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Sunday, 24 May 2015

Banks Don't Loan Money

 
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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