02 – What Keeps the Banking System Going?
Suppose you are a fairly successful private businessman, and you want to expand, so you take a loan or overdraft of $10,000 from your local bank. Things go well for a while, and you have paid back $5,000, or half the loan. But things go wrong, and you have to tell the bank that you can no longer keep up the payments on the outstanding principal and interest.
The $5,000 you cannot, will not, or have not repaid, remains in circulation as interest free money, for other debtors to use, to pay the interest and principal on their loans. It is this money from defaulted loans that enables the system to keep going.
Of course, the banks say they don’t want that to happen, but in reality, they can now foreclose on your real assets, for something they gave only bookkeeping credit on. Whenever the debts increase beyond a certain point, orders go out to banks to refuse further credit, and then they foreclose on certain outstanding loans.
So who gets foreclosed and why ?
Governments are never foreclosed. If it is necessary to eliminate a government that becomes hostile to those controlling the banking system, it is accomplished through war and revolution. Large corporate bodies are generally left alone, as they are necessary in the coming World Government, rather than individual countries.
Foreclosures are nearly always directed against those who are the smallest, and least organised to resist, such as the small businessman, the home owner, and especially the family farmers. These can be handled with the least trouble. In order to keep Israeli, the Communist nations and international usury banking going, small businesses must be foreclosed. Western Governments give away billions of dollars in foreign aid, while thousands of farmers and small businesses are cruelly foreclosed every month.
So when we pay our taxes this is what it is all about. Those persons who now rule and control the world, foreclose heavily on the small home owner, business people, and especially the farmers, who want to make their own decisions and take their own consequences. They do not usually research history and the economic situation, but they feel justified in borrowing what they need from the banks. But in times of good farm prosperity, it is bankers who encourage these loans. Those who run the banking system, know that farmers and small business people are the most independent people in the nation.
They are encouraged to get into debt, so foreclosure can be enforced to kill their independence.
When you plant one grain of corn, it will yield an increase of several hundred grains – this God’s gift of increase. Animals also produce increase, but money, in any form, cannot increase, yet people believe it does, and today, many people live off interest.
Money is a great system, far superior to barter. Creating money to equate the real wealth of a nation or giving credit to an individual, is not the problem. It is the charging of INTEREST that is the root cause of all our economic problems. We are told that all nations are in debt. Ask yourself, or any politician – if all nations are in debt, who is the creditor ?
Thou shalt not lend upon usury (interest) to thy brother, interest on the money, or on anything that is lent with interest. Deut – 23.19
He that putteth not out his money to usury, nor taketh reward against the innocent, he that doeth these things shall never be moved. Psalm 15:5