Comments on: The New Ownership Society: Federal Reserve Bank, U.S. Treasury, and the FDIC – FYI, We Already Own More Than you Think.

By: olde reb

olde reb — Sun, 09 Jan 2011 23:21:56 +0000

The national economy, since 1913, is based upon a Ponzi scheme.

Every “dollar” in circulation is created based upon debt. Congress gives T-securities (bills, bonds, or notes) to the Federal Reserve, and the Fed credits the Treasury’s account with the value of the securities. Voila !!! New fiat money. Congress can spend up to the limit of the account and the Fed will honor the checks.

The problem is that the arrangement obligates the US to pay interest on the principal thus generated. The interest has never been generated. It does not exist. It is impossible to culminate the agreement. The only way the interest can be paid is to generate more principal and pay the interest on the initial securities from the principal on the later securities. It is the classic Ponzi, par excellence.

If a Ponzi scheme does not expand, it totally collapses. Additional expanding at this time merely postpones the inevitable collapse.

Mathematical details on the rip-off by the Fed, including how the Fed obtains the ENTIRE VALUE of ALL issued securities is posted at http://www.scribd.com/doc/43482648/rip-off-by-the-FR
and http://www.scribd.com/doc/43465593/QE2-Rational-Course-of-Action

By: jimmy

jimmy — Sat, 26 Dec 2009 09:17:11 +0000

Buy gold and silver; instead of US bonds or bond related funds. They will short circuit soon anyway. Take delivery of the metal; there isn’t as much as is advertised. If no one buys bonds, there is no “money” for goverment. The only way to bring down the current system is to expose it for for what it is; a giant ponzi scheme. Inflation will be exponential, but it is the only way to get back to a value for value economy and a government for the people instead of people for the goverment/bankers/antichrist. Just make sure you have something of value.
p.s. I think it is rather interesting that silver is often used as a shadow or type or representative for blood in the Bible.

By: latesummer2009

latesummer2009 — Sun, 16 Aug 2009 16:15:13 +0000

Were screwed. Plain and simple. Only a matter of time before U.S. Investors bail leaving us nothing but hyperinflation to draw them back. Too bad wages won’t increase enough to keep up. But first, deflation will take a chunk out of current housing prices. Save your money and get ready to buy RE when the time comes.

Westside will have it’s day of reckoning I’m afraid, sooner than most people think.

http://www.westsideremeltdown.blogspot.com

By: Chris Durant

Chris Durant — Sun, 08 Mar 2009 00:45:35 +0000

Mark V: Right on! There were about 80 million ounces of gold mined on the entire planet last year. At $1000 per ounce, that would equate with 80 billion dollars. We print that much money out of thin air (borrow/go into debt) in a month. Good money will always eventually drive out the bad. Buy gold and silver like as if the dollar will one day become worthless….

By: Mark V

Mark V — Wed, 18 Feb 2009 15:31:56 +0000

I second Robin Thomas’ recommendation: Read The Creature From Jekyll Island, by G. Edward Griffin, to truly understand the roots of this worldwide economic crisis.

To begin the recovery, we the people have to take back the power to make and hold money, from the banking elite, what a century ago was popularly called ‘the money trust’. And to do this, we have to understand what is, and is not, money: The US dollar is an IOU, that is, it is a unit of debt! Who is the debtor? The US citizen and taxpayer. Who is the creditor? The Federal Reserve, which is owned, not by the government, but by a collection of the large banks – the same institutions getting the trillions in bailout funds. What is the collateral for the permanent, revolving line of credit? The entire gold reserve of the US government (“Fort Knox”). How are the interest payments on the borrowed money guaranteed? Through the imposition of the income tax. (Both the income tax and the Federal Reserve were authorized in the same year, 1913.)

So the US dollar is a unit of debt, it is not an asset. Paying someone a dollar to ‘settle a debt’ does not extinguish that debt, it simply transfers it to someone else. That is why our collective debt ever increases…we are trying to pay down debt, by issuing more debt. As a society, we are making payments on our collective ‘credit cards’, with more borrowing! As an ‘environmentalist’ might say: Such an exponentially increasing system is fundamentally unsustainable.

What can pay down debt, by actually neutralizing it? Amazingly enough….money! That’s the essence of money…something of value that can extinguish a debt! But, modern money IS debt. How can this be? How can ‘money’ both be and not be, the same thing…debt!

The answer is: It can’t be! Something can’t both be itself, and be its opposite! Which means, modern ‘money’ isn’t really money. Modern ‘money’ is a store of debt, not a store of value.

What is money? Something of value, that has no debt to anyone else, a thing universally agreed to have value, without corresponding debt. When you give such a thing to someone in payment of a debt, the debt is not merely transferred to someone else… it is extinguished.

You have two guesses as to what such a thing could be.