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|23-09-08, 03:07 AM||#1|
Join Date: Jul 2001
The Unknown $19 trizillion Depository Trust Company
check out when it was posted... 2003-10-30 17:37
now look at this response yesterday...
We are all familiar with a Ponzi scheme. The operation promises investors that money put into control of the operators will return high interest on the money invested. Unfortunately, the confidence game promises to pay more interest than the scheme generates, if the scheme generates any interest or gain whatsoever. The scheme will last as long as more suckers are found whose invested money will pay for the inflated interest due and payable to earlier investors.
The Federal Reserve operates a Ponzi scheme. Congress can pay for federal expenses with funds collected from taxes, but congress is never satisfied with this amount. The desire to buy votes from special interest groups and financially motivate campaign contributors, (or a credit card that does not have to be paid) induces congress-critters to spend more, and this is identified as deficit spending. To finance this deficit, the Federal Reserve will create on their accounting books a line of credit equal in the amount of the bills, bonds, or notes the congress authorized; i.e., the Fed receives the interest-bearing obligation on the full faith and credit of the United States and in return checks written by government agencies will be honored by the banking system. The accumulated deficits are identified as the national debt.
It must be observed the amount of money in circulation is increased by the amount of the principal (actually it is a line of credit for Congress that is generated) but the amount promised to be repaid is the principal AND the interest. The interest is never created but it is promised to be repaid. It is impossible. If this arrangement is based upon a contract, which it undoubtedly is, it can never be fulfilled. A contract that is impossible to fulfill is void upon its inception; it is an act of fraud.
The scheme will survive only as long as more principal is generated to pay the interest. This action only postpones the ultimate time of a much larger reckoning. If purchasers of the new debt cannot be found, the interest must be paid from previously generated principal and the scheme quickly collapses like any Ponzi scheme. Astute purchasers will demand a higher rate of interest than inflation (resulting from the creation of new principal) or they will suffer a loss of actual wealth. The increase in interest will always be greater than the increase in principal because of compounding effects; i.e., the more the principal increases, the more the interest increases.
Every “dollar” in circulation has been created by deficit spending with interest is being paid as a result of the creation. If all of the dollars in the world were used to buy back the bills, bonds, and notes, a national debt would still exist---in the amount of all interest generated with accumulated compound interest since the Fed was created ---but no “dollars” would exist outside of the Fed’s vaults to repay the debt. The Fed, as majority holder of federal debt, would have a claim on the wealth of the United States citizens, but the citizens have no money to pay the debt. Confiscation of all real assets pledged as collateral (the full faith and credit of the United States) would be in order. Foreclosures on Fannie Mae and Freddie Mac mortgages guaranteed by the federal government could put real estate under the control of the Fed. A feudal society with the Fed owners acquiring vast real estate could be created.
But ownership of real estate is really not the object of the financial centers. The object is money. The dealing of foreigners who have claims on U.S. dollars has already surfaced. Sell the infrastructure, such as seaports, toll-roads, airports, bridges, buildings, etc., to foreign nations. Hawaii has many Japanese landlords. After assets are sold, the taxpayers are required to lease them back or pay for their use.
To make the scheme appear legitimate, the Fed sells a large percentage of new bills, bonds, and notes with the help of the U.S. Treasury. That removes much of the currency generated by the scheme from circulation. Japan, China, and the United Kingdom hold $1.3 trillion of the total U.S. debt. Ref. [link] How much of this debt holding has been required by financial and government policies to gain approval of trade status for the past 40 years is unknown. It should be apparent that if Japan and China attempt to sell the obligations to support their economy, it would precipitate a world wide tsunami. The purchase of US debt ties all nations into a global economy.
Several South American countries use the U.S. dollar as their currency. If one nation starts selling, the entire house of cards will fall. The recent invasion of Iraq is theorized by some sources as retaliation for an economic policy designed to remove the dollar as the international reserve currency for oil. Iran has recently taken a similar action and Washington is again threatening hell-fire and brimstone.
At this time, the national debt exceeds $9.5 trillion. The government holding is $4.1 trillion, the public holding is $4.4 trillion, and the holding by the FED is down to $740 billion. Securities held by OASDI, Hospital Trust fund, Disability Fund, and the Retirement Fund account for $3.28 trillion of the U.S. government holding in non-marketable form. Major private holdings include banks, pension funds, and mutual funds. More than one-half of the private held debt, $2.3 trillion, is held by foreign and international investors. Ref. [link] Tables OFS-1,2, FD-1,2,3.
