Bank Scam #10: The Debt Matrix

by Mark Quann

is it safe to buy prednisone online Bank Scam #10: The Debt Matrix

I call the financial system built by the World Bankers, The Debt Matrix. Americans (and the rest of the world) plug into the Matrix when they are young—get hooked on debt—and many will remain in debt for life.

The Matrix can be described in Bank Scams #1-9, with each scam being interdependent on one another.

Bank Scam #1: “Save Money” is used to lure you into the bank and earn your trust. Before long, you will believe that lending your money to the bank interest-free (called saving) and paying charges and fees is a completely normal thing to do.

Bank Scam #2: “Get Good Credit” is used to get you into debt shortly after you open your first checking and savings account. First, the issuance of a credit card, followed by an auto loan, student loans, and finally a mortgage that buries you deep in debt. The bankers will tell you, “To get the best credit score you will need multiple credit cards, and multiple loans from the banks.” Soon, many Americans will fill their wallet with credit cards, and teach their children to do the same.

Bank Scam #3: “Fractional Reserve Banking” allows the bank to leverage (lend-out) ten times the amount you save–simply by logging bank entries to track the debt, plus interest. This debt (your savings) will be issued to the millions of Americans who are looking to get good credit.

Bank Scam #4: “The Automatic Saving Plans” such as Wells Fargo “Way2Save,” and Bank of America “Keep the Change” encourage Americans to save “automatically” within the banks. This savings will provide the reserves to issue even more debt to the rest of America.

Bank Scam #5: “ING Direct (soon to be Capital One 360)” and other on-line banks, once sold to credit card companies, encourage further lending of your money to the banks for virtually no interest–with every dollar being leveraged into debt. As I stated in the Bank Scam #5 post, “I believe that the 7.5 million customers of Capital One 360 will be targeted to distribute high-interest credit card debt–using their own savings to fund the debt.”

Bank Scam #6: “Offering a Discount to Apply for Credit” allows the banks to distribute even more credit cards, while shopping to buy your favorite stuff. The bank is aware that most Americans will pay 112% more for something purchased on credit, rather than cash. And department store cards are usually the highest interest rates of all credit cards. Through marketing credit cards in the mail, and offering you cards while shopping, the banks continue to offer many more opportunities to accumulate even more debt.

Bank Scam #7: “CD IRA’s” simply lock your retirement money up in a CD, so the bank can then invest your retirement money for personal profit. You may want to consider that the bankers invest, while telling their clients to save in FDIC insured accounts. CD’s are historically a guaranteed way to lose the purchasing power of your money when factoring in inflation, therefore should not be used for retirement accounts. A CD IRA is only good for the bank.

Bank Scam #8: “CD Secured Loans” lend your money to the bank at a low interest rate, so they can lend that same money back to you at a higher interest rate.

Bank Scam #9: “0% Auto Loans” allow the banks to issue additional debt to America, and “0%” sounds very good. The bank does not care about the interest rate however, as they are not lending any of their money anyway. They have locked up trillions in CD’s and savings accounts–paying virtually no interest, while lending on credit cards at an average interest rate of 16%.

What is most important to the bankers-of-the-world is that you and I never discover that the Matrix exists. If Americans ever learned each of the components of the Matrix, and more importantly how to un-plug, the bankers would become poorer, and many more Americans would become wealthy.

To un-plug from the Matrix is simple:

• Call 1-888-5-OPT-OUT (1 888 567-8688) to stop receiving credit card offers in the mail.
  Cut up all your bank-issued credit cards, as well as any cards issued from department stores, or home improvement stores.
• Find a credit union. Move your checking and savings account from the bank to your local credit union.
• Refinance any of your debt to your local credit union, if possible. Credit unions on average have much lower interest rates than bank-issued debt.
• Set a goal to become debt-free and use the Debt Snowball (click here for the strategy) to pay down your debt. You should have a goal to eliminate all credit card debt, and your auto loan.
•  If you need to save or borrow, simply use a credit union to do it. Never borrow from a bank, department store, or home improvement store again.
• Review your mortgage to make sure that it is at the lowest possible interest rate. With no payments on credit cards or auto loans, you may want to consider a 15 year mortgage. You could become 100% debt-free within just 15 years.
• Never ask advice from the bank about money.

Once you have completed steps 1-8, you will have become free of debt. Chances are you will be happier, healthier, and everything in life is better without debt. Sure, it takes discipline to live debt-free. But the possibility of bankruptcy and complete financial chaos is a much worse alternative.

As Jim Rohn says, can you buy Neurontin over counter “We must all suffer from one of the two pains: the pain of discipline or the pain of regret. The difference is discipline weighs ounces while regret weighs tons.”