make a good investment conduit, so you have the
[01:12:03.000 --> 01:12:09.000]  aggregator who gets pools from a whole bunch of lenders and aggregates
[01:12:09.000 --> 01:12:12.000]  them together into one pass through trust.
[01:12:12.000 --> 01:12:21.000]  Well, what's to keep the lender from filing this note into a pool, getting
[01:12:21.000 --> 01:12:26.000]  the document custodian to certify to Jenny Mae that this meets all the
[01:12:26.000 --> 01:12:31.000]  requirements and then take this note, change the interest rate on it and
[01:12:31.000 --> 01:12:39.000]  sell it into another pool because each time he sells this thing, each time
[01:12:39.000 --> 01:12:44.000]  he puts it in a pool and negotiates it to the special purpose vehicle, he'll
[01:12:44.000 --> 01:12:48.000]  get about 103% of the original principal.
[01:12:48.000 --> 01:12:51.000]  So now he's got two times the amount.
[01:12:51.000 --> 01:12:56.000]  Well, he needs that insured, so he goes and gets this derivative.
[01:12:56.000 --> 01:12:58.000]  It's actually just an insurance policy.
[01:12:58.000 --> 01:13:03.000]  It's just mortgage insurance, the easy way to explain it.
[01:13:03.000 --> 01:13:09.000]  And China accused Bank of America of selling the same note 30 times.
[01:13:09.000 --> 01:13:14.000]  So you've got Bank of America sitting here with 30 times the original
[01:13:14.000 --> 01:13:19.000]  principal and you've got an insurance policy on each one of these.
[01:13:19.000 --> 01:13:23.000]  Every time you make a payment, they're going to have to match the payment to
[01:13:23.000 --> 01:13:26.000]  all of these 30, but they can pull that out of this huge pool they got.
[01:13:26.000 --> 01:13:38.000]  Once they get your debt down to 15%, all the insurance policies pay off 85%.
[01:13:38.000 --> 01:13:45.000]  But at any time after this, if they can force you into foreclosure, the
[01:13:45.000 --> 01:13:48.000]  foreclosure is the important thing.
[01:13:48.000 --> 01:13:55.000]  The insurance policy ensures against not just the default, but foreclosure,
[01:13:55.000 --> 01:13:58.000]  having to convert the property.
[01:13:58.000 --> 01:14:01.000]  When that happens, all the insurance companies pay off.
[01:14:01.000 --> 01:14:12.000]  So you've got these 30 investment programs, primarily our retirement
[01:14:12.000 --> 01:14:18.000]  funds have bought into these long-term debt, long-term investment program.
[01:14:18.000 --> 01:14:20.000]  They fit together perfectly.
[01:14:20.000 --> 01:14:23.000]  So they bought all of these.
[01:14:23.000 --> 01:14:30.000]  The insurance policy, derivative policies, will pay off the investors.
[01:14:30.000 --> 01:14:39.000]  If it defaults, then the bank keeps to keep this big pool of money.
[01:14:39.000 --> 01:14:42.000]  And then they come back to the property.
[01:14:42.000 --> 01:14:50.000]  Why would the bank do anything to keep you from foreclosing, keep them from
[01:14:50.000 --> 01:14:52.000]  having to foreclose on your property?
[01:14:52.000 --> 01:14:56.000]  What is the incentive for you to put you in foreclosure?
[01:14:56.000 --> 01:15:01.000]  Incredible incentive.
[01:15:01.000 --> 01:15:07.000]  Well, the way I look at it is the reason for the foreclosure is...
[01:15:07.000 --> 01:15:10.000]  The reason why I would say the banks take it into foreclosure...
[01:15:10.000 --> 01:15:12.000]  Wait, I lost you there.
[01:15:12.000 --> 01:15:14.000]  He's on, Randy.
[01:15:14.000 --> 01:15:23.000]  The reason why I would take it into foreclosure is the certificate holders,
[01:15:23.000 --> 01:15:28.000]  they're going to get their insurance payments from their credit default plots
[01:15:28.000 --> 01:15:30.000]  and all that.
[01:15:30.000 --> 01:15:34.000]  And then the banks are going to turn around using their mortgage servicers,
[01:15:34.000 --> 01:15:38.000]  because a lot of these mortgage servicers used to be subsidiary of the big
[01:15:38.000 --> 01:15:44.000]  bank, they just sell the property for whatever dollar they get and that goes to
[01:15:44.000 --> 01:15:50.000]  their bottom line profit.
[01:15:50.000 --> 01:15:52.000]  Exactly.
[01:15:52.000 --> 01:15:57.000]  This is the biggest scam ever perpetrated in the history of mankind, and I used
[01:15:57.000 --> 01:16:00.000]  to just think it was the largest Ponzi scheme, because that's what this is,
[01:16:00.000 --> 01:16:02.000]  the Ponzi scheme.
[01:16:02.000 --> 01:16:04.000]  It turns out it was more than that.
[01:16:04.000 --> 01:16:09.000]  It was the largest Ponzi scheme perpetrated in order to facilitate the
[01:16:09.000 --> 01:16:13.000]  largest money laundering scheme in the history of the planet.
[01:16:13.000 --> 01:16:16.000]  It's redistribution of wealth.
[01:16:16.000 --> 01:16:23.000]  And this gave the banks an incredible incentive to induce an individual into
[01:16:23.000 --> 01:16:30.000]  participating in a loan product that there was no chance the person could
[01:16:30.000 --> 01:16:33.000]  repay.
[01:16:33.000 --> 01:16:39.000]  So if you have a mortgage, you're behind on the mortgage, it was planned that
[01:16:39.000 --> 01:16:42.000]  you'd be behind on the mortgage.
[01:16:42.000 --> 01:16:44.000]  You shouldn't feel bad about it.
[01:16:44.000 --> 01:16:46.000]  You were snookered.
[01:16:46.000 --> 01:16:50.000]  And we owe it to our children to fight these people and fix this problem.
[01:16:50.000 --> 01:16:53.000]  This is Randy Kelton, Steve Stidmore, Wheelblower Radio.
[01:16:53.000 --> 01:16:57.000]  I call it number 512-646-1984.
