Banks Don't Loan Money, They Create It
– Finance Broker
Takes Bank to Court
By Uwe Schafer
What happens when a
former finance broker realizes that
banks don’t loan money, they create it out of thin air?
Imagine if you were a
finance professional who sells loans for a living, and one day suddenly found
out that banks do not actually lend anything when they claim to issue a ‘loan’?
In early 2011, whilst working as a Finance Broker in Perth,
Western Australia, I was pointed towards this very information for the first
time by a good friend. I instantly sought substantiation through in-depth
research and investigation, and much to my dislike, it wasn’t very difficult to
confirm these initial, incredible sounding claims. Banks create ‘money’ from
thin air and loan it to you, at
interest. This is the lie upon
which the entire world of banking and finance is founded.
Based on these early findings, I left my job within a couple
of days. For good. Think about it…
You earn your income in a role that you love, where you get
to meet tons of interesting people all the time, and in particular you get to
assist families, businesses and individuals achieve their dreams of
home-ownership, business expansion and lifestyle improvement. Then, as a
banker, the carpet gets pulled out from
under your feet when you discover that you have inadvertently been made an
accessory to one of the biggest deceptions going on right
in our midst — the very mechanism that keeps humanity (yes, that’s you too) in
perpetual debt-bondage.
Much has happened in these past 4 years.
After an initial period of going through some “grieving”, which had me move through stages
like self-pity and even anger, it became clearer that this journey down the rabbit-hole had only just begun, and that it would be
best approached with an open mind and especially an open heart, in order to
maintain sanity and peace in the house.
I therefore chose
going about this in a rational manner.
Firstly, as part of this personal process of growing
awareness, I became a ferocious reader and consumer of countless videos on
topics like government corruption, banking fraud and many more. It started to
appear, that the information landscape is studded with as many pieces of
information of a “conspiracy”
nature as it is with pieces of disinformation and lastly of course elements of
truth. Of course, it is not a simple process
to identify which is which.
I needed to put this to rest once and for all for my own
sanity. The most logical thing to do appeared to be directly “putting to the
test” the various financial
service providers I had engaged in my
personal life. That way, I could quickly get away from mere hearsay and
opinions and actually determine what the real facts were. Surely, in a
transparent and honest business transaction, it shouldn’t be difficult for
either party to come up with certain information to put the other side’s mind
at ease after concerns had developed pertaining to their mutual contract.
Naively, that’s what I expected – at
least initially.
After the first event of stone-walled silence and outright refusal by our bankers all around,
I stopped all payments to finance
providers, apart from our family’s home loan. I intended to test the validity
of these debts, and by written notices, I
continued to request in-depth information and substantiation that the
other party to the agreements had a real case to enable them to claim monthly
“re-payments” from me. It
didn’t take very long to find out that I
had hit the nail on the head.
At least I had one element of grace in all this; the fact
that my wife Barbara also “switched on”
at the same time making this journey very philosophical for us.
Over the course of two years, we dealt with dozens of debt
collectors, after the banks quickly on-sold these non-performing accounts to
get them off their books. Of course, the debt collectors now were even less
able to answer any questions of substance, and each time, quickly handballed
the matter to the next one via “debt-brokers”. Some accounts have been in the hands of over 6 companies
trying to collect from us. Still NO answers. And of course, no collection.
From direct experience, we discovered that their creativity
in this disgraceful profiteering had no end, and that virtually all levels of
operators in the world of finance are deeply complicit.
Some of you may ask: “But you got the money and the benefit,
didn’t you?” This is an
important question which I will deal with in a subsequent article, due to be
published very shortly. As it turned out, this question has become the
most important question in
our awakening to the reality of finance
and banking – a mechanism of
control – and is equally used by the courts to throw
out defences. Albeit not a question of law, it is pivotal.
For some, the penny drops quickly, for others a bit later.
Stay with me, as I set the scene for what happened next…
Democracy has lawful remedies, doesn’t it?
Over time, not one of
our “lenders” was able to
substantiate that the promises they had made within our mutual agreements had been accordingly fulfilled.
Instead, all approaches on our part were ignored, and force and bullying became
the norm in an attempt to force us to
comply.
What could we do
about it? Turn our backs and forget about it all?
For some reason, the harder I tried to walk away from it to
find a “normal” way of life
again, the more it reared its ugly head. It was as if I had made an agreement (maybe at
soul-level) and I felt compelled to continue shining the light into this
darkened corner. Hence, in mid-2012, we began challenging our home-loan
provider — the last bastille. Again, all approaches for
information were ignored or rejected.
In late 2012, we and the “lender” had agreed to a small loan variation, in the form of an
increase. It was at that point that we
added in a clause to the new
variation agreement, which compelled the lender to full transparency upon
written request from us. We advised them of this change by cover-letter and
offered the choice to decline the amendments. They did not decline and
settled the increase to the account.
Very shortly after, we sent in several detailed notices
requesting information pertinent to our agreement. These requests were ignored.
We clearly advised that in the event of non-provision of the information
requested, per our agreement, we would “freeze” payments until they had complied. Then in December
2012, we served the lender a “Notice of Breach of Agreement” and made no further payments.
The lender began legal enforcement proceedings with an action
in the Western Australian Supreme Court in March 2013.
Apprehensive, yet excited, we were ready to tackle and
settle this matter in the open arena of
justice, and to have one of our
“honourable” Australian judges
swiftly determine that this lender had overstepped the boundaries of the written agreement it had entered into with
us, and should perform according to that
agreement. After all, from my days in banking, it was clear that it
would take a professional operation only
minutes to extract the documents and pieces of information we had asked
for; things like bank statements, trust
account ledgers and settlement cheque disbursement sheets. Their refusal could
only be seen as an act of deliberate concealment.
Now 2 years later…
Over 100 “events”
have since transpired in this action and in court – application filings, responses, affidavits, hearings and more –
turning this into more than a full-time effort as self-represented litigants.
The bank has never brought any evidence into the record that it provided us
with funds on the day – the central point of their argument. The court
recognises and accepts that a breach of the above variation agreement exists.
Despite this, the ‘Justice’ awarded judgement against us in
August 2014. He suggested that we sue the lender for compliance. Our official
attempt to commence such an action was subsequently refused filing by the
court. All requests to have the lender
comply with the terms of our agreement
– which the court accepts were breached
– are being outright refused or sidelined by
that very court.
The judgement is currently being appealed in the Court of
Appeals, with a crucial public hearing
happening in Perth on 23 April 2015.
Convening a “Court of Public Opinion”…
We feel that the time has come to bring this story into the
public light in all its detail.
First I must say, that we have not yet exhausted the full
gamut of remedies “on offer”
within the judicial system. Yes, the Supreme Court decided against us and gave
judgment in favour of the bank in August. However, the Court of Appeal still
has an opportunity to overturn the earlier judgment. In banking cases this
outcome would probably be a first in Australia, but we are unable to unequivocally state that NO
remedy exists within the system.
We invite you to come
to the court in Perth on 23 April 2015 to personally witness democracy – or the
complete opposite – in action. Take a moment and read the latest
filings we have submitted to get a proper understanding of what exactly is
being argued in the case. It does
concern every one of you with a “loan” from a bank or non-bank lender of any shape or form.
Whether the Court of Appeal does the right thing and decides
according to the rule of law, or the rule of hidden paymasters, will soon be
apparent.
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