The Biggest Ponzi Scheme In The History Of The World

Michael Snyder

Did you know that you are involved in the most massive Ponzi scheme that has ever existed? To illustrate my point, allow me to tell you a little story. Once upon a time, there was a man named Sam. When he was younger, he had been a very principled young man that had worked incredibly hard and that had built a large number of tremendously successful businesses. He became fabulously wealthy and he accumulated far more gold than anyone else on the planet.

But when he started to get a little older he forgot the values of his youth. He started making really bad decisions and some of his relatives started to take advantage of him. One particularly devious relative was a nephew named Fred. One day Fred approached his uncle Sam with a scheme that his friends the bankers had come up with. What happened next would change the course of Sam's life forever.

Global Fraud: Global Hope

Dees Illustration

Victory for the World

An Address to the International UFO Congress
Fort McDowell Resort, Scottsdale, Arizona
Saturday, February 26, 2011
by Hon. Paul Hellyer, P.C.
Former Canadian Minister of National Defence

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. 

How Many People Will Go Hungry When The U.S. Dollar Ponzi Scheme Collapses?

Dees Illustration

Market Bust

The U.S. Dollar which is not really even a dollar but rather a "Federal Reserve Note" is nothing more than a mirage in the desert.  Federal Reserve Notes are just that, Notes.  What is a Note? It is a formal piece of paper that says one person owes another money, in this case the Federal Reserve.

But what are they going to pay you back with? More Notes of course. And what makes these notes valuable? Nothing more than the belief of the people who use them.

And how are these notes created? Quite simply they are borrowed into existence. This means that Money is just debt. So if all of the debt were to be repaid tomorrow, there would be no more "official Money". FIAT PONZI CURRENCY NOT BACKED BY ANYTHING EXCEPT HOPE.

U.S. Debt Jumped $72 Billion Same Day U.S. House Voted to Cut Spending $6 Billion

National Debt Clock/Wiki Commons image

Terrence P. Jeffrey
CNS News

The national debt jumped by $72 billion on Tuesday even as the Republican-led U.S. House of Representatives passed a continuing resolution to fund the government for just three weeks that will cut $6 billion from government spending.

If Congress were to cut $6 billion every three weeks for the next 36 weeks, it would manage to save between now and late November as much money as the Treasury added to the nation’s net debt during just the business hours of Tuesday, March 15.

At the close of business on Monday, according to the Treasury Department’s Bureau of the Public Debt, the total national debt stood at $14.166 trillion ($14,166,030,787,779.80). At the close of business Tuesday, the debt stood at $14.237 trillion ($14,237,952,276,898.69), an increase of $71.9 billion ($71,921,489,118.89).

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Economy Hit with the Ultimate Smokescreen: Biflation

Ponzi economy being exposed

Eric Blair
Activist Post

You can tell when a Ponzi scheme is approaching its collapse by the increased number of smoke and mirrors needed to cover up the counterfeit foundation of the scheme.

The U.S. government, who already grossly disfigures the real numbers for GDP, unemployment and inflation, is constantly having to twist reality to keep their scheme afloat.

The government recently reported that unemployment numbers reached the lowest point in nearly two years at 8.9%, "sparking optimism" in the establishment media.  Many analysts point to two months in a row of "job growth" as evidence that the U.S. is well on its way to recovery and it should be good news for job seekers.

Try telling that to a random unemployed commenter who responded to the news with the following:

All lies. Why not just up the ante and say the unemployment rate is 5%? The last job I applied for had 440 applicants, many of whom had Phd's, for the whopping non-living wage figure of 35K.

Even if jobs are added, the question begs--what kind, and how much per hour? $8?

 We all know the inherent problems with the official unemployment number, as it never tells the full story. But assuming hiring has gotten better, these lower wage jobs will surely affect consumer spending in the near and long term.  Additionally, John Challenger, an executive with an outplacement firm, claimed his optimism is tempered because, "Certainly the specter of rising gas prices could impact employers' staffing decisions over the next six months."

Which brings us to the phony number in the theater to hide the Ponzi scheme that I want to focus on: inflation. The 12-month inflation rate as of January 2011, was 1.6% according to the official Consumer Price Index, or only 1% when you remove food and energy.  The report stated:

Over the last 12 months, the food index has risen 1.8 percent with the food at home index up 2.1 percent; both 12-month changes are the highest since 2009. The energy index has increased 7.3 percent over the last 12 months, with the gasoline index up 13.4 percent.

The gasoline index is indeed an eye-popping number.  Too bad it's not accurate.  According to a recently released report by the American Petroleum Institute (PDF) gas prices are up about 25% on average over the last 12 months, and a whopping 105.7% in just over two years (since December 29, 2008 lows).  And these numbers scarcely reflect recent jumps in oil prices due to turmoil in Libya and the Middle East, which has already caused the Obama Administration to consider tapping the nation's strategic oil reserves.

