The nationalised Ponzi scheme
Posted by: xythos ()
Date: December 21, 2008 08:06PM

This is part of what would could be referred to as the 'Education' part of the Forum. Depending on how the response / re-action to it will unfold - I'm fully prepared to be covertly attacked, ridiculed & dubbed whatever those writing, would rather deny than being sufficiently open to the suggestion of entertaining their own critical thinking without grabbing the next "Sagan's Debunk Kit" (- it's not a Bible, in case you're wondreing...) as if their life depended on it, this will hopefully bring about more clarity for all those who care about their hard-downed moolah ($$$ & Cts).

In actuality of the news/events, this will be the starter... Remember that even if the article itself might be 'dry' & 'apparently' irrelevant to your own personal 'life' & has 'apparently nothing to do with "Cults" or "MLM schemes", I would think it is important, to not dismiss that the whole system of the Federal Reserve is built very much like a Pyramid scheme. It is akin to unravelling an onion...there are more layers, and layers. I will try to bring articles to this thread that will shed some light on the operations that have brought America financially to the point unlike it's ever been since the 1929 Depression.

What makes this 'worth' being brought onto this forum is that the society of the US has "worshipped" the almighty dollar & free market capitalism (i.e., get rich by any means possible - or, the 'end justifies the means') since the beginning of the last century. This not 'another' conspiracy, it is the "unknown" history of the American financial system - much like the mind control executed by the CIA since the early 40s. This is not to decry money in & of itself as the root of all evil nor is it questioning the hard-working 'God-fearing' folks' right to earn a decent living. But given that the development of the 'system' has become a literal house of cards built on quicksand, it is, IMHO, absolutely fitting to be considered as a "commercial scheme" to rob the people of their right for survival & to keep them locked & enslaved in a deadlock of financial debt for the next few generations...

The only way for the people to realise the scamming of their bank A/Cs is to educate themselves what so-called 'untouchable/unquestionable' official bodies, supposed & 'expected to "represent" the people's rights really are, how they function & also, what they stand for.

The Federal Reserve is a privately owned institution & it has absolutely no 'official legal bind' to the American gov't, something, that has completely 'gone under' in all the consecutive crisis' that have begin to unravel since I left the US back in 2003. I was not the slightest bit surprised that it has come to the financial desaster the country's going through at the end of the 21st's first decade & together with the political developments I saw unfold right in front my eyes (and, no, I did not need a 'Debunk Kit' of any sorts - the evidence was in 'plane sight' - as in my face as it could get) it was one of the main reasons for me to leave American soil.

On & upwards.

This is the biggest Ponzi to be unravelled, topping all of those mentioned here.

This is an article by the "The Nation" from Dec. 17th, the link is: []


White Collar Crime

Bernard Madoff, Trust-Buster by Nicholas von Hoffman

The news of Bernard Madoff's $50 billion fraud has hit the investor/401(k) class as nothing else--not the fall of Lehman Brothers, not the death of Bear Stearns, nor the string of insolvency announcements of one household name after another. Madoff is the blow that did it.

Lesser explosions connected with Madoff are expected. His story that for decades he ran his gigantic fraud by himself is unbelievable. One man alone could not have done the work of inventing and cranking out thousands of statements every month, not to mention keeping track of the comings and goings of billions of dollars. Madoff has confederates.

That Madoff took some of the members of the centimillionaire club to the cleaners is not what caused the shock. It is the damage done to so many smaller investor/savers, so many pension funds, so many charities. You do not have to be one of Madoff's victims to be affected. Madoff, his own businesses aside, was a major figure in the world of investments, of stocks and bonds and securities and exchanges. If the former chairman of Nasdaq is a crook, whom do you trust?

Madoff has sown the seeds of suspicion everywhere. He has caused us to doubt men and women with whom we have done business with for years. There is no way of knowing if someone is a con artist. The presumption of trust is gone.

Business depends on trust, trust of all kinds. Trust that when you place an order with a broker he or she will get you the best price, trust that your investment or retirement adviser is not getting an under-the-table kickback to put your old age money into a shoddy annuity.

Trust is the indispensable element in all businesses (my remark: and all relationships). Contractors depend on subcontractors to get the job done when they say they will; retailers depend on distributors to deliver on time; lawyers are trusted to meet filing deadlines, steel fabricators are expected to get gigantic trusses to the building site exactly when they are needed. Doctors are expected to put patients' interests above money considerations; parts manufacturers are relied on to deliver on time to the factory. Business runs on trust, and Bernard Madoff has busted it.

