Banks, the truth

THE REAL REASON BEHIND OUR FINANCIAL MESS
THE TRUTH BEHIND THE BANKS AND MONEY

How to eliminate Unemployment, Inflation, Recession/depression, Liquidity problems

The truth about money is so simple a child can understand it, yet those who understand and control it have woven so complex a web of lies and deceit around money that make us believe it to be totally different to its true nature. This is to their huge advantage and our financial slavery.
It is the accepted wisdomthat 'banks make their profit from lending their depositor's funds to borrowers at a higher rate of interest than they pay those depositors'. It is the hardest thing to get people to challenge acceptedwisdom The above statement is demonstrably untrue, although we (nearly) all believe it.
Proof.. If I loaned you $1000, you would have $1000 more and I would have $1000less. But the total money in circulation would not be changed. The banks claim to do the same. Now, banks make loans every business day, so borrowers accounts would be going up, hence - depositors accounts shouldbe going down- but they aren't.
Have you ever looked at your bank statement and noticed, say, $1000 missing, rang the Bank Manager only to be told "I loaned it to someone"? No, and neither have I or anybody that I have ever talked to. This is all the proof needed to disprove the accepted wisdom of how banks operate.
The truth is, unlike the loan between you and I, when bank's make a loan, nobody's account goes down, but the account of the borrower goes up, so there is an increasein the money in circulation.
Where did this money come from? Overseas, as John Howard told me years ago? Well, a little investigation showed me that the "money supply" at that time increased in all countries, so that cannot be right. The simple but startling truth (when first beard) is that the banks create the money they lend. (Create means bring into existence that which did not exist before).
How do they do this? Well, what do you get when you get a bank loan? Numbers added to your account. Banks literally create money at the stroke of a pen (punch of a computer key) when numbers are added to the borrower's account. This money costs literally nothing to create, and the banks do not have any responsibility to any depositor because they do notlend their depositors funds as we have seen.
Where did banks get this huge power to create money? In a nutshell,from their knowledge and our ignorance of the nature of money. They work overtime to keep up the deception. For example, why, if banks create the money they lend, do they have term deposits bearing interest? To help keep up the belief (deception) that banks lend depositor's funds. Money on term deposit is a tiny fraction of bank loans.
Do banks have any moral right to create money? A resounding no! Do banks have a legal right to create money? No, but most politicians do not believe (or so they say) that banks actually create money, so they "believe" bank operations are above board. Abraham Lincoln, John Kennedy and Harold Holt all paid the price for trying to take away the power to create money from the people behind the banking system.
Banks not only create the money they put into circulation, they also extinguishmoney or take money out of circulation. Money in circulation enhances and simplifies the exchange of goods and services. Money is the common medium of exchange that simplifies bartering and allows commerce to flow. However. when a repayment of a loan is paid to a bank of principle and interest, the numbers go out of the borrower's account but do not come back into anybody else's account. That money has gone out of circulation or has been extinguished. Banks create the principle of a loan, but extinguish the principle and interest of repayments, and here lies the basis for Australia and every other country's economic problems- namely criminal entrapment.
What we have discussed so far is money having a beginning and an end: A creation and extinction. We are not encouraged to think this way, but where does money go to in a depression, and come from in a boom if there is not an extinction and a creation process? Note: Money is only a representation (shadow) of wealth - goods, services (labour) and assets. It is not wealth, which is the "real stuff'.
Knowing how money comes into circulation and goes out, is vital to understanding the problem and to seeing the solution- and indeed there is a solution. You can be a small but important part of that solution. Money can be lent, spent or be given into circulation.
Consider the current international bank controlled moneysystem as applied to Australia: 1 .95% of money is createdby banks and lentinto circulation as described above. Loans are debts to be repaid with
interest;
2.4% of money is created by banks and spent into circulation, mainly on paying wages, building and maintaining
property. It costs the banks nothingto employ staff and build buildings etc. -wages and payments end up as
money in the form of numbers added to the workers' accounts, and this costs the bank nothing- amazing- no
wonder this is forbidden knowledge. From the workers' point of view, money created and spent into circulation by
banks is earned into circulation by the worker- it belongs to him- it is debt-free money. 3.1% of money is created by government, and that is spent into circulation. This happens at the mint. A $2 coin
costs about 10 cents to produce- it is only a token- a law makes it valuable. This token will be used to pay public
and private debts and taxes to the value of $2, hence the term legal tender. Note: Government cannot say that it

