Thursday, 14 August 2014 12:53

A Conversation with a Loans Officer

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A Conversation with a Loans Officer

Some time ago, I had the following conversation with a loans officer from a major Canadian bank:

Wally: When you issue these loans to borrowers you create the money out of nothing, don't you?

Banker: (with slight hesitation) Yes, that is true.

 

Wally: You do not actually take the money from anyone’s account?

Banker: No, we don’t.

 

Wally: And you say that you own the credit that you issue--correct?

Banker: Yes that is correct.

 

Wally: You must because you want it paid back.

Banker: Yes.

 

Wally: And you want interest paid on the outstanding principal--another claim of ownership. Right?

Banker: Yes, that is correct.

 

Wally: And furthermore, if we should ……………

Banker: (anticipating my next words) Yes, if you default on your loan we will foreclose on your assets.

 

Wally: Did you create those assets?

Banker: (perceptively at unease) No, we did not.

 

Wally: Do you return these foreclosed assets to the Community?

Banker: (visibly troubled and hesitating as having encountered a disturbing denouement) No, we do not.


On a subsequent encounter this same person asked me with obvious concern: “What can we to do about it?"

Last modified on Saturday, 10 February 2018 18:00
Published in The Bank Creation of Money Out of Nothing
More in this category: Yes, Virginia, the Banks Really Do Create Money Out of Nothing »

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2 comments

  • Comment Link Pat Cusack Sunday, 16 July 2023 01:22 posted by Pat Cusack

    Dear Wally,

    When the Banker answers: "Yes that is correct", to your question about OWNERSHIP of "credit", he commits fraud. He LIES, and he knows he is lying, because any "credit" in that bank's account is the bank's liability. The bank is DEBTOR on such a liability account. The CREDITOR on that bank liability account is the customer. The credit-balance in any bank account is an asset of the CREDITOR (i.e., customer). The customer OWNS that credit-balance, as he would any other credit-balance in an bank account bearing his name.

    I just came here to see where Social Credit was today. I am a retired mechanical engineer who first discovered C.H. Douglas' writings over 50 years ago and followed his works avidly - until about 2014. You see, I'd forced myself to understand the basic rules of double-entry accounting and, by 2014, I finally become aware of the true nature of "bank-credit" and realized where Douglas had misled me to believe "credit" is a noun, when, in banking terms, it is an adjective, describing the balance in a LIABILITY account, where the bank is DEBTOR and the customer is CREDITOR, at all times.

    It is not the creation of credit which is wrong, it is the fraudulent claim to ownership of it by the bank, AS YOU POINT OUT.

    To see hard evidence of this crime, in public documents created by a bank in Australia, check out the first three articles on my new Substack - https://patcusack.substack.com/

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