Exposed:
The Basic Fraud Underlying Banking & Fiat Money
Hans Schicht
Let me start out with an extract of near identical articles written by me and published in 1997 in the Harry Schultz Letter and in the Cape Times of South Africa and in January 1998 in the News of Mexico:
Financial balloon threatens to burst
The financial shockwaves rampaging through Asia
constitute the first cracks in the Western monetary house of cards. Having
thrown all monetary discipline overboard and indulging in a global credit
creation debauchery of unbelievable proportions. the
Western financial institutions are the ones to be blamed for the Tequilla and
the present financial crises in Asia.
They know that their IMF, their World Bank and their
Reserve Banks will always bail them out with taxpayers moneys.
The Asian upheaval is not so much a crisis about over-capacity
of industrial production as claimed, but rather about the misdirected
“push-credit” policies of the West. And when the chickens will come home to roost
they will return to the West.
On such day of reckoning the world will not gradually and
resignedly slide into a deflationary downturn. We are living in a ultra rapidly
changing, hyper-tense world – on the threshold of a new age. Things are
happening! Humanity is fast and radically being remolded and globalized. The signs point toward upheaval, inflation,
unrest and radicalism.
The credit explosion and financial manipulations
of the past decades have created a “potential global inflation” of threatening
proportions. And once there is an overhang of potential inflation – in this
case in the financial paper markets – no force on earth will be able to
restrain it from pouring down, one fateful day, in a global deluge into the
commodities, wages, services and finally the CPI.
Inflation is hiding in the
speculative paper asset balloon and, when it bursts and the livelihood of
millions is threatened, then the only way out for the governments and the banks
will be to resort to “hyper-credit” and explosive money creation to forestall
immediate economic collapse and social unrest. Then inflation will be back to explode suddenly and unexpectedly with a
vengeance. Then the dilemma of stocks overvalued, or bonds, will be solved
when both shrivel away in value with
everything else what is paper.…….
That was 1997
And thus it is happening….
The
world has come to a point where it is faced with the total meltdown of the debt
bubble, it has become so addicted to. Financial chaos, banks and companies
collapsing, millions to be out of work, social unrest spreading, a prospect of
change of government in many countries either by the ballot box or by force. After
all, a situation to be expected, considering that
The western monetary system is based on fraud.
Let
me explain:
When
one puts all the combined wealth of a nation consisting of all the money in
circulation, plus all movable assets, the real estate, the industry, infra
structure, strategic reserves etc into one basket and then lets a third party,
the banker, get away with creating phantom “legal tender” money out of thin air,
then the banker is in a position to
acquire whatever assets he desires out of the original basket for nothing, thereby
diluting the assets of the original owners. The counterfeiting and that is what
it boils down to, works as follows:
Where
not explicitly stipulated that the specific depositor’s money loaned out by the
bank against interest has been blocked and thus temporarily has been taken out
of circulation,
The banker creates additional money by loaning out to third parties up to an
substantial percentage of total client deposits without asking for their consent
or their knowledge.
- Besides creating the money the banker by usurping the jurisdiction
over the created money , making it “his” money, also will have usurped the power over how and where the
new money will be applied.
- The practice by the banks to pay interest
on accounts is only a ploy to attract deposits and is legally not connected to
the bank’s own loan policy.
- Imposed by the Bank of International
Settlement, the only restriction is that the bank’s subscribed capital should
cover at least 8% of loans extended.
Additionally
to his capital, certain government bonds and a certain percentage of government
guaranteed mortgage holdings are allowed to be added to the capital base.
Lately also off balance sheet accounts, derivatives, swaps, and the packaging
of debt papers like sub-mortgages etc have added substantially to the banks’
capacity to create new money out of nothing. It boils down to:
The Banks inflate the money in circulation
by creating additional money up to at
least an amount of 12 times their own capital base. Thus making money on
twelve times their capital base! For instance by using depositors money a net
interest income of 4% gives the bank a real
profit of 4 times 12 makes 48% on its capital! Nobody can beat the
banker at that! And that is the reason the bankers have taken over the world.
Next the Central Bank comes marching in:
For
minimum cost it prints and provides all the new money the government needs against
government bonds in exchange. The Central Bank in cohort with the major banks might either sell the bonds on to investors, or
keep a certain percentage in their own coffers. The money received for the
bonds from the investor, far from taking it out of circulation and canceling it
out against the new money printed for to the government, as they should, the Central Bank and its share holders, the major banks,
are keeping these bonds plus the money received from the investors as assets in
their books illegally! If that does not boil down to outright fraud, I do not
know! Whereas, if properly done, the increase in the money supply, each
time the government subscribes for a loan, should always and immediately be cancelled
out against money in circulation received if properly done.
Correctly the book entries
of the Central Bank should run as follows:
- new money printed against proceeds to be received.
- government bonds received against new money printed. (once handed over)
- proceeds received (from new bond holders) against government bonds. (once sold)
- proceeds to be received against proceeds received.
This
way the Central Bank’s books would be in balance, but they are not. With bonds
(not having paid for them!) and proceeds illegally kept back in its coffers, the
books of the Central Bank can never balance. That is where the fraud resides. And that is the reason the Central
Bank refuses to have its books audited! I rest my case.
