Banking and Legalized Fraud

by GarySpicuzza » Sun Oct 12, 2008 11:18 am

Banking and Legalized Fraud

Banking came into existence as a fraud. The fraud was legalized and we've been living with the consequences, both good and bad, ever since.

In the 16th century as the gold and silver the Spanish had taken from America poured into Europe, coins grew larger, more plentiful and heavy. Merchants needed a safe place to keep them when they weren't needed. The goldsmiths had large safes and fierce dogs and it became customary to leave coins on "safe deposit" with them.

Next people saw that a "gold certificate" or warehouse receipt signed by the goldsmith was more convenient to circulate than those heavy coins made of soft metals that quickly wore out if they passed hand to hand. So the smiths printed up receipts in convenient denominations promising payment in gold to whoever presented the receipt. Some people took to writing notes to the smith ordering him to transfer the ownership of some of their coins to someone else. Thus the personal check was born.

Then one day one of the smiths had a brilliant, and wholly dishonest, idea. He noticed that people so much preferred his paper money to its "gold backing" that the gold in his vault hardly circulated - some of it hadn't moved in years. So he thought, "I could print up some extra gold certificates and lend them out to gain the interest.”

The idea was irresistible, and thus banking was born!

Consider this…..

$1,000 dollars on deposit at the bank.

To make money with your money the bank loans out the $1,000 dollars.

Now there are $2,000 dollars in the monetary system. $1,000 in the bank and $1,000 out in the street. Once loaned out, the amount of money in the system is inflated. If that money is not paid back, then paper money becomes worth - less until the loaned money out in the system is destroyed or PAID BACK.

When the $1,000 loan is paid back, all is well, and the system is even with only the original $1,000 in the bank.

These are basic facts of money.

Enter, Wall St., October 2008.

Too much of your money was loaned out by banks over the past 10 years and since that money is NOT being paid back the system demands that money be destroyed.

The banks made bad loans, sold the bad loans to Wall St. who in turn packaged and sold them on the open market. With those loans not being paid back the borrowed money has to be destroyed. The money supply has to shrink.

This is why the market is in a free fall and will continue until all the inflated money out in the system is destroyed.

Total Comments: 7

Posted: Mon Oct 13, 2008 09:23 pm Post Subject:

Bankers and Brokerages are incestuous duets.

The so-called financial advisor at the bank is the one who recommends you refinance the equity out of your home and put it in the market.

He/She is the same clueless clown who then sells you the stocks or mutual funds with the borrowed money.

The banker/broker sold you on the idea you'd make 9% or more in the market and your home equity is just a dead asset unless you take it out of the house with some type of loan.

This type of voodoo financial advice has been going on for years.

Bank of America buying Merill-Lynch is NOT a good thing and less than 10 years ago would have been a totally illegal transaction under the Glass-Steagall Act of 1933.

Read THIS LINK and see if it sounds familar with what's going on today.

In 1933, in the wake of the 1929 stock market crash and during a nationwide commercial bank failure and the Great Depression, two members of Congress put their names on what is known today as the Glass-Steagall Act (GSA). This act separated investment and commercial banking activities. At the time, "improper banking activity", or what was considered overzealous commercial bank involvement in stock market investment, was deemed the main culprit of the financial crash. According to that reasoning, commercial banks took on too much risk with depositors' money.

Posted: Tue Oct 14, 2008 07:29 am Post Subject:

We all agree that greed has caused the whole trouble. Banks in their errands of making huge profits hadn't cared of following the basic principles of lending funds and thus had ended up making bad businesses.

The whole process has increased the flow of money in the market and therefore the inflation rate. We certainly need to find a way to put a stop to this whole cycle.


Posted: Thu Oct 16, 2008 10:45 am Post Subject:

The fraud here is that the goldsmith already gave the owner of the gold the printed certificate to circulate but then printed up more and more certificates to make loans to people to earn interest for himself.

All is well EXCEPT for inflation until those fraudulent loans don't get paid back. Then the fraudulent printed money out in the system has to be destroyed.

Like I said above:
The method by which the USA government decided to destroy the inflated money supply in the system was to crash the stock market.

Bush, Paulson and Bernake are not that stupid as to announce that if they don't get $700,000,000,000 billion dollars right away the market will crash.

The very announcement crashes the system.

Which was the intent, but it serves its purpose of destroying the fraudulent printed money out in the system that's not being paid back.

:evil: Don't you just hate these poli - tic bass towards. :twisted:

Posted: Wed Nov 26, 2008 11:36 am Post Subject:

What this???
What's the Foxxx News of the morning???

Hanky Panky Paulson needs to "borrow" another $800,000,000,000 BILLION dollars to shore up more failed institutions so the indentured servant consumers can "borrow" their way back to prosperity?

Hmmmmmmm, wasn't it "borrowed" money that caused the current financial fiasco?

The best thing that could happen for the USA would be for "Joe the Plumber" and everyone else to tell Washington to keep their phony money.

Posted: Sun Dec 28, 2008 01:51 am Post Subject:

The USA Gubment IS the "goldsmith" referenced in the first post of this thread.

The reason why the USA Gubment can give the banks and Wall St. a $700,000,000,000 billion dollar bailout is because a USA Gubment check can't bounce.

As a result they can then write AIG checks totaling $150,000,000,000 billion dollars.

Then for some icing on the cake they write a check for $17,000,000,000 billion dollars to the failed USA auto industry.

The news media always reports this as "taxpayer money."

Actually it's not.

It's money created by government fiat, aka, Administrative Decree. The Gubment writing of these checks is no different than if you wrote yourself a check for $1,000,000 million dollars EXCEPT your check would bounce and their's clears....remember they ARE the goldsmith.

The USA Gubment has spent every dime in taxes it has collected in 2008.

To make up for the short fall in revenue it borrows money from large institutions (insurance companies) and foreign governments by way of selling Treasury Bonds.

When that's not enough they simply write a check.

Posted: Thu Feb 05, 2009 11:45 pm Post Subject:

Bumping this thread to the top of the message board because by doing so that gives me a sense of power and control where none actually exists.

For those of you who care about the financial health of the United States of America please don't allow our Government to get away with the largest financial fraud they are currently attempting right now.

Please read this thread.

Then re-read this until you understand that the only reason a $100 dollar bill is more valuable than a $5.00 bill is because of the way the picture and ink is arranged on the paper it is printed on.

It costs exactly the same amount of time and effort, exactly the same amount of material is used and exactly the same amount of man hours to produce the $100 dollar bill vs. the $5.00 bill.

That said, writing a phony Gubment check, then calling THAT a "loan" to broke and failed banking institutions and investment out right financial fraud.

Posted: Thu Mar 26, 2020 08:41 pm Post Subject: Banking and Legalized Fraud | Ampminsure

Who can write more clearly than you about such things!

I assure you, nobody, I've seen something like this only on I enjoyed the article and assume you have more such stuff?
If so, so please post it because it's somewhat unusual for me in the present moment, and not just for me,
that is my view. Hopefully, I can get an in-depth manual of yours and take note of all of the
news and the most recent data.

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