article was written long before the crash of the banking system in
If I said the banking system is total fraud, I would be more than 100%
accurate. The whole system is fraudulent from beginning to end. And they
have the audacity to say the root cause of the crash was sub-prime
If the banks had not levered deposits to such an extent, the miniscule
exposure to sub-prime loans would have hardly weighed on their ledger.
But the banks were not happy with making 2% on your money. They were not
happy with 10%. They were not happy with 100% They wanted 150% to 300%.
They loaned out your money 20 to 60 times. That's right, they
loaned out a deposit of $10,000 "twenty times" and turned it into
$200,000, reaping an enormous $12,000 interest each year.
The trick was so simple. Don't tell the customer. The customer will
never guess. Who would think the bank would do such a thing?
They kept crying "poor-mouth." "Money is hard to get." "We only make the
small difference between deposits and lending."
Nothing was further from the truth.
Now you know.
The whole world banking system has collapsed. And the USA started the
Now you will believe me when I write further articles.
Now, here's the article:
MONEY MONEY MONEY
This article explains one of the biggest frauds in the world.
It is this: When a bank loans you $250,000 - they
say the money comes from depositors and it costs them INTEREST to borrow
The fact is this: The money comes from NO-WHERE and it costs the
bank almost nothing to get it. It's created in the form of a
cheque and this only requires a signature! No money is EVER involved!
The $5,000 interest you pay each month (off your mortgage) is PROFIT to
the bank! Almost 100% PROFIT.
The $5,000 pays staff wages, CEO's (millions of dollars),
advertising, electricity, heating and 50% to the government as
Now you know why you will never be able to own the house you are paying
300% of your payments are INTEREST!
Read the following article and see how it all came about:
It's couched in terms that will not disclose the "masters" behind the
Fabian was excited as he once more rehearsed his speech for the crowd
certain to turn up tomorrow. He had always wanted prestige and power and
now his dreams were going to come true. He was a craftsman working with
silver and gold, making jewellery and ornaments, but he became
dissatisfied with working for a living. He needed excitement, a
challenge, and now his plan was ready to begin.
For generations the people used the barter system. A man supported his
own family by providing all their needs or else he specialised in a
particular trade. Whatever surpluses he might have from his own
production, he exchanged or swapped for the surplus of others.
Market day was always noisy and dusty, yet people looked forward to the
shouting and waving, and especially the companionship. It used to be a
happy place, but now there were too many people, too much arguing. There
was no time for chatting — a better system was needed.
Generally, the people had been happy, and enjoyed the fruits of their
In each community a simple Government had been formed to make sure each
person's freedoms and rights were protected and no man was forced to do
anything against his will by any other man, or any group of men.
This was the Government's one and only purpose and each Governor was
voluntarily supported by the local community who elected him.
However, market day was
the one problem they could not solve. Was a knife worth one or two
baskets of corn? Was a cow worth more than a wagon......and so on. No
one could think of a better system.
Fabian had advertised, "I have the solution to our bartering problems,
and I invite everyone to a public meeting tomorrow."
The next day there was a great assembly in the town square and Fabian
explained all about the new system » which he called "money." It sounded
good. "How are we to start?" the people asked.
"The gold which I fashion into ornaments and jewellery is an excellent
metal, it does not tarnish or rust, and will last a long time. I will
make some gold into coins and we shall call each coin a $1."
He explained how values would work, and that "money" would be really a
medium for exchange — a much better system than bartering or swapping.
One of the Governors questioned, "Some people can dig gold and make
coins for themselves," he said.
"This would be most unfair."
Fabian was ready with the answer. "Only those coins approved by the
Government can be used, and these will have special markings stamped on
them." This seemed reasonable and it was proposed that each man be given
an equal number. "But I deserve the most," said the candle-maker.
"Everyone uses my candles," "No", said the farmer, "without food there
is no life, surely we should get the most." And so the bickering
Fabian let them argue for a while and finally he said, "Since none of
you can agree, I suggest you obtain the number you require from me.
There will be no limit, except for your ability to repay. The more you
obtain, the more you must repay in one year's time.
