Exposed:

Let me start out with an extract of near identical articles written by me and published in 1997 in the Harry Schultz Letter and in the Cape Times of South Africa and in January 1998 in the News of Mexico:

Financial balloon threatens to burst

The financial shockwaves rampaging through Asia constitute the first cracks in the Western monetary house of cards. Having thrown all monetary discipline overboard and indulging in a global credit creation debauchery of unbelievable proportions. the Western financial institutions are the ones to be blamed for the Tequilla and the present financial crises in Asia. They know that their IMF, their World Bank and their Reserve Banks will always bail them out with taxpayers moneys.

The Asian upheaval is not so much a crisis about over-capacity of industrial production as claimed, but rather about the misdirected “push-credit” policies of the West. And when the chickens will come home to roost they will return to the West.

On such day of reckoning the world will not gradually and resignedly slide into a deflationary downturn. We are living in a ultra rapidly changing, hyper-tense world – on the threshold of a new age. Things are happening! Humanity is fast and radically being remolded and globalized. The signs point toward upheaval, inflation, unrest and radicalism.

The credit explosion and financial manipulations of the past decades have created a “potential global inflation” of threatening proportions. And once there is an overhang of potential inflation – in this case in the financial paper markets – no force on earth will be able to restrain it from pouring down, one fateful day, in a global deluge into the commodities, wages, services and finally the CPI.

Inflation is hiding in the speculative paper asset balloon and, when it bursts and the livelihood of millions is threatened, then the only way out for the governments and the banks will be to resort to “hyper-credit” and explosive money creation to forestall immediate economic collapse and social unrest. Then inflation will be back to explode suddenly and unexpectedly with a vengeance. Then the dilemma of stocks overvalued, or bonds, will be solved when both shrivel away in value with everything else what is paper.…….

That was 1997

And thus it is happening….

The world has come to a point where it is faced with the total meltdown of the debt bubble, it has become so addicted to. Financial chaos, banks and companies collapsing, millions to be out of work, social unrest spreading, a prospect of change of government in many countries either by the ballot box or by force. After all, a situation to be expected, considering that

the western monetary system is based on fraud.

Let me explain:

When one puts all the combined wealth of a nation consisting of all the money in circulation, plus all movable assets, the real estate, the industry, infra structure, strategic reserves etc into one basket and then lets a third party, the banker, get away with creating phantom “legal tender” money out of thin air, then the banker is in a position to acquire whatever assets he desires out of the original basket for nothing, thereby diluting the assets of the original owners. The counterfeiting and that is what it boils down to, works as follows:

Where not explicitly stipulated that the specific depositor’s money loaned out by the bank against interest has been blocked and thus temporarily has been taken out of circulation,

The banker creates additional money by loaning out to third parties up to an substantial percentage of total client deposits without asking for their consent or their knowledge.

- Besides creating the money the banker by usurping the jurisdiction over the created money , making it “his” money, also will have usurped the power over how and where the new money will be applied.

- The practice by the banks to pay interest on accounts is only a ploy to attract deposits and is legally not connected to the bank’s own loan policy.

- Imposed by the Bank of International Settlement, the only restriction is that the bank’s subscribed capital should cover at least 8% of loans extended.

Additionally to his capital, certain government bonds and a certain percentage of government guaranteed mortgage holdings are allowed to be added to the capital base. Lately also off balance sheet accounts, derivatives, swaps, and the packaging of debt papers like sub-mortgages etc have added substantially to the banks’ capacity to create new money out of nothing. It boils down to:

The Banks inflate the money in circulation by creating additional money up to at least an amount of 12 times their own capital base. Thus making money on twelve times their capital base! For instance by using depositors money a net interest income of 4% gives the bank a real profit of 4 times 12 makes 48% on its capital! Nobody can beat the banker at that! And that is the reason the bankers have taken over the world.

Next the Central Bank comes marching in:

For minimum cost it prints and provides all the new money the government needs against government bonds in exchange. The Central Bank in cohort with the major banks might either sell the bonds on to investors, or keep a certain percentage in their own coffers. The money received for the bonds from the investor, far from taking it out of circulation and canceling it out against the new money printed for to the government, as they should, the Central Bank and its share holders, the major banks, are keeping these bonds plus the money received from the investors as assets in their books illegally! If that does not boil down to outright fraud, I do not know! Whereas, if properly done, the increase in the money supply, each time the government subscribes for a loan, should always and immediately be cancelled out against money in circulation received if properly done.

Correctly the book entries of the Central Bank should run as follows:

1) new money printed against proceeds to be received.

2) government bonds received against new money printed. (once handed over)

3) proceeds received (from new bond holders) against government bonds. (once sold)

4) proceeds to be received against proceeds received.

This way the Central Bank’s books would be in balance, but they are not. With bonds (not having paid for them!) and proceeds illegally kept back in its coffers, the books of the Central Bank can never balance. That is where the fraud resides. And that is the reason the Central Bank refuses to have its books audited! I rest my case.

