Rehypothecation

• ANALYSIS OF FINANCIAL METAPHYSICS AND LEVERAGED ENTROPY
  • 1. The Raw Function of Hypothecation and Public Debt
  • 2. Fractional Reserve Banking: The Systemic Creation of Value from Non-Existence
  • 3. Pledging Mechanisms in Trade (The Trust Receipt)

ANALYSIS OF FINANCIAL METAPHYSICS AND LEVERAGED ENTROPY

The specific term "Rehypothecation" is not explicitly defined or utilized within the provided sources. However, the foundational mechanisms described—the unauthorized leveraging, pledging, and creation of obligations based on the assets or supposed deposits of others—are the very core of the systemic fraud detailed throughout these texts, echoing the concept of collateralized exploitation on a grand scale.

To understand the operation of leveraging and pledging assets as presented in the sources, one must examine the mechanisms of Hypothecation and Fractional Reserve Banking, which function as the legal scaffolding for perpetual debt and wealth confiscation.

1. The Raw Function of Hypothecation and Public Debt

The concept of hypothecation—the pledging of property as security without surrendering possession—is tied directly to the supposed bankruptcy of the sovereign entity and the subsequent enslavement of its citizens by private banking dynasties.

1. Pledging of Citizen Property: The US/DC (District of Columbia) pledges, or hypothecates, the property of its citizens (subjects) as collateral to the private Federal Reserve. The Fed then credits this pledged property into "bank money" (demand deposits), which it loans out at interest.
2. Corporate Bankruptcy and Trusteeship: This mechanism operates under the assumption that the United States Federal Government was dissolved and declared bankrupt and insolvent by the Emergency Banking Act of March 9, 1933 (48 Stat. 1, Public Law 89-719) and H.J.R. 192 (June 5, 1933). In this context, Members of Congress function as "official trustees presiding over the greatest reorganization in world history," with the International Bankers (via the UN, World Bank, and IMF) acting as the receivers of the US Bankruptcy.
3. Collateralizing the Collective Future: The true reserve backing the debt-based currency is revealed to be the collective future products and services of the populace. The Federal Reserve issues non-redeemable "I-O-U" promissory notes, predicated on the promise that everyone in the US will accept these notes for their goods or services. Thus, the Fed utilizes the people themselves as credit collateral. This allows the "Banklords" to issue as many dollars as they require against this collective credit, demanding interest and ensuring foreclosure on assets in a process deemed a "GIGANTIC FRAUD".

2. Fractional Reserve Banking: The Systemic Creation of Value from Non-Existence

The practice of fractional reserve banking is described as the ultimate refinement of fraudulent leveraging, wherein assets are perpetually pledged and re-pledged (or simply created ex nihilo) without any moral or commodity backing. This process is the operational equivalent of rehypothecation, magnified to the level of the entire national currency supply.

• The Counterfeiting Loop: Fractional reserve banking means that banks maintain as reserves only a small fraction (currently fixed at 10% on checking accounts in the US, but nearly 0% on savings/time deposits) of the amount required to meet all claims against them. Banks exploit the observation that depositors rarely claim all their gold (or cash) at once. By issuing warehouse receipts (now deposits or electronic credits) for money they do not possess, they essentially counterfeit "fake warehouse-receipts to cash".
• Monetization of Nothing: When a bank extends a loan or purchases a security, it does not lend pre-existing deposits or capital; it creates new money out of nothing—or, more accurately, out of the right to issue credit money. This is known as "monetizing the debt". This credit creation leverages the system: $100 million of new deposits can be generated from as little as $20 million in additional reserves.
• The Unearned Interest Stream: This process grants banks the exclusive privilege of collecting interest on money that they created instantaneously, incurring virtually no liability for themselves. The existence of the entire American dollar supply, whether currency, checkbook money, or credit card money, relies entirely on debt. This perpetual flow of wealth, extracted as interest on nothing, is condemned as usury of the highest magnitude.

3. Pledging Mechanisms in Trade (The Trust Receipt)

Even in specific banking operations like trade finance, the sources describe mechanisms where collateral is released back to the debtor while the bank retains a security interest, mirroring the complexity of hypothecation.

The trust receipt is an instrument designed to preserve the security rights of the pledgee (the bank) despite the loss of actual or constructive possession of the pledged goods. This arises when the bank releases the documents of title (collateral) to the pledgor (importer/debtor) so the debtor can collect sales proceeds. The debtor acknowledges holding the goods and proceeds in trust for the bank. This arrangement is necessary because the existence of a pledge is dependent upon possession.

This financial manipulation allows the illusion of solvency to persist while control over real assets—or the future ability to produce real assets—is consolidated by the central authority.