The Banking Illusion That Keeps You in Fear

master finance










Money is simply a method of exchange, so instead of bartering for goods as was the practice centuries ago, we used to exchange money for them. Today there is no ‘money’ actually in circulation and this makes it so clear that ‘money’ is nothing but the transmutation of energy.

Although I am not an economist, in writing my new book Untangling the Myth – Where Science and Spirituality Meet,  I have researched the banking systems in place today and you will be astonished at what I found out! Now my research is based more around the European banking system rather than the U.S one, however there is striking similarities in the legal precedence in both.

My research began through my own personal experience with Santander taking £14,000 in charges and interest from my mortgage redemption and even with an official complaint to the banking ombudsman, they sided with Santander. This always misaligned with me obviously, as there was no real proof to back up the charges. Energetically it felt very misaligned, so I began to piece together what is really going on with the current banking system. This took me back to what happened with the banks in 2008 that led to many home owners not being able to honour their financial commitments and the ensuing recession in the UK.

Bear in mind what banking originated as: Every time a banker makes a loan, he must fund it with deposits and capital. Here’s how it works, say the banker raises £1m in deposits to make a loan of £1m. The deposits are a liability which the bank is duty bound to honour. Keep this in mind…

Here I have complied some fact based comments from high ranking banking officials and members of parliament in the UK to expose what is really going on in the banking system and why I state there is no money in circulation:

‘The financial crisis of 2007 to 2008 was caused by excessive credit creation.’

‘…That the existence of banks as we know them today – fractional reserve banks – exacerbates these risks because banks can create credit and private money‘. – Adair Turner, Baron Turner of Ecchinswell – Chairman of the Financial Services Authority, speech ‘Monetary and Financial Stability‘. 

‘Well, much that I have said about banks – their capacity, in the short run, to lever up their balance sheets and expand credit at will

‘…banks extend credit by simply increasing the borrowing customer’s current account‘, ‘That is, banks extend credit by creating money‘. – Paul Tucker, Member of the Monetary Policy Committee –Speech at the Monetary Policy and Markets Conference

I as a consumer, found this alarming, the suggestion that money is being ‘created’, as in Fractional Reserve Banking. Very concisely fractional reserve banking is a Ponzi scheme whereby banks create money out of thin air through fraudulent book keeping, loaning non-existent money out at interest. It is no different than counterfeiting. In collusion, factional reserve banks counterfeit up to 10 times the amount of money that they actually have deposited, and charge interest on it all. Since money represents payment for service rendered, fractional reserve bankers are effectively robbing the value of everyone’s service through this fraudulent scam.

On further investigation more evidence came to light:

‘An important step in the measurement of money is to determine which institutions are able to issue orcreate it and which are holding it.’ – Bank of England quarterly bulletin -‘Proposal to modify the measurement of broad money…’ 

‘Banking is not money lending; to lend , a money lender must have money’ – Professor Hyman Minsky, Economist.

‘However the vast majority of the money we spend today is technically known as ‘broad money’ or ‘cheque book money’ which can best be described as ‘spendable bank IOUs’.

‘The term ‘bank loan’ is in fact highly misleading. What is actually going on is not lending at all, it is in fact an IOU swapping arrangement’. – Dr Michael Reiss Phd – ‘Banks don’t lend money’ 

Even more startling was coming across a letter from the Bank of England themselves, in answer to a question from a researcher from the Public Information & Enquiries Group:

‘When a commercial bank makes loans to a borrower, does the commercial bank in effect create new money? In other words, when a bank makes a loan to a borrower, is that ‘money’ just created out of thin air?’

The bank’s response was:

‘When banks make loans, commercial banks do indeed create much of the money in the economy’.

The public had been under the misguided and misinformed perspective that in order to generate ‘funds’ to borrower there had to be liquid assets or bullion in reserve. In my investigation fractional reserve banking appears to have ended that with ‘today over 97% of all the money used in the economy is created by banks, in the form of electronic bank deposits, with just 3% being created by the state in the form of notes and coin’.

What also came to light was that prior to 2007, when banks extend loans to their customers, they create money by crediting their customer’s account and conversely, when a loan is repaid to a bank, the bank deposits (number in an account) that were used to repay the loan disappear from the economy. Therefore banks and societies are creating money out of thin air and using the borrowers repayments to create ‘real’ money, which isn’t actually real at all it is just part of the IOU swapping arrangement. So any charges of interest on IOU money, being that is doesn’t actually exist, is erroneous!