[01:16:57.000 --> 01:17:00.000]  We'll be right back.
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[01:19:25.000 --> 01:19:37.000]  Well, you ain't gonna fool me with that same old trick again.
[01:19:37.000 --> 01:19:42.000]  I was blindsided but now I can see your plan.
[01:19:42.000 --> 01:19:44.000]  You put the fear in my mind.
[01:19:44.000 --> 01:19:46.000]  Okay, we are back.
[01:19:46.000 --> 01:19:52.000]  Randy Kelton, Steve Skidmore, Rue Blah Radio, and I'm talking to James in Texas.
[01:19:52.000 --> 01:19:54.000]  Okay, James, you were going to correct me on something.
[01:19:54.000 --> 01:19:57.000]  What was it that I missed earlier?
[01:19:57.000 --> 01:20:04.000]  Okay, Randy, there's one other thing is people don't realize how bad the Constitution is being violated.
[01:20:04.000 --> 01:20:11.000]  When you go back to the BIC program with the Federal Reserve to 10 to 1,
[01:20:11.000 --> 01:20:18.000]  that allows the Federal Reserve to create liquidity dollars into the market.
[01:20:18.000 --> 01:20:22.000]  When all of this murders and everything and this intangible wealth came into play,
[01:20:22.000 --> 01:20:31.000]  it gave the banks a method and means to create intangible wealth around the Constitution.
[01:20:31.000 --> 01:20:39.000]  And it puts the people further into servitude and it's just...
[01:20:39.000 --> 01:20:47.000]  Okay, how does this breach the Constitution?
[01:20:47.000 --> 01:21:00.000]  Well, if you look at it, the Constitution says the wealth of the world or the wealth of this country is to be created by this country.
[01:21:00.000 --> 01:21:06.000]  The dollars for this country are to be created by the government, the Federal Reserve,
[01:21:06.000 --> 01:21:12.000]  as it is today or by the Treasury or whatever, any way you want to look at it.
[01:21:12.000 --> 01:21:20.000]  So we're now no longer...if you look at the secondary market, it's got a value of $750 trillion globally,
[01:21:20.000 --> 01:21:27.000]  but gross domestic product in the United States is only $16 trillion.
[01:21:27.000 --> 01:21:34.000]  Something is way out of kilter here and it's all of this created synthetic money.
[01:21:34.000 --> 01:21:37.000]  It may be legal, but it's unsustainable.
[01:21:37.000 --> 01:21:43.000]  And we're looking at it today, the unsustainable factor of it is coming to bear.
[01:21:43.000 --> 01:21:44.000]  Yes, it is.
[01:21:44.000 --> 01:21:52.000]  And we'd heard rumors today that there was to be implemented a global currency.
[01:21:52.000 --> 01:21:56.000]  But then we've heard this kind of rumbling for several years now.
[01:21:56.000 --> 01:22:03.000]  I took a real beating over this kind of story once where I had good sources
[01:22:03.000 --> 01:22:07.000]  and the sources turned out to be not so good sources.
[01:22:07.000 --> 01:22:12.000]  But yeah, we've been expecting the dollar to go into hyperinflation,
[01:22:12.000 --> 01:22:18.000]  and the problem with that is this is nothing for the dollar to hyperinflate against.
[01:22:18.000 --> 01:22:23.000]  But I do expect the dollar to decrease in value dramatically,
[01:22:23.000 --> 01:22:26.000]  and frankly I think that would be the best thing to happen to this country,
[01:22:26.000 --> 01:22:29.000]  because it will force this country to go back to work
[01:22:29.000 --> 01:22:37.000]  when we can't buy goods and services from other countries for 10 cents on the dollar,
[01:22:37.000 --> 01:22:42.000]  then we'll have to get our Chinese back to work and start producing ourselves.
[01:22:42.000 --> 01:22:46.000]  When the NAFTA program was being proposed,
[01:22:46.000 --> 01:22:50.000]  Rospera warned if you pass NAFTA, then listen real closely.
[01:22:50.000 --> 01:22:56.000]  You'll hear a large rushing sound, and that's all the jobs rushing out of this country.
[01:22:56.000 --> 01:23:01.000]  When the dollar deteriorates, if you listen closely, you'll hear a large sucking sound,
[01:23:01.000 --> 01:23:08.000]  and that's this country sucking all that business right back in, all those jobs right back into here.
[01:23:08.000 --> 01:23:16.000]  So in spite of the doom and gloom sayers, I think that a weakening dollar is the best thing to happen to us.
[01:23:16.000 --> 01:23:27.000]  This incredible amount of non-existent money, that could be a serious problem
[01:23:27.000 --> 01:23:30.000]  for our children and our grandchildren a long time to come.
[01:23:30.000 --> 01:23:33.000]  Don't know how to fix that at the moment.
[01:23:33.000 --> 01:23:42.000]  Well, the thing is, it's a value that the average person on the street should not have to pay for,
[01:23:42.000 --> 01:23:46.000]  because it's a synthetic creation.
[01:23:46.000 --> 01:23:49.000]  People on the street, they're still going to buy their diapers,
[01:23:49.000 --> 01:23:52.000]  they're still going to buy their designer jeans, their flat-screen TVs.
[01:23:52.000 --> 01:23:56.000]  It's not going to hurt the tangible people of the world.
[01:23:56.000 --> 01:24:01.000]  It's going to hurt all these intangible people that live on Wall Street in New York.
[01:24:01.000 --> 01:24:06.000]  And one day I predict you're going to see a bunch of Peter Pans coming off these buildings,
[01:24:06.000 --> 01:24:13.000]  and you can't live in a world that's no longer surviving on intangible dollars.
[01:24:13.000 --> 01:24:16.000]  There's got to be an end to that road somewhere.
[01:24:16.000 --> 01:24:20.000]  People talk about these horrible things coming.
[01:24:20.000 --> 01:24:24.000]  I talked to my mother. She lived through the Depression.
[01:24:24.000 --> 01:24:28.000]  She lived in Northwest Tennessee. They were sharecroppers.
[01:24:28.000 --> 01:24:32.000]  And she said, Depression? I didn't notice Depression.