NB: Not touched upon here are the secondary frauds:

- The disguised Repo (repossessed) ball game with bonds played between the Central Bank and the major banks.

- The manipulation of the interest rate and the financial, the gold and the silver markets. (there are no more free markets!)

- The interest rates in themselves, where, with the principal of the loan already phantom money, additionally the money needed to pay for the added interest on the loan has also to be created

The more the government and the people get into debt, the more loans have to be taken up, the more phantom money the banker can create, the more interest income the banker will receive and the more profit the banker will be making. Profits he in turn can add to the bank’s capital base so as to give him ever greater leeway to further his loan portfolio. Ad infinitum.

And that is the way the Wealth Transfer Machine has been designed from the beginning: by fraud.

In the last hundred years the Merchant of Debt, the Banker, has taken over the world, its industries, the Media (to misinform the people), infra-structures. Enslaved its people and its governments, destroyed grass roots entrepreneurship, the family and people’s self esteem. All by fraud. Buying assets at home and abroad with phantom money and phantom loans. Setting up fraudulent takeovers, mergers, IPO’s, buy-outs, development loans and so on.

But enough is enough. The fraud should be called and the perpetrators of the crime brought to justice. Never to be given another chance to impose new scams. Like their Digi-Gold now on the drawing board, which means nothing else than establishing total control by means of Orwellian plastic-cards for the people, but for the banker all the world’s gold and silver in their vaults.

Re-instating full or fractional gold-standards, or whatever system, will never have a chance to succeed as long as the system is based on fraud and criminals are in charge. Although the GATA (Gold Anti Trust Action) initiative to free the precious metal markets from fraud and manipulation is a major step on the road back to financial freedom, it is only a first step. To really clear the mess, we have to get to the heart of the matter by exposing the basic fraudulency of paper money and banking.

Contrary of what people are made to believe, we can do without phantom money and banks with the exception of money transfer and safekeeping services.

What the world does need is honest money nobody can fool around with. People’s money: Gold and silver. Hard assets that can be standardized and checked electronically at public facilities for purity and weight.

All the robber barons should be put behind bars. The Central Banks, the IMF, the BIS abolished. All banks and financial institutions expropriated. All stolen assets confiscated and either returned to their rightful owners or the proceeds re-directed to cover the nation’s expenses for many years to come to the benefit of the tax-payer. Financial laws should be re-written and financial crime made part of common crime. All debts should be cancelled and Debt declared illegal. Like physical slavery was abolished so should debt slavery.

Opportunity and temptation to crime should be reduced to a minimum. Transparency should be brought into the affairs of man. Bearer shares abolished and only shares on individual names allowed. Then the world will see who holds the ultimate reigns of power! Markets should be transparent and freely accessible on the web. Short selling, options, futures, and derivatives should be abolished.

Should be, should be ….that all sounds great, but regretfully that is not the way reality works. The Merchant of Debt will ruthlessly proceed doing everything in his power to prolong his sleazy game: - taking all paper currency out of circulation and implanting Digi Gold as mentioned above, - splitting currencies into external and internal usage, - implanting price controls, - imposing import, export and travel restrictions, - prohibiting the transfer, transport and ownership of gold and silver, - imposing rationing of scarce items and so on.

And there won’t be much money left after Social Security, Pensions, Medicare and Annuities will have been robbed dry. And the Merchant of Debt will see to it that bonds will become worthless and stocks will hit rock bottom. Thus all the people of the earth will become totally dependent and enslaved to Him. And even if or when the politicians might push the Merchant of Debt aside and nationalize the banks, they most probably will still proceed along the same lines once they smell power.

Alas, people have become like sheep and will not do anything about it. Thus the world will ever more slide into chaos… Only if people might learn to think again for themselves and still have the guts left, only then might there be some hope for the future of humanity.

Grown from grass root development and private entrepreneurship that brought on a blossoming and blooming culture, greater than the world has ever seen, Western Civilization has committed suicide by letting itself being lured into a monetary system that is fraudulent and rotten at the roots.

Western downturn will be fast. Much faster than happened to former civilizations. With a fraudulent monetary structure on which everything depends in the process of rotting away, civilization has not much left to hang on to. Digital money disappears with a stroke on the computer and paper money burns quickly. In the good old times the process of the clipping the coins took a bit longer.

Only countries that will manage to rid themselves of the debt cancer might still have a chance left to survive. If one wishes to have an understanding of how far the debt cancer in one’s country has spread, then just count the number of banks in the neighborhood!

Besides the West, if Russia and China will keep on building on the same basis of monetary fraud, also they won’t make it for long.

Be prepared for rapidly evolving developments. The world is nervous, agitated, Anything unexpected might happen. The upheaval in the world of finances will soon pass on to the world of economics and that against the background of ever growing political tension and strife. Financial Imperialism in Crisis combined with the ongoing war for world’s dwindling resources might any day turn into real warfare on a global scale.

I wish you luck!

March 28, 2008

Hans Schicht