"And what will you receive?" the people asked. "Since I am providing a
service, that is, the money supply, I am entitled to payment for my
work. Let us say that for every 100 pieces you obtain, you repay me 105
for every year that you owe the debt. The 5 will be my charge, and I
shall call this charge interest."
There seemed to be no other way, and besides, 5% seemed little enough
charge. "Come back next Friday and we will begin."
Fabian wasted no time. He made coins day and night, and at the end of
the week he was ready. The people were queued up at his shop, and after
the coins were inspected and approved by the Governors the system
commenced. Some borrowed only a few and they went off to try the new
They found money to be marvelous, and they soon valued everything in
gold coins or dollars. The value they placed on everything was called a
"price," and the price mainly depended on the amount of work required to
produce it. If it took a lot of work the price was high, but if it was
produced with little effort it was quite inexpensive.
In one town lived Alan, who was the only watchmaker. His prices were
high because the customers were willing to pay just to own one of his
Then another man began making watches and offered them at a lower price
in order to get sales. Alan was forced to lower his prices and in no
time at all prices came down, so that both men were striving to give the
best quality at the lowest price. This was genuine free competition.
It was the same with builders, transport operators, accountants,
farmers, in fact, in every endeavour. The customers always chose what
they felt was the best deal — they had freedom of choice. There was no
artificial protection such as licences or tariffs to prevent other
people from going into business. The standard of living rose, and before
long the people wondered how they had ever done without money.
At the end of the year, Fabian left his shop and visited all the people
who owed him money. Some had more than they borrowed, but this meant
that others had less, since there were only a certain number of coins
issued in the first place. Those who had more than they borrowed paid
back each 100 plus the extra 5, but still had to borrow again to carry
on. The others discovered for the first time that they had a debt.
Before he would lend them more money, Fabian took a mortgage over some
of their assets, and everyone went away once more to try and get those
extra 5 coins which always seemed so hard to find.
No one realised that as a whole, the country could never get out of debt
until all the coins were repaid, but even then, there were those extra 5
on each 100 which had never been lent out at all. No one but Fabian
could see that it was impossible to pay the interest — the extra money
had never been issued, therefore someone had to miss out. It was
true that Fabian spent some coins, but he couldn't possibly spend
anything like 5% of the total economy on himself. There were thousands
of people and Fabian was only one. Besides, he was still a goldsmith
making a comfortable living.
At the back of his shop Fabian had a strong-room and people found it
convenient to leave some of their coins with him for safe keeping. He
charged a small fee depending on the amount of money, and the time it
was left with him. He would give the owner receipts for the deposit.
When a person went shopping, he did not normally carry a lot of gold
coins. He would give the shopkeeper one of the receipts to the value of
the goods he wanted to buy. Shopkeepers recognised the receipt as being
genuine and accepted it with the idea of taking it to Fabian and
collecting the appropriate amount in coins. The receipts passed from
hand to hand instead of the gold itself being transferred. The people
had great faith in the receipts — they accepted them as being as good as
Before long, Fabian noticed that it was quite unusual for anyone to
actually call for their gold coins.
He thought to himself, "Here I am in possession of all this gold and I
am still a hard working craftsman. It doesn't make sense. Why there are
scores of people who would be glad to pay me interest for the use of
this gold which is lying here and rarely called for.
It is true, the gold is not mine — but it is in my possession, which is
all that matters. I hardly need to make any coins at all, I can use some
of the coins stored in the vault."
At first he was very cautious, only loaning a few at a lime, and then
only on very good security. But gradually he became bolder, and larger
amounts were loaned.
One day, a large loan was requested.
Fabian suggested, "Instead of carrying all these coins we can make a
deposit in your name, and then I shall give you several receipts to the
value of the coins." The borrower agreed, and off he went with a bunch
of receipts. He had obtained a loan, yet the gold remained in the
strong-room. After the client left, Fabian smiled. He could have his
cake and eat it too. He could "lend" gold and still keep it in his
Friends, strangers and even enemies needed funds to carry out their
businesses — and so long as they could produce security, they could
borrow as much as they needed. By simply writing out receipts Fabian was
able to "lend" money to several times the value of gold in his
strong_room, and he was not even the owner of it. Everything was safe so
long as the real owners didn't call for their gold and the confidence of
the people was maintained.
