Finance Broker Learns That Banks Don’t Loan Money – What Happens Next?

Banks Don't Loan Money, They Create It – Finance Broker Takes Bank to Court

10th April 2015

By Uwe Schafer

Guest Writer for Wake Up World

What happens when a former finance broker realizes that banks don’t loan money, they create it out of thin air?

Imagine if you were a finance professional who sells loans for a living, and one day suddenly found out that banks do not actually lend anything when they claim to issue a ‘loan’?

In early 2011, whilst working as a Finance Broker in Perth, Western Australia, I was pointed towards this very information for the first time by a good friend. I instantly sought substantiation through in-depth research and investigation, and much to my dislike, it wasn’t very difficult to confirm these initial, incredible sounding claims. Banks create ‘money’ from thin air and loan it to you, at interest. This is the lie upon which the entire world of banking and finance is founded.

Based on these early findings, I left my job within a couple of days. For good.

Think about it…

You earn your income in a role that you love, where you get to meet tons of interesting people all the time, and in particular you get to assist families, businesses and individuals achieve their dreams of home-ownership, business expansion and lifestyle improvement. Then, as a banker, the carpet gets pulled out from under your feet when you discover that you have inadvertently been made an accessory to one of the biggest deceptions going on right in our midst — the very mechanism that keeps humanity (yes, that’s you too) in perpetual debt-bondage.

Much has happened in these past 4 years.

After an initial period of going through some “grieving”, which had me move through stages like self-pity and even anger, it became clearer that this journey down the rabbit-hole had only just begun, and that it would be best approached with an open mind and especially an open heart, in order to maintain sanity and peace in the house.

I therefore chose going about this in a rational manner.

Firstly, as part of this personal process of growing awareness, I became a ferocious reader and consumer of countless videos on topics like government corruption, banking fraud and many more. It started to appear, that the information landscape is studded with as many pieces of information of a “conspiracy” nature as it is with pieces of disinformation and lastly of course elements of truth. Of course, it is not a simple process to identify which is which.

I needed to put this to rest once and for all for my own sanity. The most logical thing to do appeared to be directly “putting to the test” the various financial service providers I had engaged in my personal life. That way, I could quickly get away from mere hearsay and opinions and actually determine what the real facts were. Surely, in a transparent and honest business transaction, it shouldn’t be difficult for either party to come up with certain information to put the other side’s mind at ease after concerns had developed pertaining to their mutual contract. Naively, that’s what I expected – at least initially.

After the first event of stone-walled silence and outright refusal by our bankers all around, I stopped all payments to finance providers, apart from our family’s home loan. I intended to test the validity of these debts, and by written notices, I continued to request in-depth information and substantiation that the other party to the agreements had a real case to enable them to claim monthly “re-payments” from me.

It didn’t take very long to find out that I had hit the nail on the head.

At least I had one element of grace in all this; the fact that my wife Barbara also “switched on” at the same time making this journey very philosophical for us.

Over the course of two years, we dealt with dozens of debt collectors, after the banks quickly on-sold these non-performing accounts to get them off their books. Of course, the debt collectors now were even less able to answer any questions of substance, and each time, quickly handballed the matter to the next one via “debt-brokers”. Some accounts have been in the hands of over 6 companies trying to collect from us. Still NO answers. And of course, no collection.

From direct experience, we discovered that their creativity in this disgraceful profiteering had no end, and that virtually all levels of operators in the world of finance are deeply complicit.

Some of you may ask: “But you got the money and the benefit, didn’t you?” This is an important question which I will deal with in a subsequent article, due to be published very shortly. As it turned out, this question has become the most important question in our awakening to the reality of finance and banking — a mechanism of control — and is equally used by the courts to throw out defences. Albeit not a question of law, it is pivotal.

For some, the penny drops quickly, for others a bit later. Stay with me, as I set the scene for what happened next…

Democracy has lawful remedies, doesn’t it?

Over time, not one of our “lenders” was able to substantiate that the promises they had made within our mutual agreements had been accordingly fulfilled. Instead, all approaches on our part were ignored, and force and bullying became the norm in an attempt to force us to comply.

What could we do about it? Turn our backs and forget about it all?

For some reason, the harder I tried to walk away from it to find a “normal” way of life again, the more it reared its ugly head. It was as if I had made an agreement (maybe at soul-level) and I felt compelled to continue shining the light into this darkened corner. Hence, in mid-2012, we began challenging our home-loan provider — the last bastille. Again, all approaches for information were ignored or rejected.

In late 2012, we and the “lender” had agreed to a small loan variation, in the form of an increase. It was at that point that we added in a clause to the new variation agreement, which compelled the lender to full transparency upon written request from us. We advised them of this change by cover-letter and offered the choice to decline the amendments. They did not decline and settled the increase to the account.

Very shortly after, we sent in several detailed notices requesting information pertinent to our agreement. These requests were ignored. We clearly advised that in the event of non-provision of the information requested, per our agreement, we would “freeze” payments until they had complied. Then in December 2012, we served the lender a “Notice of Breach of Agreement” and made no further payments.

The lender began legal enforcement proceedings with an action in the Western Australian Supreme Court in March 2013.

Apprehensive, yet excited, we were ready to tackle and settle this matter in the open arena of justice, and to have one of our “honourable” Australian judges swiftly determine that this lender had overstepped the boundaries of the written agreement it had entered into with us, and should perform according to that agreement. After all, from my days in banking, it was clear that it would take a professional operation only minutes to extract the documents and pieces of information we had asked for; things like bank statements, trust account ledgers and settlement cheque disbursement sheets. Their refusal could only be seen as an act of deliberate concealment.