only gets money by taxing and charging. Bank notes are not created by Government, but by the Reserve Bank which is under private control, in spite of the deception of a Reserve Bank Act of Federal Parliament.Try getting a Federal Politician to attack or question the Reserve Bank - it is the way to a very short political career.
Bank notes can be exchanged for numbers in accounts and vice versa. Putting things together:
Spent in or earned money (2) and (3) above 4% + 1% = 5% helps to provide a source of money to pay interest on (1), the loan or debt of money - 95%. What if interest demanded on the debt money 95% is greater than the debt-free money 5%? Putting it simply, the banks would be asking more out of circulation than there is in circulation, and they invariably do. Consequently there is not sufficient money in circulation for everybody to repay their loan with interest.
If you are successful in this system and repay your loans and make a profit, then much of your interest and all of your profit has come out of the principle of other people's loans. To be successful, others must fail in this evil banking system - but such a shocking situation need not be, fortunately.
Summary:
Banking is a system in which money is created at no cost and (mainly) lent into circulation after mortgages over real property have been taken. Interest charged exceeds the small amount of debt-free money, so banks have set a trap in which those who cannot repay get foreclosed on and lose the real wealth they have mortgaged. Hence...
BANKING IS DECEIT, FRAUD AND CRIMINAL ENTRAPMENT
Comment: You cannot keep taking, say, $105 out of circulation for every $100 that comes in. Why doesn't the system collapse and there be no money in circulation? This bank debt system is deliberately unstable. It is kept going by:

1) 2)

making loans bigger and bigger, and
writing off debt on people on whom they foreclose...

... debt "written off' remains in circulation as numbers. Is it really debt? Remember the bank created the "money" as numbers at no cost. Debt by deception, and fictitious at that. All economicproblems which lead to many social problems can be explained by the above method of bank operation.
1Liquidity problem:shortage of money in the system means some must not have enough to repay loans, hence liquidity problem;
2.Inflation:liquidity problem forces some to borrow more to keep going. New loan to be repaid with interest
forces up cost of production, hence prices for products/services must go up, hence money buys less - which is
the meaning of inflation;
3.Boom:banks lower interest rates, make loans easy to get and the money supply increases, whilst
unemployment decreases and productivity increases, but prices rise - loans raise cost of production inflation; 4,Recession/depression: banks slow or stop lending and raise interest rates. Money supply decreases,
unemployment increases, economic activity decreases, prices may fall so money is deflated - it buys more but it is
all "owed" to the bank anyway - "owed" only in the sense that you accept the creationof money by banks as legal,
which if isnot;
5.Unemployment..is not caused by a lack of jobs, it is caused by a lack of money in circulation- this shortage is
deliberately caused by banks;
6.Bankruptcy:business failure- the cause has been explained above. Truly the blood of thousands who have
suicided over debt/bankruptcy and marital and family breakdown through debt is on those who run and control
banking.
You have just had the best economics lesson you will ever have- it fits the facts and it is free. Isn't it so true that when you see the problem clearly, the solution is at hand.
The Constitutional Money System:
Believe it or not, all the power needed to sort out the money system is in the Australian Constitution, Section 51, 12: The power to make the laws regarding money and 51, 13: The power to make the laws regarding banking. 51, 12: Gave the Federal Parliament the power to set up the mint and create money- the coins. Nothing in the Constitution stops government from creating treasury notes (instead of bank notes and treasury credit - number money instead of bank credit).

1 .

2.

The Federal Government mustbe pressured to use the power we gave them to become sole creator of Australia's money (51, 12), further;
The Federal Government must be pressured to use 51, 13 to stop banks creating money. Simple - banks to have accounts with treasury - loans made by cheque to be cleared through treasury, then they cannot lend what they do not have, just like you and me - cheques will bounce.
Treasury created money at the direction of the parliament is to be (mainly)spentinto circulation which is the same as being earnedinto circulation by those who work for it.
All constitutionally empowered purposes of Government are to be financed by government created credit and
never by taxing to gain money or borrowing at home or abroad.
Recommend to the Australian people to amend the Constitution to stop government taxing to gainmoney or
borrowing. This will force the government to use the power the people gave them to create money.

3.

4.

5.

6.

Government created money will be backed by the assets produced by those who work for it. Those assets will be produced cost-free to government, so no debt, hence no interest/principle repayments need to be made, hence no need to tax. Bank credit is not backed by anything other than fraud and deceit.
... however this is not something for nothing. Those who worked for the money Government created have
benefited society. Their pay is a power of command over other people's goods, services and assets. The real
reward of those who benefited society is the realwealth others will give them in exchange for the money they
earned. Instead of paying tax so the government can achieve, we provide goods and services in exchange for
money as the reward for those who did the work for government for the national benefit.
Government will be required to spend sufficient money into circulation to provide for full employment, making sure that money is backed by real wealth.
User pays will apply to Government services, but with no government debt, these will be much cheaper, and with
all income tax and all hidden taxes removed which the government now uses to gain money, people will have six
times as much expendable income to decide what services they require.
Social Security will be solved in the best possible way -jobs for all, except the aged, disabled and mentally ill. Saving for old age will be easy for thosewho work ten years in the new system.