[01:24:32.000 --> 01:24:35.000]  We were broke when it started. We were broke when it was over.
[01:24:35.000 --> 01:24:38.000]  We didn't really see any difference.
[01:24:38.000 --> 01:24:41.000]  And that's primarily the case.
[01:24:41.000 --> 01:24:45.000]  We have all these people out here whining and crying about doom and gloom.
[01:24:45.000 --> 01:24:48.000]  Well, it's not us that's going to hurt.
[01:24:48.000 --> 01:24:50.000]  Wall Street.
[01:24:50.000 --> 01:24:54.000]  Exactly. It's the guys who need to hurt, who created this mess,
[01:24:54.000 --> 01:24:57.000]  that's going to hurt by it. And well, they should.
[01:24:57.000 --> 01:25:00.000]  I don't think there'll be any love lost.
[01:25:00.000 --> 01:25:09.000]  Every economic upheaval, there is always a changing of those in power
[01:25:09.000 --> 01:25:13.000]  or in positions of influence.
[01:25:13.000 --> 01:25:18.000]  We have a lot of very wealthy people who are going to become very poor,
[01:25:18.000 --> 01:25:26.000]  and that creates opportunity for a lot of poor people to become very wealthy.
[01:25:26.000 --> 01:25:31.000]  From what I've seen, an economic upheaval of the type we're looking at,
[01:25:31.000 --> 01:25:36.000]  for those of us down here at the bottom, this is not a great catastrophe.
[01:25:36.000 --> 01:25:39.000]  This is an incredible opportunity.
[01:25:39.000 --> 01:25:43.000]  And I suggest that people stop being afraid of what's coming.
[01:25:43.000 --> 01:25:47.000]  Pay close attention. Look for the opportunities.
[01:25:47.000 --> 01:25:52.000]  There are going to be more opportunities in these times
[01:25:52.000 --> 01:25:56.000]  than you will ever find in economic good times.
[01:25:56.000 --> 01:25:58.000]  That's my story, and I'm sticking to it.
[01:25:58.000 --> 01:26:01.000]  OK, James, we really need to move along.
[01:26:01.000 --> 01:26:04.000]  We've got a whole board full of callers today.
[01:26:04.000 --> 01:26:06.000]  Thank you for calling in tonight.
[01:26:06.000 --> 01:26:09.000]  Rock on, and we'll holler at you later.
[01:26:09.000 --> 01:26:13.000]  And Randy, you're right.
[01:26:13.000 --> 01:26:21.000]  OK, now we're going to go to Mark in Wisconsin.
[01:26:21.000 --> 01:26:24.000]  Mark, I know you're causing trouble.
[01:26:24.000 --> 01:26:27.000]  What are you up to today?
[01:26:27.000 --> 01:26:29.000]  Well, all kinds of goodies.
[01:26:29.000 --> 01:26:33.000]  Having listened to your show here, your sinkable calendar thing,
[01:26:33.000 --> 01:26:36.000]  have you looked at web2project.net?
[01:26:36.000 --> 01:26:38.000]  The Peter Pan's off of buildings.
[01:26:38.000 --> 01:26:40.000]  Well, three bankers are dead this week.
[01:26:40.000 --> 01:26:43.000]  One of them took a 40-story swan dive.
[01:26:43.000 --> 01:26:45.000]  Yes, he did.
[01:26:45.000 --> 01:26:46.000]  Yeah, yeah.
[01:26:46.000 --> 01:26:50.000]  Still waiting to hear that Jamie Diamond leap of faith.
[01:26:50.000 --> 01:26:54.000]  After a 70-some-odd percent increase in his pay, though,
[01:26:54.000 --> 01:26:57.000]  I doubt that he's going to be leaping any day soon.
[01:26:57.000 --> 01:26:59.000]  That's what I was just going to say.
[01:26:59.000 --> 01:27:01.000]  He has plenty to live for with that increase in pay.
[01:27:01.000 --> 01:27:04.000]  I heard 74 percent.
[01:27:04.000 --> 01:27:11.000]  Anyway, the reason I was given a call is twofold.
[01:27:11.000 --> 01:27:16.000]  Since you sent me down the rabbit hole on common law there, Randy,
[01:27:16.000 --> 01:27:18.000]  I was reading something.
[01:27:18.000 --> 01:27:24.000]  George Tucker has a far more accessible work on Blackstone's commentary
[01:27:24.000 --> 01:27:27.000]  where he said common law is what the community decides.
[01:27:27.000 --> 01:27:31.000]  Hobbs goes ahead and says that the command of the sovereign,
[01:27:31.000 --> 01:27:36.000]  the paradigm of common law, is the community's sense of right and wrong.
[01:27:36.000 --> 01:27:39.000]  That's why the jury and its characteristic institutions,
[01:27:39.000 --> 01:27:45.000]  or rather the mixed regimes in judge and jury, is the common law.
[01:27:45.000 --> 01:27:49.000]  But they're sitting out there the following.
[01:27:49.000 --> 01:27:52.000]  The story of the evolution of contract and tort law in the 19th
[01:27:52.000 --> 01:27:57.000]  and 20th centuries assorts the idea that the common law is judge-made.
[01:27:57.000 --> 01:28:01.000]  So my question is, when somebody says the common law is judge-made,
[01:28:01.000 --> 01:28:06.000]  are they thinking that the jury is also a judging and therefore the judge,
[01:28:06.000 --> 01:28:13.000]  or how does that square with Tucker slash Hobbs?
[01:28:13.000 --> 01:28:22.000]  Well, the only common law that exists now exists in the form of stare decisis,
[01:28:22.000 --> 01:28:25.000]  and that's judge-made.
[01:28:25.000 --> 01:28:34.000]  But then again, when we had the common law, the law was never created by the people.
[01:28:34.000 --> 01:28:39.000]  It was created by the judges that people put in place to render rulings.
[01:28:39.000 --> 01:28:42.000]  So it's always been judge-made.
[01:28:42.000 --> 01:28:45.000]  The problem with the common law is, you know,
[01:28:45.000 --> 01:28:52.000]  we have enough problems now with judges acting in ways that we don't approve.