So the Wall Street Journal says to its readers: "Could your investment manager be another Bernard Madoff?... if someone like Mr. Madoff can be accused of running a $50 billion Ponzi scheme, can investors anywhere sleep easy? Ordinarily, when you are picking an investment manager or financial planner, you're given some common-sense advice. Avoid managers who are unknown, or unregulated, or come without good referrals, or haven't been in the industry long. But none of this would have saved you from Mr. Madoff. 'This guy had oodles of referrals, at the highest levels,' notes Duane Thompson, a managing director at the Financial Planning Association in Washington. 'He was [former] chairman of Nasdaq. He'd been in business since 1960."

Fear, confusion and mistrust have been amplified by the absence of government supervision, regulation or policing*. The Securities and Exchange Commission admits it did not do its job.

*Sounds familiar, does it not? Different 'group' (i.e., sect/cult), same 'operational style'.... A "free for all" at the expense of the unsuspecting/gullible/unawares, looking for 'guidance & finding its exact opposite.

With the closing down of the old-time pension system, millions of employees were forced into 401(k)s requiring knowledge of finance, bonds, stocks, weird-sounding investments and tax law. They have had to make investment decisions effecting their future with no government protection against misrepresentation, legal traps laid for them and the small print obfuscation financial institutions practice on their customers. The result is the heart-wrenching situation for millions who fear that they will be living out the last decades of their lives counting their food stamps and hunting for bargains in the used clothing bins.

The Madoff swindle puts the spotlight on the collapse of the 401(k) retirement plan. The United States is the only advanced nation without a complete retirement system.

For 401(k)s to have worked, a bull market or at least a flat market was necessary. It was an unreliable gamble from the git-go, an arrangement that would fall to pieces when next the market crashed.

Madoff and the crash underline the powerlessness of the millions. As a matter of principle, the Republicans defended the unregulated lawlessness that enabled a Madoff to run his swindles. As for the Democrats, sometime in the Clinton era they sold their party to Wall Street and now they have Chuck Schumer to make sure it stays sold.

It remains for President-elect Obama to void the deal and break his party free to help those who have nowhere else to look.


BTW, don't expect Obama to 'come to the American people's "rescue"'. He voted for the 'bailout package' that has brought America further down on its knees & deepened the financial crisis. And, it ain't gonna change just because he'll be "moving into the WH" (don't forget that the whole inauguration show will be on your money...).

Here are more links to what this 'nationalised Ponzi scheme' has led to:

Madoff Scandal Rips Apart Close World of Jewish Philanthropy: "It's Like Finding Out Your Father Is a Felon", One Observer Said (sounds like another guru having been unmasked....!) []

The aftermath of a 'cult-'ivated Ponzi scheme at the heart of the 'national institutions':

Excellent video that is quite telling in hindsight....

The Philosopher's Stone - []

The Fe(ral)deral Reserve...the biggest scam yet to be unravelled...

Re: The nationalised Ponzi scheme
Posted by: xythos ()
Date: December 23, 2008 07:19PM

Money, Banking & The Federal Reserve (~42 min video)


Re: The nationalised Ponzi scheme
Posted by: xythos ()
Date: December 23, 2008 07:59PM

What Is The Federal Reserve Bank?

What is the Federal Reserve Bank (FED) and why do we have it? by Greg Hobbs November 1, 1999

The FED is a central bank.

Central banks are supposed to implement a country's fiscal policies. They monitor commercial banks to ensure that they maintain sufficient assets, like cash, so as to remain solvent and stable. Central banks also do business, such as currency exchanges and gold transactions, with other central banks. In theory, a central bank should be good for a country, and they might be if it wasn't for the fact that they are not owned or controlled by the government of the country they are serving. Private central banks, including our FED, operate not in the interest of the public good but for profit.

There have been three central banks in our nation's history. The first two, while deceptive and fraudulent, pale in comparison to the scope and size of the fraud being perpetrated by our current FED. What they all have in common is an insidious practice known as "fractional banking."

Fractional banking or fractional lending is the ability to create money from nothing, lend it to the government or someone else and charge interest to boot. The practice evolved before banks existed. Goldsmiths rented out space in their vaults to individuals and merchants for storage of their gold or silver. The goldsmiths gave these "depositors" a certificate that showed the amount of gold stored. These certificates were then used to conduct business.

In time the goldsmiths noticed that the gold in their vaults was rarely withdrawn. Small amounts would move in and out but the large majority never moved. Sensing a profit opportunity, the goldsmiths issued double receipts for the gold, in effect creating money (certificates) from nothing and then lending those certificates (creating debt) to depositors and charging them interest as well.

