Dateline: 12 August 2015
Updated: July 2021
My previous blog post has me thinking about the banking system. Ever since I learned the fundamental truth about banks (and bank loans in particular) some 40 years ago, I have sincerely loathed the banking system. This loathing is, I'm sure, a big part of the reason that BitGold appeals to me (2021 Update: BitGold morphed into Goldmoney a few years ago].
In my book, Writings of a Deliberate Agrarian, I have a chapter titled, My Debt-Free Home And A Personal Testimony. In that chapter I tell the story of how I would not go to a bank for a loan to build (or buy) a house after my wife and I were married back on 1980. I stated that I would rather live in a shack, debt free, on the 1.5 acre of rural land we had just saved for and bought, than live in a house that the bank owned. (To some degree, we did build a shack to start out. The house was very small, unfinished, and covered with tar paper for many years. But I digress.)
In this blog post I want to shine a light on the immoral, psychopathic loan scheme that banks routinely perpetrate on the unknowing masses. What I’m about to share with you is not common knowledge, but it should be. This fundamental truth about our evil banking system should be shared with all your friends and family. Our children should be taught the evil of banks and bank debt from a young age.
Modern banking can be very difficult to understand, and I don’t understand it all, but I understand the evil bottom line that I’m about to share with you. This evil bottom line is very simply that when a bank loans you money, it is Ex nihilo money.
Ex nihilo is a Latin phrase that means "out of nothing.” Ex nihilo is typically associated with the Christian account of creation. The Bible says that God created the universe and all that is in it—that He created it out of nothing (He spoke it into existence).
Ex nihilo creation is a divine attribute that the banking system has appropriated for it's own profit. The banks do this by creating credit-money Ex nihilo when you go to them for a loan. The more popular expression is that banks create money for loans “out of thin air.”
Unless you are already familiar with this Ex nihilo creation of "money" by the banks, it sounds kind of unbelievable. But as proof of this claim, I would like to introduce the following YouTube film clip. In less than 2 minutes, two international bankers make it perfectly clear that when someone gets a loan from a bank, the bank creates the money “out of thin air.” Here is the link: Where Does Money Come From.
In the case of our home (the little, tar-paper house my wife and I built shortly after we were married), my wife’s father, Jay Myers, loaned us $10,000. He was a retired dairy farmer. Jay accumulated the money that he loaned us by working hard (very hard), sacrificing, and saving it. He did not create it out of thin air.
But that isn’t how it is with bank loans. Banks don’t work to earn the money they loan to their “customers.” They do not expend time and their life energy to accumulate the money they loan. They do not personally sacrifice anything to get the money. They just create an entry in a ledger and loan it to you. Prior to them making the credit-loan, the "money" did not exist.
That is, as the saying goes, a fact, Jack. Now for the even more incredible aspect of this banking scam…
If you borrow money that was created out of thin air from a bank, the bank fully expects you to pay the money back. You know this already, of course, but I just want to put it in perspective...
You are not allowed to pay the loan with money you create out of thin air. You have to expend your time, your talent, and your life force in order to earn the money to pay the bank.
I hope you see the wickedness of this system. There is more….
If, for whatever reason, you can’t pay back the credit-money the bank created out of thin air, or if you can’t pay it back on time, the bank will foreclose on your property. Again, you already know this, but I need to point it out. The bank will take practically everything you own of any value in an attempt to get their “money.”
A story of bank foreclosure was recently related to me by distant family members. The local Law came to the couple’s home and informed them that they had to leave. When asked what they could take with them, the Law told them they could take their clothing. Everything else belonged to the bank.
In that particular instance, the couple had a thriving greenhouse business at their home, and income-generating commercial rental property in town, but they had fallen $11,000 behind in their bank payments because an employee was embezzling money.
Being in a difficult situation, the couple had a $100,000 line of unused credit at the bank and figured they could tap into that to get them through the crisis. But the bank informed them that their line of credit no longer existed.
When it was all said and done, the couple lost everything they had worked all their life for up to that point (over half a million dollars in total loss).
Stories like that are common when it comes to bank loans, especially when the economy goes bad (and the economy always goes bad eventually). The incredible injustice of it is, once again, that the banks create the money out of thin air, and when it can't be paid back, the banks want tangible items of real value to satisfy their loans.
If all of that isn’t bad enough, there is the aspect of interest (usury). The banks create money out of thin air, expect you to pay it all back, AND they want you to pay even more for interest. It is insult on top of injury.
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This fundamental lesson in thievery should make you suspicious of banks in general, especially the big banks. The big banks are perpetually scheming and developing techniques for fleecing the masses. You would think that creating money out of thin air, loaning it to people, and charging interest would be sufficient to make the banks all the money they could ever want (all without working for it). But the modern banking system is never satisfied. It always wants more money. Banking is the epitome of greed.
And when the bank’s greed gets them in trouble, as was the case back in 2008, they expect the government (American taxpayers) to bail them out. Fact is, back in 2008, the banking system’s top people in government (former high-level bankers hold the high-level positions of finance in our government) told the American congress there was no other option but to bail the banks out.
Calls to Congress by Americans were 100 to 1 against any bailout of the banks back then. But Congress bailed out the banks.
We now have government of the corporations, by the corporations and for the corporations, with the banking corporations being the most powerful. Or perhaps they are a close second to the military-industrial corporations.
It's easy to go off on a rabbit trails when it comes to banks with their greed and corruption. My point with all of this is that there is more than meets the eye when it comes to bank loans, and I don't think that borrowing money from a bank is wise. I know that practically everyone does it, but that is beside the point.
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This same principle of Ex Nihilo money creation by the banking industry is also used in a big way to acquire the wealth of developing nations. The reality of this is mind boggling. Check out This 2-minute YouTube Movie. It is an excellent overview of how the game is played out. The narrator is John Perkens, a former "economic hitman."
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I should make it clear that this blog post is not directed at all the people who work for banks. My brother-in-law is in banking, and he's a truly great guy. My daughter-in-law also works in a bank. Although I personally would have moral reservations about working in a bank, there are plenty of decent, respectable folks who do work in banks. It's the banking system itself that is corrupt.
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