#6 - "The Universal Deceit": A one-page summary of Bank "lending" fraud

A summary of the story so far (~5 minute read)

The hard evidence is irrefutable: bank “lending” is based on fraudulent accounting & almost certainly criminal!

It’s about 10 years since the Bank of England admitted banks CAN’T lend their liabilities - which is exactly what the BoE, and banks worldwide, have been doing for centuries.

Professor Richard Werner exposed the fraud in their “loan” accounting in his ground-breaking 2014 academic publication, though he didn’t call it by its name. Instead, he called it ‘fairy dust’, a nod towards the ‘magical’ aspect of what he saw.

And now, my articles #2, #3, & #5 have published hard evidence from private personal bank records of bank customers demonstrating HOW banks are doing what the Bank of England says is impossible: by simply lying about their “loan” accounting NUMBERS, using WORDS which contradict what those numbers say.

Banks defraud customers by lying in their loan account statements!

The beauty of this scam (for the banks) is that only the bank customer sees their fraudulent verbal account statements and, since most customers are not aware of accounting rules, they all miss the verbal fraud in front of their eyes. Keeping these verbal accounting frauds hidden-in plain-sight is the banker’s secret weapon. That is the ‘magical’ part of their deception.

How they keep getting away with it.

How come Australia’s bank regulators¹ have not even discovered this crime, let alone acted to stop it? They do have full powers to surveille and investigate banks, so why haven’t they discovered this systemic fraud?

It’s because they focus on consolidated Balance Sheets and Profit & Loss Accounts of banks. They simply never see individual customers’ account statements, where the bald-faced lies are told. This is very convenient for the banks. The lies banks peddle to individual customers’ have only ever seen the light of day in the offices, living rooms or kitchens of defrauded customers.

But that was before my articles were published.

Now the whole world can see, if it will only look.

What to look for

So, here once again, is what you need to look out for in your own loan account statements, banking’s most blatant accounting lies and deceptions, namely:

1. pretending to transfer funds from their asset account [with the debit balance] to their liability account [with the credit balance], when nothing is subtracted from that brand new debit balance in their asset account; and then

2. calling a customer’s DEPOSIT [a debit in the asset a/c] a “bank WITHDRAWAL”

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One-page Summary of the “credit-lending” fraud

Summarized in this printable A4-sized diagram [Figure 1, below] is the key evidence from my previous (rather long) article about the ANZ bank.

These two [truncated] account statements belong to an ANZ Bank customer I’ve named “Bill” and describe how the ANZ Bank responded to his request for a $30,000 loan, viz., it charged him a $150 application fee and recorded a $30,150 debit [LH panel- asset a/c] and a $30,000 credit [RH panel - liability a/c].

Figure 1. [middle table] Summary of three false statements made by ANZ Bank Ltd in its “Loan” and “Access” accounts [top panels] recording the origins of a $30,000 “loan” [with a $150 fee included] in its customer account statements, with six key accounting rules [bottom table] and how they are breached by the ANZ Bank in this instance.

The three fraudulent items - in the column headings and the first three lines - are highlighted in red rectangles, labelled:

• 1a &1b, describing a two sides of a mythical “funds transfer” from the Asset to the Liability a/c that couldn’t (and didn’t) happen; and

• 2, reversing two column headings in the asset a/c, transforming the customer’s $30,150 deposit [his promissory note] into a $30,150 “bank withdrawal” from the bank’s asset a/c.

The connections between these three verbal frauds (in the middle table) and the accounting RULES they are flouting (in the bottom table) are shown by dotted lines.

Those who don’t like ‘diagrams’, can read the fully detailed explanation of this case in my previous article (#2 - ANZ Bank Loan Accounts; Deconstructed).

How to stop it?

Since our regulators can’t see this crime, it’s up to ‘borrowing’ bank customers everywhere to learn which accounting rules banks are ignoring and call them out, individually, and >

The place to start is learning my six basic rules of accounting so you can recognize the evidence in my articles #2, #3 & #5 [linked above], and spot the classic telltale symptoms, which give the banker’s game away, and then >

I hope this exposure process will accelerate, as individuals become more confident with these six basic accounting rules, then pass their new knowledge on to their friends, and start to build up effective groups and eventually knowledgeable communities start to form. But only widespread exposure of fraudulent bank accounting will work. So please >

Publicity about the physical evidence of their fraud will not only thwart the assumed right to charge interest on their so-called “loans of credit” but will also undermine any mortgage they hold over real property as a result.

But that won’t happen until many customers understand what they are looking at in their individual “loan” account statements. So, if you ever borrowed “credit” from a bank, it’s up to you to become aware of the evidence which exposes their deception, and then help to spread awareness of this damning evidence.

So, once again, my personal

and don’t forget to

1. In Australia, banking is regulated by the Council of Financial Regulators (CFR). The members of Australia’s CFR are: Reserve Bank of Australia (RBA); Australian Prudential Regulation Authority (APRA); Australian Securities and Investments Commission (ASIC); and the Australian Treasury.