Interest on the national debt for the past year has exceeded $430 billion dollars. Ref. [link]
At the approximate 5% going rate on national debt, the Fed receives $37 billion per year for providing Congress with an open-ended credit card. Meanwhile, a debt of $35,000 has been imposed on every man, woman, and child in the U.S. The off balance sheet obligations for Medicare, Medicaid, SS, etc., raises government debt to over $150,000 per person.
The national debt has increased $2.4 trillion since 2003. As many have written, the creation of money by deficit spending is the source of inflation. Those closest to the money printing press will live better than those further away, and the farmers, as a class, are the most distant from the new money. This new money is a subtle way the wealth of the nation is confiscated from the people, and the people, for the greater part, are completely unaware of their loss. Each year, 4% to 8% of assets held by the citizens and valued in dollars is confiscated by the government through inflation.
Some sources suggest the Fed has never been audited. That is not totally accurate. The 350 page copy of the 2006 Annual Report to Congress by the Board of Governors, (ref. [link] ) contains considerable information on the financial status and revenue transfers of the banks, branches, and the system, including interest earned from holdings of national debt. No information is found that suggests an audit of specie holdings claimed as assets nor is payment to owners detailed nor any payment of corporate taxes. The audit of financial records is signed by KPMG, LLP, at pages 303. 313, 319, and by PriceWaterhouseCoopers at page 321. All federal government entities are audited by the GAO, are they not?
All real estate owned by the Fed is subject to local property taxes and the tax bills can be verified at the county assessors office. The 2006 Annual Report lists $33 million (page 286) was paid in real estate taxes. The Federal Reserve bank in Kansas City joined other local businesses a few years ago in a legal challenge to a state-wide property re-evaluation. Real estate owned by the federal government is not subject to local property tax.
Salaries of employees are, with few exceptions, set by the Fed with paychecks drawn on the Fed; they are not government civil service employees paid from the U.S. Treasury. The Fed also has their own private retirement program. The Fed is not listed in government pages of telephone books. The Fed is a privately owned, nationally incorporated for-profit business. The window-dressing of seven appointed governors for fourteen year terms is from a Fed pre-approved list.
The private ownership of the Fed has been documented by Eustace Mullins in SECRETS OF THE FEDERAL RESERVE published in 1952. Ref. [link] The New York based owners/shills were identified and ultimate ownership was traced to the Rothschilds of Europe. Congressman McFadden had gone to his grave unsuccessful after his 1930’s attempt to determine the owners. Congressman Larry McDonald was reportedly preparing legal action against the Fed in 1983 when flight KAL 007 that he was on disappeared under mysterious conditions. Ref. [link] President Kennedy’s Executive Order #11110 to circulate interest-free currency into circulation is taunted by the informed political right as a factor in his death. Ref. PLAUSIBLE DENIAL by Mark Lane; HIGH TREASON by Robert J. Groden.
When faced with litigation, the Fed can choose, for their benefit, the mantle of a government agency or that of a private business. An entity that can select the most advantageous identification is not controlled by the law; it is above the law.
Statistics confirming the inevitability of financial collapse can be obtained from the federal budget. The U.S. Treasury Department’s 2006 year-end tabulation informs us annual federal spending increased 7.3 percent while interest on the debt increased 15.2 percent. The exponential increase of interest payments cannot be escaped.
The Fed took 27 years to set up the fiat currency system so they could plunder society. The Fed was pulling gold-backed currency out of circulation in the late 1920’s and the stock market was the first to feel the impact with margin calls. Local banks were compelled to call notes that were normally rolled over from year to year to meet increased reserve requirements by the Fed and the stock market was the most liquid. When the economy appeared to be stabilizing from FDR pumping money into the economy with make-work projects, the Fed repeatedly tightened the money supply to remove gold-backed currency and deepen the depression. Votes from recipients of government largess were bought by a printing press while farmers and industrial employees were losing productive jobs.. When the economy was expanded to pay for (the contrived) WW II, debt-bearing currency (with interest IN GOLD payable to the Fed) replaced the previous gold backed interest-free money. The Fed had installed their Ponzi scheme. Your grandfather who lost his farm during the depression probably never knew what hit him.
In Economics 101, we learned of the early gold guilds who, upon finding they could issue paper certificates acceptable as gold, would abuse the trust with excess paper issuance. Eventually a run started on the guild and the scam-operator would be disemboweled. The Fed, with the complicity of Congress, has been doing the exact same thing for 95 years. The gold backing of the dollar was removed by law in 1934 and the value of the dollar has existed on faith since that time.
