Increasing interest rates benefits only trading banks

By Ron Chapman

Here’s a recent example of commentariat shilling for usurious fractional reserve banking:

In the video Marc Faber says “the economic system needs pain…Interest rates are still negative in real terms … banks haven’t increased rates enough to curtail inflation… But of course the poor people suffer… Nobody can avoid a recession in the long term. Recessions come and go and are necessary”.

Banks create credit, not money

That is misleading propaganda. Recessions are not necessary. Rather, hiking interest rates ENOUGH to reduce inflation is what causes suffering. It does that by reducing the money supply by levying unconscionable interest rates on borrowers which fraudulently syphons wealth from the general population into the pockets of private corporation bank shareholders. Eventually the process causes such hardship that the money supply shrinks as populations cannot afford to borrow more currency into circulation. That causes recessions and depressions that are exacerbated by governments (who are in cahoots with the banks as governments create the situation by licensing banks to issue currency which the government’s Treasury should emit) instituting austerity measures that reduce government spending on welfare and everything else. This process is entirely organised and controlled by the governments and banks.

Limiting inflation really means hiking the PRICE of ‘money’ (currency) so much that unemployment rises and people’s spending is restricted because their wages haven’t risen proportionately; or they lose employment and cannot afford to borrow more or even pay rising interest payments on existing loans. Resultant reductions in the money supply causes recessions and depressions i.e PAIN. Adding to that pain, the banks not only get increased income from high interest rates, but they also obtain ownership of houses and other assets for pennies on the dollar as borrowers default on their loans. This further impoverishes the general population reducing their borrowing capacity even more.

Borrowers defaulting on loans cause the money supply to fall because it only exists as bank loans i.e. book entries that disappear from circulation when banks foreclose on a loan or the loan is paid out.

Bank loans are the ONLY way that “money” is said to be created but in fact no money is created by banks because governments and banks fraudulently label intangible electronic digits as “money”. Except for the 3% of notes and coins emitted by Treasury, money in Australia is a government imposed mental construct imposed on society to facilitate the exchange of real goods and services.

The other way that interest rate hikes REDUCE the money supply is when high interest rates and low wages or lost employment reduce the population’s ability to pay interest on existing loans and/or take out new loans. Lack of new loans reduces the money supply causing recessions and depressions. Adding to that pain, the banks not only get increased income from high interest rates, but they also obtain ownership of houses and other assets for pennies on the dollar as borrowers default on their loans. This further impoverishes the general population.

That’s what Marc Farber really means when he says “the economic system needs pain” AND: “of course the poor people suffer”. Arguably though, he should say that most people suffer unnecessarily as a result of recessions and depressions caused by banks hiking interest rates; AND from banks charging ANY interest for their fake loans of electronic digits conjured out of thin air.

IF the Australian Treasury accepted sole responsible for, and did, issue adequate quantities of asset backed money and currency, INTEREST FREE, in sufficient quantities to service the needs of Australians, having proper regard to the availability of human labour and physical resources, we would never suffer real recessions or depressions AND all of us would rapidly experience abundance.

About Editor, cairnsnews

One of the few patriots left who understands the system and how it has been totally subverted under every citizen's nose. If we can help to turn it around we will, otherwise our children will have nothing. Our investigations show there is no 'government' of the people for the people of Australia. The removal of the Crown from Australian Parliaments, followed by the incorporation of Parliaments aided by the Australia Act 1987 has left us with corporate government with policies not laws, that apply only to members of political parties and the public service. There is no law, other than the Common Law. This fact will be borne out in the near future as numerous legal challenges in place now, come to a head soon.

Posted on March 17, 2023, in Banks, General and tagged , , . Bookmark the permalink. 7 Comments.

  1. f@#% the banks!

    a guy on tic tok showed a strategy for people with compounding interest loan repayments & how theres a way to stop paying monthly interest to your bank by smugly paying your bank daily, a $1 dollar each day for 30 days + your loan amount so it continuously restarts interest calculator & it can’t compound any interest from ever starting in the first place over month so your only paying loan off of principle only, no interest…. saving heaps. Your bank hates it but hey its your bank lol, look at video here on Max Egans walk and talk “time stamped 50min mark” wish you all the best for saving money!!


  2. You get the feeling that what is happening with the banks, particularly in the USA will set people up to accept a Universal basic Income (UBI) in the form of a digital currency aka CBDC.