He kept a book showing the debits and credits for each person — the
lending business was proving to be very lucrative indeed.
His social standing in the community was increasing almost as fast as
his wealth. He was becoming a man of importance. He commanded respect.
In matters of finance, his very word was like a sacred pronouncement.
Goldsmiths from other towns became curious about his activities and one
day they called to see him. He told them what he was doing, but was very
careful to emphasize the need for secrecy. If their plan was exposed,
the scheme would fail, so they agreed to form their own secret alliance.
Each returned to his own town and began to operate as Fabian had taught.
People now accepted the receipts as being as good as gold itself, and
many receipts were deposited for safe keeping in the same way as coins.
When a merchant wished to pay another for goods, he simply wrote a short
note instructing Fabian to transfer money from his account to that of
the second merchant. It took Fabian only a few minutes to adjust the
This new system became very popular, and the instruction notes were
Late one night, the goldsmiths had another secret meeting and Fabian
revealed a new plan. The next day they called a meeting with all the
Governors, and Fabian began. "The receipts we issue have become very
popular. No doubt, most of you Governors are using them and you find
them very convenient." They nodded in agreement and wondered what the
"Well", he continued, "some receipts are being copied by counterfeiters.
This practice must be stopped." The Governors became alarmed. "What can
we do?" they asked. Fabian replied, "My suggestion is this — first of
all, let it be the Government's job to print new notes on a special
paper with very intricate designs, and then each note to be signed by
the chief Governor. We goldsmiths will be happy to pay the printing
costs, as it will save us a lot of time writing out receipts". The
Governors reasoned, "Well, it is our job to protect the people against
counterfeiters and the advice certainly seems like a good idea." So they
agreed to print the notes.
"Secondly," Fabian said, "some people have gone prospecting and are
making their own gold coins. I suggest that you pass the law so
that any person who finds gold nuggets must hand them in. Of course,
they will be reimbursed with notes and coins," The idea sounded good and
without too much thought about it, they printed a large number of crisp
new notes. Each note had a value printed on It — $1, $2, $5, $10, etc.
The small printing costs were paid by the goldsmiths.
The notes were much easier to carry and they soon became accepted by the
people. Despite their popularity however, these new notes and coins were
used for only 10% of transactions. The records showed that the cheque
system accounted for 90% of all business.
The next part of his plan commenced. Until now, people were paying
Fabian to guard their money. In order to attract more money into the
vault Fabian offered to pay depositors 3% interest on their money.
Most people believed that he was re-lending their money out to borrowers
at 5%, and his profit was the 2% difference. Besides, the people didn't
question him as getting 3% was far better than paying to have the money
The volume of savings grew and with the additional money in the vaults,
Fabian was able lo lend $200. $300, $400, sometimes up to $900 for every
$100 in notes and coins that he held in deposit. He had to be careful
not to exceed this nine to one ratio, because one person in ten did
request their notes and coins.
If there was not enough money available when required, people would
become suspicious, especially as their deposit books showed how much
they had deposited. Nevertheless, on the $900 in book figures that
Fabian loaned out by writing cheques himself, he was able to demand up
to $45 in interest, i.e. 5% on $900. When the loan plus interest was
repaid, i.e. $945, the $900 was cancelled out in the debit column and
Fabian kept the $45 interest. He was therefore quite happy to pay $3
interest on the original $100 deposited which had never left the vaults
at all. This meant that for every $100 he held in deposits, it was
possible to make 42% profit, most people believing he was only making
2%. The other goldsmiths were doing the same thing. They created money
out of nothing at the stroke of a pen, and then charged Interest on top
True, they didn't coin money, the Government actually printed the notes
and coins and gave it to the goldsmiths to distribute. Fabian's only
expense was the small printing fee. Still, they were creating credit
money out of nothing and charging interest on lop of it. Most people
believed that the money supply was a Government operation. They also
believed that Fabian was lending them the money that someone else had
deposited, but it was very strange that no one's deposits ever decreased
when a loan was advanced. If everyone had tried to withdraw their
deposits at once, the fraud would have been exposed.
