Your life, work, debt, and how money is created

[Steve]

How many of you knew this?...

Everytime someone takes a loan, money is created, from nothing. How it happens is absurd.

Step 1: You ask for a loan of say $100k. the bank gives you $10k of other people’s money, then makes up the $90k from nothing.

Step 2: The bank asks you to pay back $100k (of which $90k didn’t even exist before), AND pay interest.... OR they'll take your assets.

Risk to the bank?.. NOTHING? Risk to you?... everything.

Now add this to the fact that there is more money in circulation (that goes to the banks anyway), so that all the other money owned by other people has just lost value. This is because more paper money around = it is worth less. This is what “inflation” is. We are all getting screwed and most people don’t know it.


How many of you sit and your desk working, and occasionally wonder "What am I doing here?".

Who are you really working for?..

Why are you working?..

You chose your life..

You can choose to do anything..

How?

Figure it out. It's not complicated.

Maybe start with :.yourway.org.au

If you think a winning roulette system is your ticket to happiness, you're looking at the wrong thing.

[ausguy]

I'm sure that loan things not correct Steve ? Say I get approval from my bank for a $100,000 loan to buy myself a nice shiney new luxury cruiser boat.

I get a cheque from the bank for $100k made out to the boat dealer. I complete the paperwork & sail off with my new boat for plenty of rest & relaxation.

The smiling boat dealer deposits the $100k cheque into his bank account, where within a few days the funds are debited from my bank & credited into the boat dealers account.

These funds have to come from somewhere & that somewhere is from other depositers money or wholesale funds borrowed by the bank.

By Australian banking law banks must have 10% of total money assets held in reserve. The other 90% of total money assets is allowed to be lent out.
Banks do borrow money on the wholesale money market & lend it out for profit. This is one of the reasons their interest rates fluctuate.

Banks don't print money & so "pluck it out of thin air" like a magician. The only authorities that can print more money is the Goverment/treasurery under the control of the Reserve bank. To the best of my knowledge they haven't done that. The previous Labor Govt. was borrowing money from the International money market & so racked up huge debt for OZ which the now Liberal Goverment is trying to rein in.

It was the USA that has printed money out of thin air. Federal Reserve & as a result their debt is close to $17 trillion dollars. Remember $1 Trillion dollars is 10,000 pallets @ $1 billion per 10 pallets. Have a look on you tube by typing in WHAT DOES ONE TRILLION DOLLARS LOOK LIKE.

There's other related debt issues queued there as well.        It's more than sad that 40 million plus US citizens are on food stamps, 10 million plus are homeless & have been living in tents for years. Detroit is bankrupt & over 700,000 people have left that city. A large number of other cities & towns are on the ropes. USA Sport & TV (celebs etc.) masks the true situation. Wall Street is the cause of these problems but has been the main beneficery of the FED. money printing. Gates, Zuckerberg, Buffet etc. have all made record profits. The concentration of wealth is way past immoral.

There's a lot of financial pain to come, especially for future generations.   

[Steve]

See response below in blue text:

I'm sure that loan things not correct Steve ?

Actually it is correct. The federal reserve themselves explained it in the publication "Modern Money Mechanics" and they can do it because it's legal.

Say I get approval from my bank for a $100,000 loan to buy myself a nice shiney new luxury cruiser boat.

I get a cheque from the bank for $100k made out to the boat dealer. I complete the paperwork & sail off with my new boat for plenty of rest & relaxation.

The smiling boat dealer deposits the $100k cheque into his bank account, where within a few days the funds are debited from my bank & credited into the boat dealers account.

These funds have to come from somewhere & that somewhere is from other depositers money or wholesale funds borrowed by the bank.

90% of those funds are just NUMBERS IN AN ACCOUNT. THAT'S ALL. AND THEY COME FROM SOMEONE TYPING IN NUMBERS IN A COMPUTER.

You are asking "where does the "value" come from?".... and it comes from the othre money already in circulation. That's what inflation is. And its why prices for everything keep going up. Because now $2.00 has the same buying power as $1.00 previously had.

By Australian banking law banks must have 10% of total money assets held in reserve. The other 90% of total money assets is allowed to be lent out.
Banks do borrow money on the wholesale money market & lend it out for profit. This is one of the reasons their interest rates fluctuate.