For all the news lately about looming food inflation with commodities skyrocketing, the Consumer Price Index for the past twelve months seems somewhat accurate.  In other words, the commodity speculation is only now starting to impact food prices in a major way.  The CPI release pointed out that "The index for food at home posted its largest increase in over two years with all six major grocery store food group indexes rising," and January's food at home index has already increased 0.7 percent.

All of these real increases to the cost of living for average people are balanced out with used housing, cars, and washing machines that are declining in price to create a palatable inflation official number.  This phenomenon is called biflation.  First introduced by Dr. F. Osborne Brown, biflation is where inflation and deflation occur simultaneously in the economy.  It is an effective tool to confuse the public and give pundits the intellectual case for spinning the numbers in either direction.

During biflation, there's a rise in prices of commodity-based assets like food and energy (inflation) and a simultaneous fall (deflation) in the price of debt-based assets like homes, cars, and appliances.  The free-market concept is that the price of all assets are based on the demand for them versus the amount of money in circulation to buy them.  In other words, their sales are utterly dependent on banks for credit, which is in turn dependent on the job market.

Wikipedia clearly describes the process of biflation as follows:

With biflation on the one hand, the economy is fueled by an over-abundance of money injected into the economy by central banks. Since most essential commodity-based assets (food, energy, clothing) remain in high demand, the price for them rises due to the increased volume of money chasing them. The increasing costs to purchase these essential assets is the price-inflationary arm of biflation. 

With biflation on the other hand, the economy is tempered by increasing unemployment and decreasing purchasing power. As a result, a greater amount of money is directed toward buying essential items and directed away from buying non-essential items. Debt-based assets (mega-houses, high-end automobiles and other typically debt based assets) become less essential and increasingly fall into lower demand. As a result, the prices for them fall due to the decreased volume of money chasing them. The decreasing costs to purchase these non-essential assets is the price-deflationary arm of biflation.

This biflationary period will likely continue, as money will continue to be printed to cover bank losses and government debt, while hardships will likely continue to mount for the average consumer.  Although the deflationary debt-based products seem like necessities in our modern world, their demand elasticity is far greater than that of food and energy, meaning they should not be equally weighed to determine the struggle of middle-and-lower class households.

So don't be fooled; biflation is being used as a smokescreen to keep the public from becoming alarmed about rapidly rising food and energy prices. Those who recognize the severity of the problem would be wise to prepare for massive inflation of human necessity today before the problem gets even worse.

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Banksters are Coming for Your Retirement Next

Eric Blair
Activist Post

First, the banksters hoodwinked an angry public into bailing out their collateralized-debt obligations and derivative Ponzi scheme to the tune of what may turn out to be over $600 Trillion dollars.  Derivatives are nothing more than bets on other bets, on other bets, that are all completely worthless. So, we can assume that the taxpayer will be victimized for at least that amount for derivatives alone.  That’s about $2 million dollars for every man, woman, and child in America, or $100,000 for every person in the world.

They bet big with your investment money, got fat, then lost thousands of times more than everything real on Earth combined.  Then, representatives of the people bailed them out (including bonuses) while they laughed all the way to their respective banks.  Since government officials are doing their best to reject transparency, we can also only assume this number is much, much larger.

Sadly, their derivative Ponzi scheme is the least of the public’s current problems regarding the banks.  The international banks’ economic hit men have successfully enslaved-by-debt everything from nations, entire industries, state and local governments (who will need their bailout soon), and nearly every person on the planet. Even if an individual doesn't have any bank financing or credit cards, they still pay the private Federal Reserve through inflation. As author of Confessions of an Economic Hit Man, John Perkins, would say: the time has come for the banks to collect their “pound of flesh” from average citizens by way of your pensions.  For an enlightening explanation of how economic hit men enslave entire countries please watch the video below:

oday, the word “austerity” is becoming commonplace in European countries, and America may indeed be next on the chopping block.  The IMF is pushing economically-weak European countries into austerity measures that target average citizens for debts their government owes to banks, including slashing and looting pension guarantees. Incidentally, the U.S. national debt, plus unfunded liabilities and personal and private debt, puts America in far worse shape than all European countries combined.

As we near the End Game, the banksters and their government accomplices are coming for the last of your wealth -- your retirement money.  Recent headlines about the IMF “pressing the U.S.“ to reduce its debt is the first sign of things to come.  They have already methodically gutted the assets of most public pension funds by knowingly investing those funds in toxic junk.  In late 2009, Mark Brenner wrote an excellent article titled  Pensions: The Next Casualty for Wall Street which gave a breakdown of the dismal state of pensions:

Nearly $4 trillion worth of retirement savings were wiped out in the first weeks of the 2008 financial freefall. Half of the drop was concentrated in traditional pension plans, also known as defined-benefit plans. While most workers in these plans haven’t had their monthly benefits cut, unlike the 46 million people riding the stock market with 401(k) defined-contribution plans, the storm clouds are gathering.

