need the money, Treasury will have to borrow it. Is that about it?
R EGAN : Yep.
I SAAC : Just one more thing, while I’ve got you. Why do we bother pretending there’s a fund?
R EGAN : I’m sorry, Bill, but the President’s on the other line. I’ll have to get back to you on that.
There is no record that Regan ever got back to Isaac. “Why do we bother pretending there’s a fund?” asked Darryl Robert Schoon, economic commentator and author of How to Survive the Crisis and Prosper in the Process . “[T]he answer is obvious. Modern economics, i.e. central banking, is a shell game where bankers with the aid of governments have foisted a highly lucrative fraud on society; and, while the fraud of the FDIC fund is egregious, it is no more egregious than the fraud of the Fed or of the economy itself.”
And the fraud does not stop with the FDIC. Schoon and others believe modern banking is essentially a Ponzi scheme on a global scale, in which bankers loan nonexistent money and receive repayment of the nonexistent funds plus compounding interest in return.
“In economies based on the fraudulent issuance of money as debt, there are only predators and victims. Bankers are the predators, society is the victim (businessmen are victims who often believe they’re predators) and governments are the well-paid-off referees in the rigged game being played out in today’s capital markets,” Schoon wrote.
At the heart of this combination Ponzi scheme and shell game lies the privately owned Federal Reserve System. But you and I, dear reader, will get to that.
Chris Martenson, a businessman with a doctorate in neurotoxicology from Duke University and an MBA in finance from Cornell, wrote, “Our entire monetary system, and by extension our economy, is a Ponzi economy in the sense that it really only operates well when in expansion mode. Even a slight regression triggers massive panics and disruptions that seem wholly inconsistent with the relative change, unless one understands that expansion is more or less a requirement of our type of monetary and economic system. Without expansion, the system first labors and then destroys wealth far out of proportion to the decline itself. What fuels expansion in a debt-based money system? Why, new debt (or credit), of course! So one of the things we keep a very close eye on, as they do at the Federal Reserve, is the rate of debt creation.”
Martenson and others believe a major theme in the current credit bubble collapse is the extent to which private credit has been crumbling while the Federal Reserve has been purchasing debt and the federal government has been increasing its borrowing. “In essence, public debt purchases and new borrowing has attempted to plug the gap left by a shortfall in private debt purchases and borrowing [original emphasis]. That’s the scheme right now—the Federal Reserve is creating new money out of thin air to buy debt, while the US government is creating new debt at the most fantastic pace ever seen. The attempt here is to keep aggregate debt growing fast enough to prevent the system from completely seizing up,” explained Martenson.
Martenson, who said he continually seeks to accept or reject his own hypotheses based on the evidence at hand, explained that the Federal Reserve has been monetizing far more U.S. government debt than has openly been revealed by allowing foreign central banks to swap their agency debt for Treasury debt. “This is not a sign of strength and reveals a pattern of trading temporary relief for future difficulties,” Martenson wrote. “When the full scope of this program is more widely recognized, more pressure will fall upon the dollar, as more and more private investors shun the dollar and all dollar-denominated instruments as stores of value and wealth. This will further burden the efforts of the various central banks around the world as they endeavor to meet the vast borrowing desires of the US government. One
R EGAN : Yep.
I SAAC : Just one more thing, while I’ve got you. Why do we bother pretending there’s a fund?
R EGAN : I’m sorry, Bill, but the President’s on the other line. I’ll have to get back to you on that.
There is no record that Regan ever got back to Isaac. “Why do we bother pretending there’s a fund?” asked Darryl Robert Schoon, economic commentator and author of How to Survive the Crisis and Prosper in the Process . “[T]he answer is obvious. Modern economics, i.e. central banking, is a shell game where bankers with the aid of governments have foisted a highly lucrative fraud on society; and, while the fraud of the FDIC fund is egregious, it is no more egregious than the fraud of the Fed or of the economy itself.”
And the fraud does not stop with the FDIC. Schoon and others believe modern banking is essentially a Ponzi scheme on a global scale, in which bankers loan nonexistent money and receive repayment of the nonexistent funds plus compounding interest in return.
“In economies based on the fraudulent issuance of money as debt, there are only predators and victims. Bankers are the predators, society is the victim (businessmen are victims who often believe they’re predators) and governments are the well-paid-off referees in the rigged game being played out in today’s capital markets,” Schoon wrote.
At the heart of this combination Ponzi scheme and shell game lies the privately owned Federal Reserve System. But you and I, dear reader, will get to that.
Chris Martenson, a businessman with a doctorate in neurotoxicology from Duke University and an MBA in finance from Cornell, wrote, “Our entire monetary system, and by extension our economy, is a Ponzi economy in the sense that it really only operates well when in expansion mode. Even a slight regression triggers massive panics and disruptions that seem wholly inconsistent with the relative change, unless one understands that expansion is more or less a requirement of our type of monetary and economic system. Without expansion, the system first labors and then destroys wealth far out of proportion to the decline itself. What fuels expansion in a debt-based money system? Why, new debt (or credit), of course! So one of the things we keep a very close eye on, as they do at the Federal Reserve, is the rate of debt creation.”
Martenson and others believe a major theme in the current credit bubble collapse is the extent to which private credit has been crumbling while the Federal Reserve has been purchasing debt and the federal government has been increasing its borrowing. “In essence, public debt purchases and new borrowing has attempted to plug the gap left by a shortfall in private debt purchases and borrowing [original emphasis]. That’s the scheme right now—the Federal Reserve is creating new money out of thin air to buy debt, while the US government is creating new debt at the most fantastic pace ever seen. The attempt here is to keep aggregate debt growing fast enough to prevent the system from completely seizing up,” explained Martenson.
Martenson, who said he continually seeks to accept or reject his own hypotheses based on the evidence at hand, explained that the Federal Reserve has been monetizing far more U.S. government debt than has openly been revealed by allowing foreign central banks to swap their agency debt for Treasury debt. “This is not a sign of strength and reveals a pattern of trading temporary relief for future difficulties,” Martenson wrote. “When the full scope of this program is more widely recognized, more pressure will fall upon the dollar, as more and more private investors shun the dollar and all dollar-denominated instruments as stores of value and wealth. This will further burden the efforts of the various central banks around the world as they endeavor to meet the vast borrowing desires of the US government. One
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