When a loan was requested in notes or coins, it presented no problem.
Fabian merely explained to the Government that the increase in
population and production required more notes, and these he obtained for
the small printing fee.
One day a thoughtful man went to see Fabian. "This Interest charge is
wrong," he said. "For every $100 you issue, you are asking $105 in
return. The extra $5 can never be paid since it doesn't exist. Farmers
produce food, industry manufactures goods, and so on, but only you can
produce money. Suppose there are only two businessmen in the whole
country and we employ everyone else. We borrow $100 each, we pay $90 out
in wages and expenses and allow $10 profit (our wage), that means the
total purchasing power is $90 + $10 twice, i.e. $200. Yet to pay you we
must sell all our produce for $210. If one of us succeeds and sells all
his produce for $105, the other man can only hope to get $95. Also, part
of his goods cannot be sold, as there is no money left to buy them. He
will still owe you $10 and can only repay this by borrowing more. The
system is impossible."
The man continued,
"Surely you should issue 105. i.e. 100 to me and 5 for you to spend.
This way there would be 105 in circulation, and the debt can be repaid."
Fabian listened quietly and finally said. "Financial economics is a deep
subject, my boy, it takes years of study. Let me worry about these
matters, and you look after yours. You must become more efficient,
increase your production, cut down on your expenses and become a better
businessman. I am always willing to help in these matters."
The man went away still unconvinced. There was something wrong with
Fabian's operation and he felt his questions had been avoided. Yet, most
people respected Fabian's word: "He is the expert, the others must be
wrong. Look how the country has developed, how our production has
increased — we must be better off."
To cover the interest
on the money they had borrowed, merchants were forced to raise their
prices — wage earners complained that wages were too low — employers
refused to pay higher wages, claiming they would be ruined — farmers
could not get a fair price for their produce — housewives complained
food was getting too dear, and finally some people went on strike, a
thing previously unheard of.
Others had become poverty stricken and their friends and relatives could
not afford to help them. Most had forgotten the real wealth all around —
the fertile soils, the great forests, the minerals and cattle. They
could think only of the money which always seemed so scarce. But they
never questioned the system. They believed the Government was running
A few had pooled their excess money and formed "lending1" or "finance"
companies. They could get 6% or more this way, which was better than the
3% Fabian paid, but they could only lend out money they owned — they did
not have this strange power of being able to create money out of nothing
by merely writing figures in books.
These finance companies worried Fabian and his friends somewhat, so they
quickly set up a few companies of their own. Mostly, they bought the
others out before they got going. In no time, all the finance companies
were owned by them, or under their control.
The economic situation got worse. The wage earners were convinced the
bosses were making too much profit. The bosses said their workers were
too lazy and weren't doing an honest day's work, and everyone was
blaming everyone else. The Governors could not come up with an answer
and besides, the immediate problem seemed to be to help the poverty
They started up welfare schemes and made laws forcing people to
contribute to them. This made many people angry, they believed in the
old-fashioned idea of helping one's neighbour by voluntary effort.
"These laws are nothing more than legalised robbery — to take something
off a person against his will, regardless of the purpose for which it is
to be used, is no different to stealing."
But each man felt helpless and was afraid of the jail sentence which was
threatened for failing to pay. These welfare schemes gave some relief,
but before long the problem was back and more money was needed to cope.
The cost of these schemes rose higher and higher and the size of the
Most of the Governors were sincere men trying to do their best. They
didn't like asking for more money from their people and finally, they
had no choice but lo borrow money from Fabian and his friends. They had
no idea how they were going to repay. Parents could no longer afford to
pay teachers for their children — they couldn't pay their doctors — and
transport operators were going out of business.
One by one the Government was forced to take these operations over.
Teachers, doctors, and many others became public servants.
