Derivatives from the Estate of the Ruling Class

Derivatives from the Estate of the Ruling Class

Today Derivatives are popular financial vehicles. Many people think derivatives are new, but in reality they actually go back to ancient times. A simple definition for “Derivative” is “something that comes from something else”. An example of a derivative is “Orange Juice”. “Orange Juice” is a Derivative of an Orange.

We need to understand the difference between an Asset and a Liability.

Many people treat a Mortgage as an asset. The definition of “Mortgage” is an “Agreement until Death” and comes from the Latin/French word “Mortir”.

The word “Finance” means “Penalty” and comes from the Latin/French word ‘Finare’ or ‘Fine’.

The word “Real” in “Real-Estate” comes from the Spanish word “Real”, which means “Royal” and is associated with Nobility and the Ruling Class. “Real-Estate” really means the “Royal’s-Estate”.

The 15th and 16th centuries were a time of enormous social and economic change. As the Agrarian Age was drawing to a close and the Industrial Age just beginning, the attention of Royalty was shifting from agriculture and landownership to industry and finance.

The Ruling Class (the then Monarchs and gentry) were realizing that their future control, power and profits were no-longer in the land but in the “Derivatives” that would come from the land. At the same time, this change was now paving the way for (the outward appearance of) landownership by peasants and the working class for the first time. To accommodate this economic and social shift, the Royalty or Ruling Class, working together with financial/banking institutions, created a special class of Derivatives. Derivatives such as “Taxes” on “land ownership” and “Mortgages” were introduced as a way of allowing the working class or commoners to finance their land.

To this day, land taxes and mortgages remain derivatives, as they are derived from land and landownership. Your bank would not call a Mortgage a Derivative, they would simply call it a loan contract secured by land. This is commonly known as putting a “spin” on the words; different words, similar meanings! Likewise, our ruling class of today (politicians) commonly use this same tactic of putting a spin on their words.

Remember the word “Finance” means Fine or “Penalty”. In 2001, “re-financing” of homes in the USA was $200 billion.  By 2002 it had risen to $1.3 trillion and in 2003 it skyrocketed to $2.5 trillion. These extreme levels of property-ownership debt are not just isolated to the US, they are just as excessive in Canada, Australia & New Zealand, Britain and much of Europe. Worldwide, people have been seduced into the appearance of property ownership, when what they truly own under law is little more than a Derivative from the property.


Today land and property is still called “Real-Estate” because no matter how much you pay for it, it never really belongs to you! It still belongs to the “Royals”! If you stop paying your Royalty Land Tax, or servicing the “Mortgage” that Real Estate will revert to its ultimate owner.

Liquidity as with Gold & Silver, represents the ultimate freedom. When one is not constrained, and his net worth is liquid, he is able to flow into whatever opportunities are present at any given time.

Five thousand years ago, the children of Israel escaped their enslavement in Egypt. As their shackles of bondage were broken, they were granted freedom and good health. The ancient text records it “He also brought them out with Silver and Gold, and there was none feeble among His tribes”.  Their wealth was liquid silver and gold, which is synonymous with freedom.

by Simon Heapes