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High Street Banks

It is not just the central banks that rip off their customers, all the high street banks, credit card companies, loan companies and building societies operate in exactly the same way.

When you sign a credit agreement (contract), you authorise the bank (or whatever) to create the amount of the loan, which they then lend back to you with interest, your signature acts as a guarantee of payment, making you liable for repayment of the debt. The bank do not loan you the amount from their reserves or deposits (not allowed), your signature allows them to create the fiat money out of nothing, lend it back to you and charge interest for the pleasure – they don’t lend you the interest amount, you have to find that from somewhere else. The terms of the repayment are stipulated in the agreement, the length of repayment at either a fixed rate of interest or a variable rate. The interest charged is always “compound” interest, which means interest is calculated annually, on the outstanding amount of principal and interest. If you borrow £10,000 over ten years at 5% compound interest, the total amount repayable would be just under £16,289. (£135.74 per month) So you would be charged £6,289 for allowing a bank to create £10,000 from nothing at all, and assuming you spent the £10,000 on something else, you have to find that £6,289 from somewhere else. For the banks, it gets even better – due to a banking principle known as “fractional reserve banking”.

Fractional reserve banking requires that a bank only needs to hold 10% (or other amount) of its value in reserves. What this means is that when you borrow that £10,000, this further authorises the bank to create from nothing an additional £90,000. Similarly, if you deposit £10,000 into a bank account, the bank is able to create an additional £90,000. Just try getting even £500 of “your” deposit out, even the day after. This fractional reserve ratio applies regardless of the amount, imagine what that means when a government borrows a trillion pounds.

Credit Agreement

A credit agreement, is a formal contract, and as such has several requirements from both parties. A non-living entity such as a bank cannot enter into a contract with a living human being, so the contract is between the bank and the “straw man” entity representing the man or woman. A commercial contract under equity …


No sane person wants a mortgage, what we want is to own our own property. A mortgage is a credit agreement that ties the borrower into a long term agreement meaning they end up paying back 2 or 3 times the amount borrowed, or more, over twenty or more years. Additionally, many mortgage agreements only …

Promissary Notes

A Promissory Note is a written, signed and dated two-party negotiable instrument containing an unconditional promise by the maker (or obligor, payor, promisor) to pay a definite sum of money to a payee (or promisee, holder) on demand or at a specified future date. It is often used as a means to borrow funds or take out a …

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