{"id":18301,"date":"2016-02-26T13:15:00","date_gmt":"2016-02-26T18:15:00","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18301"},"modified":"2016-02-26T13:15:00","modified_gmt":"2016-02-26T18:15:00","slug":"essential-history-forever-debt-federal-reserve-system-invented-to-pay-interest-without-ever-ever-ever-repaying-debt-definition-of-ponzi-scheme","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18301","title":{"rendered":"Essential history: \u2018Forever debt\u2019 Federal Reserve system invented to pay interest without ever ever ever repaying debt \u2013 definition of \u2018Ponzi scheme\u2019"},"content":{"rendered":"<h3 class=\"entry-title\"><a href=\"http:\/\/www.washingtonsblog.com\/2016\/02\/essential-history-forever-debt-federal-reserve-system-invented-pay-interest-without-ever-ever-ever-repaying-debt-definition-ponzi-scheme.html\" target=\"_blank\">Essential history: \u2018Forever debt\u2019 Federal Reserve system invented to pay interest without ever ever ever repaying debt \u2013 definition of \u2018Ponzi scheme\u2019<\/a><\/h3>\n<div class=\"entry-meta\"><span class=\"meta-prep meta-prep-author\">Posted on<\/span>\u00a0<a title=\"7:12 pm\" href=\"http:\/\/www.washingtonsblog.com\/2016\/02\/essential-history-forever-debt-federal-reserve-system-invented-pay-interest-without-ever-ever-ever-repaying-debt-definition-ponzi-scheme.html\" rel=\"bookmark\">February 25, 2016<\/a>\u00a0<span class=\"meta-sep\">by<\/span>\u00a0<span class=\"author vcard\"><a class=\"url fn n\" title=\"View all posts by Carl Herman\" href=\"http:\/\/www.washingtonsblog.com\/author\/carl-herman\">Carl Herman<\/a><\/span><\/div>\n<div class=\"entry-content\">\n<blockquote><p><a href=\"https:\/\/en.wikipedia.org\/wiki\/Ponzi_scheme\">Ponzi scheme<\/a>: criminal fraud of paying existing \u201cinvestors\u201d only and always from new \u201cinvestors.\u201d Collapse occurs without new \u201cinvestors\u201d and\/or existing \u201cinvestors\u201d panic to cash-in.<\/p><\/blockquote>\n<p>The US Federal Reserve is based on the\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Ponzi_scheme\">1694-created Bank of England<\/a>\u00a0because this model allows government finance with debt that is never meant to be repaid. It is an \u201cinvestment\u201d model that pays interest guaranteed through tax collection.\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Bank_of_England#Founding\">Its invention<\/a>\u00a0was to finance England\u2019s government and military in a history of continuous centuries of war.<\/p>\n<p>It\u2019s cleverness allowed British finance to fund a short-term empire over rival European powers.<\/p>\n<p>Although we can appreciate this historical manipulation, this is a Ponzi scheme because the system collapses without new \u201cinvestors\u201d of\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Government_bond\">government debt securities<\/a>.<\/p>\n<p>This Ponzi scheme model is our US Federal Reserve System today:<\/p>\n<ul>\n<li>not \u201cUS Federal\u201d but \u00a0<a href=\"http:\/\/www.washingtonsblog.com\/2011\/07\/federal-reserve-attorneys-fed-banks-are-not-agencies-but-independent-corporations-with-private-boards-of-directors.html\">admitted privately-owned<\/a>,<\/li>\n<li>without \u201cReserve\u201d other than creating what is used for money out of nothing,<\/li>\n<li>not a \u201cSystem\u201d but\u00a0<a href=\"http:\/\/legal-dictionary.thefreedictionary.com\/fraud\">literal criminal fraud<\/a>\u00a0because it doesn\u2019t create\u00a0its claimed \u201cmonetary supply,\u201d but the Orwellian opposite of a\u00a0<a href=\"http:\/\/www.washingtonsblog.com\/2015\/05\/bankster-looting-fundamental-fraud-that-debt-is-money-5-of-7.html\">\u201cdebt supply\u201d that is adding negative numbers forever<\/a>.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/en.wikipedia.org\/wiki\/United_States_Treasury_security\">US Treasury securities<\/a>\u00a0of bills, notes, and bonds continuously\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Maturity_(finance)\">mature<\/a>\u00a0and must be repaid if the owner chooses to cash-in rather than renew the debt security. The US federal government debt is\u00a0<a href=\"http:\/\/www.treasurydirect.gov\/NP\/debt\/current\">now $19 trillion<\/a>, having\u00a0<a href=\"http:\/\/www.prisonplanet.com\/8314529850339-07-debt-up-70612-91-per-household-in-obamas-first-7-years.html\">risen over a trillion each year<\/a>\u00a0of the Obama administration.<br \/>\n<span id=\"more-54126\"><\/span><\/p>\n<p><a class=\"colorbox colorbox-insert-image init-colorbox-processed cboxElement\" href=\"http:\/\/cdn.cnsnews.com\/debt-obama_years-chart.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"image-content-100p img-responsive\" src=\"http:\/\/www.cnsnews.com\/s3\/files\/styles\/content_100p\/s3\/debt-obama_years-chart.jpg?itok=ZcKHJ0n7\" alt=\"\" width=\"789\" height=\"596\" \/><\/a><\/p>\n<p>This amount of total debt compared with ~100 million US households means that the average US household of ~$50,000 annual income owes ~$190,000 each should investors withdraw from this US government funding scheme. If your household income is more than $50,000, then use this ratio to estimate your share for repayment; for example, a $150,000 annual family income would owe $570,000 if US Treasury holders requested repayment rather than continue\u00a0<a href=\"http:\/\/www.investopedia.com\/terms\/r\/rollover.asp\">rolling-over<\/a>\u00a0their loans to the US government.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Essential history: \u2018Forever debt\u2019 Federal Reserve system invented to pay interest without ever ever ever repaying debt \u2013 definition of \u2018Ponzi scheme\u2019 Posted on\u00a0February 25, 2016\u00a0by\u00a0Carl Herman Ponzi scheme: criminal fraud of paying existing \u201cinvestors\u201d only and always from new \u201cinvestors.\u201d Collapse occurs without new \u201cinvestors\u201d and\/or existing \u201cinvestors\u201d panic to cash-in. The US Federal [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[56,11627,195,303,305,950,380,2942,783],"class_list":["post-18301","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-of-england","tag-carl-herman","tag-debt","tag-fed","tag-federal-reserve","tag-fraud","tag-government-debt","tag-ponzi","tag-taxes"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18301","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18301"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18301\/revisions"}],"predecessor-version":[{"id":18302,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18301\/revisions\/18302"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18301"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18301"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18301"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}