    This easily fits the scenario of a bank closing it’s doors, because it’s bankrupt anyway, but offering a new ‘solution’.
    Problem. Reaction. Solution.

    The poor and unprepared will uptake this ideology quicker than the line up to participate in a dangerous clinical trial injection.

    The USA banking Ponzi scheme set up after the sinking of the Titanic (with those on board who stood against it), has had it’s day.
    It’s utterly totally bankrupt.
    Sensible Countries no longer think the USA should be the top dog.
    They will back their money some other way.
    The prophets of doom have been warning this for quite some time, perhaps even since the last USA banking bail out.
    They know it is not if but when.

    If MSM in this Country tell people the banks are ‘safe’ and ‘effective’, well, we’ll see.

    How long can you print money not backed by anything into trillions and trillions of nothingness?

    The only way forward to this hurtling pain is to have no debt, no bank overreach, hard assets, and your own sustainable plans until the full picture is plain to see.
    One day we will wake up and the party will be over.

    Those who cry ‘keep cash’ really?
    You mean the cash backed by nothing?
    It’s going to fail.
    Big time.

    It has to fail.
    All Ponzi schemes have their day.


  3. J Madison

    Ta da……Ladies and Gentlemen; there is a solution;

    Get Rid of this Unlawful institution known as AUSTRALIAN GOVERNMENT and 95% of Whereas The People[s] problems will disappear in a year or two; Much like turning off the Telievision and scraping NoNewsPapers


  4. Ah Ron;

    You mean that IF Australia was to return Banking to what the Common-Wealth Bank used to be, where The People had a Share in the institution by being a contributor (depositor) to the bank, then we could end the Unlawful Practice of USURY via a simple Vote of ALL shareholders?

    Surely it couldn’t be that simple could it Ron?

    Keeping Australian, asset backed currency, in Australian Public Owned banks instead of “trading Fiat currencies” on Jew controlled “stock markets” and all the Fluctuations that come with, would keep us with a Stable Local Economy and we can once again produce the Widgets that world wants to buy? Surely not…….

    If only Gov.Co didn’t Unlawfully sell the Common-Wealth Bank to Private Ownership the depositors would still have shares and would have a say in how the banks business is conducted; Is it any wonder then that Gov.Co CHOSE to remove the public from the equation of Fiat banking?

    This implosion has been planned for a very long time and DID NOT just happen by some type of alleged “Fiscal Mismanagement”


  5. Congratulations to the author of this Article.
    Exactly these same observations have been made about usury and the Rothschild’s criminal Banking scam for several centuries.

    These crimes against humanity must end. The few brave statesmen who did something about it like Lincoln, McKinley, Kennedy,Curtain, Jack Lange etc were either murdered by the Jesuits, or died unexpectedly.

    When we get a lawful government again, there must be a Constitutional change, mandating the Treasury as the only source for credit creation and making it a crime for any lender to increase interest or charges on any loan during the term of the loan contract.

    This bankers scam, these thieves use to gloss over their criminal acts, by quoting the excuses of ” fighting inflation”, was a totally nonsensical piece of sophistry, cooked up last century by the Bankers whore, John Maynard Keynes to bamboozle the ignorant.

    Private banks must be limited under the Constitution to only be able to lend their own money, not create credit out of nothing and prattle on about the cost of money. If they had lent to productive ventures and not played with derivatives and other paper shuffling rackets they would all be in better shape.

    Liked by 1 person

  6. The Government has always raised or lowered unemployment levels, through which to manipulate and control deflation/inflation

    An unemployed person has no surplus money, so cannot spend, thus, limiting the money in circulation, which in turn, induces or exacerbates a deflationary environment.

    This is why they are called ‘unemployment figures,’ the unemployed are nothing more than ‘human data,’ whose unfortunate role consists of moderating the liquidity within the economy.

    These figures can be raised or lowered at will, with a simple government signature, – as always. But when the unemployed population reaches unsustainable levels, where the supply of workers outstrips the available vacancies, then at this stage, – the milk cow becomes the beef cow.

    Mathew Peipenburg’s latest interview, makes it quite clear, that Western inflation due to QE, can be primarily pinpointed to the West’s offshoring of its businesses to China,

    All in all, a very good article.


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