 Furthermore, we’ve also seen the captains of “private” industry pump their bottom line for years with their worker’s pension contributions (much like the federal government has done with Social Securityreceivables).  When it comes time to pay the pensions they dump the obligation onto the taxpayer through the Pension Benefit Guarantee Corporation which was reported to be $12.9 billion in the red for 2009.  Once again, the taxpayers are funding their own servitude while the ownership class pillages on the way up and on the way down.

I can’t help but be reminded that warnings of this day went unheard.  This George Carlin clip below sternly warned that the “owners of this country” will ultimately come for your retirement -- but, hey, who was listening to a comedian?

That’s right, the day is rapidly approaching where they’ll come for your retirement.  Screw your guarantees you thought you worked your whole life for.  Apparently, contractual law does not apply to the servant class.  However, we all remember Hank Paulson and Tim Geithner arguing that the reason they must use taxpayer money to pay 100-cents-on-the-dollar for AIG’s rancid obligations was because it would be wrong to break contractual laws.  I guess we shouldn’t be surprised that they only respect contractual law when they are taking from the poor and giving to their elite partners in crime. 

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The Tipping Point is Here

Mike Krieger
Zero Hedge

I believe we have finally breached the tipping point in the socio-political landscape of the United States of America.  There will be no going back from here.  Everyone on all levels of society including the elites must make a choice.  Will you stand for real reform and an end of the feudalistic rule of the oligarchs and their paid-off puppets that line the streets of Washington D.C., or will you keep your mouth shut and play the old and dying game in the context of a completely different cultural environment?

While many will disagree with what I am about to say, I believe the oligarchs and the Federal Reserve have already lost. 

This will not be clear to the vast majority at this time because the powerful institutions that dominate and rob us will continue to fight for survival but the wind is already blowing in a different direction and cannot be reversed.  The smart elites are starting to see this and are hedging their bets.  The dumb or stubborn ones may want to start looking at countries with non-extradition treaties or start blowing the whistle on someone above them and fast.  The window of opportunity to make the choice is closing quickly.  “I was just following orders” will not cut it when the dollar collapses and Disneyland shuts down.  There have not been any major arrests and people have seemingly gotten away with all their frauds and crimes.  This too will change and 2011 will represent a change in trend in this regard.  We have entered the terminal phase of this ponzi scheme economy and those responsible for its creation and its continued support at the expense of the vast majority of the populace will see their foul deeds rise to the surface. 


Earlier this year I wrote two piece that I think are worth re-reading and I have attached links to them.  The first was “A Time to Speak Out” and the second was the “The Elites Have Lost the Right to Rule”.  When I wrote these articles many of the themes addressed were completely out of the mainstream, yet in an amazingly brief period of time many of the frustrations I voiced are now popping up everywhere I look.  It’s strange and rewarding to see the topics I and countless others have been discussing on the “fringe” break into the light of day.  Now that these concepts are out there is no stopping the avalanche that is about to hit the oligarchs smack in the face.  As Gandhi said “An error does not become truth by reason of multiplied propagation, nor does truth become error because nobody sees it.”

This brings me to discuss what I think is one of the most important letters from an elite I have seen in 2010.  I am referring to Bill Gross’ most recent piece.  Now when I say he is an “elite” I am not saying he is part of some vast conspiracy to turn us further into serfs.  What I mean is he is one of the most fabulously wealthy people in America.  He also happens to have made his fortune in the financial services industry and runs the country’s largest bond fund.  This is a person that has every reason and incentive to play nice with the other elites and their corrupt institutions at the top of which lies the Federal Reserve banking cartel.  What he did in his latest letter was far from “playing ball.”  Here are some of the notable quotes and the entire letter can be found here http://www.pimco.com/Pages/RunTurkeyRun.aspx.

“Was it relevant in 2004 that John Kerry was or was not an admirable “swift boat” commander? Will the absence of a mosque within several hundred yards of Ground Zero solve our deficit crisis? Is Christine O’Donnell really a witch? Did Meg Whitman employ an illegal maid? Who cares! We are being conned, folks; Democrats and Republicans alike.”

“Perhaps, as a vocal contingent suggests, our paper-based foundation of wealth deserves to be buried, making a fresh start from admittedly lower levels. The Fed, on Wednesday, however, will decide that it is better to keep the patient on life support with an adrenaline injection and a following morphine drip than to risk its demise and ultimate rebirth in another form.” 