[01:28:52.000 --> 01:28:54.000]  When we had the common law, you know,
[01:28:54.000 --> 01:28:58.000]  we got a lot of people advocating going back to the common law.
[01:28:58.000 --> 01:29:01.000]  And I ask them, are you out of your minds?
[01:29:01.000 --> 01:29:07.000]  I don't want common law. I want statutory law.
[01:29:07.000 --> 01:29:14.000]  I want statutory law. Under common law, isn't there a place for tar and feathers?
[01:29:14.000 --> 01:29:17.000]  Yeah, there is, but it's pretty well.
[01:29:17.000 --> 01:29:23.000]  Yeah, I understand they used to upholster the judge's chair
[01:29:23.000 --> 01:29:29.000]  with the skin of a previous corrupt judge,
[01:29:29.000 --> 01:29:33.000]  but that's what they had to do because they didn't have checks and balances.
[01:29:33.000 --> 01:29:39.000]  They didn't have a statute that they could go in and grab that judge by the throat with.
[01:29:39.000 --> 01:29:41.000]  So I don't want to go back to common law.
[01:29:41.000 --> 01:29:46.000]  Star diseases, as far as I know, is the only common law we have now.
[01:29:46.000 --> 01:29:50.000]  And we'll get back to you on the other side.
[01:29:50.000 --> 01:29:54.000]  Mark, this is Randy Kelton, Steve Skidmore, Wheelbarrow Radio.
[01:29:54.000 --> 01:29:57.000]  Our call in number 512-646-1984.
[01:29:57.000 --> 01:30:00.000]  We'll be right back.
[01:30:00.000 --> 01:30:05.000]  Hexachlorobenzene is a reproductive toxin you probably don't want to ingest.
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[01:30:09.000 --> 01:30:13.000]  I'm Dr. Catherine Albrecht, and I'll be right back with the toxic truth.
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[01:31:16.000 --> 01:31:30.000]  I'm Dr. Catherine Albrecht. More news and information at CatherineAlbrecht.com.
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[01:33:01.000 --> 01:33:04.000]  Looking for some truth?
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[01:33:09.000 --> 01:33:31.000]  Okay, we are back.
[01:33:31.000 --> 01:33:34.000]  Randy Kelton, Steve Skidmore, Wubla Radio.
[01:33:34.000 --> 01:33:37.000]  And we're talking to Mark in Wisconsin.
[01:33:37.000 --> 01:33:39.000]  Okay, Mark, where were we?
[01:33:39.000 --> 01:33:43.000]  You got me on that common law tag there.
[01:33:43.000 --> 01:33:49.000]  Well, one other thing to consider and remind people on that common law thing
[01:33:49.000 --> 01:33:53.000]  is the 1938 Erie Railroad versus Tompkins decision,
[01:33:53.000 --> 01:33:55.000]  bullet point number three in the summary,
[01:33:55.000 --> 01:33:59.000]  starts off with there is no federal general common law.
[01:33:59.000 --> 01:34:08.000]  So as people talk about common law on a federal basis, you've got that precedent sitting there.
[01:34:08.000 --> 01:34:15.000]  The only reference to the common law.
[01:34:15.000 --> 01:34:18.000]  Okay, we're getting a lot of lagging.
[01:34:18.000 --> 01:34:21.000]  Okay.
[01:34:21.000 --> 01:34:25.000]  Okay, I'm lagging a little bit, so go ahead, Mark.
[01:34:25.000 --> 01:34:30.000]  All right, now the other reason I was calling was,
[01:34:30.000 --> 01:34:33.000]  and thank you for clarifying the stare decisis issue there.
[01:34:33.000 --> 01:34:36.000]  I hadn't considered that.
[01:34:36.000 --> 01:34:42.000]  I've got an adhesion contract that I'm stuck with and ultimately a larger than,
[01:34:42.000 --> 01:34:46.000]  far larger than expected bill due to the adhesion contract.
[01:34:46.000 --> 01:34:49.000]  This adhesion contract was in health care.
[01:34:49.000 --> 01:34:54.000]  Notably walked in, they handed me a two-page sheet of paper that said you're going to do this,
[01:34:54.000 --> 01:34:58.000]  that, and the other thing, and I went ahead and said,
[01:34:58.000 --> 01:35:00.000]  well, you claim here there's this charge master,
[01:35:00.000 --> 01:35:03.000]  which will tell me how much this is all supposed to cost.
[01:35:03.000 --> 01:35:04.000]  Where is this?
[01:35:04.000 --> 01:35:09.000]  They admitted flat out they didn't have a charge master for me to look at.
[01:35:09.000 --> 01:35:11.000]  They wouldn't have one for me to look at.
[01:35:11.000 --> 01:35:17.000]  I also flat out admitted that part of the contract where it said you can rescind this stuff at any time
[01:35:17.000 --> 01:35:22.000]  with me handing them a letter of rescission and a notice of rescission.
[01:35:22.000 --> 01:35:25.000]  They said, yeah, we'll just throw that out.
[01:35:25.000 --> 01:35:31.000]  So we've got a contract of adhesion where one term of the contract isn't going to be followed,
[01:35:31.000 --> 01:35:38.000]  and the ability for you to examine how much your procedure is going to cost up front isn't available,
[01:35:38.000 --> 01:35:40.000]  and now I've got this large bill.
[01:35:40.000 --> 01:35:43.000]  So what kind of action can I take here?
[01:35:43.000 --> 01:35:45.000]  We, of course, have contract fairness.
[01:35:45.000 --> 01:35:48.000]  Well, there isn't any.
[01:35:48.000 --> 01:35:51.000]  The only thing they have is a defense issue of choice.
[01:35:51.000 --> 01:35:58.000]  I could try and pick a different insurance company last year, or I could pick a different hospital,
[01:35:58.000 --> 01:36:04.000]  which, of course, choice in health care with insurance and all that is rather limited.
[01:36:04.000 --> 01:36:19.000]  So what's my ability to pick a fight with them versus me waiting for them to try and collect the bill in court?
[01:36:19.000 --> 01:36:20.000]  Sorry about that.
[01:36:20.000 --> 01:36:24.000]  They claim that the contract is unconscionable.
[01:36:24.000 --> 01:36:26.000]  Well, most definitely.