NB:
Not touched upon here are the secondary frauds:
-
The disguised Repo (repossessed) ball game with bonds played between the
Central Bank and the major banks.
-
The manipulation of the interest rate and the financial, the gold and the
silver markets. (there are no more free markets!)
-
The interest rates in themselves, where, with the principal of the loan already
phantom money, additionally the money needed to pay for the added interest on
the loan has also to be created
The
more the government and the people get into debt, the more loans have to be
taken up, the more phantom money the banker can create, the more interest income
the banker will receive and the more profit the banker will be making. Profits he
in turn can add to the bank’s capital base so as to give him ever greater leeway
to further his loan portfolio. Ad infinitum.
And that is
the way the Wealth Transfer Machine has been designed from
the beginning: by fraud.
In
the last hundred years the Merchant of
Debt, the Banker, has taken over the world, its industries, the Media (to
misinform the people), infra-structures. Enslaved its people and its
governments, destroyed grass roots entrepreneurship, the family and people’s
self esteem. All by fraud. Buying assets at home and abroad with phantom money
and phantom loans. Setting up fraudulent takeovers, mergers, IPO’s, buy-outs,
development loans and so on.
But enough is enough.
The fraud should be called and the
perpetrators of the crime brought to justice. Never to be given another chance
to impose new scams. Like their Digi-Gold now on the drawing board, which means
nothing else than establishing total control by means of Orwellian plastic-cards
for the people, but for the banker all the world’s gold and silver in their
vaults.
Re-instating
full or fractional gold-standards, or whatever system, will never have a chance
to succeed as long as the system is based on fraud and criminals are in charge.
Although the GATA (Gold Anti Trust
Action) initiative to free the precious metal markets from fraud and manipulation
is a major step on the road back to
financial freedom, it is only a first step. To really clear the mess, we
have to get to the heart of the matter by exposing the
basic fraudulency of paper money and banking.
Contrary
of what people are made to believe, we can do without phantom money and banks with
the exception of money transfer and safekeeping services.
What
the world does need is honest money
nobody can fool around with. People’s
money: Gold and silver. Hard assets that can be standardized and checked electronically
at public facilities for purity and weight.
All
the robber barons should be put behind bars. The Central Banks, the IMF, the BIS
abolished. All banks and financial institutions expropriated. All stolen assets
confiscated and either returned to their rightful owners or the proceeds re-directed
to cover the nation’s expenses for many years to come to the benefit of the tax-payer.
Financial laws should be re-written and financial crime made part of common
crime. All debts should be cancelled and Debt
declared illegal. Like
physical slavery was abolished so should
debt slavery.
Opportunity and temptation to crime should be reduced to a minimum. Transparency should be
brought into the affairs of man. Bearer
shares abolished and only shares on individual names allowed. Then the world will see who holds the ultimate
reigns of power! Markets
should be transparent and freely accessible on the web. Short selling, options,
futures, and derivatives should be abolished.
Should be, should be… that all sounds great, but regretfully that is not the way reality works. The
Merchant of Debt will ruthlessly proceed doing everything in his power to prolong his sleazy game: - taking all
paper currency out of circulation and implanting Digi Gold as mentioned above, -
splitting currencies into external and internal usage, - implanting price
controls, - imposing import, export and travel restrictions, - prohibiting the
transfer, transport and ownership of gold and silver, - imposing rationing of scarce
items and so on.
And
there won’t be much money left after Social Security, Pensions, Medicare and
Annuities will have been robbed dry. And the Merchant of Debt will see to it
that bonds will become worthless and stocks will hit rock bottom. Thus all the
people of the earth will become totally dependent and enslaved to Him. And even
if or when the politicians might push the Merchant of Debt aside and nationalize
the banks, they most probably will still proceed along the same lines once they
smell power.
Alas,
people have become like sheep and will not do anything about it. Thus the world
will ever more slide into chaos… Only if
people might learn to think again for themselves and still have the guts left,
only then might there be some hope for the future of humanity.
Grown
from grass root development and private entrepreneurship that brought on a
blossoming and blooming culture, greater than the world has ever seen, Western Civilization has committed suicide
by letting itself being lured into a monetary system that is fraudulent and
rotten at the roots.
Western
downturn will be fast. Much faster than happened to former civilizations. With
a fraudulent monetary structure on which everything depends in the process of rotting
away, civilization has not much left to hang on to. Digital money disappears with a stroke on the
computer and paper money burns quickly. In the good old times the process of the
clipping the coins took a bit longer.
Only
countries that will manage to rid themselves of the debt cancer might still have
a chance left to survive. If one wishes to have an understanding of how far the
debt cancer in one’s country has spread, then just count the number of banks in the
neighborhood!
Besides
the West, if Russia
and China
will keep on building on the same basis of monetary fraud, also they won’t make
it for long.
Be prepared
for rapidly evolving developments. The world is nervous, agitated, Anything unexpected might happen. The upheaval
in the world of finances will soon pass on to the world of economics and that against
the background of ever growing political
tension and strife. Financial Imperialism
in Crisis combined with the ongoing war for world’s dwindling resources might any day turn into real warfare
on a global scale.
Hans Schicht
March 28, 2008
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