The Sumerian Swindle started like this: If you are on good terms with your next-door neighbor,
and you run short of some flour or eggs in the middle of cooking supper, a neighborly thing to do is to run next door or send your children next door to borrow what you need until you can go to the market and restock supplies. After shopping, you will repay your neighbor for the borrowed food. Such borrowing among neighbors has been going on ever since people began living together in groups – that is, for the past ten or twenty million years. Borrowing and repaying, is a way to build friendships and to sustain society. Borrowing and repaying, is a vital mechanism in every human society. But it became corrupted among the Ubaidians of Mesopotamia.
As the people whom we call the Ubaidians first practiced irrigated cultivation of crops, something
about this natural human relationship changed. Perhaps one neighbor got tired of constantly lending out grain to another neighbor who was slow to repay. So, it happened that at a certain time, the lending neighbor agreed to lend out a measure of grain only if the borrower agreed to repay a measure and a handful; or perhaps a basket of grain was lent out in return for a basket-and-a-half in repayment; or perhaps, sensing the reluctance of a neighbor to loan, the borrower, himself, out of charitable good will and personal need, offered to repay two baskets of grain for one loaned.
Whatever the actual origin of the mechanism, the Ubaidians evolved a system that we today call,
“interest on a loan”. This occurred sometime between 9,000 and 6,000 BC when they first began building their permanent mud brick towns and villages. Central grain storehouses were a part of every town. And in every town and village, individual grain storeage space was a part of every house. So, when the larder was empty, borrowing from a neighbor kept starvation from the door and promoted friendly relations among neighbors in a harmonious society of give and take.
But something else occurred in the actual understanding of this development in the minds of
both the borrower and the lender. A borrower who repays the loan has nothing left in his hands to contemplate. But the lender who gains back the loan plus interest has more than he started with to contemplate. The poor man is even poorer than he was and the rich man is richer than he was. The actual physical ownership of the grain plus interest enabled the lender to accumulate an ever-increasing store of goods. In addition to what he started with, both the returned loan as well as the interest could be loaned out at interest. And that interest when repaid could again be loaned out in a spiraling increase in total wealth.
This was the beginning of the Sumerian Swindle. Two baskets of grain on loan at 50% interest
brought back three baskets. These three could again be loaned at 50% interest to bring back four-and-ahalf.
These four-and-a-half could again be loaned to bring back six and three-quarters. In a short time,
those original two baskets produced an additional four and three-quarters baskets of grain for free. And 16 so on, and so on, as an increasing spiral of profits accumulated for free and for doing no work other than making loans. As the size and number of loans increased, the total wealth of the grain lender began to increase far beyond the wealth of his neighbors.
Then, a magical and mysterious thing happened. Once a certain profit point had been reached
where the lender was loaning out not his original grain but the grain that he had previously received as interest, then everything that he profited from that point onward was wealth given to him for free. The grain that he received as interest-on-the-loan had cost him nothing. And when he loaned out that same grain at interest, both it and its returning interest were free grain that had also cost him nothing. This free grain continued to multiply over time as it was loaned out again and again. Huge mountains of grain filling his storerooms to the rafters began to accumulate, grain that had cost him absolutely nothing more than charging interest-on-a-loan.
In those days, a man’s wealth was measured by how much land and grain he had and by how
many goats and sheep that he owned. Very soon, those Ubaidian grain and silver lenders were enjoying vast fortunes. Thanks to the arithmetic deception of lending-at-interest, they were loaning out at interest what they had gotten for free. Eventually, using that free grain in barter for other goods, everything that they owned actually had cost them absolutely nothing at all!
The lender found that by loaning out a basket of grain, he got back two baskets instead. Of course, a light bulb did not go off in his head since it was still the Stone Age, seven thousand years before Benjamin Franklin and Thomas Edison, but certainly the very first loan shark had a major brainstorm! Without working under the hot sun, without lifting a single load upon his head, without walking a single step, two baskets of grain were delivered to his door. And the one who delivered the grain was glad to do it since the loan had helped him through a difficult time. After all, they were all fellow villagers and all on good relations with one another. The hatreds would come much later.
The Sumerian Swindle has twenty-one secret frauds. The Twenty-One Secret Frauds of the
Sumerian Swindle are:
#1 All interest on the loan of money is a swindle.
#2 Collateral that is worth more than the loan, is the banker’s greatest asset.
#3 Loans rely on the honesty of the borrower but not the honesty of the lender.
#4 Loans of silver repaid with goods and not with silver, forfeit the collateral.
#5 The debtor is the slave of the lender.
#6 High morals impede profits, so debauching the Virtuous pulls them below the depravity of the
moneylender who there-by masters them and bends them to his will.
#7 Monopoly gives wealth and power but monopoly of money gives the greatest wealth and power.
#8 Large crime families are more successful than lone criminals or gangs; international crime families are
the most successful of all.
#9 Only the most ruthless and greedy moneylenders survive; only the most corrupt bankers triumph.
#10 Time benefits the banker and betrays the borrower.
#11 Dispossessing the People brings wealth to the dispossessor, yielding the greatest profit for the bankers
when the people are impoverished.
#12 All private individuals who control the public’s money supply are swindling traitors to both people
and country.
#13 All banking is a criminal enterprise; all bankers are international criminals, so secrecy is essential.
#14 Anyone who is allowed to lend-at-interest eventually owns the entire world.
#15 Loans to friends are power; loans to enemies are weapons.
#16 Labor is the source of wealth; control the source and you control the wealth, raise up labor and you
can pull down kings.
#17 Kings are required to legitimatize a swindle but once the fraud is legalized, those very kings must be
sacrificed.
#18 When the source of goods is distant from the customers, profits are increased both by import and
export.
#19 Prestige is a glittering robe for ennobling treason and blinding fools; the more it is used, the more it
profits he who dresses in it.
#20 Champion the Minority in order to dispossess the Majority of their wealth and power, then swindle
the Minority out of that wealth and power.
#21 Control the choke points and master the body; strangle the choke points and kill the body.
Grain could be bartered for goats, and goats for woven cloth and boats; and boats and goats and
grain could be exchanged for houses and irrigated land, etc. By loaning grain out at interest and using the interest-income to barter for other goods, a clever trader could leverage his way to more wealth than any of his neighbors even though all of them had started off at the same level in society. Like the modern bankers who pile up their swindled wealth into skyscrapers, yachts and Lear Jets, investments in war and cornering the commodities market, the Ubaidian moneylenders began to pile up wealth in grain, silver and land. By getting something for nothing simply by charging interest-on-a-loan, they had discovered Secret Fraud #1 of the Sumerian Swindle: “All interest on the loan of money is a swindle.”
It might seem odd, but the fact is that all of the excessive wealth of modern day bankers,
financiers, loan sharks, Jews, and related swindlers, is based upon nothing more than two baskets of barley creating three. Secret Fraud #1 of the Sumerian Swindle was based upon what people all over the world had been doing for millions of years. If one member of a village or tribe was short of supplies, other members would give or loan him what he needed. And when he was able, he would return the borrowed goods or else return goods of equal value. But to insist that he return more than he had borrowed was the swindle. In all farming communities where drought, insects, fire, rain, flooding and a myriad of woes plague farmers, there are always farmers who need a loan to get through the bad spell. Lending and paying back, borrowing and returning, have always been a part of normal human society.
At first, this normal and natural system was used in Mesopotamia. If a farmer needed a basket of
grain for his family, he would borrow it from a neighbor. And when the harvest came in, he would repay what he had borrowed. This was a natural and a balanced exchange system; no one profited and no one lost. Yet, the entire community benefited. Goods were distributed in an equitable way which was good and natural and fair to everybody.
However, once a lender asked for more in return than what he had lent, an unnatural imbalance
was introduced into society. No longer were men equal and dependant upon their work for their material rewards in Life. Interest-on-a-loan created the inequality of those who became rich without actually working for their wealth and those who became poor in spite of incessant labor. In other words, charging interest-on-a-loan automatically created a diseased situation in society where the rich sucked the life out of the poor. It created two social classes of financial vampires living off of the blood and sweat of the permanently impoverished.