By Andrew Mackinnon
Last updated: 25th February, 2024
The economy in Australia was going very badly last year in 2019 before the bushfires started that the Australian federal government lit to distract attention away from the failing economy and before the latest Coronavirus hysteria to provide a scapegoat onto which to project the blame for the failing economies all around the world. In Australia, the banks create money when they lend and then charge interest on it. This is the same in most countries around the world. However, the citizenry is waking up to this scam and is therefore reluctant to borrow from the banks. This has caused the size of the money supply in Australia to decrease since money is created when the banks lend and since money is destroyed when principal lent by the banks is repaid. As a result, there is insufficient money in circulation to support economic activity in Australia. This is why the economy is languishing.
In fact, Australian citizens were reluctant to borrow from the banks even back in the 1990s in the aftermath of the recession of 1989 to 1991. The Australian federal government has always responded to this reluctance not by acknowledging that the interest charged on money lent by the banks that they create out of nothing is unconscionable and unjust, but by bringing new citizens into Australia via mass immigration in the hope that they would borrow from the banks to make up the shortfall in borrowing. It has been doing this for the past thirty years. We are now in a situation where the Chinese who have come into the country don’t want to be in debt; the Indians who have come into the country don’t want to be in debt and existing Australian citizens certainly don’t want to be in debt either. Nobody wants to be in debt and why would they? People are not stupid, even if the Australian federal government and the Jewish-controlled (i.e. Edomitish-controlled) media have deliberately made it very difficult to understand how the banking system in Australia actually works.
When any bank in Australia lends to a customer for any purpose, that bank creates the money lent, which causes the size of the money supply to subsequently increase. The bank debits its loans asset account for the amount lent to signify the debt owing to it and it credits its deposits liability account to provide the customer with the amount it has lent to the customer, so that the customer can utilise those funds in the bank account that the customer holds with the bank.
When a customer of any bank in Australia repays principal of their loan and pays interest on their loan, the customer destroys the principal lent, according to the amount of principal repaid by the customer, which causes the size of the money supply to subsequently decrease. The bank debits its deposits liability account for the amount of principal repaid and interest paid, which reduces the customer’s bank account by the same amount, credits its loans asset account for the amount of principal repaid and credits its revenue account for the amount of interest paid.
Out of this interest revenue that the bank receives, it pays a large proportion, such as two-thirds, to its account holders as interest on their deposits with the bank, in order to deliberately obscure the truth that it creates money out of nothing when it lends for any purpose and charges interest on that principal created and lent, which it receives as interest revenue.
The bank also uses the interest revenue that it receives to pay the salaries of bank employees and other operating expenses. (The bank has other revenue sources, including account-keeping fees and transaction fees, out of which it also pays for its bank employees and other operating expenses.) The remainder of this interest revenue constitutes the bank’s profit, out of which company tax is paid to the Australian federal government and dividends are paid to the shareholders of the bank so that they can share in this interest revenue also.
The Reserve Bank of Australia was established in 1959 via the Reserve Bank Act. It commenced operation early the next year on 14th January, 1960, more than 60 years ago. The purpose of the Reserve Bank of Australia has always been to maximise the interest revenue collected by the banks in Australia under its authority, which were first publicly owned then later privately owned by shareholders.
During the financial year from 2014 to 2015 in Australia, which had a population of around 24 million people at the time, the four major banks in Australia, being the Commonwealth Bank, Westpac, National Australia Bank (NAB) and the Australian and New Zealand Bank Banking Group (ANZ), earned about $120 billion in interest in Australia on the money they create out of nothing when they lend for any purpose.
Out of this $120 billion, they paid about $75 billion to their account holders as interest on the deposits of these account holders with these banks, in order to deliberately obscure the truth that they create money out of nothing when they lend for any purpose and charge interest on that principal created and lent, which they receive as interest revenue. They also paid about $5 billion dollars to their bank employees who run the banks, as well as for other operating expenses, leaving profits before company tax of about $40 billion. (These banks have other revenue sources, including account-keeping fees and transaction fees, out of which they also pay for their bank employees and other operating expenses.) These banks paid about $10 billion in company tax to the Australian federal government for the financial year from 2014 to 2015. Approximately $30 billion was earned by these banks in profits after company tax, out of which dividends are paid to the shareholders of these privately owned banks, all courtesy of the fraud of interest charged on money created out of nothing when these banks lend for any purpose.
That is a total of about $120 billion paid in one year in interest to these banks by Australian citizens, non-citizens of Australia, Australian businesses and Australian not-for-profit entities on money that these banks created out of nothing and lent to them. Conceptually, it is the equivalent of $6,383 paid during the financial year from 2014 to 2015 by every adult Australian citizen and adult non-citizen of Australia aged 18 years or over to the banks in interest, which is $122.75 per week. Around 78.3% of the population (i.e. 65.1/83.1, where 83.1 is the life expectancy in Australia) of around 24 million during the financial year from 2014 to 2015 was aged 18 years or over, being around 18,800,000 adult Australian citizens and adult non-citizens of Australia.
