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**wmhardware** · 07-18-2011, 10:28 PM

########## Banking Racket ##########

http://www.thetruthseeker.co.uk/?p=30128

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HAVE YOU ever wondered where the Banks get all their money from? When they grant you a loan or allow you an overdraft, where does the money come from? According to Frederick Soddy, former eminent Oxford University Professor, Banks are:

“Institutions which pretend to lend money, and do not lend it, but create it, and when it is repaid to them, de-create it and have achieved the physically impossible miracle thereby, not only of getting something for nothing but also of getting perennial interest from it.”

So the Banks create money out of nothing and charge you, the customer, over 10% interest to borrow it. And woe betide you if you default.

It is a delusion promoted by the Banks themselves that they are merely the custodians of their customers’ deposits, that they lend these same deposits, and that their profit consists of the difference in the rate of interest they pay depositors, and the interest they receive from borrowers.

The truth is that no Bank lends as much as a penny of the money deposited with it. Every Bank loan or overdraft is a creation of entirely new money (credit) and is a clear addition to the amount of money in the community. It is no more than a record in a Bank ledger or computer and is actually the creation of new money out of nothing.

When an account is drawn on by cheque and the cheque is lodged in another account at the same or another Bank, a deposit is created and the supply of money increased. Thus Bank loans create “deposits” which are not the source of loan money, but rather the other way round—they are the outcome of loans. Banks can create credit virtually without restraint. But usually sound Banking practice limits the creation of credit to nine or ten times the amount of cash or legal tender which a Bank holds.

When it is said that a particular Bank has so many million in deposits, it is erroneously believed that it actually has this amount of money to lend out. It is a complete delusion. Those deposits are not cash at all—they are nothing but an enormous superstructure of credit.

07-18-2011, 10:28 PM	#5
wmhardware Join Date Nov 2005 Posts 462 Senior Member	########## Banking Racket ########## http://www.thetruthseeker.co.uk/?p=30128 #################################### HAVE YOU ever wondered where the Banks get all their money from? When they grant you a loan or allow you an overdraft, where does the money come from? According to Frederick Soddy, former eminent Oxford University Professor, Banks are: “Institutions which pretend to lend money, and do not lend it, but create it, and when it is repaid to them, de-create it and have achieved the physically impossible miracle thereby, not only of getting something for nothing but also of getting perennial interest from it.” So the Banks create money out of nothing and charge you, the customer, over 10% interest to borrow it. And woe betide you if you default. It is a delusion promoted by the Banks themselves that they are merely the custodians of their customers’ deposits, that they lend these same deposits, and that their profit consists of the difference in the rate of interest they pay depositors, and the interest they receive from borrowers. The truth is that no Bank lends as much as a penny of the money deposited with it. Every Bank loan or overdraft is a creation of entirely new money (credit) and is a clear addition to the amount of money in the community. It is no more than a record in a Bank ledger or computer and is actually the creation of new money out of nothing. When an account is drawn on by cheque and the cheque is lodged in another account at the same or another Bank, a deposit is created and the supply of money increased. Thus Bank loans create “deposits” which are not the source of loan money, but rather the other way round—they are the outcome of loans. Banks can create credit virtually without restraint. But usually sound Banking practice limits the creation of credit to nine or ten times the amount of cash or legal tender which a Bank holds. When it is said that a particular Bank has so many million in deposits, it is erroneously believed that it actually has this amount of money to lend out. It is a complete delusion. Those deposits are not cash at all—they are nothing but an enormous superstructure of credit.
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