Now 2 years later…

Over 100 “events” have since transpired in this action and in court – application filings, responses, affidavits, hearings and more – turning this into more than a full-time effort as self-represented litigants. The bank has never brought any evidence into the record that it provided us with funds on the day – the central point of their argument. The court recognises and accepts that a breach of the above variation agreement exists.

Despite this, the ‘Justice’ awarded judgement against us in August 2014. He suggested that we sue the lender for compliance. Our official attempt to commence such an action was subsequently refused filing by the court. All requests to have the lender comply with the terms of our agreement – which the court accepts were breached – are being outright refused or sidelined by that very court.

The judgement is currently being appealed in the Court of Appeals, with a crucial public hearing happening in Perth on 23 April 2015.

Convening a “Court of Public Opinion”…

We feel that the time has come to bring this story into the public light in all its detail.

First I must say, that we have not yet exhausted the full gamut of remedies “on offer” within the judicial system. Yes, the Supreme Court decided against us and gave judgment in favour of the bank in August. However, the Court of Appeal still has an opportunity to overturn the earlier judgment. In banking cases this outcome would probably be a first in Australia, but we are unable to unequivocally state that NO remedy exists within the system.

We invite you to come to the court in Perth on 23 April 2015 to personally witness democracy – or the complete opposite – in action. Take a moment and read the latest filings we have submitted to get a proper understanding of what exactly is being argued in the case. It does concern every one of you with a “loan” from a bank or non-bank lender of any shape or form.

Whether the Court of Appeal does the right thing and decides according to the rule of law, or the rule of hidden paymasters, will soon be apparent.

To follow this case, read documents, watch a short documentary, please visit

In my next article I will answer the question “But you got the money and the benefit, didn’t you?” and explain in detail how all this relates to you and your sovereignty.

Fountain Pen Money

This 33 minute video presentation provides details of the contract’s “transparency” terms, the bank’s failure to provide information requested, evidence that payments were “frozen” due to their breach, and subsequent foreclosure action commenced by the bank in the Supreme Court of WA.

Courtesy of

About the author:

Barbara and Uwe SchaferUwe and Barbara Schafer are German-born Australians and live in Perth, Western Australia with their two children. They have a diverse background in business, spanning over more than 25 years with interests ranging from running a very popular Perth health café for seven years in the 90’s, four years of fulltime network marketing in SE-Asia, property development, wholesome organic health food creation, and of course Uwe’s career as a consulting finance broker for several years. Barbara has also completed a tertiary diploma in psychology/counselling.

Uwe and Barbara can be reached via their website:


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  • desertspeaks

    You do know that the judges are in on the scam, right??
    Otherwise, the banks could not get away with their outright fraud!
    You will receive no justice in BOUGHT AND PAID FOR COURTS, as that would show them all “bankers/judges” for precisely what they are, PSYCHOPATHS, PATHOLOGICAL LIARS, THIEVES and CON-MEN.

  • Name (requiredjamjar

    Well, why am I not surprised!!!
    We have done a similar action and whilst we had clear payment record, the magistrate found for the bank. Desertspeaks is right. The courts are in on it and get paid to keep the system from harm. Perhaps you need to speak with Wayne Glew, he can be found on you tube.

  • The financial system implemented by the banking families using fractional reserve ‘lending’ and usury, is the biggest scam ever put on mankind.
    I, like many have woken up and been down the rabbit holes and understand what is really going and it is nothing like we thought it was.
    However, after a few years of watching the same rehashed articles and videos of the corruption, the biased systems, the fact we are not represented by those we pay and vote for etc etc I felt like my ‘wheels were spinning’.
    I also noted how no one had any solutions or new ideas to counter these awful systems which only ever serve a privileged few.
    I then took a journey to discover the root causes of our woes today and also came up with solid solutions, which I wrote into a short, free e-book called The Organic Economy, the final step in the evolution of democracy.
    Downloadable at

    I have learned the most important thing to grasp is we must change the systems. The financial, political and economic systems, for nothing will ever change for the better with these present systems.
    We cannot solve the issues from within the same systems in which they were created.
    Elections are like ‘Groundhog Day’ and the voters merely experience Einstein’s version of insanity.
    Nothing will change for the better, for us, the providers of true wealth and prosperity from our labours and endeavours.
    “But we can’t change the systems” you may say.
    But by merely saying that you have defeated yourself. Change begins in the mind with thought and once you understand that there is a far better way forward, you have already began that change.
    Please read the free e-book, thousands have, and if it resonates, please start the change by being a part of the solution, spreading the word and planting the seeds of new ideas in as many minds as possible.
    Be the change, it begins with you, it doesn’t take much but an idea whose time has come is unstoppable!

    Thank you!

  • Paul

    Dear Uwe and Barbara Schafer,

    Please contact me.

    We have a way for you to hold onto your place if the sheriff comes knocking.


  • many have already walked this path and found the depths of the corruption and how it pervades most of so called ‘society’.
    ‘judges’ get up and storm out when challenged in a way that shows they are operating as no more than pirates…
    judges arrested in court and then a media blackout.
    entire governments shown to be nothing but scams.

    you can find many related videos on this topic on the uncensored social network i am creating here (for free) called ureka: