Picturing The Biggest Scam In The History of Mankind

Tyler Durden's picture

Last week Mike Maloney exposed the "biggest scam in the history of mankind" in 7 easy steps in his latest presentation. As Mike explains, most people can feel deep down that something isn't quite right with the world economy, but few know what it is. Gone are the days where a family can survive on just one paycheck...every day it seems that things are more and more out of control, yet only one in a million understand why. Here is the simple infographic to explain the grift...


(click image for massive legible version)

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Future Jim's picture

This excellent video gave me the final impetus to sit down the next day and write a 5,000 word essay explaining what is wrong with the American people.

Jump The Shark's picture

For those with internet access

Future Jim's picture

Here's the beginning:

First, there is plenty of reason for hope, so don’t despair, but …

Something is wrong with the people, who seem increasingly partisan, ignorant, apathetic, dishonest, evasive, cowardly, hypocritical, passive aggressive, insecure, conformist, closed minded, irrational, illogical, and unprincipled. Perhaps most obvious is the increase in cognitive dissonance, but the entirety of the character devolution of the people should be really obvious to any American who has lived long enough. I first noticed it during the Clinton Administration, but the root cause actually started long before that and merely caused a rather obvious leap under Clinton.

A lifetime of experience has taught me that just about everyone has the potential for the dark side as well as the potential for nobility. Both impulses are in our genes, but something in our environment is favoring the dark side.

First, let’s identify the rather obvious trends that motivate us to find a cause. Then, we will learn how they all have the same root cause:

Before we can solve a problem, we usually must understand the cause; otherwise, the unintended consequences could be worse than the original problem. In fact, the solutions of the past are the cause of most of our problems today.

Given that those who are most successful tend to be those who are least principled, we can see why every other problem is the result of unhealthy interventions at the top, but how did it get to be this way?

After a few generations of unhealthy interventions from the top by men who may or may not have been principled, we can see how their bad solutions created a perverse incentive structure that rewards bad behavior and punishes good behavior. Just like bad parenting creates a spoiled child who suffers from arrested development, now an entire people are increasingly spoiled children who suffer from arrested development.

The Soviet Union had a system that rewarded unprincipled people, and it crumbled from within.

Everything afflicting the people (that wasn’t caused by evolution) is caused by dishonest banking and a dishonest money supply, and the watershed of problems are self reinforcing. One unusually large cause of problems, that was itself indirectly caused by dishonest banking and dishonest money, is political correctness. Another unusually large cause of problems that was itself indirectly caused by dishonest banking and dishonest money, is media bias.

This is where the real explanation begins.

Crisismode's picture



No, it is NOT JUST American people.

Most of the "Developed Industrial World"

that certainly people reading ZH belong to,

are not one bit concerned whatsoever with the crap that the rest of the world

has to deal with.

Why should we be?

We have the good life, they have the bad life.

Roll the dice, but fact is, most people that are comfortable don't have any reason at all

to care about those that aren't.

Jesus said --"The poor you will always have with you."

He could also have said -- "The rich you will always have with you, and they will be the feudal lords of the poor."




TruthInSunshine's picture

The 7 easy steps to controlling the world without doing any honest physical or mental labor (fractional reserve CronyKapitalistComrade Model):

Buy off/bribe/blackmail/extort/destroy any lawmaker/politician/military officer who poses a risk of thwarting your plans. For those who doubt the feasability of this, or its relevance to current times, please refer to your course materials and the historical record regarding the events surrounding the meetings held by dominant global banking interests on Jekyll Island, off the Georgia Coast, in 1910.   *Very important first step.

Create fiat from thin air at zero cost basis, using nothing more than a literal stroke of a key, that's backed by nothing of inherent value, that has nation-state enforced legal recognition (due to that which is stated in #1 above), and in fact, is a monopoly currency with no legally recognized alternative in the payment of debt, both public and private.

Circulate such fiat via "loaning it out" (which is an oxymoron amongst oxymorons), charging interest upon it, and dramatically increase the volume of fiat/debt created in step 2 by many, many multiples, via the use of leverage (whether by allowing the mule banks to have articicially low capital requirements, or purposefully not regulating credit derivatives, or via a plethora of other mechanisms).

Successfully get nations (war is a fantastic motivator to borrow), business entities and individuals (the need for food, energy, health care, security, etc. are great motivators) to borrow said worthless fiat that was conjured from thin air, and pay interest, pledging their real, inherently valuable assets in exchange for said worthless fiat (i.e. meaning that their real, inherently valuable assets can be taken if the conditions that make it impossible for them to repay the worthless fiat are [intentionally] induced).

Set the rate of interest payable on the loans of fiat that was conjured from thin air, solely at their discretion (don't be Krugman-level disingenuous and proclaim anything remotely close to 'free market mechanisms' set these rates, especially at a time when the Bernank has just purchased [using fiat-debt conjured from thin air, so no skin of the Fed's nose] a massive chunk, roughly equaly to 60%+ of U.S. deficit spending- i.e. monetization- of U.S. Treasury Notes for about a 28 month period).

Supply more of such fiat, or withdraw fiat, to/from the system, at their discretion, bringing about inflation or deflation.

During times of large scale loan defaults, on the repayment of the fiat that they conjured from thin air, backed by nothing of inherent value, seize the most valuable assets that exist on the planet, many of which mankind depends on for its very survival.

Same Shit, Different Day, only now, there's vastly more leveraged fiat/debt/credit in the system when (not if) everything implodes, versus the last time the system imploded, so MOAR & BIGGER BUBBLES will inevitably be required to perpetuate the paper Ponzi... (i.e. tragic misallocation of resources, wealth, capital, what could have been truly productive endeavors had banksters been forbidden from controlling the destiny of the global economy by controlling the volume of fiat in their ability to create boom-bust cycles at their sole discretion, etc.).

They_Live's picture

Wow, that's even bigger than the climate change scam.

spine001's picture

This only touches the surface of the scam. It is MUCH, much bigger as any banker familiar with shadow banking would tell you (if they had enought beers to be honest :)). The real issue is shadow banking. In shadow banking they use either physical GOLD or Treasuries as collateral and then simplifying it, they create a fractional reserve system based on those two as collateral. Let me give you an example, you have 1pound of gold deposited in a vault, and you think it is safely in your name, but you never hired a lawyer to explain to you the fine print in the contract to see what happens if the vault owner goes bankrupt, you only read their brochures. The owner of the vault, uses your gold as warranty for loans as many times as he can get away with and then invests the proceeds in the market, and while at it, he leverages it using margin to the maximum he is allowed. While the market goes up, everybody is happy, you have your gold safe, he makes a Ton of money using your gold as collateral, etc. The system only breaks if the market goes down (look at history and all Ponzi schemes are uncovered by market crashes). When the system breaks yuor insurance evaporates and you end up in a lawsuit that can last decades to get your gold back, and most likely you never will. Same thing is done with treasuries who are lent to the operators by the large mutual funds on an overnnight basis. Borrowing overnight they pay nearly nothing in interest and then that money gets invested in longer term higher risk investments i.e. leveraged on margin equities at the end of the chain. If there is a crisis the rug is pullled from under the people that are funding their need of working capital with supershort term loans (overnight repo) and the mutual funds ask for their treasuries back, and the whole system leveraged 70 times or more comes down crashing. This shadow banking is creating cash out of thin air at a much faster rate than the "OLD" monetary system described by the author, and the people making the big bucks are not the "OLD" rich families but the mafia sponsored financiers of today.

bagehot99's picture

The financial world IS a mafia. They don't need to sponsor it; they own it. They don't need to whack people, and every scam they operate is totally legal. 

They wear 5 thousand dollars suits, and they live in Connnecticut, but they're no different than the Gambinos.

Herd Redirection Committee's picture

Future Jim, you just missed out including usury on the list.

High levels of compound interest.

People that know basic math should never agree to any loan that charges COMPOUND interest!