Since the certificates represented more gold than actually existed, the certificates were "fractionally" backed by gold. Eventually some of these vault operations were transformed into banks and the practice of fractional banking continued.

Keep that fractional banking concept in mind as we examine our first central bank, the First Bank of the United States (BUS). It was created, after bitter dissent in the Congress, in 1791 and chartered for 20 years. A scam not unlike the current FED, the BUS used its control of the currency to defraud the public and establish a legal form of usury.

This bank practiced fractional lending at a 10:1 rate, ten dollars of loans for each dollar they had on deposit.
This misuse and abuse of their public charter continued for the entire 20 years of their existence. Public outrage over these abuses was such that the charter was not renewed and the bank ceased to exist in 1811.

The war of 1812 left the country in economic chaos, seen by bankers as another opportunity for easy profits. They influenced Congress to charter the second central bank, the Second Bank of the United States (SBUS), in 1816.

The SBUS was more expansive than the BUS. The SBUS sold franchises and literally doubled the number of banks in a short period of time. The country began to boom and move westward, which required money. Using fractional lending at the 10:1 rate, the central bank and their franchisees created the debt/money for the expansion.

Things boomed for a while, then the banks decided to shut off the debt/money, citing the need to control inflation. This action on the part of the SBUS caused bankruptcies and foreclosures. The banks then took control of the assets that were used as security against the loans.

Closely examine how the SBUS engineered this cycle of prosperity and depression. The central bank caused inflation by creating debt/money for loans and credit and making these funds readily available. The economy boomed. Then they used the inflation which they created as an excuse to shut off the loans/credit/money.

The resulting shortage of cash caused the economy to falter or slow dramatically and large numbers of business and personal bankruptcies resulted. The central bank then seized the assets used as security for the loans. The wealth created by the borrowers during the boom was then transferred to the central bank during the bust.* And you always wondered how the big guys ended up with all the marbles.

*Doesn't that sound awfully familiar? It's what's happening right during these last months of 2008....!

Now, who do you think is responsible for all of the ups and downs in our economy over the last 85 years? Think about the depression of the late '20s and all through the '30s. The FED could have pumped lots of debt/money into the market to stimulate the economy and get the country back on track, but did they? No; in fact, they restricted the money supply quite severely. We all know the results that occurred from that action, don't we?

Why would the FED do this? During that period asset values and stocks were at rock bottom prices. Who do you think was buying everything at 10 cents on the dollar? I believe that it is referred to as consolidating the wealth. How many times have they already done this in the last 85 years?

Do you think they will do it again?

Just as an aside at this point, look at today's economy. Markets are declining. Why? Because the FED has been very liberal with its debt/credit/money. The market was hyper inflated. Who creates inflation? The FED. How does the FED deal with inflation? They restrict the debt/credit/money. What happens when they do that? The market collapses.

Several months back, after certain central banks said they would be selling large quantities of gold, the price of gold fell to a 25-year low of about $260 per ounce. The central banks then bought gold. After buying at the bottom, a group of 15 central banks announced that they would be restricting the amount of gold released into the market for the next five years. The price of gold went up $75.00 per ounce in just a few days. How many hundreds of billions of dollars did the central banks make with those two press releases?

Gold is generally considered to be a hedge against more severe economic conditions. Do you think that the private banking families that own the FED are buying or selling equities at this time? (Remember: buy low, sell high.) How much money do you think these FED owners have made since they restricted the money supply at the top of this last current cycle?

Alan Greenspan has said publicly on several occasions that he thinks the market is overvalued, or words to that effect. Just a hint that he will raise interest rates (restrict the money supply), and equity markets have a negative reaction. Governments and politicians do not rule central banks, central banks rule governments and politicians. President Andrew Jackson WON THE PRESIDENCY* in 1828 with the promise to end the national debt and eliminate the SBUS. During his second term President Jackson withdrew all government funds from the bank and on January 8, 1835, paid off the national debt. He is the only president in history to have this distinction. The charter of the SBUS expired in 1836.[/b]

Without a central bank to manipulate the supply of money, the United States experienced unprecedented growth for 60 or 70 years, and the resulting wealth was too much for bankers to endure. They had to get back into the game. So, in 1910 Senator Nelson Aldrich, then Chairman of the National Monetary Commission, in collusion with representatives of the European central banks, devised a plan to pressure and deceive Congress into enacting legislation that would covertly establish a private central bank.

This bank would assume control over the American economy by controlling the issuance of its money. After a huge public relations campaign, engineered by the foreign central banks, the Federal Reserve Act of 1913 was slipped through Congress during the Christmas recess, with many members of the Congress absent. President Woodrow Wilson, pressured by his political and financial backers, signed it on December 23, 1913.