However, since the 2007 to 2008 crisis, what has now replaced this is Quantitative Easing:

‘Quantitative Easing was a means of injecting new money into the economy to replace the money that was disappearing as old loans were repaid. With banks unwilling to create money through their lending, and customers unwilling to take on significant levels of debt(after a crisis caused by over-indebtedness), the state, via the Bank of England, had to start creating in place of the banks.’ – Quantitative Easing – Written evidence submitted by Positive Money – Parliamentary Publications. 

‘ What we were doing [through Quantitative Easing] is injecting money into the economy, and what the banking sector has been doing is destroying money [as existing loans were repaid]. As they reduce the size of their balance sheet and deleverage, they’re reducing not just the size of their assets but also the size of their liabilities. And most of the money in our economy comprises liabilities of banks in the form of bank deposits. So what we were doing was partially to offset what would otherwise have been an even bigger contraction’ – Sir Mervyn King – Governor of the Bank of England and Chairman of its Monetary Policy Committee– Quantitative Easing – Written evidence submitted by Positive Money – Parliamentary Publications.

So from my research what is currently being used as legal banking practice appears to contravene theMaastricht Treaty (Article 101), which states that central bank may not provide loans or overdraft facilities to the government (European banking).

‘However, the existing QE scheme is very clearly designed so as to circumvent this treaty (by buying bonds from pension funds, who will then go and lend the money they receive to government), and so the spirit of the treaty has already been disregarded’. Quantitative Easing – Written evidence submitted by Positive Money – Parliamentary Publications

My conclusion, from all this factual information is the evidence that both mortgages and ‘loans’ are not only created out of thin air and within the Quantitative Easing process (which contravenes the spirit of the Maastricht treaty), that in fact banking organisations are conducting extremely dubious fraudulent practices, all while penalising the customers for payment of non existent interest.

‘This financial alchemy is an extraordinary privilege, which we a citizens and taxpayers underwrite’

‘But today these principles appear to have gone missing. The banks do not acknowledge any moral purpose to their activities or any privilege afforded to them by the taxpayer’. – Jesse Norman MP –Conservative Free Markets, and the Case for Real Capitalism. 

It is fair to say that many of the population, have been falsely led to believe in a monetary system based on ‘real’ money and held legally accountable for this, when in fact all legal statues on the IOU system and indebtedness used by the banking system is void. Money does not exist.

So now you know the truth of  banking, it is time to also understand that you alone create the opportunities and experiences through the transmutation of energy that create income. After all this is the truth of money, it is energy, when we can understand this, we can understand how to work with it. Once we understand the fundamentals of what money is(energetic not physical), we will be closer to being able to control it and accumulate it.

There is a definite money-energy flow and when you learn to master that flow, the energy of money will automatically follow. To master this flow means achieving what you desire from your highest values, whether it be financially, emotionally, or spiritually, without the constant, never-ending struggle. Once you are the flow, your life transforms from the struggle of surviving to experiencing alignment with the physical world and more importantly, with your highest purpose.

It follows that if you have debt, then you will accumulate more of it as your belief is you do not have enough. When you have money, you will create more of it. So the key, then, is to begin changing your beliefs to create the energetic transmutation of money, because once you have solid belief in your worth and value, it sets off a chain reaction that continue creating positive, abundant opportunities and experiences

The fundamental step in doing this is to begin saving. Even with the fraudulent system in place, saving is possible as in the current monetary systems this is regarded as capital assets and therefore the banks or societies pay you interest.

It is the one, sure way to build ‘wealth’, as you no longer hold the belief of lack. I know you will say, ‘The money does have somewhere to go … in my pocket!’ This actually causes resistance, as it is reflecting you still believe yourself without, in lack and this goes back to the ‘poverty’ consciousness.

By letting some of your money accumulate in savings and/or eventually assets (this would be land, property and so on) you are sending out the belief of abundance – prosperity consciousness. It doesn’t have to start with much, maybe a few pounds/dollars at first, but the key is to leave it there with the belief and knowing you are creating the transmutation of energy through opportunities and collaborations to accumulate wealth.

If this article has sparked your interest there are two good sources to find further research:

For the UK:

Positive Money

For the US:

Ron Paul

*Extract from ’Untangling the Myth – Where Science and Magic Meet  – The Step By Step Guide to Conscious Creation’.


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