No it is not their money they are lending. They are lending 10% of other people's money, and the other 90% is completely made up. They are not supposed to lend other people's money, but how can anyone track what is the bank's money and what is the client's money? Anyway the important part is the 90% that's created from nothing.

Banks don't print money & so "pluck it out of thin air" like a magician.

The Federal reserve does that. And the banks get it from the Federal reserve.

The only authorities that can print more money is the Goverment/treasurery under the control of the Reserve bank.

On instruction of the Government, the Federal Reserve prints money. This is why the debt keeps climbing and climbing. It's all based on debt. The more loans, the more money, the more debt. Most money is actually nothing but numbers in accounts. Nothing backing it. Not gold, nothing, except our accepted value of it.

To the best of my knowledge they haven't done that. The previous Labor Govt. was borrowing money from the International money market & so racked up huge debt for OZ which the now Liberal Goverment is trying to rein in.

Its the same all over the world.

It was the USA that has printed money out of thin air. Federal Reserve & as a result their debt is close to $17 trillion dollars. Remember $1 Trillion dollars is 10,000 pallets @ $1 billion per 10 pallets. Have a look on you tube by typing in WHAT DOES ONE TRILLION DOLLARS LOOK LIKE.

All bank loans and finances work the same way. It is not just the USA.

There's other related debt issues queued there as well.        It's more than sad that 40 million plus US citizens are on food stamps, 10 million plus are homeless & have been living in tents for years. Detroit is bankrupt & over 700,000 people have left that city. A large number of other cities & towns are on the ropes. USA Sport & TV (celebs etc.) masks the true situation. Wall Street is the cause of these problems but has been the main beneficery of the FED. money printing. Gates, Zuckerberg, Buffet etc. have all made record profits. The concentration of wealth is way past immoral.

There's a lot of financial pain to come, especially for future generations.

There is planned collapse coming soon, so the people pulling the strings can bring in the so-called savior, which is global government and global currency. They themselves call it the New World Order.

So much more going on. Take a look at this, and note the date.

George Bush Sr. New World Order Live Speech Sept 11 1991

And...

Money As Debt - Full Length Documentary

If everyone knew what was going on, the banks and everyone involved would be lynched

[ausguy]

Steve - We have a difference of opinion here on AUSTRALIAN bank loan funding. All my research, including our Reserve Bank, shows that bank loans require real actual funding, not keyboard created CYBER money.

The figures show that funds primarily (72+%) come from domestic deposits & to a lesser extent International deposits. The rest coming from institutional investors & financial fund traders..

The bulk of loans is centred on the home loan market.

Extending your logic then a lot of the record profits that the banks are making are paid with nil value Cyber money ? A huge proportion of these profits are paid out to shareholders. When do you ever hear shareholders squealing that their dividends have no real value ?

Taken to it's maximum CYBER money trading would lead to a collapse of banks & that ain't happening here in Australia because banking laws require all loans to have real money funding. Also lending ebbs & flows from year to year. Some years banks are very tight with their lending & other years they are almost giving money away. Also if they were creating money from nothing then they would be able to offer unlimited loan facilities & that has never been the case. Most loans require a lot of hoop jump throughs.

Modern Money Mechanics is USA orientated. I saw some mention of how the Australian banking system is more effective than the USA's & thus has come through tough world economic conditions in great shape.

Government & Institutional debt is a different animal. The biggest problem the majority face is inflation. I don't know how people can take on a mortgage of $1/2 million dollars ? In 1986 I bought my house (Western Sydney Metro) for $66,000. Houses in the area sell for nothing below $400,000.

That YOURWAY site is good in theory for affordable homes & lifestyle but I don't see it working for even small %'s of the tens of thousands of new home owners each year ?
Councils/Goverments generally don't want clusters of small populations in Rural areas for infrastructure reasons, town planning & all that sort of thing.

Like 10 or 20 couples/families building homes on 100 - 200 acres long term is a big ask simply with the challenge of harmonious living. Then there's councils to deal with & legal aspects of unsubdivided shared property & facilities.

[Steve]

See link:://:.sosnews.org/library/banks/money2.htm

It is much the same in Australia.