7.

8.

9.

10.Zero inflation - constant buying power of money is the only fair basis of a money system - impossible in the bank
system, but totally possible in the constitutional system. To achieve this, as an asset of government is worn out for
example, a road - treasury will gather up money from those who use it (tax on fuel) and take it outof circulation. For
example,' a stretch of road costs $20 million and is expected to last 10 years. Then each year $2 million is taken out
of circulation - so all the $20 million is taken out in 10 years. Then with zero inflation, $20 million created by treasury
will see it rebuilt.
11.Bank assets and wealth gained by fraud will be restored to the people as equitably as possible. Australia will be
owned totally by Australians.
12.Top bankers in Australia who have worked this fraud will be gaoled for life, and any overseas top bankers who dare
show their faces likewise.
I told you that government would have tobe pressured to use 51, 12 and 51, 13.
Why? They have the power, why won't they useit? They are too frightened to use it - and don't call them cowards until you consider yourself in their position. Those behind the banking system (it is only a tool) have a record of assassination against those who try to take away their assumed power to create money - Kennedy, Lincoln, Harold Holt. They will even induce war if they cannot - Sadam Hussein and Desert Storm. Sounds a bit risky to do anything, true, but the result of doing nothing will be a New World Order, satanic dictatorship where mind control, slavery or death will be our lot.
What can you do - with little risk - to force government to obey we the people instead of the evil hiddengovernment"? 1 . Educate yourself - learn what other strategies are available to you.
2.Talk - explain and teach others - give them copies - spread the knowledge fast. Let the politicians know that you
know!
Why will this work? Well, the bankers have said that if the people in large numbers wake up to how they operate, they have had it, However, they boast that most people are too dumb to do so. PROVE THEM WRONG!
(Author unknown)
Asked what message he would like to deliver to modern Australia. "Oh, alright. Rewrite the Banking Act to give the federal Treasurer power to control the nation's money; reform the monetary system; limit the International Monetary Funds's powers; resurrect the rural credits department; make foreign companies pay tax in Australia; allow gold producers to sell overseas and give people back control over their own money".
Legend Australian, R.M. Williams on his 90th birthday. (Weekend Australian May 23rd 1998)

NO COPYRIGHT - FEEL FREE TO COPY AND DISTRIBUTE


only gets money by taxing and charging. Bank notes are not created by Government, but by the Reserve Bank which is under private control, in spite of the deception of a Reserve Bank Act of Federal Parliament.Try getting a Federal Politician to attack or question the Reserve Bank - it is the way to a very short political career. Bank notes can be exchanged for numbers in accounts and vice versa. Putting things together: Spent in or earned money (2) and (3) above 4% + 1% = 5% helps to provide a source of money to pay interest on (1), the loan or debt of money - 95%. What if interest demanded on the debt money 95% is greater than the debt-free money 5%? Putting it simply, the banks would be asking more out of circulation than there is in circulation, and they invariably do. Consequently there is not sufficient money in circulation for everybody to repay their loan with interest. If you are successful in this system and repay your loans and make a profit, then much of your interest and all of your profit has come out of the principle of other people's loans. To be successful, others must fail in this evil banking system - but such a shocking situation need not be, fortunately. Summary: Banking is a system in which money is created at no cost and (mainly) lent into circulation after mortgages over real property have been taken. Interest charged exceeds the small amount of debt-free money, so banks have set a trap in which those who cannot repay get foreclosed on and lose the real wealth they have mortgaged. Hence... BANKING IS DECEIT, FRAUD AND CRIMINAL ENTRAPMENT Comment: You cannot keep taking, say, $105 out of circulation for every $100 that comes in. Why doesn't the system collapse and there be no money in circulation? This bank debt system is deliberately unstable. It is kept going by:
1) 2)		making loans bigger and bigger, and writing off debt on people on whom they foreclose...
... debt "written off' remains in circulation as numbers. Is it really debt? Remember the bank created the "money" as numbers at no cost. Debt by deception, and fictitious at that. All economicproblems which lead to many social problems can be explained by the above method of bank operation. 1Liquidity problem:shortage of money in the system means some must not have enough to repay loans, hence liquidity problem; 2.Inflation:liquidity problem forces some to borrow more to keep going. New loan to be repaid with interest forces up cost of production, hence prices for products/services must go up, hence money buys less - which is the meaning of inflation; 3.Boom:banks lower interest rates, make loans easy to get and the money supply increases, whilst unemployment decreases and productivity increases, but prices rise - loans raise cost of production inflation; 4,Recession/depression: banks slow or stop lending and raise interest rates. Money supply decreases, unemployment increases, economic activity decreases, prices may fall so money is deflated - it buys more but it is all "owed" to the bank anyway - "owed" only in the sense that you accept the creationof money by banks as legal, which if isnot; 5.Unemployment..is not caused by a lack of jobs, it is caused by a lack of money in circulation- this shortage is deliberately caused by banks; 6.Bankruptcy:business failure- the cause has been explained above. Truly the blood of thousands who have suicided over debt/bankruptcy and marital and family breakdown through debt is on those who run and control banking. You have just had the best economics lesson you will ever have- it fits the facts and it is free. Isn't it so true that when you see the problem clearly, the solution is at hand. The Constitutional Money System: Believe it or not, all the power needed to sort out the money system is in the Australian Constitution, Section 51, 12: The power to make the laws regarding money and 51, 13: The power to make the laws regarding banking. 51, 12: Gave the Federal Parliament the power to set up the mint and create money- the coins. Nothing in the Constitution stops government from creating treasury notes (instead of bank notes and treasury credit - number money instead of bank credit).
1 . 2.	The Federal Government mustbe pressured to use the power we gave them to become sole creator of Australia's money (51, 12), further; The Federal Government must be pressured to use 51, 13 to stop banks creating money. Simple - banks to have accounts with treasury - loans made by cheque to be cleared through treasury, then they cannot lend what they do not have, just like you and me - cheques will bounce. Treasury created money at the direction of the parliament is to be (mainly)spentinto circulation which is the same as being earnedinto circulation by those who work for it. All constitutionally empowered purposes of Government are to be financed by government created credit and never by taxing to gain money or borrowing at home or abroad. Recommend to the Australian people to amend the Constitution to stop government taxing to gainmoney or borrowing. This will force the government to use the power the people gave them to create money.
3. 4. 5.