TheRedScourge's picture

He also missed out the fact that the education system has become so horrible that even he is not immune to the effects, as can be seen by his grammar and punctuation choices.


But really, when it comes down to it, is all the things on the list are a symptom of one underlying problem, and that problem is that the very foundation of society is based on lies and inconsistencies. We are told that stealing is wrong by people who make an exception for themselves which they call taxation. We are told that murder is wrong by people who make an exception they call war. We are told that it is wrong to rape by people who make an exception they call prison where buttrape is incentivized and not prevented in any way shape or form. We are told that counterfeiting is wrong by people who make an exception for themselves and force us to use money they claim is backed by their (our) ability to pay (ourselves after we've already spent it all), but which they can counterfeit at will when times get tough.

The American experiment, which was almost the same as the Roman experiment, one in which if you just write the right things on a piece of paper and tell your children that it's pretty important, and that this will somehow chain down the machinations of the state, has failed. Again. As it will every time it is tried. Anarcho-capitalism is the only system which has the possibility of being both morally and internally consistent as well as sustainable and practical. Until that idea is adopted, this cycle of empire ( republic -> empire -> socialism -> collapse with optional fascism -> repeat) will never cease.

fourchan's picture

g edward griffith said it all.

JLee2027's picture

Thus the seemingly obsessive and semi-irrational fear chatter being expressed by our Government as to why the market cannot ever be allowed to crash. The jig will be up when that occurs.


The system only breaks if the market goes down (look at history and all Ponzi schemes are uncovered by market crashes).


Widowmaker's picture

Fraud-fiat is dead.

All around one can see the last gasps of a dying empire that exists only on paper.

That vacuum left over from productivity and free markets is being filled with Fascism while the world squabbles over pet liberal causes (fag marriage, national security, abortion, health care, guns, etc).

BLOTTO's picture

Some very solid posts on here already.


The agenda is on - all over the world. Started since day 1 along time ago (whenever that was).


Remember, 'they' want to destroy the financials, nationalities, religion, gender...and family. And then bring in one...their world order.


We are dealing with ancient old school shit...blue bloods/families that are rulers of time and space. The calendar rules our life...thank goodness its Hump Day...

Chupacabra-322's picture


That's one half. Yes, the finances are run out do The City of London but one must not forget the intelligence is run out of The Vatican via the Jesuits. The Global Criminal Oligarch Cabal Bankster Intelligence Crime Syndicate.

Zero Debt's picture

8. Dumb down the population with repeated doses of distractions through an efficient distraction factory, diverting attention, creating meaningless debates on non-essential issues, stressing games, arena sports, escapism and fiction as worthy of attention rather than philosophy and principles of governance, monetary policy and banking. Alliances between banks and media are very important. The truth must not be leaked.

9. Mix terrible monetary policy with dubious moral viewpoints to form toxic hybrid ideas: "We need to print more money so everyone can afford a house"

10. Use feelings of guilt ("racist", "fascist", "extortion", "unreasonable", "illegitimate") to stifle intellectually honest dissent and legitimate questions, basically, lie outright without blinking

11. When the money supply contrats, grab all the valuable collateral assets and enjoy, keep repeating

12. Buy all academics with fiat money grants to do research in how good the status quo is and how to perfect it, form think tanks that appear independent but in reality promote the same system

13. Use the thin veil of academia, staged press meetings and obviously flawed forecasting models to sugar coat the hard iron fisted central planning policies

14. Always forecast the outcome of your own actions, never leave the results open for others to judge, note that few if anyone can get away with forecasting ones own success, imagine a soccer player forecasting how he will score a goal if he uses his left foot in such and such way


Diogenes's picture

And the Forces of Good can never rest, because the Forces of Evil stay up all night.

Hero Protagonist's picture

Until the debt interest expense is greater than tax revenue NOTHING will change.  They can always say eventually everthing will be okay because they have future money to burn.  Until then politician's have no incentive to change.  And by the time we get there it will be too late.

BLOTTO's picture

Evil may be winning the current long drawn out battle - but its impossible for it to win the war.


