Guest Post: The Federal Debt As Criminal Scam, The Federal Reserve As Criminal Syndicate

Tyler Durden's picture




 
0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Mon, 09/19/2011 - 13:02 | 1685179 Pladizow
Pladizow's picture

This will be the way it is - until complete collapse!

Mon, 09/19/2011 - 13:17 | 1685245 Oh regional Indian
Oh regional Indian's picture

How many times since 1913 will this crap be regurgitated. Speech upon speech by Lindbergh, McFadden et. al..... so long known.

Oh, and of course the good Dr. Paul...... talk talk talk. 

Talking us into death by distraction, while the larger issues flutter in the wind like a frayed (but gold fringed mind yuh) flag.

It's all a huge lie, a construct. Only relentless self-education and the willingness to absorb bitter truth will open any eyes.

Could any of this be True? Do the Research...

ORI

Mon, 09/19/2011 - 13:46 | 1685336 Kelley
Kelley's picture

One reason for no action is that the problem has never been expressed in simple enough terms. The average person simply doesn't understand the problem. Here is my take on it:

If the Fed makes $100, but we taxpayers owe them $101.00 in return, where do we get the extra dollar to repay them? From the Fed?? Yes, from the Fed because there are no dollars except for those produced by the Fed.

But then we would owe them interest on that dollar, too!

So the Fed lends us a second $100. We take a dollar from that hundred and pay the interest, leaving us with $99. But owe $101!

So the Fed lends us a third $100. We take two dollars from the hundred to pay the interest, leaving us with $98. But we owe $101!

This cycle continues with ever increasing loss of our spending power because a higher portion of our money is needed to pay the interest. 

It is impossible for us to become debt free because every dollar we receive comes with interest owed. In fact our debt grows.

Meanwhile, the private bankers who create the federal reserve notes like cotton candy see themselves becoming richer and richer. 

It is a Ponzi scheme that started 98 years ago. We are just now seeing the folly of the arrangement.

This needs to be taught to everry student in school along with an explanation that when Congress creates the money there is no debt. We can vote them out of office, too, if they print too much or too little whereas we have no say over the Fed's actions.

Mon, 09/19/2011 - 14:19 | 1685478 mvsjcl
mvsjcl's picture

Paying interest is known as asset stripping.

Mon, 09/19/2011 - 15:12 | 1685684 g speed
g speed's picture

collecting that interest is known as usury

Mon, 09/19/2011 - 15:45 | 1685811 Popo
Popo's picture

"Governments are instituted among Men, deriving their just powers from the consent of the governed, That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government"

-- The Delcaration of Independence

Tue, 09/20/2011 - 08:45 | 1688218 ljag
ljag's picture

Hmmmmmm. I thought the Treasury printed the money (except for QE1,2) and the Fed loans it back to the gov't. In 1913 we found out we were to dumb to manage the money so we allowed the bankers (aka Fed) to 'manage' it .......for a fee. Am I missing something here?

Mon, 09/19/2011 - 13:45 | 1685348 AldousHuxley
AldousHuxley's picture

What is worse than Fed at the printer is politicians at the printer. Currently, Fed is politicized already as Fed prints money for Treasury using primary dealers as conduit.

bonds =  terms of bondage until you pay off the terms to acquire freedom, except the terms are written by banksters and politicians who own your labor.

 

Mon, 09/19/2011 - 14:30 | 1685525 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

The fed and politicians are both owned by the corporate fascist state.  Same lipstick, different pigs.

Tue, 09/20/2011 - 08:39 | 1688192 PAUL LEO FASO
PAUL LEO FASO's picture

If you really want something besides talk, try putting this into action;

http:www.zerohedge.com/print/365866

Mon, 09/19/2011 - 13:18 | 1685246 Pegasus Muse
Pegasus Muse's picture

 

 

Maybe we need to have a party too.    