In 1930, 25 ounces of gold would buy a fine automobile for $500. Today, 25 ounces of gold will buy a vastly improved and durable automobile with a price of $24,000. The value of the money has been stolen by debasing of the currency.
The savings and loan debacle was but one of the precursors of financial inflation and corruption that lead to the tech stock bubble.
When the speculation bubble of tech stocks burst, the Fed found it necessary to protect their financial cohorts by easy access to liquidity through low interest rates. The injection of money into the system caused the housing bubble which has now ruptured. The Fed again found itself protecting the hedge funds and investment houses with ready paper assets. The midnight raid on Bear Sterns protected Morgan Chase and the clique from collapse and the taxpayers picked up the tab. Financial centers that knowingly had relied upon fraudulent representations of credit ratings to sell mortgage paper for huge profits suddenly found themselves holding those same assets when the value was debased.
The funds injected by the Fed to save the mortgage bankers and hedge funds have found their way into the commodities market. The commodities market has gone volcanic. Price manipulation of selected commodities has been whispered. The actions of the Fed have repeatedly caused escalating problems in the economic system and then they consistently run to Congress for more power to cover up the problems they created.
Statistics from the Fed tell the story. The Fed has loaned more than $160 billion to the banks since November. $124 billion term auction credits have been originated to supplement depleted reserves. The unprecedented process auctions Treasury securities accepting debased mortgages as collateral for 84 day periods. A positive value on the Fed’s accounting sheet is generated with an asset that the National Bank of Australia wrote off as a 90% billion dollar loss. The taxpayers will be on the hook for the lost value. The Fed legally has no more reserves that can be used to absorb any run on a financial institute. [link] Never before has the Fed loaned more than $1 billion to the banks.
But Congress is coming to their rescue. Congress approved the American Housing Rescue and Foreclosure Prevention Act in July. Under the guise of protecting the homebuyer/ victim, it is a measure guaranteeing the taxpayers can be called upon for an initial $300 billion to pay for the fraudulent mortgage schemes of Wall Street cohorts and for FHA, Freddie Mac, and Fannie Mae losses. Total exposure of Freddie and Fannie is over $5 trillion. Additional measures of the Bill include extending the national debt by $800 billion and requires ALL credit card transactions be reported to the IRS.
The economic costs of the invasions of Iraq, Afghanistan, Bosnia, and the pending invasion of Iran, to say nothing of the 700 U.S. military installations throughout the world should already be obvious to the reader, in addition to Rumsfeld’s recent statement that 25 percent of Pentagon spending could not be accounted for.
Private industry (the tax base) is being exported or is facing bankruptcy (Indymac, Country Financial, GM, Ford ) because of mandated expenses that must be paid to government while the construction industry is devastated and numerous retail chains are closing hundreds of doors (more destroyed tax paying businesses/employees). And now Ben and Paul want Congress to make an unrestricted guarantee to protect the CEO's of all financial organizations (who have been making $10 to $100 million per year or more) to avoid bankruptcy and to secure their golden parachutes.
We have unlimited federal spending and destruction of the industrial tax base with the unrelenting extortion of wealth from the middle-class taxpayers for the benefit of the elite financiers.
It sure looks like the bankruptcy train is accelerating downhill without any brakes. Prepare for the run on the guild
my fingers are sore from typin' all that
hi 5 dawn!!
|23-09-08, 03:35 AM||#2|
Join Date: Jul 2001
What is a Quadrllion
A quadrillion is a number so big...
How big is it?
Its so fucking big that I can not wrap my mind around it!!!!
I googled (news tab) 'quadrillion' the other day to see whats going on and the top one was about Zimbabwe, the next one was about Natural Gas btu's err whatever...
The next one was about the the derivatives market and the UNITED STATES OF AMERICA!!
The derivatives market!!
WTF IS THIS SHIT THAT IS NOT MAKING HEADLINES?
The Long Tail of the Trillionaires
Save yourself... a letter from son to father
|23-09-08, 09:54 AM||#3|
The Fungus Among Us
Join Date: Jul 2003
Location: Here and there.
Good read. Thanks Floyd.
Giving money and power to government is like giving whiskey and car keys to teenage boys. – P.J. O'Rourke
None are more hopelessly enslaved than those who falsely believe they are free. – Goethe
A truth that's told with bad intent, Beats all the lies you can invent. - William Blake
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