The act created the Federal Reserve System, a name carefully selected and designed to deceive. "Federal" would lead one to believe that this is a government organization. "Reserve" would lead one to believe that the currency is being backed by gold and silver. "System" was used in lieu of the word "bank" so that one would not conclude that a new central bank had been created.

In reality, the act created a private, for profit, central banking corporation owned by a cartel of private banks. Who owns the FED? The Rothschilds of London and Berlin; Lazard Brothers of Paris; Israel Moses Seif of Italy; Kuhn, Loeb and Warburg of Germany; and the Lehman Brothers, Goldman, Sachs and the Rockefeller families of New York.

Did you know that the FED is the only for-profit corporation in America that is exempt from both federal and state taxes? The FED takes in about one trillion dollars per year tax free! The banking families listed above get all that money.

Almost everyone thinks that the money they pay in taxes goes to the US Treasury to pay for the expenses of the government. Do you want to know where your tax dollars really go? If you look at the back of any check made payable to the IRS you will see that it has been endorsed as "Pay Any F.R.B. Branch or Gen. Depository for Credit U.S. Treas. This is in Payment of U.S. Oblig." Yes, that's right, every dime you pay in income taxes is given to those private banking families, commonly known as the FED, tax free.

Like many of you, I had some difficulty with the concept of creating money from nothing. You may have heard the term "monetizing the debt," which is kind of the same thing. As an example, if the US Government wants to borrow $1 million to the government it borrows every dollar it spends or they go to the FED to borrow the money. The FED calls the Treasury and says print 10,000 Federal Reserve Notes (FRN) in units of one hundred dollars.

The Treasury charges the FED 2.3 cents for each note, for a total of $230 for the 10,000 FRNs. The FED then lends the $1 million to the government at face value plus interest. To add insult to injury, the government has to create a bond for $1 million as security for the loan. And the rich get richer. The above was just an example, because in reality the FED does not even print the money; it's just a computer entry in their accounting system. To put this on a more personal level, let's use another example.

Today's banks are members of the Federal Reserve Banking System. This membership makes it legal for them to create money from nothing and lend it to you. Today's banks, like the goldsmiths of old, realize that only a small fraction of the money deposited in their banks is ever actually withdrawn in the form of cash. Only about 4 percent of all the money that exists is in the form of currency. The rest of it is simply a computer entry.

Let's say you're approved to borrow $10,000 to do some home improvements. You know that the bank didn't actually take $10,000 from its pile of cash and put it into your pile? They simply went to their computer and input an entry of $10,000 into your account. They created, from thin air, a debt which you have to secure with an asset and repay with interest. The bank is allowed to create and lend as much debt as they want as long as they do not exceed the 10:1 ratio imposed by the FED.

It sort of puts a new slant on how you view your friendly bank, doesn't it? How about those loan committees that scrutinize you with a microscope before approving the loan they created from thin air. What a hoot! They make it complex for a reason. They don't want you to understand what they are doing. People fear what they do not understand. You are easier to delude and control when you are ignorant and afraid.!!!

Now, to put the frosting on this cake. When was the income tax created? If you guessed 1913, the same year that the FED was created, you get a gold star. Coincidence? What are the odds? If you are going to use the FED to create debt, who is going to repay that debt? The income tax was created to complete the illusion that real money had been lent and therefore real money had to be repaid. And you thought Houdini was good.

So, what can be done? My father taught me that you should always stand up for what is right, even if you have to stand up alone.

If "We the People" don't take some action now, there may come a time when "We the People" are no more. You should write a letter or send an email to each of your elected representatives. Many of our elected representatives do not understand the FED. Once informed they will not be able to plead ignorance and remain silent.

Article 1, Section 8 of the US Constitution specifically says that Congress is the only body that can "coin money and regulate the value thereof." The US Constitution has never been amended to allow anyone other than Congress to coin and regulate currency.

Ask your representative, in light of that information, how it is possible for the Federal Reserve Act of 1913, and the Federal Reserve Bank that it created, to be constitutional. Ask them why this private banking cartel is allowed to reap trillions of dollars in profits without paying taxes. Insist on an answer.

Thomas Jefferson said, "If the American people ever allow private banks to control the issuance of their currencies, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their prosperity until their children will wake up homeless on the continent their fathers conquered."

Jefferson saw it coming 150 years ago. The question is, "Can you now see what is in store for us if we allow the FED to continue controlling our country?"

"The condition upon which God hath given liberty to man is eternal vigilance; which condition if he breaks, servitude is at once the consequence of his crime, and the punishment of his guilt."
John P. Curran

Source: []

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