If you have watched the short video Bancorruptcy and thought to yourself that creating money when a loan is made only happens in the US… or England, CONfinance is for you.
Somewhat burried within the Corporations Act 2001 is the definition for Providing Finance…
According to the Corporations Act 2001, providing finance means:
(a) lending money; or
(b) giving guarantees or security for loans made by someone else; or
(c) drawing, accepting, indorsing, negotiating or discounting a bill of exchange, cheque, payment order or promissory note so that someone can obtain funds.
The last paragraph is the nugget… it expands out into twenty (20) different ways to provide finance. In conjunction with points (a) and (b), that means there are twenty two (22) ways to provide finance according to the Corporations Act 2001.
Consider that only ONE of the twenty two ways to provide finance is by LENDING MONEY!!
What is the significance of this? Twenty one ways to provide finance that seemingly don’t involve repayment… If repayment was involved, surely it would be described as lending… right?
Who is this type of finance available to? Can you and I walk in off the street and get this type of finance? Or is this what the banksters do without our knowledge and trick us into a repayment agreement that is nearly impossible to get out of, let alone question?
If a loan did take place, surely your bank would be able to provide the evidence they loaned you their money… right? Experience tells a different story. Banks have denied us the right to question a loan agreement. See www.FreeSpeechAustralia.org for an in depth case study including how today’s courts are accessories to this denial of right.
Take this along to your local bank and walk them through it. My suggestion is to approach bank staff with the intention of sharing this information instead of finger pointing. Likely that the bank tellers did not write the Corporations Act 2001, nor do they participate in the processes in monetizing your promissory note. The CEO and CFO is a different story…
Some of the pertinent statements in banking publications include:
“Banks create money when they lend it” (Money Banking & Monetary Policy… Federal Reserve Bank of Dallas, May 2007)
“… banks extend credit by creating money.” (Quarterly Bulletin, Q1 Vol 48. No. 1. Bank of England, 2008)
“Commercial banks create checkbook money whenever they grant a loan, simply by adding new deposit dollars to accounts on their books in exchange for a borrower’s IOU.”(I Bet You Thought… Friedman, David H. Federal Reserve Bank of New York, Dec 1977)
“What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers’ transaction accounts.” (Modern Money Mechanics… Dorothy M. Nichols – Federal Reserve Bank of Chicago, May 1961)
“…bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money…” (Modern Money Mechanics… Dorothy M. Nichols – Federal Reserve Bank of Chicago, May 1961)
“…credit of promissory notes (money of account) become money when banks deposit promissory notes with the intent of treating them as cash.” (Walker F. Todd. Affidavit, Chagrin Falls, Ohio, USA, 05 Dec 2003 – 20yrs as attorney & legal officer of Federal Reserve Bank of New York & Cleveland)
“It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could “spend” by writing checks, thereby “printing” their own money.” (Modern Money Mechanics… Dorothy M. Nichols – Federal Reserve Bank of Chicago, May 1961)