During the financial year from 2022 to 2023 in Australia, which had a population of around 27 million people at the time, the four major banks in Australia, being the Commonwealth Bank, Westpac, National Australia Bank (NAB) and the Australian and New Zealand Bank Banking Group (ANZ), earned about $170 billion in interest in Australia on the money they create out of nothing when they lend for any purpose.
Out of this $170 billion, they paid about $110 billion to their account holders as interest on the deposits of these account holders with these banks, in order to deliberately obscure the truth that they create money out of nothing when they lend for any purpose and charge interest on that principal created and lent, which they receive as interest revenue. They also paid about $15 billion dollars to their bank employees who run the banks, as well as for other operating expenses, leaving profits before company tax of about $45 billion. (These banks have other revenue sources, including account-keeping fees and transaction fees, out of which they also pay for their bank employees and other operating expenses.) These banks paid about $10 billion in company tax to the Australian federal government for the financial year from 2022 to 2023 (i.e. $11.1 billion in company tax in the financial year from 2022 to 2023 versus $9.4 billion in company tax in the financial year from 2014 to 2015). Approximately $35 billion was earned by these banks in profits after company tax, out of which dividends are paid to the shareholders of these privately owned banks, all courtesy of the fraud of interest charged on money created out of nothing when these banks lend for any purpose.
That is a total of about $170 billion paid in one year in interest to these banks by Australian citizens, non-citizens of Australia, Australian businesses and Australian not-for-profit entities on money that these banks created out of nothing and lent to them. Conceptually, it is the equivalent of $8,057 paid during the financial year from 2022 to 2023 by every adult Australian citizen and adult non-citizen of Australia aged 18 years or over to the banks in interest, which is $154.94 per week. Around 78.3% of the population (i.e. 65.1/83.1, where 83.1 is the life expectancy in Australia) of around 27 million during the financial year from 2022 to 2023 was aged 18 years or over, being around 21,100,000 adult Australian citizens and adult non-citizens of Australia.
The way money is created in Australia needs to change. The Australian federal government should be responsible for money creation, not the privately owned banks via their lending. The only entity that should have the authority to create money in Australia and control the size of the money supply in Australia is the Australian federal government which should create money via a publicly owned Australian Bank by lending it to Australian citizens, Australian businesses and Australian not-for-profit entities for any purpose, including mortgages. The Australian Bank would not charge interest when it lends, however it would need to charge various rates in the vicinity of 0.5% to 1% on its various types of lending, such as mortgages and business loans, in order to cover the incidence of default on loans by borrowers (i.e. non-repayment of principal borrowed). The sole purpose of these rates would be to cover the incidence of default on loans, not to profit from lending.
There would have to be some mechanism for limiting government lending to the citizenry since the publicly owned Australian Bank would create all of the money that it lends so that the size of the money supply increases when it lends. Unrestrained lending would lead to a rapidly increasing money supply and associated inflation of prices.
Citizens would be able to borrow in order to buy a house to live in and possibly a holiday house but they would not be allowed to borrow in order to buy a house as an investment to rent out in order to earn income. Investment would need to be funded out of savings, including houses and shares to name just two investments.
The amount that the Australian Bank would lend to any given citizen for any given purpose, such as buying a house to live in, would be limited by factors such as the income of the citizen and the size of the deposit that the citizen has saved towards the purchase, with zero dollars obviously being the minimum possible size of the deposit saved. The Australian Bank would decide upon the multiple of any given citizen’s income (such as three times) to lend to them for any given purpose, such as buying a house to live in or buying a motor vehicle.
If necessary, the Australian federal government could also direct the Australian Bank to create money and bring it into circulation in order to increase the size of the money supply by spending the money on one or more Australian federal government projects or giving the money to Australian citizens in proportion to the amount of net tax they have paid to the Australian federal government during their lives, defined as tax paid to the Australian federal government during their lives minus money received from the Australian federal government in this manner as a result of money creation by the Australian federal government during their lives.
However, it is best for the Australian federal government to avoid directing the Australian Bank to create money and bringing it into circulation in order to increase the size of the money supply by spending the money on one or more Australian federal government projects or giving the money to Australian citizens, because the only way for the Australian federal government to subsequently destroy this money, in order to decrease the size of the money supply as necessary, is to destroy money in the form of taxes collected from taxpayers in Australia.