[01:36:26.000 --> 01:36:33.000]  Yeah, so it's not that portion of the contract that's unconscionable is not enforceable.
[01:36:33.000 --> 01:36:35.000]  Okay.
[01:36:35.000 --> 01:36:38.000]  There are several things that would make that contract unconscionable,
[01:36:38.000 --> 01:36:45.000]  particularly if you have Title 20 in the mortgage deed of trust,
[01:36:45.000 --> 01:36:53.000]  entitled 20 states' sale of the note and states further something to the effect of,
[01:36:53.000 --> 01:37:01.000]  that the note or an interest therein can be sold one or more times without notice to the borrower.
[01:37:01.000 --> 01:37:08.000]  That is a legal impossibility pursuant to UCC 3-203.
[01:37:08.000 --> 01:37:10.000]  D is in David.
[01:37:10.000 --> 01:37:15.000]  He wasn't talking about mortgage. He was talking about health insurance.
[01:37:15.000 --> 01:37:16.000]  I'm sorry.
[01:37:16.000 --> 01:37:18.000]  I was reading a Skype chat from somebody and got off track.
[01:37:18.000 --> 01:37:21.000]  My apologies.
[01:37:21.000 --> 01:37:23.000]  I still hold my story though.
[01:37:23.000 --> 01:37:27.000]  He's been derailed for years.
[01:37:27.000 --> 01:37:28.000]  Okay.
[01:37:28.000 --> 01:37:29.000]  Go ahead, Mark.
[01:37:29.000 --> 01:37:30.000]  We'll just ignore that.
[01:37:30.000 --> 01:37:34.000]  I got derailed ever since I met you, Randy.
[01:37:34.000 --> 01:37:36.000]  That's fine.
[01:37:36.000 --> 01:37:46.000]  Mr. Skidmore has provided lots of fodder for me to talk about at parties from his old We the People radio days.
[01:37:46.000 --> 01:37:48.000]  You remember that, do you?
[01:37:48.000 --> 01:37:53.000]  I listen to every show after I've found out about it.
[01:37:53.000 --> 01:37:56.000]  I remember you now.
[01:37:56.000 --> 01:38:00.000]  Yeah, I like that.
[01:38:00.000 --> 01:38:04.000]  Anyway, there are lots of things that make it unconscionable.
[01:38:04.000 --> 01:38:08.000]  There's plenty of books about how unconscionable it is.
[01:38:08.000 --> 01:38:15.000]  Ultimately, one of the people in their legal department already knows who I am,
[01:38:15.000 --> 01:38:22.000]  and I placed a call telling him that we're going to have a conversation here coming up soon.
[01:38:22.000 --> 01:38:30.000]  I don't know how this is all going to shake out, but I need to figure out how I can create the fight,
[01:38:30.000 --> 01:38:36.000]  because if they create the fight, they can always go ahead and go, I don't want to fight anymore, and walk away.
[01:38:36.000 --> 01:38:45.000]  But if I create the fight, I'm the one who's then in charge of dismissing the case, because I think that there's issues.
[01:38:45.000 --> 01:38:46.000]  Oh, no.
[01:38:46.000 --> 01:38:49.000]  It doesn't matter who creates the fight.
[01:38:49.000 --> 01:38:53.000]  If they create the fight, you just file a counterclaim.
[01:38:53.000 --> 01:38:58.000]  If they can dismiss theirs, yours doesn't go away.
[01:38:58.000 --> 01:39:00.000]  Okay.
[01:39:00.000 --> 01:39:02.000]  All right.
[01:39:02.000 --> 01:39:04.000]  What's my counterclaim?
[01:39:04.000 --> 01:39:06.000]  What's my thing here?
[01:39:06.000 --> 01:39:09.000]  Is it a fraud on its face?
[01:39:09.000 --> 01:39:11.000]  Preach a contract.
[01:39:11.000 --> 01:39:15.000]  Well, yes, not necessarily fraud on its face.
[01:39:15.000 --> 01:39:23.000]  When you look at it, it certainly has the potential to generate fraud.
[01:39:23.000 --> 01:39:31.000]  I mean, if you put people in a position to where they could reach in your pocket and take money out of your pocket
[01:39:31.000 --> 01:39:38.000]  any time they wanted to and never have to worry about getting caught, they're going to reach in your pocket.
[01:39:38.000 --> 01:39:48.000]  I had a restaurant I opened once, and I wanted a security camera over the cash register.
[01:39:48.000 --> 01:39:53.000]  And one of the people that worked there said, why?
[01:39:53.000 --> 01:39:55.000]  There's not anybody in here that you can't trust.
[01:39:55.000 --> 01:39:57.000]  I said, I know that.
[01:39:57.000 --> 01:40:06.000]  But it would not be fair of me to put someone in a position to where if they have an engine blow up in their car,
[01:40:06.000 --> 01:40:13.000]  they have the kids go to the hospital, and they're short of money, come to me.
[01:40:13.000 --> 01:40:21.000]  But if they're embarrassed and don't want to come to me, and it's really easy to reach into my children and take money,
[01:40:21.000 --> 01:40:26.000]  they will reach into my children and take money, and I will have created a thief.
[01:40:26.000 --> 01:40:33.000]  So it's my job not to put them in that kind of situation to protect against it.
[01:40:33.000 --> 01:40:38.000]  This contract, while it creates the opportunity to fraud,
[01:40:38.000 --> 01:40:43.000]  any reasonable person looking at it would expect that fraud would occur.
[01:40:43.000 --> 01:40:49.000]  It's still not necessarily, because there's going to be one person who would never reach into that deal,
[01:40:49.000 --> 01:40:51.000]  no matter how desperate they are.
[01:40:51.000 --> 01:40:59.000]  So we can't go to fraud per se, but we can go to the unconscionability.
[01:40:59.000 --> 01:41:04.000]  And then if you look at the charges themselves, whatever they charged for,
[01:41:04.000 --> 01:41:08.000]  you can check in the industry to see what the industry charges.
[01:41:08.000 --> 01:41:14.000]  And if their charges are not in line with industry charges, now you go to fraud.
[01:41:14.000 --> 01:41:18.000]  Okay. Wonderful.