From Costello:

"Ninety-six per cent of the growth in the money supply in the two years from March 1996 occurred in financial institution deposits as a result of the financial institutions themselves growing the money supply"

Translation: The banks make most of the money, when people ask for loans.

Also:

"Banks grow the money supply every time they claim to lend money. I say claim to lend money, because banks do not really lend money. When money is borrowed from a bank, the bank actually creates new money or credit out of nothing. It credits a loan account it has set up on its books with a deposit which can be drawn upon by the borrower. As banks must pay out deposits on demand this is a liability for the bank which is entered in the debit side of its ledger. On the credit side of the ledger, because the bank charges interest on this created money, this is an asset for the bank earning it income. Everyone sub-consciously knows banks do not lend money. When you draw on your savings account, the bank doesn't tell you you can't do this because it has lent the money to somebody else. You would be pretty irate if this happened because it would amount to theft."

The global financial system is a closed system. You either submit to it, or you cant buy or sell. And if you rely on it to live (almost everyone), you are a slave to people that control it (the banks).

"Give me control of a nation's money and I care not who makes it's laws" â€" Mayer Amschel Bauer Rothschild

Most people know none of what is happening. If they did, there would be enormous outrage because it is legal theft. You can have $1M sitting in the bank, you are a rich man. Wait 10 years, and that same $1m will have half the buying power, so you will be half as wealthy.  HOW?.... because the more money there is in circulation, the less valuable $1 becomes.

And who ends up with the wealth?.... the banks, because they are making money from nothing. They loan us money they just made up, then ask us to pay interest. And that extra interest doesnt even exist UNTIL someone else asks for a loan.

What happens is beyond absurd. It is absolutely insane.

It is very hard to initially get your head around this all, because we assume money represents SOMETHING of value. When really it doesnt. It is just paper. And if you print lots more of it, then it wont be as valuable. The same thing happens although most of it is just numbers in a computer. They are legally stealing from all of us and they have said themselves that if everyone knew what was happening, it wouldnt be allowed.

[stringbeanpc]

Good point Steve

If anyone is interested in researching this further, may I recommend a book by author G. Edward Griffin
"The Creature from Jekyll Island: A Second Look at the Federal Reserve".

link:://:.amazon.com/The-Creature-Jekyll-Island-Federal/dp/0912986182/ref=sr_1_11?ie=UTF8&qid=1393538482&sr=8-11&keywords=g+edward+griffin

He also has numerous videos related to this on youtube.

Mr. Griffin was a speaker at and event I attended in May of 2000. It helped me begin to comprehend what is happening in the world.

[theory816]

Thanks for the post Steve. Its post like this that really helps people to see whats going on. I would probably still be blind today if it wasn't for you just putting the info out and then me doing further research and coming to my own conclusions. Needless to say the truth is not pretty.

[Steve]

More people are learning about it. If each of us passed the word on, enough of us would know, and the banks and their house of cards would fall.

But also keep in mind that its not a matter of IF this will happen, but WHEN. And they have plans in place for WHEN it happens.

Their plans mainly centre around fear. Not just false flag attacks. Expect more of it, pandemics, manipulation in media, manipulation from every direction. Some people find it hard to believe there are "government conspiracies". No, it's just ruthless businessmen that dont give a crap about you or me. They are in key power positions, and they want total control. They are not specifically our "government".

JFK wanted to get rid of the Federal Reserve. What happened to him? He pissed off a lot of big business so it could have been one of many people that killed him, so its anyone's guess.

See what JFK said about secret societies, before he was killed:

President John F Kennedy Secret Society Speech version 2

It goes deeper and deeper. Not everything people say about what's happening is true. In fact most is speculative unsubstantiated junk, but you need to be able to sort through the junk and find the facts, and yes you're right, it isnt pretty.

Here's what to watch for... global collapse by design. They intend on making this happen. WHY?.... so they can bring in their global government and currency to push as the "solution" to all our pain. It is a ruse. They caused the problems specifically to bring about their "solution", and if we accept it, being free will be so much harder. Like when the Germans gave Hitler absolute control. THEY gave him the power. They believed his rubbish.