Since I favour the lowest possible taxation in Australia, in the form of a flat rate of income tax of 25% on all income earned by Australian citizens aged 18 years or over, by abolishing the tax-free threshold, with income tax collected during any given financial year that is unspent at the end of the financial year repaid to taxpayers at the end of the financial year in proportion to the amount of income tax they have paid during the financial year, there is little opportunity for the Australian federal government to destroy income tax collected in order to decrease the size of the money supply as necessary.
(I previously believed that income tax should be collected by the Australian federal government at a flat rate of a maximum of 20% on all income earned by Australian citizens aged 18 years or over, by abolishing the tax-free threshold. However, this is not a high enough rate of income tax to fund the services that the Australian federal government should provide to Australian citizens.
A flat rate of income tax of a maximum of 20% on all income earned by Australian citizens aged 18 years or over is not sufficient to pay for the delivery of all or even any strictly necessary infrastructure projects (such as the construction of new government buildings, roads, schools, universities, hospitals, railway lines, dams, power stations and ports).)
Income tax collected by the Australian federal government is overwhelmingly needed to fund the operations of the Australian federal government, to fund the services that the Australian federal government delivers to Australian citizens and to fund the projects that the Australian federal government embarks upon, such as infrastructure projects, in order to improve Australia for the benefit of Australian citizens.
It has taken me the best part of a decade to understand that a publicly owned Australian Bank that is operated by the Australian federal government should create all of the money in circulation via lending to Australian citizens, Australian businesses and Australian not-for-profit entities, without charging any interest on this lending, notwithstanding rates of less than 1% that it would charge on its various types of lending, in order to cover the incidence of default on loans by Australian citizens, Australian businesses and Australian not-for-profit entities.
The Australian Bank would be run on a not-for-profit basis whereby the cost of running its operation would be covered by account keeping fees and transaction fees that reflect the true costs incurred by the bank to maintain the accounts and process the transactions of Australian citizens, Australian businesses and Australian not-for-profit entities (such as publicly owned Australian federal, state, territorial and local government entities, as well as privately owned churches and charities).
Our current predicament in which privately owned banks in Australia create money out of nothing when they lend and then charge interest on it is a Jewish (i.e. Edomitish) fraud whose perpetrators are committed to protecting it at all costs. The Coronavirus hoax has been instigated worldwide by the Rothschilds-led synagogue of Satan (which controls the United Nations and its World Health Organization) in order to provide a reason for the failing economies in countries all around the world which draws attention away from the real reason – insufficient money in circulation in countries all around the world as a result of insufficient borrowing from privately owned banks by citizens in countries all around the world who rightfully view these banks with distrust and disdain because they charge interest on the money they create out of nothing when they lend.
Providing a sound monetary system for the citizenry is one of the most important services that a sound government is obligated to provide. There is absolutely no reason whatsoever why any money in circulation should obligate citizens to pay interest on it. When citizens pay interest to privately owned banks as a result of money borrowed, they receive nothing of value in return, because the money lent to them was created out of nothing by the banks. This is a cleverly disguised system of slavery whereby the citizenry work to earn the money required to pay the interest without receiving anything of value in return for that money earned and paid. The recipients of the interest paid, being the bank employees and the shareholders of the banks, use the interest paid to buy the goods and services that the citizenry produces in the course of earning the money to pay the interest. This is a massive transfer of wealth from those paying the interest, being the citizenry, to those receiving the interest, being the bank employees and the shareholders of the banks. Over the course of repaying a mortgage on a house, a borrower from a privately owned bank under our current banking system pays in the vicinity of 80% of the principal amount borrowed in interest to the bank. This borrower repays the principal amount borrowed and also pays an additional amount to the bank as interest equivalent to around 80% of the principal amount borrowed.
If the principal amount borrowed is $500,000, the total amount repaid to the bank over the life of the mortgage is around $900,000. When the bank lent the $500,000 principal, a bank employee processed the paperwork and typed the $500,000 into a computer so that this money, created out of nothing with a few keystrokes, was available in the account of the borrower. In return for this negligible amount of work to lend the $500,000, the bank is repaid $900,000, which includes $400,000 in interest. About half of the interest of $400,000 is paid to bank employees as salaries and to cover other expenses. The remaining $200,000 is booked as profit, out of which dividends are paid to the bank’s shareholders.
We have been living under slave conditions for decades now. The Coronavirus hysteria is intended to keep us in slave conditions by providing a reason for the failing economies around the world which distracts from the real reason – the Jewish (i.e. Edomitish) fraud of interest charged by the banks on money created out of nothing when they lend. The Jewish (i.e. Edomitish) perpetrators of the Coronavirus hysteria, being the Rothschilds-led synagogue of Satan, intend to start new monetary systems in countries around the world in the aftermath of this hoax which similarly enshrine this Jewish (i.e. Edomitish) fraud as their centerpieces.