Few obtained satisfaction in their work. — they were given a reasonable
wage, but they lost their identity. They became small cogs in a giant
There was no room for personal initiative, little recognition for
effort, their income was fixed and advancement came only when a superior
retired or died.
In desperation, the Governors decided to seek Fabian's advice. They
considered him very wise and he seemed to know how to solve money
matters. He listened to them explain all their problems, and finally he
answered, "Many people cannot solve their own problems — they need
someone to do it for them. Surely you agree that most people have the
right to be happy and to be provided with the essentials of life. One of
our great sayings is "all men are equal"... is it not."
Well, the only way to balance things is to take the excess wealth from
the rich and give it to the poor.
Introduce a system of taxation.
The more a man has, the more he must pay. Collect taxes from each person
according to his ability, and give to each according to his need.
Schools and hospitals should be free for those who cannot afford them
..." He gave them a long talk on high sounding ideals and finished up
with, "Oh, by the way, don't forget you owe me money. You've been
borrowing now for quite some time. The least I can do to help, is for
you just to pay me the interest. We'll leave the capital debt owing,
just pay me the interest." They went away, and without giving Fabian's
philosophies any real thought, they introduced the graduated income tax
— the more you earn, the higher your tax rate. No one liked this, out
they either paid the taxes or went to jail.
Merchants were forced once again to raise their prices. Wage earners
demanded higher wages forcing many employers out of business, or to
replace men with machinery. This caused additional unemployment and
forced the Government to introduce further welfare and handout schemes.
Tariffs and other protection devices were introduced to keep some
industries going just to provide employment. A few people wondered if
the purpose of production was to produce goods or merely to provide
As things got worse, they tried wage control, price control, and all
sorts of controls. The Government tried to get more money through sales
tax, payroll tax and all sorts of taxes. Someone noted that from the
wheat farmer right through to the housewife, there were over 50 taxes on
a loaf of bread.
"Experts" arose and some were elected to Government, but after each
yearly meeting they carne back with almost nothing achieved, except for
the news that taxes were to be 'restructured', but overall the total tax
always increased. Fabian began to demand his interest payments, and a
larger and larger portion of the tax money was being needed to pay him.
Then came party
politics — the people started arguing about which group of Governors
could best solve tine problems. They argued about personalities,
idealism, party labels, everything except the real-problem. The councils
were getting into trouble. In one town the interest on the debt exceeded
the amount of rates which were collected in a year. Throughout the land
the unpaid interest kept increasing — interest was charged on unpaid
Gradually much of the real wealth of the country came to be owned or
controlled by Fabian and his friends and with it came greater control
over people. However, the control was not yet complete. They knew that
the situation would not be secure until every person was controlled.
Most people opposing the system could be silenced by financial pressure,
or suffer public ridicule. To do this Fabian and his friends purchased
most of the newspapers, T.V, and radio stations and he carefully
selected people to operate them. Many of these people had a sincere
desire to improve the world, but they never realised how they were being
used. Their solutions always dealt with the effects of the problem,
never the cause. There were several different newspapers — one for the
right wing — one for the left wing — one for the workers — one for the
bosses — and so on. It didn't matter much which one you believed in, so
long as you didn't think about the real problem.
Fabian's plan was almost at its completion — the whole country was in
debt to him. Through education and the media, he had control of people's
minds They were able to think and believe only what he wanted them to
think and believe.
After a man has far more money than he can possibly spend for pleasure,
what is left to excite him? For those with a ruling class mentality, the
answer is power — raw power over other human beings. The idealists were
used in the media and in Government, but the real controllers that
Fabian sought were those of the ruling class mentality.
Most of the goldsmiths had become this way. They knew the feeling of
great wealth, but it no longer satisfied them. They needed challenge and
excitement, and power over the masses was the ultimate game. They
believed they were superior to all others. It is our right and duty to
rule. The masses don't know what is good for them, they need to be
rallied and organised — to rule is our birthright."
Throughout the land Fabian and his friends owned many lending offices.
True, they were privately and separately owned. In theory they were in
competition with each other, but in reality they were working very
closely together. After persuading some of the Governors, they set up an
institution which they called the Money Reserve Centre. They didn't even
use their own money to do this; they created credit against part of the
money out of the people's deposits.