Evil can only lie, manipulate and pervert things for only so long...its dysfunctional and that will be part of its downfall.

diesheepledie's picture

LOL! The bankers are wearing little black Jew hats!

rbg81's picture

Congratulations--you put your finger on the most important part!  Dumbass.

Atomizer's picture

You forgot to mention the 6% payout, despite slow GDP growth. Winks.

lostintheflood's picture

You forgot to mention the 6% payout, despite slow GDP growth.

you see, atomizer, that's the problem!  as soon as you think you've thought of all the problems, you sit back for a moment and even more come flooding in!

i'm thinking of having a dinner and springing this on the unsuspecting guests...people need to see this.  it is the best "look" at the fundamental problem that i've seen (chris martenson's presentation being the second best as it's just too long).

Atomizer's picture



Enjoy your dinner and spring the video to all your friends. Hopefully you’ll figure out the 6% reference this time around.

MeMadMax's picture

I learned about all of this during the 2008 "speed bump" right after WaMu was bought out. I started paying attention because I banked at WaMu. 

Before then, I had only mediocre knowledge about how our economic/banking system worked(basically highschool knowledge + a little business math course thrown in).

I spent a few months digging, researching, pieceing together how it all worked, and then it hit me: This system WILL fail, no matter what. But whats worse is I hadn't paid attention until it affected me personally(WaMu), and that the rest of the country is basically the same way.


None of this is gonna get fixed until it actually affects the country as a whole. Like if the power goes out or bank accounts read ZERO.

But by then, it will be too late, if it isn't already, more than likely it already is...

TheReplacement's picture

To be sure most people here were oblivious at one point.  Sure someone was the first to notice.  Heck, some people have livelihoods that come from political prognostication.  Sadly they don't seem to be the ones who noticed but regardless, it was bound to happen.  One bizarre thing I've noticed is the resignation.  It's like people wake up and after a few minutes of tension they just give in to the perception that it's all inevitable and there's nothing a little guy can do.  Perhaps that's really denial.

As long as it appears there will be a free election in 2016 people will just go along.  Unless there is a absolute and undeniable landslide win by an outsider one of the insiders will win and take their turn at the wheel of fortune just hoping that this is the term when they can turn the Presidency into 'the regime' so they can be dictator for life.

dontgoforit's picture

On the personal level many of us have tried to prepare.  On the national level, most of us only know a vote is all we have and it could easily be 'Diebolded' into the camp that we voted against.  Outside of armed insurrection, where there's a great likely of getting your ass shot down, what's left?  The people in control are, like the squid, not going to let go easily.  And they are of the 'bad' sort who, without a moral compass, just laugh as they put us in chains.  It would appear that the time is coming where a rising up will be the only choice left; however, that can't be lost on the enemies of our country and you can bet they're waiting for the moment to sweep in when the U.S. has chaos in the streets to put a whoopin' on us.  So, we are caught between a sweat and a shit.

BeerBrewer09's picture

vote with your wallet.

buy as many PMs as you can afford. when physical runs out, prices shoot up, currencies fall, and hopefully a reset happens.

spread the message.

Au_Ag_CuPbCu's picture

MadMax, I did the exact same thing.  Never really understood the system until I really dug in.  In retrospect the thing that surprised me the most was that I thought I was misunderstanding something because I just couldn't get my head around the absurdity of it.  Go figure...

Skateboarder's picture

Trickle-down ethics, dawg. Monkey see, monkey do. If your boss is a crook, chances are that you are or will be a crook too.

Bastiat's picture

Bad money and the resulting mis-allocation of capital subverts moral culture at every level. 

Westcoastliberal's picture

I'm with you Future Jim.  There was a time when all the shit these crooks get away with today were illegal and prosecuted.  No more, in large part because the watchdog of the people (Fifth Estate) got so consolidated that it became possible to turn the media into a giant propaganda machine.  The people are largely ignorant or mis-informed.  Tea partiers are riled up but for the wrong reasons and don't want to hear facts or truth.  They believe Fox News and talkers like Limbaugh and Savage. 