These people are very clever. they can put whatever they want on tv, in the news. Blame it on china. Blame it on korea. Who knows. But their surveillance allows them to know what people are thinking, so they know what actions to take. but the one thing that will stop them is you having balls enough to stand up for what you know is right in yourself. You can be their slave and submit to fear, or understand living as a slave is not a life at all. Many of us want non-violent solutions to this, but would still rather die than let them control us. The more fear you have, the easier you are to control.

[ausguy]

Steve - If Australian banks just create money out of nothing then why are they buying $Billions of real money from Domestic & International markets at wholesale rates ?  It's this action that grows the money supply. On lending it to people with a % premium is where they make their profits. Credit cards high interest rates & a myraid of fees & charges further boosts their bottom line.

The quote in thicker darker writing is only partly correct. One of the greatest fears for a bank is a RUN on withdrawals by spooked depositors. This is because 90% of all deposits are lent out leaving only 10% "in the kitty" to pay out with.

It's already happened in recent months/weeks (& before just check it on google). HSBC UK had a run on deposits & was limiting withdraw amounts. MY BANK in Russia/Ukraine put a temp. ban on all withdrawals. Further back Cyprus was broke (bailed out by the European Union) & depositors couldn't get  access to all their deposits & ATMs there had lower withdraw limits many ran out of cash & weren't refilled for many days.

There's predictions of a crisis with the Bank Of America next month. There's also concern that 14 bank managers over there have commited suicide & also the Fed. Reserve only has $41 billion in reserve to cover $6 trillion in deposits.

Inflation & debt go hand in hand. This is the biggest problem facing the majority of people. Day to day living costs, the cost of housing, being "chained to the wheel" of ever increasing debt. Average workers wages have hardly risen in 20 years but property prices have increased by up to 400%.

Yes totally agree about the control of money & therefore the control of peoples lives as well as Governments. Even if the USA is "wiped out" as a world financial power there will always be another to step in & take over. China is well placed to do that. Would the world be a better place then ? Probably not ?

The USA controls all the action being the biggest economy, everywhere else mostly can only follow.

Continued deferrals by congress is only delaying a world crisis. Most countries of the world are on the verge already. Australia is seeing accelerating unemployment. Ford, Holden (GM) & Toyota will be all gone to Asia in a few years. Qantas is flicking 5,000 jobs. Detroit collapsed on the back of the auto industry exodus.

It's 85 years since the Great Depression & the worlds population was just over 2 billion. Now it is over 7 billion, so when the collapse comes it's going to be much worse than in 1929 simply because there's 5 billion more people.

[Steve]

Just because they can make money from loans doesnt mean they wont do other things that profit them. Transaction and general account fees is pennies compared to being able to make up billions from nothing.

The quote I posted is from an earlier Treasurer of Australia (Costello).

Yes inflation and debt go hand in hand. That's because debt is increasing money supply, and increased money supply is inflation. Everything is costing more because the buying-power of money is diminishing.

In my opinion, China is no different to the USA. In fact, the USA's international policies and actions are worse than China's. As far as civil rights abuse, both are as bad as each other.

Here's part of the preparation for what is going to hit the USA:

Fema Camps 2013

I believe the aim of people puling the strings is to "break" all countries and currencies, then bring it all under one global system that they have total control over.

The USA is well and truly broke. The only financial power they have is perceived power.

Yes large companies are going down everywhere. Latest here is Qantas in trouble. Yes there is imminent disaster coming. Realistically it wont be stopped. It is going to happen for sure. Its already happening.

The biggest asset soon will be FOOD. It grows from the ground and is free, but people forget that. But by the time people realize this, the crisis will be full scale, with massive food shortage and no time to grow what is needed.

[Steve]

Also importantly, awareness of what is happening is only part of the solution.

The main part is understanding that everything you "need" is already free. Food and water have always been free. Yes harvesting takes a bit of effort, but then again so does paying for a $500k mortgage.

BACK TO BASICS... with some modern technology to make life more comfortable.

Thats what :.yourway.org.au is about.

And it is not just a fantasy. People are doing this. See :.ic.org although this is a small part of what is possible.

It is not a dream, unless thats all you think it is, and if you fail to understand only you set limits. You can do anything. Choose anything.