[01:41:18.000 --> 01:41:24.000]  Yeah, one of the things in the contract stated that if we overcharge you,
[01:41:24.000 --> 01:41:27.000]  we're going to try and get your money back.
[01:41:27.000 --> 01:41:31.000]  But if we can't get your money back, instead of giving the money to the state,
[01:41:31.000 --> 01:41:34.000]  you're just going to give it to us.
[01:41:34.000 --> 01:41:38.000]  Oh, wow. That's a great one.
[01:41:38.000 --> 01:41:41.000]  I would like to have the contract with that in it.
[01:41:41.000 --> 01:41:44.000]  Well, that was the first thing I crossed out.
[01:41:44.000 --> 01:41:50.000]  And then, of course, they went, no, we're not going to, you know, you don't get health care without this.
[01:41:50.000 --> 01:41:53.000]  And yeah.
[01:41:53.000 --> 01:41:59.000]  Hold on. Does this institution get any state or federal funding assistance?
[01:41:59.000 --> 01:42:05.000]  I'm sure they do, because everybody in this town gets that kind of stuff.
[01:42:05.000 --> 01:42:12.000]  Okay. Then they're going to be restricted in denying you access.
[01:42:12.000 --> 01:42:16.000]  Okay.
[01:42:16.000 --> 01:42:22.000]  And okay, keep in mind, you'll never win your case simply because you have the law and the facts on your side.
[01:42:22.000 --> 01:42:23.000]  Right.
[01:42:23.000 --> 01:42:33.000]  Everything's political and here it's not what you will actually do to them that will influence them the most.
[01:42:33.000 --> 01:42:37.000]  It is the potential of what you can or may do to them,
[01:42:37.000 --> 01:42:44.000]  because after everything's political, perception is everything.
[01:42:44.000 --> 01:42:56.000]  So you create the potential for getting a horrendous ruling against them that would not only stop them from stealing from you,
[01:42:56.000 --> 01:43:01.000]  but stop them from stealing from everybody else.
[01:43:01.000 --> 01:43:12.000]  Now they have a political reason beyond the facts of this particular case to do something to get this scoundrel to go away and leave us alone.
[01:43:12.000 --> 01:43:22.000]  And in fact, my long-running case that I called you a year and a half ago and have spoken with you about,
[01:43:22.000 --> 01:43:28.000]  it turns out the guy who's now pursuing my bestest buddy there,
[01:43:28.000 --> 01:43:35.000]  the only reason he's doing that is because after I sent the letter and the 500 pages to his wife,
[01:43:35.000 --> 01:43:40.000]  he finally realized exactly what a position he was in with America.
[01:43:40.000 --> 01:43:41.000]  Wonderful.
[01:43:41.000 --> 01:43:43.000]  That got his attention.
[01:43:43.000 --> 01:43:44.000]  It did.
[01:43:44.000 --> 01:43:45.000]  Okay, hang on.
[01:43:45.000 --> 01:43:47.000]  Reg, Kelt, and Debbie Stevens.
[01:43:47.000 --> 01:43:49.000]  Steve Skidmore, Rule of Law Radio.
[01:43:49.000 --> 01:43:53.000]  I call in number 512-646-1984.
[01:43:53.000 --> 01:43:54.000]  Give us a call.
[01:43:54.000 --> 01:43:55.000]  Get in line.
[01:43:55.000 --> 01:44:22.000]  We'll be right back.
[01:44:25.000 --> 01:44:50.000]  We'll be right back.
[01:44:50.000 --> 01:45:09.000]  We'll be right back.
[01:45:09.000 --> 01:45:34.000]  We'll be right back.
[01:45:39.000 --> 01:46:02.000]  We'll be right back.
[01:46:02.000 --> 01:46:29.000]  We'll be right back.
[01:46:29.000 --> 01:46:44.000]  We'll be right back.
[01:46:44.000 --> 01:47:05.000]  We'll be right back.
[01:47:05.000 --> 01:47:06.000]  Okay.
[01:47:06.000 --> 01:47:07.000]  We are back.
[01:47:07.000 --> 01:47:13.000]  Randy Kelton, Steve Skidmore, Rule of Law Radio, and we're talking to Mark in Wisconsin.
[01:47:13.000 --> 01:47:17.000]  Okay.
[01:47:17.000 --> 01:47:18.000]  All right.
[01:47:18.000 --> 01:47:24.000]  I think this takes care of my major questions this time around.
[01:47:24.000 --> 01:47:32.000]  I appreciate you taking the time and, you know, giving me the education there with the Starry devices
[01:47:32.000 --> 01:47:38.000]  and some ideas as far as dealing with this contract of adhesion.
[01:47:38.000 --> 01:47:39.000]  Okay.
[01:47:39.000 --> 01:47:40.000]  Have fun.
[01:47:40.000 --> 01:47:41.000]  Oh, yeah.
[01:47:41.000 --> 01:47:42.000]  I'll let you know.
[01:47:42.000 --> 01:47:43.000]  Oh, wait, wait, wait, wait.
[01:47:43.000 --> 01:47:44.000]  I have one question.
[01:47:44.000 --> 01:47:45.000]  Adhesion.
[01:47:45.000 --> 01:47:46.000]  Sure.
[01:47:46.000 --> 01:47:52.000]  How does this contract become adhesion if you have to agree to it?
[01:47:52.000 --> 01:48:03.000]  In the sense that I had a – the healthcare is necessary, you know, that one has good
[01:48:03.000 --> 01:48:10.000]  health and that I had a hypertension problem which needed to be solved and the only way
[01:48:10.000 --> 01:48:17.000]  that they would give me drugs to address it was to go through this multi – tens of thousands
[01:48:17.000 --> 01:48:27.000]  of dollars of testing because apparently the – my normal doctor refused to prescribe
[01:48:27.000 --> 01:48:28.000]  this other drug.
[01:48:28.000 --> 01:48:33.000]  Apparently she felt that other people needed to make their bulk payments or something.
[01:48:33.000 --> 01:48:40.000]  So if I hadn't had that, I would have still a health – life-threatening health condition.
[01:48:40.000 --> 01:48:41.000]  Okay.