“Check writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme. Public debt, actually, has always had a Ponzi-like characteristic.”

“The Fed, in effect, is telling the markets not to worry about our fiscal deficits, it will be the buyer of first and perhaps last resort. There is no need – as with Charles Ponzi – to find an increasing amount of future gullibles, they will just write the check themselves. I ask you: Has there ever been a Ponzi scheme so brazen? There has not.”

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The Federal Reserve is a Ponzi Scheme, Looting is an Inside Job

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Government Prepares To Seize Private Pensions

Paul Joseph Watson
Infowars.com
October 12, 2010

The government is preparing to seize the private 401(k) pensions of millions of Americans while enforcing an additional 5 per cent payroll tax as part of a new bailout program that will empower the Social Security Administration to redistribute pension funds in a frightening example of big government gone wild.

Public pension plans have been so aggressively looted already by the government that cities and counties face a $574 billion funding gap, according to a CNBC report.

That black hole is set to be filled by a new proposal that will “fairly” distribute taxpayer-funded pensions to everyone, by confiscating the private wealth of millions of Americans. Its proponents express staggering arrogance in thinking that they can just steal money people have worked for decades to accrue as if it’s their own.

Not only would the government confiscate 401(k) pensions, it would also impose a mandatory 5 per cent payroll tax payable by everyone, according to a hearing chaired last week by Sen. Tom Harkin (D-Iowa), Chairman of the Health, Education, Labor and Pensions (HELP) Committee.

“This would, of course, be a sister government ponzi scheme working in tandem with Social Security, the primary purpose being to give big government politicians additional taxpayer funds to raid to pay for their out-of-control spending,” writes Connie Hair.

The hearing was a platform for advocates of Guaranteed Retirement Accounts (GRAs), a program authored by Teresa Ghilarducci, professor of economic policy analysis at the New School for Social Research in New York. Back in November 2008, Ghilarducci testified to Congress that 401(k)s and IRAs should be confiscated and converted into universal Guaranteed Retirement Accounts (GRAs) managed by the Social Security Administration.

“You don’t hold hearings on something you don’t intend to do,” points out the Market Ticker blog. “I hate it when I’m right. I hate it even more when tens of millions of Americans are going to get reamed to pay for the crimes of the handful on Wall Street, and their crony enablers in Washington DC.”

The GRAs would be enforced by means of a mandatory savings tax equating to 5 per cent of an individual’s annual paycheck deposited to the GRA. Social Security and Medicare taxes would still be payable, employers would no longer would be able to write off their contributions and capital gains would be taxable year-on-year. In addition, workers could bequeath only half of their account balances to their heirs, unlike full balances from existing 401(k) and IRA accounts.

During a Seattle radio interview in October 2008, Ghilarducci explained the motive behind the plan, stating, “I’m just rearranging the tax breaks that are available now for 401(k)s and spreading – spreading the wealth” (emphasis mine).

However, as we painfully learned in the immediate aftermath of the original $700 million dollar bailout, which was originally sold on the basis that it would be used to pay off bad debt, governments that propose “spreading the wealth” under socialist-style financial reforms almost always collect the wealth under the pretext of being the saviors before greedily hoarding it all for themselves.

The GRA program is being pushed by the Economic Policy Institute, an organization housed on the third floor of the building occupied by the George Soros-funded Center for American Progress. The Center for American Progress is a think tank headed by Bill Clinton’s former chief of staff John D. Podesta, who was also head of Barack Obama’s presidential transition team after the 2008 election.

In preparing to seize private pensions, the United States is going the same way as Argentinean government, which in 2008 nationalized the country’s private pension plans, known as AFJPs, confiscating the wealth of millions.

“We have no doubt that here the right to private property is being violated. Not just for us but for society and the world, this is a clear confiscation,” said opposition Radical Party’s Ernesto Sanz at the time.

How will Americans react to having not only their wealth but their nest egg for future generations brazenly confiscated by the government in one fell swoop? If this doesn’t prompt widespread rioting and civil disobedience in America on behalf of the besieged middle class then nothing will.

Don’t be under any illusions, if you don’t have a private pension and think this won’t affect you – think again. Once the pretext has been created that the state can simply confiscate privately earned wealth, they can then come after anything, your gold, your home, your kids and eventually your very freedom. Once the vampire of big government gets a taste for blood, the teeth will only sink in further, and America’s resemblance to third world tyrannies will rapidly accelerate.

—

Paul Joseph Watson is the editor and writer for Prison Planet.com. He is the author of Order Out Of Chaos. Watson is also a fill-in host for The Alex Jones Show. Watson has been interviewed by many publications and radio shows, including Vanity Fair and Coast to Coast AM, America’s most listened to late night talk show.

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