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Thread: Global Financial System is One Gargantuan Ponzi Scheme...

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    Default Global Financial System is One Gargantuan Ponzi Scheme...

    Global Financial System is One Gargantuan Ponzi Scheme...

    The world financial system is a total fraud. It is one gargantuan Ponzi scheme, no better than the one Bernie Madoff used to swindle his friends and neighbors, and thousands of times worse if you add up the total number of victims it has ripped off over countless generations.



    The principal difference between the two schemes is that Madoff was acting outside the law while the international banking cartel has persuaded generation after generation of monarchs, presidents and prime ministers to provide legislative protection for their larceny.

    The banks Ponzi scheme is alarmingly simple. They lend the same money to several people or institutions at the same time and collect interest on it from each. What the banks really lend, however, is their credit, and what they take back in compensation for that privilege is a debt that must be repaid with interest.

    The number of times they lend the same money is called leverage. The practice is as old as the hills but for our purposes we can start with the goldsmiths of Lombard Street in London, England, who accepted deposits for which they issued certificates redeemable on demand. They paid their depositors a nominal interest rate on the understanding that they could lend the money to their customers at higher interest rates. They soon found that they could lend more than they had in their vaults because only a few depositors came in to redeem their gold or silver at any one time.

    It was a scam. It was illegal. Nevertheless they got away with it for a long while and the scam was legitimized when the Bank of England was chartered to help King William finance his war. Rich people subscribed £1,200,000 in gold and silver, as capital, to found the bank, which then was lent to the government at 8 percent. To show his appreciation the King allowed the bank to print £1,200,000 in banknotes and lend them at high interest rates. In effect, the bank was allowed to lend the same money twice – once to the government and once to the people.

    Over the years, due to the avarice of the banks and the complicity of the politicians, that ratio has increased dramatically. In the early days of the 20th century, federal chartered U.S. banks were required to keep gold reserves of 25 percent. That means they were allowed to lend the same money four times. I remember when Canadian banks were required to maintain a cash reserve of 8 percent. That means they were allowed to lend the same money 12½ times.

    Today, thanks to Milton Friedman’s irrational flip-flop from being a proponent of 100% cash reserves to the opposite extreme of zero reserves, and the adoption of his ideas by the major central banks of the world in 1974, multiples have increased dramatically – in some cases to as much as 20 to 1 or more. Banks only keep enough cash to meet day-to-day demands for those few customers who go in and request it, and consequently the fraud is virtually total.
    The system works this way. Suppose that you want to borrow $35,000 to buy a new car. You visit your friendly banker and ask for a loan. He or she will ask you for collateral – some stocks, bonds, a second mortgage on your house or cottage or, if you are unable to supply any of these, the co-signature of a well-to-do friend or relative. When the collateral requirement is satisfied you will be asked to sign a note for the principal amount with an agreed rate of interest.
    When the paperwork is complete, and the note signed, your banker will make an entry on the bank’s computer and, presto, a $35,000 credit will appear in your account which you can use to buy your car. The important point is that seconds earlier that money did not exist. It was created out of thin air – so to speak.
    The banking equation is a species of double-entry bookkeeping where your note becomes an asset on the bank’s books, and the new money that was deposited to your account is a liability. The profit for the bank comes from the difference between the low rate of interest, if any, you would be paid on your deposit if you didn’t spend the borrowed money immediately, and the much higher rate you would be obliged to pay on your note – the technical term is “the spread.”

    At some point, however, you have to pay off your note and any interest owing. And not only you but everyone else who has borrowed “money” from banks – including governments which, by the way, own the right to print money but that have irresponsibly handed the right over to an elite group of private bankers. Anyone who defaults is in big trouble. Individuals who default will have the assets they pledged as collateral seized by the bank. A government that is in danger of defaulting, will be forced to borrow from the International Monetary Fund, which will then tell that government how to run its affairs including cutting back on services and selling off public assets to the international vulture capitalists.
    In reality, then, the banks have turned the world into one humongous pawn shop. You hock your stocks, bonds, house, business, rich mother-in-law or country and the bank(s) will give you a loan based on the value of the collateral.

