Did you know Banks create money out of thin air?

by TerryWalstrom 72 Replies latest jw friends

  • TerryWalstrom


    Banks create money “out of thin air.”

    Empirical studies have been undertaken to prove this thesis and this is the conclusion:

    In the 5,000 year history of banking, banks have been thought of as “Deposit Taking Institutions which Lend Money”.

    1. What is the legal reality? Banks DON’T TAKE DEPOSITS and DON’T LEND MONEY.
    The public is under this false impression on purpose because the language of Banks is not Legal language.

    So--what is a “deposit”?
    A deposit is not actually a deposit. It’s not a bailment, its not held in custody.
    At law, the word “deposit” is meaningless.

    If you give your money to the bank (no matter what they call it) it is really a loan to the bank.
    Banks borrow money from the public--calling it by the opposite terminology, a “deposit.”

    2. Surely Banks LEND money, right? WRONG.
    No they don’t. Banks don’t lend money.
    Banks, at Law, (it is very clear) are in the business of PURCHASING SECURITIES.
    That’s it. That’s all. Here is how they do it.
    So, what does a customer do when he wants a LOAN?
    A contract, an offer letter (written specifically in the above legal terminology) specifies the customer has “issued a Security”, namely a Promissory Note; and the bank is going to purchase that.

    Stop for a moment and get that clear inside your mind.
    What almost everybody everywhere THINKS is happening is, in fact, not taking place.
    What the Bank is really doing is very different from what it presents itself as doing to the public.
    Explain this to a customer and he’ll still say, “Well, how do I get my money? I don’t care about all these legal details--I just want the money.”
    The Bank will reply, “You’ll find it in your account with us.”
    If the Bank said, “We’ll transfer it to your account”, that’s wrong.
    Why? Because no money is transferred. At all. Ever.

    3. Neither inside the Bank nor outside the Bank is money ever transferred.
    What the Bank calls a “Deposit” is simply (legally) its record of its Debt to the Public.
    Now it owes you money and its record of what it owes you is what you THINK you’re getting as money. THAT IS HOW THE BANK CREATES the MONEY SUPPLY.

    4. 97% of Bank “deposits” are created out of nothing by the Banks when they “Lend.”
    BANKS INVENT FICTITIOUS CUSTOMER DEPOSITS by restating (incorrect in accounting terms) what is an accounts payable liability arising from the “loan contract” (having purchased the customer’s promissory note) as a “customer deposit” BUT NOBODY HAS DEPOSITED ANY MONEY.
    Stop and make sure you understand that.
    False words=Money supply.

    How does the FCA (Financial Conduct Authority) deal with this? You’re not supposed to mislead your customers!
    Banks are inventing money by inventing claims (fictitious deposits) misunderstood by the public because of false language.

    5. A stable economy is only a result of small Banks using customer’s money to fund other customer’s efforts to create new businesses goods and services.
    An unstable economy is the result of LARGE Banks speculating in the Stock Market, creating bubbles, and losing funds which aren’t the property of the Bank in the first place.

    6. Banks “creating money” using fictitious accounts for consumption purposes (blind spending without investment) creates a downward spiral and economic crash.
    Greater than 70% of LARGE Bank activity is not used creating new goods and services, consequently there are no gains--only losses.
    Only by raising prices at large are the losses covered for the time being. This is the origin of inflationary spirals. BANK MALFEASANCE.
    When the Banking sector has focused too much on non-productive “lending” the world goes to hell.
    If Banks were forced to advertise what they are really doing in clear Legal Terms--the sketchy practices which plague international economies would be exposed.

    Where the money is going--as the state of things now exists--is a SECRET and no accountability is possible.
    Banks are NOT financial intermediaries at all.
    Banks are purely money creators--and even that is because of shady business practices tolerated by political cronyism.

    In 2009 Dodd-Frank Bank regulation laws were passed in reaction to the crash the previous year with oversight rules which call for strict monitoring.
    On March 14, 2018, the US Senate passed a bill by a 67 to 31 vote, easing financial regulations and reducing oversight for banks. The law passed the House of Representatives on May 22, 2018 in a 258–159 vote. The legislation was then signed into law by US President Donald Trump on May 24, 2018.
    The Bank Credit for Financial Transaction bubbles were set in motion once again.
    It’s a game of musical chairs and hide the salami.
    As long as Banks can continue to play this “CREATE MONEY OUT OF NOTHING” charade, the economy appears vigorous. Inevitably, one bankruptcy after another jerks the illusory foundation out from under the matchstick economy and the walls come tumbling down.

  • zeb

    Terry you have opened a drum of worms with this one.

    Rec reading; "None dare call it Conspiracy"..and feel your head spin.

  • Amelia Ashton
    Amelia Ashton

    When I first grasped the fact that banks do not have the money they lend you it's pulled from thin air and only becomes "money" once you have borrowed it I was gobsmacked.

  • smiddy3

    Australia is currently undergoing a Royal Commission into the banking sector and would they be aware of this ?

    Would it make any difference to them ? If they did ?

    Or is this just the way things are done and nothing to see here.

    thanks for the post Terry W.

  • waton

    how about the central, government banks, the gold reserve? fort Knox? you cant knock that?

  • 2+2=5

    When you take loan from a bank the interest rate is higher vs the intersest rate the bank pays for cash in the bank.

    Fairly basic, the most obvious way a bank is supposed to make money.

  • TerryWalstrom


    Banks may be the most destructive and powerful institutions still highly regarded (ignorantly) by society as a whole.
    When politicians leave office, they make the round of financial institutions and give speeches for BIG money right out in the open. Of course, this is the payoff for all the loosey goosey legislation favoring those institutions.
    The so-called "penalties" exacted when these institutions are caught in the spotlight are seldom if ever individual prosecutions of actual corrupt executives. No. It's simply fines which are paid from ill-gotten gain. A slap on the wrist.
    Click this link and read of the history of Wells Fargo Bank's scandals and it will become
    clear how much wiggle room such an institution has been given to be a repeat offender.

  • resolute Bandicoot
    resolute Bandicoot

    Terry, learning this really is a red pill blue pill moment, I learned it from a book named "I want the earth +5%" you can find a video on youtube that was produced by the same guy - Larry Hannigan.

    The whole truth and knock ln effect is probably worse than you realise at this stage

    Waton - central gov banks... you mean the federal reserve, privately owned, no more federal than Federal Express.

  • resolute Bandicoot
    resolute Bandicoot

    “Let me issue and control a nation’s money and I care not who writes the laws.” Mayer Amschel Rothschild (1744-1812), founder of the House of Rothschild.

    “The few who understand the system will either be so interested in its profits or be so dependent upon its favours that there will be no opposition from that class, while on the other hand, the great body of people, mentally incapable of comprehending the tremendous advantage that capital derives from the system, will bear its burdens without complaint, and perhaps without even suspecting that the system is inimical to their interests.” The Rothschild brothers of London writing to associates in New York, 1863.

  • atomant
    There are hundreds of videos on youtube explaining how the banks really work and make their own money out of thin air like magic.The general public need to be educated about this.The sheeple are slowly waking up.

Share this