6.	Government created money will be backed by the assets produced by those who work for it. Those assets will be produced cost-free to government, so no debt, hence no interest/principle repayments need to be made, hence no need to tax. Bank credit is not backed by anything other than fraud and deceit. ... however this is not something for nothing. Those who worked for the money Government created have benefited society. Their pay is a power of command over other people's goods, services and assets. The real reward of those who benefited society is the realwealth others will give them in exchange for the money they earned. Instead of paying tax so the government can achieve, we provide goods and services in exchange for money as the reward for those who did the work for government for the national benefit. Government will be required to spend sufficient money into circulation to provide for full employment, making sure that money is backed by real wealth. User pays will apply to Government services, but with no government debt, these will be much cheaper, and with all income tax and all hidden taxes removed which the government now uses to gain money, people will have six times as much expendable income to decide what services they require. Social Security will be solved in the best possible way -jobs for all, except the aged, disabled and mentally ill. Saving for old age will be easy for thosewho work ten years in the new system.
7. 8.
9.
10.Zero inflation - constant buying power of money is the only fair basis of a money system - impossible in the bank system, but totally possible in the constitutional system. To achieve this, as an asset of government is worn out for example, a road - treasury will gather up money from those who use it (tax on fuel) and take it outof circulation. For example,' a stretch of road costs $20 million and is expected to last 10 years. Then each year $2 million is taken out of circulation - so all the $20 million is taken out in 10 years. Then with zero inflation, $20 million created by treasury will see it rebuilt. 11.Bank assets and wealth gained by fraud will be restored to the people as equitably as possible. Australia will be owned totally by Australians. 12.Top bankers in Australia who have worked this fraud will be gaoled for life, and any overseas top bankers who dare show their faces likewise. I told you that government would have tobe pressured to use 51, 12 and 51, 13. Why? They have the power, why won't they useit? They are too frightened to use it - and don't call them cowards until you consider yourself in their position. Those behind the banking system (it is only a tool) have a record of assassination against those who try to take away their assumed power to create money - Kennedy, Lincoln, Harold Holt. They will even induce war if they cannot - Sadam Hussein and Desert Storm. Sounds a bit risky to do anything, true, but the result of doing nothing will be a New World Order, satanic dictatorship where mind control, slavery or death will be our lot. What can you do - with little risk - to force government to obey we the people instead of the evil hiddengovernment"? 1 . Educate yourself - learn what other strategies are available to you. 2.Talk - explain and teach others - give them copies - spread the knowledge fast. Let the politicians know that you know! Why will this work? Well, the bankers have said that if the people in large numbers wake up to how they operate, they have had it, However, they boast that most people are too dumb to do so. PROVE THEM WRONG! (Author unknown) Asked what message he would like to deliver to modern Australia. "Oh, alright. Rewrite the Banking Act to give the federal Treasurer power to control the nation's money; reform the monetary system; limit the International Monetary Funds's powers; resurrect the rural credits department; make foreign companies pay tax in Australia; allow gold producers to sell overseas and give people back control over their own money". Legend Australian, R.M. Williams on his 90th birthday. (Weekend Australian May 23rd 1998)
		NO COPYRIGHT - FEEL FREE TO COPY AND DISTRIBUTE