    MORE-

    http://www.marketoracle.co.uk/Article26678.html
    "The dogs bark but the caravan moves on."
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  2. #2

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    "The dogs bark but the caravan moves on."
    .....................The Zengrifter Interview (PDF) |
    The Zengrifter / James Grosjean Reputation Debate
    -----------------------------------------
    “Truth, like gold, is obtained not by growth, but by washing away all that is not gold.” — Leo Tolstoy........
    "Is everything a conspiracy? No, just the important stuff." ZG

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    Default Modern Fiat Money System Simplified

    When we say it's a Ponzi scheme, most people immediately believe we are exaggerating the situation. That is because they have so much faith in the legal banking system that seems for all intents and purposes to work in their day to day lives. The U.S. banking system, like the rest of the world's banking systems, is based on fiat money and is a very complex system that only one in a million understand since they have taken the time to study it. The video contained in this post greatly simplifies the very difficult workings of our banking system without glossing over its major essential details. It's pretty concrete in its presentation and you won't need a college degree to grasp it. If you think that the system can go on forever, you've got to watch this video to understand how you are mistaken. I could have said "how you have been deceived" but your instant reaction might be, "Here we go again-- another conspiracy theory". But this is no theory; it's verifiable modern day economics that you can learn in Economics courses in any American university. That's how I learned it. But even then, you might not be able to step back from all the bits and pieces of the system and see the big picture, which this video has managed to accomplish. For the first time in your life you may understand what you have always known intuitively about how the rich get richer and the poor get poorer. Please do yourself a favor and learn why people like Ron Paul are not crackpots when they advocate going back to systems of the past.

    The video is titled "The Biggest Scam in the History of Mankind (Debt Ceiling Truth)". I don't like the title of this video because it appears at first glance to be the hyperbole of the "dreaded conspiracy theory", but what it will illustrate is truly how the banking and currency system in this country works. I can attest that it agrees with everything I learned in my university studies, and that in no way does it try to misrepresent the facts. You owe it to yourself to give it your attention. After you view it, tell me if you feel it is in any way deceptive or untrue. I think you will understand as never before how we got to the present astounding national debt, and what it may portend for our future, if we continue down this path. I am not a doomsayer, but it seems to me the system has gotten out of control, and I for one, cannot figure out how to fix it. Is there a fix, or do we need to return to the old ways? I'll let you decide.


    Aslan 11/1/90 - 6/15/10 Stormy 1/22/95 -8/23/10
    “There are not one hundred people in the United States who hate The Catholic Church,
    but there are millions who hate what they wrongly perceive the Catholic Church to be.”
    Bishop Fulton J. Sheen

    “It takes a very long time to become young.” Pablo Picasso

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    Thank you for posting that great video Aslan.

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    Although I watched that video, it's still a bit beyond me how the scam works... Anyway, it seems the monetary system is designed to fail one day which seems to be in the not too distant future. It seems that when the government is one day unable to repay interest on the debt and it is forced to default, that is when the shit hits the fan. How long roughly, is there to go, is what we all want to know?

  6. #6

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    Quote Originally Posted by Katz View Post
    it seems the monetary system is designed to fail one day which seems to be in the not too distant future. It seems that when the government is one day unable to repay interest on the debt and it is forced to default, that is when the shit hits the fan....
    ... and the really big money gets made.
    "The dogs bark but the caravan moves on."
    .....................The Zengrifter Interview (PDF) |
    The Zengrifter / James Grosjean Reputation Debate
    -----------------------------------------
    “Truth, like gold, is obtained not by growth, but by washing away all that is not gold.” — Leo Tolstoy........
    "Is everything a conspiracy? No, just the important stuff." ZG

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    Quote Originally Posted by zengrifter View Post
    ... and the really big money gets made.
    ... by a tiny few, and the rest...

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    Quote Originally Posted by zengrifter View Post
    ... and the really big money gets made.
    Please explain if you can how one might position himself to make money in the coming collapse, God forbid it ever comes. Or is all the money to be made restricted to the fat cats who are already in position to take advantage of the situation? All I know as a microscopic player in the game is that precious metals and land will always have value.
    Aslan 11/1/90 - 6/15/10 Stormy 1/22/95 -8/23/10
    “There are not one hundred people in the United States who hate The Catholic Church,
    but there are millions who hate what they wrongly perceive the Catholic Church to be.”
    Bishop Fulton J. Sheen

    “It takes a very long time to become young.” Pablo Picasso

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    Quote Originally Posted by aslan View Post
    Please explain if you can how one might position himself to make money in the coming collapse, God forbid it ever comes. Or is all the money to be made restricted to the fat cats who are already in position to take advantage of the situation? All I know as a microscopic player in the game is that precious metals and land will always have value.
    Brother Zengrifter has urged ZZ members here to buy gold since forever. When the collapse of the US$ occurs, what is likely to happen with the price of gold? Then there are other countries that have solid currencies at the moment, such as Germany and Australia. Let's just say the collapse is due to happen in er, Sept this year. Would buying gold around $1400 oz right now and sitting on it make sense? How about moving US$ into other currencies right now?