====

Time For Europe’s Bond-Burning Party

Jeff Nielson

http://www.zerohedge.com/news/european-sovereign-debt-cant-we-all-just-net-along#comment-1681867

 

Mon, 09/19/2011 - 13:22 | 1685263 Gandalf6900
Gandalf6900's picture

and here you are wrong my friend...not until complete collapse, its too much of a nice game for them win win, why should they stop since the burden is on us,

rewrite:

this will be the way it is - for as long as we allow it

Mon, 09/19/2011 - 15:12 | 1685264 Spirit Of Truth
Spirit Of Truth's picture

Indeed, the system isn't tending toward "general equiblirium" in the long-run.  It's tending toward self-destruction in the long-run: http://www.spiritoftruth.org/hypothesis.htm

The "Money Masters" time is almost up IMHO: http://www.youtube.com/watch?v=JXt1cayx0hs

Mon, 09/19/2011 - 13:22 | 1685265 traderjoe
traderjoe's picture

Let's add one more critical element to the scam: under fractional reserve banking - the commercial banks get to create money out of thin air. See Modern Monetary Mechanics. Private corporations create the money and then lend it at interest to the sovereign.

The interest is the grift, debt-slavery of the people the goal.

Mon, 09/19/2011 - 19:26 | 1686618 TheFourthStooge-ing
TheFourthStooge-ing's picture

The interest is the grift, debt-slavery of the people the goal.

That's why CHS correspondent Doug is wrong when he states that, "this is our debt, not the government’s debt."

Actually, it is the government's debt. The fuckers in the White House and on Capitol Hill are the ones who've incurred the debt and used it to keep the nation under their collective thumb, and the slithering reptilian bankers were all too happy to go along with the plan.

If that's not odious debt, I don't know what is. Go get the money from the crooks that engineered this scam (and their families and next of kin).

http://en.wikipedia.org/wiki/Odious_debt

 

Mon, 09/19/2011 - 14:08 | 1685432 WallStreetClass...
WallStreetClassAction.com's picture

Yes, and my credit card bill is a criminal scam, and my wife is in a criminal syndicate!

Mon, 09/19/2011 - 13:04 | 1685183 PicassoInActions
PicassoInActions's picture

Everything is legal till you get caught.

THey have not been caught yet ( legaly)

Mon, 09/19/2011 - 13:44 | 1685342 CH1
CH1's picture

Everything is legal if you're the ruler.

"Breaking a law" is merely "necessity."

Mon, 09/19/2011 - 14:28 | 1685516 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"All laws repugnant to the constitution are null and void." 

Marbury v. Madison    1803

Mon, 09/19/2011 - 13:04 | 1685184 Henry Chinaski
Henry Chinaski's picture

The US cannot sustain a global military empire along with a comprehensive welfare/police state.  Regardless of who is President, this will unwind.  The problems that Ron Paul warned against during his 35 years as a statesman are now in the forefront of the national debate.  Perhaps Ron Paul can help roll back government before it collapses under its own weight.

Mon, 09/19/2011 - 13:18 | 1685244 trav7777
trav7777's picture

yes, and the increasing scarcity of oil makes long distance projection much more difficult.

The world is going to get a lot larger

Mon, 09/19/2011 - 13:36 | 1685316 FeralSerf
FeralSerf's picture

What scarcity of oil?  I haven't had any problem getting any fuel either in North America or Europe and I haven't noticed anyone else being turned away.  There's only a scarcity of of $50/bbl oil.  There's plenty of $100/bbl oil.

As drilling technology improves, one can expect that oil won't be rising much faster than the real inflation rate for the foreseeable future at least.  Why not compare oil to gold for the last 50 years or so?  

Mon, 09/19/2011 - 14:27 | 1685495 DaveyJones
DaveyJones's picture

Amazing how all those oil experts line up with you. Gold is a value depository not a depleting energy source that is the foundation of the world's economy. You can throw all the dream technology you want at the problem but the price will continue to go up, the supply will go down, and this debt based economy will fold.   

Mon, 09/19/2011 - 14:46 | 1685585 Dr. Acula
Dr. Acula's picture

>the price will continue to go up

Agreed - oil will rise in price when measured in clownbux. But it hasn't changed in 60 years compared to real stores of value, i.e. gold.

>this debt based economy will fold.   

History shows that fiat currencies always collapse. Nothing to do with oil.

Mon, 09/19/2011 - 15:19 | 1685688 DaveyJones
DaveyJones's picture

As long as we are talking "the real price," tell me how many barrels of oil it takes to extract one today compared to one hundred years ago. Is EROEI not a real price?