A giant fomerly hidden hand is behind all this and has been since at least 2000.  Coup 'de tat followed by the "new" Pearl Harbor.  Here's an excellent documentary just out.  Five hours long in 3 pieces all free to view:


I just finished watching the entire piece and as a person who thought they knew quite a bit about 9/11, I can say I learned about 40% more.  Excellent time spent.

Future Jim's picture

Thanks, I plan to watch it now. I think all we need to wake people up though is WTC 7. Anything more speculative leads to quibbling, but WTC 7 proves, in a way that anyone can see, that the official story cannot be true.

The Tea Parties have been largely co-opted, but of all the mainstream people, Tea Partiers are the least bad, so why single them out? For example, they still hate bailouts and big government. I have only found them to be a little cloesed on big military, religion, and Israel.

MeMadMax's picture

You 9/11 nutjobs will never quit...

If there was anything to be found Obama would've found it.

Democrats have been searching for YEARS to pin 9/11 and the wars after on Bush.

What have they found? NOTHING.

You know what confirmation bias is? Go look it up.

oddball's picture

Democrats are Republicans.  

GetZeeGold's picture



Three party system.....Democrat, Republican, and Progressive.


Herd Redirection Committee's picture

No one can deny that 'the world changed' on 9/11.  People in North America started living in fear.  The Middle East went from being just another part of the world (with lots of oil), to our enemies.   It was a play right out of the Nazis playbook, page 1, Reichstag Fire.  And they combined it with the other mass trauma that America has experienced, Pearl Harbor. 

Bin Laden was on CIA payroll since the 80s, as Tim Osman.  End of story.

Drachma's picture

Pearls before swine. Don't waste your time with those still inured with the left/right false paradigm.

americanreality's picture

I disagree that the Dems have been trying to pin 9-11 on Bush.  Who said this regarding investigating Bush crimes?:

"We need to look forward as opposed to backwards."

Andy Lewis's picture

Go have another heart attack, Dickie.

Diogenes's picture

"You 9/11 nutjobs will never quit...

If there was anything to be found Obama would've found it.

Democrats have been searching for YEARS to pin 9/11 and the wars after on Bush.

What have they found? NOTHING.

You know what confirmation bias is? Go look it up."

Yeah, and O J Simpson is still looking for the guy who killed his wife.

Pesky Labrador's picture

Just finished watching all three parts. I cannot see any person who has common sense not question let alone believe the MSM after watching this. Very powerful!!!

CH1's picture

Both impulses are in our genes, but something in our environment is favoring the dark side.

YES, and it is this evil thought: It is right for important people to control my life.

Debt Slave's picture

"The extension of the prohibition to bills of credit must give pleasure to every citizen, in proportion to his love of justice and his knowledge of the true springs of public prosperity. The loss which America has sustained since the peace, from the pestilent effects of paper money on the necessary confidence between man and man, on the necessary confidence in the public councils, on the industry and morals of the people, and on the character of republican government, constitutes an enormous debt against the States chargeable with this unadvised measure, which must long remain unsatisfied; or rather an accumulation of guilt, which can be expiated no otherwise than by a voluntary sacrifice on the altar of justice, of the power which has been the instrument of it." - James Madison, Federalist Papers, #44

No, they don't teach this in public schools.

MilwaukeeMark's picture

It's all very Darwinian. The good and honest people are trampled upon by the dishonest mutant parasites. The good and honest are unable to multiply in any great numbers to sustain the parasites. The only life forms that can multiple effectively are the mutant cheats. However, soon, wirh no hosts left, just fellow mutant parasites, the food supply runs out.

RaceToTheBottom's picture

By tying your writings to a political regime, you are perpetuating the red-blue myth.

Spit the hook out....

oddjob's picture

Being a barbed hook, that will hurt too.

reader2010's picture

there is nothing new under the sun; technology will not give us any progress in society, politics, morality.  even free people of Athens and Rome fell into traps of avarice,  Debt and slavery. the fate of America,  the 2nd Roman Empire, can't be entirely different.  This time is Not different.