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    Quote Originally Posted by Katz View Post
    Brother Zengrifter has urged ZZ members here to buy gold since forever. When the collapse of the US$ occurs, what is likely to happen with the price of gold? Then there are other countries that have solid currencies at the moment, such as Germany and Australia. Let's just say the collapse is due to happen in er, Sept this year. Would buying gold around $1400 oz right now and sitting on it make sense? How about moving US$ into other currencies right now?
    I think you will find that when the US goes the entire world goes with it, at least, the entire fiat money world. Is Australia still on a gold standard? If not, don't kid yourself, it's going, too.
    Aslan 11/1/90 - 6/15/10 Stormy 1/22/95 -8/23/10
    “There are not one hundred people in the United States who hate The Catholic Church,
    but there are millions who hate what they wrongly perceive the Catholic Church to be.”
    Bishop Fulton J. Sheen

    “It takes a very long time to become young.” Pablo Picasso

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    Quote Originally Posted by aslan View Post
    I think you will find that when the US goes the entire world goes with it, at least, the entire fiat money world. Is Australia still on a gold standard? If not, don't kid yourself, it's going, too.
    the gold standard was instituted for both the British pound sterling and the Australian pound in 1925

    So we amass gold and hide it under our mattresses... and wait. So I guess I won't be going to any casinos.

    Then what? Eat coconuts?
    Last edited by Katz; March 1st, 2014 at 01:51 AM.

  12. #12

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    Quote Originally Posted by Katz View Post
    Brother Zengrifter has urged ZZ members here to buy gold since forever. When the collapse of the US$ occurs, what is likely to happen with the price of gold? Then there are other countries that have solid currencies at the moment, such as Germany and Australia. Let's just say the collapse is due to happen in er, Sept this year. Would buying gold around $1400 oz right now and sitting on it make sense? How about moving US$ into other currencies right now?
    Gold and SILVER, yes.
    Trading currencies, you are just shuffling paper.
    "The dogs bark but the caravan moves on."
    .....................The Zengrifter Interview (PDF) |
    The Zengrifter / James Grosjean Reputation Debate
    -----------------------------------------
    “Truth, like gold, is obtained not by growth, but by washing away all that is not gold.” — Leo Tolstoy........
    "Is everything a conspiracy? No, just the important stuff." ZG

  13. #13

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    Quote Originally Posted by Katz View Post
    the gold standard was instituted for both the British pound sterling and the Australian pound in 1925

    So we amass gold and hide it under our mattresses... and wait. So I guess I won't be going to any casinos.
    There are ways to borrow/credit cash against your gold, for casino liquidity.
    "The dogs bark but the caravan moves on."
    .....................The Zengrifter Interview (PDF) |
    The Zengrifter / James Grosjean Reputation Debate
    -----------------------------------------
    “Truth, like gold, is obtained not by growth, but by washing away all that is not gold.” — Leo Tolstoy........
    "Is everything a conspiracy? No, just the important stuff." ZG

  14. #14
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    Quote Originally Posted by Katz View Post
    the gold standard was instituted for both the British pound sterling and the Australian pound in 1925

    So we amass gold and hide it under our mattresses... and wait. So I guess I won't be going to any casinos.

    Then what? Eat coconuts?
    Are you saying those same English s who helped bring about America's fiat money system, made sure it didn't happen to them? Why those English s!!!
    Aslan 11/1/90 - 6/15/10 Stormy 1/22/95 -8/23/10
    “There are not one hundred people in the United States who hate The Catholic Church,
    but there are millions who hate what they wrongly perceive the Catholic Church to be.”
    Bishop Fulton J. Sheen

    “It takes a very long time to become young.” Pablo Picasso

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    Default Where to Learn More?

    I suggest reading Zarlenga's The Lost Science of Money that can be obtained at http://www.monetary.org/

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