It starts with having LAND. But you know you dont even own land. You only have right to use it. And you arent even allowed to do whatever you want with it because of council restrictions. To that many people say **** the restrictions, you have a right to live. And besides there are various types of buildings that have virtually no impact on the environment, and dont require a building permit. But you may need a residency permit.. yes a permit to live on your own land.

Where is the line?.. Now you need a permit to live?

One way or another, this control is going to end globally. And it ends for you personally, the second you choose to be free. And there will likely be consequences for being free, and its up to you to accept them or not. Or to bend over and later as an old dying slave, wonder what you missed out on because you were scared.

The thing about these people pulling the strings.. they cannot force us as a civilization... we have the "invite" them in, and let them rule us. We have been doing it unwittingly already. By our choice is the only way they can maintain control, or we revolt eventually. Thats why they use fear and manipulation.

[amk]

Things are better then we think. Dont be fooled : )

A lot of smart people out there helping to change things.

[Steve]

I dont think it is better than how it seems. It really is very bad, for now. And it will get much worse before it gets better. But being scared will actually make things worse. Better to be aware, and take steps you need. I dont mean a bunker and Ak47. I mean stocks of seeds at least, and some emergency food that will last until you can grow more food.

Sure there are smart people, working to benefit us all. But:

1. I'd rather take responsibility for my own life

2. I dont doubt there will be positive change, eventually. But before that happens, there will be enormous losses of life and hardships that could have been avoided.

If you live in populated areas and have no way of surviving without having to pay for something, you will be in the worst position. People in rural areas, with ability to be self-sustained, even if with some struggle, will be in a much better position.

But it is more than about taking care of yourself, because decisions from scared and misled people will affect us all. So we are unfortunately all in it together.

[jjfx]

Step 1: You ask for a loan of say $100k. the bank gives you $10k of other people’s money, then makes up the $90k from nothing.

When I saw that I asked myself how old is steve, 14 years old? Finance and banking is not your
strong side, no offence

First!
Bank do not create money from nothing, this is so wrong if you think like that.
How in my country works:
client deposit 100 000
13% goes to central bank reserves ( it's a must for all banks, without that they can't work)
??% bank reserves ( the bank decide that, and with that money operates eveyday, loans, short loans etc)
the remaining % is liquidity for the normal business..

every day the bank calculate it's daily balance...

the more % is the bank reserves higher, we can call it risk politics of the bank, smaller %, low risk politic....

sorry for my english....

I reall dunno why you said that

[ausguy]

I'm mostly with you jjfx except for the 14 years old thing. Also "sorry for my english". The more you practice/study it the better you become.
Understanding correct speech, spelling & Grammar is the key to success.

My friend (Australian) has found himself a girlfriend in the Philippines. She speaks English OK after a couple of weeks of being on a visit here but when she returns home the main language spoken is Tagalog (local dialect) & when they (friend/GF) speak on Skype she can hardly be understood at 1st (regression to native language). At Party Casino live dealer the studio/casino is in Latvia & has Latvian lady dealers. They think they can speak English but in fact a lot of them are difficult to understand as they speak too fast & have an accent that makes it hard to know what number they say has dropped ? Understanding Indian English at call centres is similar. It's all to do with the tongues position in the mouth.

As to LOAN FUNDING I think I'm on a DIFFERENT PLANET to others on here. I am only talking about Australian banks here, so what is law here may not be how banks operate in other countries ?

I just went to the Australian Bankers Association site (ABA). First up they state that their information is primarily sorced from the ABS = Australian Bureau of Statistics (an Australian Goverment Department).

Under their heading BANK FUNDING the ABA stated " In order to support their lending banks source their funds from * customer deposits ** wholesale markets (domestic & international)" ......"At the end of June 2010 BANK FUNDING WAS $1.47 TRILLION "..... "*53.5% were retail deposits and ** 46.5% were wholesale".

So Steve as you never answered my question before, I'll ask you again IF AS YOU SAY BANKS CREATE MONEY FROM NOTHING FOR LOANS WHY DO THEY

NEED TO BORROW AROUND $1 1/2 TRILLION DOLLARS EVERY YEAR ?  Creating money from nothing & bringing in $1.5 TRILLION just doesn't compute for me no matter from what angle you examine it from ?