How Bankruptcy Happens - It is Baked Into the System

Usury is a sin. However, you (a jew) can practice usury against the goyim.

If you know something is bad, how can you in clear conscience build a banking industry around it? How could someone who knows better practice usury? Knowing it will destroy the group they are using it against?

We are going to have to understand usury since it appears we are going to a non-inflationary currency. Then we cannot hide from the cause of bankruptcy and just pretend it was because of the poor bloke's idiocy with money.

However, we have lived under usury for so long, i doubt people will comprehend how bad it is and give it up.

We get interest for putting money in the bank. We pay interest on mortgages and credit cards. It is just normal. It is also "normal" for house prices to just keep going up. And stock prices to just keep going up.

The Knight's Coins

(this is not my story, but i cannot remember who first wrote it since it was decades ago i read it)

A knight rides into town, and offers the people coins. He will mint them, and kill any who try to counterfeit them. So, it is a good deal for the town citizens, right?

He gives each person 10 coins, but he wants 11 back when he comes next year, or a person unable to pay will have all their properties taken. It is only 10%. No big deal.

And trade in the town takes off with lots of coins passing between hands.

But what is the end result?

A lot of people lose all their property.

In order for someone to get 11 coins, someone has to have 9 coins. Someone wins and someone loses. This is a zero sum game that destroys people's lives.

And it often just luck or timing. If the knight comes back in the summer, the candlestick maker is screwed. But, if he comes back in the winter, the candlestick maker is flush with coins.

The thing is, there is not enough coins for everyone to have 11 coins.

The Knight's Coins in real life

Debt based fiat currency means that there is NEVER enough money to pay off the debt. Further, if you pay off the debt, all the money goes away.

The very first dollar was borrowed into existence, and already we owed $1.05. From that moment on we could never pay off our debt. All we could do is borrow more dollars to pay the current amount owed, and then next time borrow more dollars to pay the current amount owed. And more and more and more.

This is what the Fed has done.

And fractional reserve lending makes it even worse. A dollar "saved" (deposited) is used to create 9 more dollars of debt.

So, we are in a death spiral. People are going bankrupt because they were just the slowest person, not because they were bad with money (although, the slowest people financially, are often the worst with money). The person with 9 Knight's coins is still going to lose everything, just as much as the person with only 1.

How can we punish people with bankruptcy, or losing their house, because the Fed decided to tighten? 2008 happened because of the fed. First through booms, and then through busts, the banks will end up owning everything.

Everyone who lost their house in 2008, it was not because of bad luck, or poor money management, it was all because the Fed tightened. Then there wasn't as much money flowing into the economy, not as much money to pay workers, so many lost their jobs, so they couldn't pay their mortgages. The banksters caused it all, and none of them paid for what they did.

How house loans should be

Currently, all the responsibility is placed on the borrower, and almost none on the lender.

The bank lends money, and so, the farmer has to grow his crops (what he is good at) and then sell his crops (what he is poor at, and at the mercy of the markets, which the banksters manipulate) to make money to pay back the loan. Do you see how the bank completely dominates this transaction? They have the home team advantage, on a soccer field that is sloped towards their goal and a funnel.

A truly fair home loan would be the bank working with the borrower each step of the way. Knowing that he will be laid off many times during the decades long loan repayment, the bank should be there to work with him over these times. (knowing you can't squeeze blood out of a rock) And the banks should be able to take payment in other things besides dollars. But no, the banksters have written it so that the borrowers have to do all the work and take all the risks.

Further, this is all a bankster scam! Everyone knows that the weather comes in cycles. (usually seven years) That over a long enough period, there WILL BE a bad year, and a farmer will lose his crops/have a bad harvest. So, knowing this, the banksters enter a decade long agreement. Thus, they will sell the farm to the borrower, and then foreclose, getting the farm back (and whatever got paid) then the banksters do this to the next farmer (sucker)

And this unfair system could be dealt with, since our current lives revolve around money, however, we live in a time of fractional reserve lending. Meaning, the banksters create money out of thin air. (actually they steal a penny from everyone nearby with a dollar in their pocket) They do not put anything into the agreement. The contract is null and void, since they didn't tender anything. But, still we work with banks and take out mortgages to buy a house.

If you have sound money, usury destroys the system. You cannot pay interest with money that doesn't exist. (we will have to learn that if we start using bitcoin as money)

Even without sound money, you can only borrow to pay the interest for so long, before the graph goes all hockey-stick.

The banksters know this (Usury is a sin) and they still decided to perpetuate it on the people of the world.

Now you know some of the reason why Henry Ford said this quote:

All images in this post are my own original creations.