This Institution gave the outward appearance of regulating the money
supply and being a Government operation, but strangely enough, no
Governor or public servant was ever allowed to be on the Board of
The Government no longer borrowed directly from Fabian, but began to use
a system of I.O.U.'s to the Money Reserve Centre. The security offered
was the estimated revenue from next year's taxes. This was in line with
Fabian's plan — removing suspicion from himself to an apparent
Government operation. Yet, behind the scenes, he was still in control.
Indirectly, Fabian had such control over the Government that they were
forced to do his bidding. He boasted. "Let me control the nation's money
and I care not who makes its laws." It didn't matter much which group of
Governors were elected. Fabian was in control of the money, the life
blood of the nation
The Government obtained the money, but interest was always charged on
every loan. More and more was going out in welfare and handout schemes,
and it was not long before the Government found it difficult to even
repay the interest, let along the capital.
And yet there were people who still asked the question, "Money is a
man-made system. Surely it can be adjusted to serve, not to rule?" But
these people became fewer and their voices were lost in the mad scramble
for the non-existent interest.
The administrations changed, the party labels changed, but the major
policies continued. Regardless of which Government was in "power,"
Fabian's ultimate goal was brought closer each year. The people's
policies meant nothing. They were being taxed to the limit, they could
pay no more. Now the time was ripe for Fabian's final move.
10% of the money supply was still in the form of notes and coins. This
had to be abolished in such a way as not to arouse suspicion. While the
people used cash, they were free to buy and sell as they chose — they
still had some control over their own lives.
But it was not always safe to carry notes and coins. Cheques were not
accepted outside one's local community, and therefore a more convenient
system was looked to. Once again Fabian had the answer. His organisation
issued everyone with a little plastic card showing the person's name,
photograph and an identification number. When this card was presented
anywhere, the storekeeper phoned the central computer to check the
credit rating. If it was ok, the person could buy what he wanted up to a
At first people were allowed to spend a small amount on credit, and if
this was repaid within a month, no interest was charged. This was fine
for the wage earner, but what businessman could repay within a month? He
had to set up machinery — manufacture the goods — pay wages, etc. — sell
all his goods and repay the money. If he exceeded one month, he was
charged 1.5% for every month the debt was owed. This amounted to over
18% per year. Businessmen had no option but to add the 18% onto the
selling price. Yet this extra money or credit (the 18%) had not been
loaned out to anyone. Throughout the country, businessmen were given the
impossible task of repaying $118 for every $100 they borrowed — but the
extra $18 had never been created at all.
Yet Fabian and his friends increased their standing in society. They
were regarded as pillars of respectability. Their pronouncements on
finance and economics were accepted with almost religious conviction.
Under the burden of ever increasing taxes, many small businesses
collapsed. Special licences were needed for various operations, so that
the remaining ones found it very difficult to operate. Fabian owned and
controlled all of the big companies which had hundreds of subsidiaries.
These appeared to be in competition with each other, yet he controlled
them all. Eventually all competitors were forced out of business.
Plumbers, panel beaters, electricians and most other small industries
suffered the same fate — they were swallowed up by Fabian's giant
companies which all had Government protection.
Of course this is only a story, it can't happen here ... or can it? The
plastic cards are already here — their first purpose is to eliminate
notes and coins. When all notes are withdrawn or declared obsolete, only
businesses using the card system will be able to operate.
Eventually a chip will be implanted under the skin of each new-born
child. This will provide identification for everything he or she does as
well as supply details for every transaction carried out for the persons
way, you will be linked to a number, stored on a computer and every
intimate detail will be retained FOR EVER!
We are yet to know what impact this will have. But the facts
are clear. These advancements would not be done if it were not for fact
that it will benefit the lender of the money. It will not be done to
If they can squeeze another dollar out of each person each week, they
will go to endless lengths to introduce new technology.
What can you do? Possibly very little as everyone needs to
get an advancement for large purchases, especially a house.
But is interesting to know that nearly everything you are told is
completely inaccurate and untrue.