By Andrew Mackinnon
Last updated: 23rd November, 2025
When any bank in Australia lends for any purpose, it creates the money that it lends out of nothing and charges interest on it, which causes the size of the money supply in Australia to increase by the amount of principal loaned.
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 its customer with the amount it has lent to them 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 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.
All of the money in circulation in Australia, constituting the money supply, is money created by the banks out of nothing when they lend for any purpose, on which they charge interest.
Physical notes and coins are placeholders for money created by the banks out of nothing when they lend for any purpose, on which they charge interest.
The majority of the money in circulation in Australia arises from mortgage lending.
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). 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 reason why the Reserve Bank of Australia is currently increasing interest rates is to discourage Australian citizens, Australian businesses and Australian not-for-profit entities from borrowing in order to decrease the amount of money that is created as a result of banks lending to them and thereby decrease the size of the money supply in Australia (since money is destroyed when Australian citizens, Australian businesses and Australian not-for-profit entities continue to repay principal on loans they owe to the Australian Bank, so that the money supply in Australia decreases) in an effort to reduce inflation, which has been directly caused by non-white immigration into Australia.
(When the Reserve Bank of Australia thinks that there is not enough money in circulation in Australia, it decreases interest rates to encourage Australian citizens, Australian businesses and Australian not-for-profit entities to borrow in order to increase the amount of money that is created as a result of banks lending to them and thereby increase the size of the money supply in Australia.)
However, there is no need for banks in Australia to charge interest on the money that they lend and there is no need for the Reserve Bank of Australia to increase and decrease interest rates in order to respectively decrease and increase the size of the money supply in Australia.
Australia needs a publicly owned, federal “Australian Bank” that operates on a not-for-profit basis and lends to Australian citizens, Australian businesses and Australian not-for-profit entities, for mortgages, personal loans, business loans of all types and sizes and loans of all types and sizes to not-for-profit entities, without charging any interest on this lending to Australian citizens, Australian businesses and Australian not-for-profit entities.
However, various rates of around 1% or less would need to be charged by the Australian Bank on all lending by the Australian Bank to Australian citizens, Australian businesses and Australian not-for-profit entities, in order to cover the various incidences of default on loans to Australian citizens, Australian businesses and Australian not-for-profit entities.
The Australian Bank should cover its operating costs by charging account-keeping fees and transaction fees, paid by Australian citizens, Australian businesses and Australian not-for-profit entities, who and which use the Australian Bank, which account-keeping fees and transaction fees should be limited to covering the actual costs incurred by the Australian Bank to administer the accounts of Australian citizens, Australian businesses and Australian not-for-profit entities and to process the transactions of Australian citizens, Australian businesses and Australian not-for-profit entities.
Money is created when the Australian Bank lends to Australian citizens, Australian businesses and Australian not-for-profit entities, so that the money supply in Australia increases.
Money is destroyed when Australian citizens, Australian businesses and Australian not-for-profit entities repay principal on loans they owe to the Australian Bank, so that the money supply in Australia decreases.
Therefore, when Australian citizens, Australian businesses and Australian not-for-profit entities borrow more money per unit time from the Australian Bank than Australian citizens, Australian businesses and Australian not-for-profit entities repay per unit time to the Australian Bank, such as when the total amounts of money lent by the Australian Bank to Australian citizens, Australian businesses and Australian not-for-profit entities increase as higher multiples of their respective incomes, operating profits and operating surpluses, the money supply in Australia increases.
Therefore, when Australian citizens, Australian businesses and Australian not-for-profit entities borrow less money per unit time from the Australian Bank than Australian citizens, Australian businesses and Australian not-for-profit entities repay per unit time to the Australian Bank, such as when the total amounts of money lent by the Australian Bank to Australian citizens, Australian businesses and Australian not-for-profit entities decrease as lower multiples of their respective incomes, operating profits and operating surpluses, the money supply in Australia decreases.
The size of the money supply in Australia can be increased and decreased to control inflation by increasing and decreasing the total amounts of principal that the Australian Bank is allowed to lend to Australian citizens, Australian businesses (such as sole traders, partnerships and companies) and Australian not-for-profit entities (such as churches and charities), expressed as higher and lower multiples of the incomes of Australian citizens, operating profits of Australian businesses and operating surpluses of Australian not-for-profit entities.
These multiples could be different for different types of borrowers, such as Australian citizens, Australian businesses (including sole traders, partnerships and companies) and Australian not-for-profit entities (including churches and charities).
For example, the Australian Bank could be limited to lending 2.0 times the income of any given Australian citizen, so that the total borrowing of that Australian citizen, such as including a mortgage and a personal loan, is not allowed to exceed 2.0 times the income of that Australian citizen.
For any given married couple of Australian citizens, the Australian Bank could be limited to lending 2.0 times their combined income, so that the total borrowing of that married couple of Australian citizens, such as including a mortgage and personal loans, is not allowed to exceed 2.0 times the combined income of that married couple of Australian citizens.
The analog of interest-only loans, being loans with no repayments whatsoever until repayment of the entire principal of the loan, would not be allowed by the Australian Bank under any circumstances.
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 was instigated worldwide in late 2019 by the 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 account holders with the banks, 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 account holders with the banks, 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, then the total amount of interest paid to the bank over the life of the mortgage is around $400,000 and the total amount paid 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 $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 paid $900,000, which includes $400,000 in interest. About two-thirds of the interest of $400,000 is paid to account holders with the bank, being about $270,000 and about one-tenth is paid to bank employees as salaries and to cover other operating expenses, being about $40,000. The remaining circa one-quarter, being about $100,000, is booked as profit, out of which company tax is paid and dividends are paid to the bank’s shareholders.
We have been living under slave conditions for decades now. The Coronavirus hysteria was 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 perpetrators of the Coronavirus hysteria, being Jewish (i.e. Edomitish) adherents of the synagogue of Satan (i.e. Satanists), 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.