Take the Red Pill

Henry Ford said…"If the public only knew how the financial system worked there would be riots in the streets tomorrow."


Henry Ford was correct. What most of us have failed to understand is how banks make money with fractional reserve banking AND OUR SIGNATURES!!


We think money is a piece of paper with green ink on it here in America. We also think it's change in our pockets, (coins). It is! But there is so much more money in circulation amongst the banks that isn't green ink or coins and we are never taught that in school. Our dollars in America are called Federal Reserve Notes. They are debt instruments (IOU's) because they are backed by nothing tangible. Earlier in America they were backed by gold and silver so that you could take a dollar to the bank and exchange it for an equal amount of the precious metals. Now they are backed by nothing but the full faith and credit of the American people. We are the only ones who can give them value simply by believing they are valuable! And why wouldn't we believe in their value since we can take them to the store and buy stuff with them? But the minute that people start to doubt their worth, they won't be money any longer. They are merely fiat currency, fiat meaning "by decree", and fiat currencies, throughout the centuries have failed every time. The American dollars, (federal reserve notes) will fail too. We have been given a little more time than history shows fiat curriencies to last because American dollars have been the world's reserve currency. No one wants to see our dollar fail because their own country's currencies are tied to it. When we fail they suffer too.


But I digress from the point of this post. What else is money besides federal reserve notes?


My signature upon the promissory note (for my house) to the bank created money for them. Since my note was worth about $92,000 they were able to deposit that paper just like they would deposit federal reserve note paper and create a new asset account upon their bookkeeping for about $92,000. Because they had a new asset they were allowed to create about 10 times more new money out of thin air to loan to other people or in my case $920,000. Fractional reserve banking allows them to create 10 times more digital money on their computer than the assets they show. In some cases more!! They used that new money creation to pay the seller who sold me this house.


In essence, I’m the one (my signature) created the money for my own home loan. The bank never risked anything of their own. That violates an important law of contracts. Each party to a contract has to bring something of value to the transaction. (Equal risk) The bank risked nothing of their own and yet they made me believe they risked $92,000 of their own money. That is pure fraud!


Since I believed that I had put the bank at risk because they told me they were loaning me their money, I agreed to pay a 30 year mortgage with interest at a fixed rate of 6.5% and have paid for almost nine years. AND I have also spent several thousand dollars remodeling this house because it is a 1968 model. I've put new kitchen, new wiring, new plumbing, new heating and cooling, new roof, new flooring, new bathroom fixtures, garage door openers, replacement windows, new gutters, new vinyl siding trim for maintenance free exterior, bought a storage shed for the back of property...about $30,000 dollars worth of improvements. (For them now.)


I became unemployed in Oct. 2008 but did a part time job afterwards (helping my brother sell a household full of furniture, antiques, and books that he inherited) and was able to continue making house payments until last August. They are about to foreclose on me now. I don’t care anymore. I’ve already had time to study what Henry Ford was talking about. (Unemployment gives a person more time to study how things work.)


We don’t owe the banks anything according to their own accounting practices. Ask one of them to show their bookkeeping records showing your indebtedness. (They won’t and they can't) because it will expose the total fraud that is banking. Our signatures are one the most important things we have in life and when we sign for a banker, we are creating money for them to use and fractionalize to use 10 times over. I never gave a banker permission to profit from my signature without disclosing it to me. Did any of you give your permission for them to enrich themselves in that way from your signatures?


Credit cards, car loans, student loans, and any other type of loan where you have signed for it with a bank work the same way as home loans. They score big time off your signature!


It’s different with people to people loans. When your brother loans you money he really does put himself at risk because you’ve taken some money from him that he has saved. He can’t take your signature and fractionalize it like a bank does. The only way he can ever get that money back is if you are honorable and pay him back. I think this is where we get confused. Doing business with each other as people is one thing, doing business with banks is totally different.


Do you really think that banks would loan their own money to millions of people not knowing who would pay them back or not? (Talking about sub-prime loans here) Leaving them on the hook for 30 years or more? Or leaving them at huge risk of never being paid at all?? They make all their money up front (and 10 times more off your signature) and it’s just icing on the cake if they can get you to pay 30 years worth of principal and interest to boot. That credit score that we’ve been thoroughly trained to believe is important….it is important!! It lets the banks know what an obedient slave you will be!!!


There is a movie you need to watch. Consider it an important part of your banking and finance education. Google video and then type in "The money masters" It's three and a half hours long. What other class have you taken that makes a huge difference in how your life works and you can take it for free?


I know that three and a half hours is long. But take it in bits and pieces. Pause it when you have to but watch all of it so that you can finally learn what money is, and how it works.