We all think that it’s Basic Banking 101 is for a Bank to take in their customers money as savings and pay 1% a year and then to lend it out to other customers (either existing or new) in the form of mortgages and loans and charge 6% or more and the bank keeps the difference.
They also charge borrowers admin and other fees.
But this does not explain - or even get close - to the profits that Banks declare.
Here are some recent ones:
JP Morgan - $39.94 Billion in the last Qtr of 2023
NatWest £6.2 Billion in the last Qtr of 2023
Wells fargo - $20.48 Billion in the last Qtr of 2023
HSBC - £24 Billions in the last Qtr of 2023
Bank of America - $22 Billion in the last Qtr of 2023
Lloyds Bank - £7.5 Billion in the last Qtr of 2023
Citigroup - $17.44 Billion in the last Qtr of 2023
Banks make this money by trading securities. Otherwise known as loans and Mortgages.
They lend you a fraction of the money they take in savings or deposits. The rest of the money they “loan” to you is actually just digits created on a screen…from nothing.
This is known as Fractional Reserve Banking. Until recently Banks had to retain £10 in liquid reserves for every £90 loaned out ….or they had to keep 10% as a “Reserve.”
But recently banks went to Zero Reserve Banking by lending out 100% and as of now all banks are effectively insolvent. In any other sector it would be illegal and the directors would go to jail.
Banks right now (April 2024) have less cash on reserves than customers have in deposits; hence their attitude towards you when you try to take out cash!
They don’t like you taking out cash as that makes their ‘digits’ real and causes no end of problems.
If you have a credit card, just look at the interest they charge you for using it as a credit card versus the charge if you (god forbid) go to an ATM and take out real cash.
But even the part about lending out deposits is a bit of a fantasy.
The first thing to remember is that Banks don’t really care about you or your credit score or even if you qualify for a loan or not; especially if you can offer tangible heritable property as security, because they know that if you fail to make 3 payments in a row, they can simply claim on their insurance and also take the property from you in foreclosure or repossession..and remember, they have risked nothing in acquiring it.
All the banks promote, and keep up the illusion, that a borrower qualifying for credit is an important factor in any lending decision. It’s not. If you have property as security and have a job, be under absolutely no illusion….you qualify.
Here’s why.
Once you “qualify” they will ask you to sign a loan agreement in the style of an application form…but if you study the layout of that form it’s actually a ‘promissory note’ and they cannot do anything until they have this signed agreement in their hands. (Take a close look at it and you’ll see it looks exactly like a cheque)
This is where the sleight of hand takes place to enable them to advance you the money.
Your note is placed as an asset of the bank and is credited to the bank’s asset base…but…according to the rules of double-entry bookkeeping… the bank must now also enter a debit entry to offset it’s earlier credit entry and zero the transaction.
The account being debited is to the bank’s own chequing or demand deposit account and in bookkeeping terms a debit is a liability (NB: this is an important point so stick with me on this!)
Then the bank deposits your ‘promissory note’ as ‘money’ on its books and they then transfer this ‘money’ into the bank’s own account as if it were their own and they do this without your permission.
It is now from the chequing or demand account that the bank then transfers the ‘loan’ back to you, the borrower.
This is actually fraud and criminal conversion.
It is facilitated by the creation of money from nothing.
Remember, when we borrow money from a bank, we make the perfectly reasonable assumption that we are borrowing the bank’s money and not out own newly created money.
That’s wrong. We are being deceived.
Not only are we borrowing our own money but we are paying interest on our own money AND we had to provide collateral or security for the privilege!
There is even an online publication that tells you all about this. Just do an online search for “Modern Monetary Mechanics” and there’s a pdf that you can download and read all about it in great detail.
For many people this is all ‘no big deal’ and ‘it’s the way banks have always done it’ or it’s custom and practice and…well….if you borrow money, you have to pay it back…right?
Why do you think the national debt is so high? Check the UK debt clock here:
https://www.nationaldebtclock.co.uk/
Growing at £5,170 per second.
Every time you sign a loan agreement, it creates new ‘money’…out of nothing.
97% of all money is digital. Only 3% is actual cash.
If you challenge the bank…and you know what you’re doing…you can expose this fraud for what it is…and a growing number of us are doing just that.
Doing it right, forces them under law, to provide you with a remedy for breaking all 5 pillars of Contract Law.
That remedy is to drop the loan and repay all the payments you have made.
Nice eh?
A fantasy?
Too good to be true?
So what have you got to lose by finding out?
Send an email to me at: keepatem@gmail.com and let me show you how it’s done.