[01:48:41.000 --> 01:48:43.000]  That's still not adhesion.
[01:48:43.000 --> 01:48:44.000]  Okay.
[01:48:44.000 --> 01:48:55.000]  While you feel compelled, in the end, you have the right to not get the high blood pressure
[01:48:55.000 --> 01:49:00.000]  medicine but not enter into the concrete.
[01:49:00.000 --> 01:49:04.000]  And it's where you do something else.
[01:49:04.000 --> 01:49:16.000]  Like if you drive into my city, then you agree to abide by my city ordinances.
[01:49:16.000 --> 01:49:20.000]  Let me think.
[01:49:20.000 --> 01:49:22.000]  That's not a good one.
[01:49:22.000 --> 01:49:25.000]  Steve, you have a good example of an adhesion contract.
[01:49:25.000 --> 01:49:26.000]  Adhesion?
[01:49:26.000 --> 01:49:27.000]  Not offhand.
[01:49:27.000 --> 01:49:28.000]  Okay.
[01:49:28.000 --> 01:49:32.000]  Adhesion is where you enter into a contract and you don't know about it.
[01:49:32.000 --> 01:49:35.000]  You don't – they talk a lot about adhesion.
[01:49:35.000 --> 01:49:36.000]  Driver's license.
[01:49:36.000 --> 01:49:41.000]  Driver's license might be a good example of an adhesion contract.
[01:49:41.000 --> 01:49:51.000]  Except that you can opt to not have a driver's license and not avail yourself of those benefits.
[01:49:51.000 --> 01:49:54.000]  Here's what the Internet has pointed out.
[01:49:54.000 --> 01:49:58.000]  Social security, that's an adhesion contract.
[01:49:58.000 --> 01:50:01.000]  But you can opt out with a religion.
[01:50:01.000 --> 01:50:04.000]  Here's from the definition of adhesion contract.
[01:50:04.000 --> 01:50:09.000]  A contract in which one party has substantially more power than any other in creating the contract.
[01:50:09.000 --> 01:50:15.000]  For contract adhesion to exist, the offeror must supply a customer with standard terms and conditions
[01:50:15.000 --> 01:50:19.000]  that are identical to those offered to other customers.
[01:50:19.000 --> 01:50:22.000]  Those terms and conditions are not negotiable.
[01:50:22.000 --> 01:50:28.000]  Now, for actionability, there's contract of fairness and issue of choice.
[01:50:28.000 --> 01:50:34.000]  Now, certainly the fairness of the contract that we can argue over.
[01:50:34.000 --> 01:50:41.000]  But the issue of choice becomes, well, I was first – I'm a third party beneficiary of the insurance that was chosen.
[01:50:41.000 --> 01:50:44.000]  So that limits which hospitals that I can visit.
[01:50:44.000 --> 01:50:48.000]  But then there's the immediacy or non-immediacy.
[01:50:48.000 --> 01:50:50.000]  Oh, hold on, hold on.
[01:50:50.000 --> 01:50:52.000]  Got it. Okay.
[01:50:52.000 --> 01:50:59.000]  You entered into a contract for insurance.
[01:50:59.000 --> 01:51:05.000]  And the insurance required that you use a certain facility.
[01:51:05.000 --> 01:51:09.000]  And that facility held out a contract.
[01:51:09.000 --> 01:51:12.000]  That makes it an adhesion contract.
[01:51:12.000 --> 01:51:16.000]  Well, just the fact that I would go with adhesion contract.
[01:51:16.000 --> 01:51:24.000]  The fact that you can't get drugs to treat your problem until then that's limited by the government's fiat and power.
[01:51:24.000 --> 01:51:31.000]  You can't get the drugs and you can't have the treatment unless you agree to their contract.
[01:51:31.000 --> 01:51:34.000]  If you don't agree to the contract, you walk out still sick man.
[01:51:34.000 --> 01:51:40.000]  On the other hand, you agree to their contract, you get drugs.
[01:51:40.000 --> 01:51:44.000]  You get help and diagnosis.
[01:51:44.000 --> 01:51:49.000]  Okay, I understand the problem, but I'm just trying to clarify adhesion.
[01:51:49.000 --> 01:51:55.000]  What I thought was adhesion is not a very good definition.
[01:51:55.000 --> 01:51:56.000]  Okay.
[01:51:56.000 --> 01:52:03.000]  And yours adds – yes.
[01:52:03.000 --> 01:52:07.000]  Yes, I've got adhesion going on.
[01:52:07.000 --> 01:52:25.000]  Or issue of choice is still up for grabs.
[01:52:25.000 --> 01:52:27.000]  Okay, Mark, I had you muted there.
[01:52:27.000 --> 01:52:29.000]  I had some noise in the background.
[01:52:29.000 --> 01:52:31.000]  Oh, okay.
[01:52:31.000 --> 01:52:37.000]  So is the contract fairness, that's what it is, what it is.
[01:52:37.000 --> 01:52:42.000]  But the issue of choice is kind of up for grabs, I guess.
[01:52:42.000 --> 01:52:43.000]  Well, yes.
[01:52:43.000 --> 01:52:50.000]  Choice is – if you're given the choice, if you enter into this contract,
[01:52:50.000 --> 01:53:00.000]  then you have to choose either being thrown into a moat full of molten tar or boiling water.
[01:53:00.000 --> 01:53:03.000]  That's not a choice.
[01:53:03.000 --> 01:53:04.000]  Right.
[01:53:04.000 --> 01:53:12.000]  So here you have – you either use this company that will force you into an unconscionable contract
[01:53:12.000 --> 01:53:16.000]  or this company that will force you into an unconscionable contract,
[01:53:16.000 --> 01:53:23.000]  which gives you a distinction without a difference.
[01:53:23.000 --> 01:53:26.000]  So the illusion of choice when there is no choice.
[01:53:26.000 --> 01:53:28.000]  Right.
[01:53:28.000 --> 01:53:35.000]  And the other thing is I did manage to find one provider that had a whopping paragraph
[01:53:35.000 --> 01:53:41.000]  as their contract, which basically says, you know, you agree to pay the bill,
[01:53:41.000 --> 01:53:48.000]  as opposed to give us – if we can't find you and you overpaid,
[01:53:48.000 --> 01:53:55.000]  you donate the money to us and all the rest of their two-page BS.
[01:53:55.000 --> 01:54:01.000]  All right. I'll have to spend more time now digging around in the adhesion contracts.
[01:54:01.000 --> 01:54:03.000]  But thank you much for your time here.
[01:54:03.000 --> 01:54:05.000]  Okay. Thank you, Mark.
[01:54:05.000 --> 01:54:09.000]  Now we're going to go to Darlene in Florida.
[01:54:09.000 --> 01:54:12.000]  Hello, Darlene. What do you have for us today?
[01:54:12.000 --> 01:54:20.000]  Okay. On my foreclosure, I received – this was sent to me January 17th of this month,
[01:54:20.000 --> 01:54:30.000]  a 1099C cancellation of debt and a 1099A acquisition or abandonment of secured property.
[01:54:30.000 --> 01:54:34.000]  But here's a little bit of background on that.
[01:54:34.000 --> 01:54:43.000]  September 27th is when we had the summary judgment where the judge ordered in October for them to do the sale.
[01:54:43.000 --> 01:54:48.000]  Then I immediately filed a motion for relief of final judgment
[01:54:48.000 --> 01:54:53.000]  and a motion for a new trial and a rehearing amendment of the judgment.
[01:54:53.000 --> 01:54:59.000]  So then the court reopened the status on my foreclosure.
[01:54:59.000 --> 01:55:05.000]  Then the lender went and filed a notice of foreclosure sale.
[01:55:05.000 --> 01:55:13.000]  And then October 31st, ignoring everything, they held a certificate of sale, which I got it from the county.
[01:55:13.000 --> 01:55:15.000]  They mailed a copy to me.
[01:55:15.000 --> 01:55:20.000]  So then I immediately filed a notice to vacate the foreclosure sale.
[01:55:20.000 --> 01:55:26.000]  So now, this month, I get from the lender a letter stating,
[01:55:26.000 --> 01:55:34.000]  federal law gives you the right to notify us of any error regarding the servicing of your loans or to request information.
[01:55:34.000 --> 01:55:38.000]  Then five days later, I get another letter that says,
[01:55:38.000 --> 01:55:45.000]  the lender sends a notice of servicing transfer to another loan servicing company,
[01:55:45.000 --> 01:55:52.000]  who they say will start accepting your payments as of February 1st, 2004.
[01:55:52.000 --> 01:56:00.000]  Okay. Which did they send first, the 1099A or 1099C?
[01:56:00.000 --> 01:56:03.000]  They both came in at the same time.
[01:56:03.000 --> 01:56:06.000]  The same time. Very interesting.
[01:56:06.000 --> 01:56:11.000]  Okay. You know what the meaning of these documents are, do you not?
[01:56:11.000 --> 01:56:14.000]  No. That's why I was asking your help.
[01:56:14.000 --> 01:56:18.000]  Okay. The 1099A is notice of abandonment.
[01:56:18.000 --> 01:56:24.000]  You do not need to vacate the property for them to consider it abandoned.
[01:56:24.000 --> 01:56:29.000]  What they're saying is that you have abandoned any claims against the property.
[01:56:29.000 --> 01:56:32.000]  However, you have a claim filed in court.
[01:56:32.000 --> 01:56:36.000]  So the 1099A is with outstanding.
[01:56:36.000 --> 01:56:43.000]  The 1099C means that they've written the obligation off of their books.
[01:56:43.000 --> 01:56:51.000]  They've taken it from their accounts receivable and shifted it over there to their accounts not receivable.
[01:56:51.000 --> 01:56:54.000]  And that's money that they don't have to pay to the IRS at the end of the year.
[01:56:54.000 --> 01:56:57.000]  Therefore, they have been made whole.
[01:56:57.000 --> 01:57:04.000]  So I don't see where they've got a claim to the property if they're writing it off.
[01:57:04.000 --> 01:57:07.000]  Okay. So what am I supposed to do?
[01:57:07.000 --> 01:57:16.000]  Where they've sent this letter, if there's an error, am I supposed to notify them of any error?
[01:57:16.000 --> 01:57:18.000]  I mean, this is still-
[01:57:18.000 --> 01:57:21.000]  When you say them, define them.
[01:57:21.000 --> 01:57:23.000]  The lender.
[01:57:23.000 --> 01:57:24.000]  Absolutely.
[01:57:24.000 --> 01:57:35.000]  Wait a minute, if they sent you the 1099A and it was inappropriate, that they sent, who else did?
[01:57:35.000 --> 01:57:38.000]  Steve, who else did they send the 1099A to?
[01:57:38.000 --> 01:57:40.000]  The IRS.
[01:57:40.000 --> 01:57:43.000]  Wouldn't that be tampering with the government document?
[01:57:43.000 --> 01:57:47.000]  Yeah, if they can't back up their claim.
[01:57:47.000 --> 01:57:58.000]  But now, the 1099A is just- I hear the music in the background. I'll get this out as quick as I can.
[01:57:58.000 --> 01:58:02.000]  The 1099A is the presumption that you have abandoned any claims.
[01:58:02.000 --> 01:58:05.000]  You've got 50 seconds.
[01:58:05.000 --> 01:58:12.000]  Okay. 1099A is incorrect assumption if you have an adversary claim in the court, which it sounds like you do.
[01:58:12.000 --> 01:58:15.000]  1099C means they're writing it off on their taxes.
[01:58:15.000 --> 01:58:18.000]  They don't have to pay that tax at the end of the year.
[01:58:18.000 --> 01:58:22.000]  They're done.
[01:58:22.000 --> 01:58:31.000]  Okay, this is an issue that's came up before, and I never have got that one quite sorted out.
[01:58:31.000 --> 01:58:36.000]  How the fact that they changed their books affects your obligation.
[01:58:36.000 --> 01:58:39.000]  But we'll address that when we come back on the other side.
[01:58:39.000 --> 01:58:46.000]  This is Randy Kelton, Steve Skidmore, Rule of Law Radio, our call in number 512-646-1984.
[01:58:46.000 --> 01:58:50.000]  We'll be right back.
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