Fiat currencies do always collapse but are you suggesting that being one of the most oil dependent countries who produce 6 units but consume 19 units daily and who finances endless (and unproductive) wars for these resources (which is also nothing new) is not contributing to our debt and decline ?   

Mon, 09/19/2011 - 14:38 | 1685543 Dr. Acula
Dr. Acula's picture

FeralSerf,

You are quite right. There is no oil crisis. This is objectively true and indisputable as reflected by the market data.

What we have here is a yearning for manufactured crises and socialistic interventions to help "save" us. Much is to be blamed on self-aggrandizing engineer-types who have only the dimmest conception of economics and self-organized systems.

Mon, 09/19/2011 - 14:09 | 1685436 WallStreetClass...
WallStreetClassAction.com's picture

Ron Paul is a clueless dope. People who praise Ron Paul are brainless sheep. This ought to clear it.

Mon, 09/19/2011 - 14:25 | 1685502 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I guess that makes me a brainless sheep you "classless" turkey!

Mon, 09/19/2011 - 18:02 | 1686315 DeeDeeTwo
DeeDeeTwo's picture

Brainless sheep who hoard gold at exhorbitant prices... until the Government limits gold ownership... and starts putting you clowns in jail. It's the Medieval Serf Wealth Strategy, baby, how retro.

Mon, 09/19/2011 - 13:04 | 1685186 vast-dom
vast-dom's picture

Title says it all: Criminal Ponzi Porn Culture.

Mon, 09/19/2011 - 13:13 | 1685227 RemiG2010
RemiG2010's picture

OK. I have just called  1-800-SEC-0330 . They said, they cannot take my complaint since they are too busy shreding documents.

Mon, 09/19/2011 - 14:07 | 1685424 TruthInSunshine
TruthInSunshine's picture

You have to email them what you want them to review, preferably with the email title:

Horny midget slut & barn yard animals frolic

Mon, 09/19/2011 - 13:54 | 1685381 Grinder74
Grinder74's picture

But there's porn involved. Isn't that their sweet spot (pun intended)?

Mon, 09/19/2011 - 13:06 | 1685193 Little John
Little John's picture

"Rich men write their books of laws for poor men to defend

 but true law's only written in the hearts of honest men.

(from a song I heard once)

Mon, 09/19/2011 - 13:09 | 1685203 john39
john39's picture

part of the problem is the total lack of transparency....  these are real people behind the scam, not faceless institutions....  who owns the fed?  who owns the largest corporations?  all the same group of people overlapping.  they are your criminals.  this ends when they are brought to justice.

Mon, 09/19/2011 - 14:23 | 1685492 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Best Guess Fed ownership:

 

The top 4 banks:  B of A, JP Morgan Chase, Citigroup & Wells Fargo-Wachovia control roughly 54% of the stock of the Federal Reserve Bank.  The top 10 banks, including Goldman Sachs, HSBC and the Bank of New York control roughly 70% of the stock.

Tue, 01/10/2012 - 17:36 | 2051792 trentusa
trentusa's picture
Who Owns The Federal Reserve? The Fed is privately owned. Its shareholders are private banks http://www.globalresearch.ca/index.php?context=va&aid=10489
Mon, 09/19/2011 - 16:00 | 1685907 terryfuckwit
terryfuckwit's picture

John the single word "transparency" says an incredible amount about the problem. If capitalism is to enjoy any future whatsoever post collapse this word will be singularly at the top of everyone's agenda. Acedemic's in all discipline's now realize universally that transparent open source technologies succeed where closed and secretive research fails.. Financial invention and innovation is entirely black box and intentionally so. They would like to say it is black box because ordinary joe could not possibly understand the complexity.. when the real reason is to enable black box accounting and hide the simple ponzi nature of the scam.. in a dictionary of new financial technobable used profusely by my friends on ZH.
We have the tools and the acedemic minds to implement and create a fantastic streamlined transparent financial world..Unfortunately it will not happen until the old one destroys itself IMHO

Mon, 09/19/2011 - 13:09 | 1685205 bill1102inf
bill1102inf's picture

Default and start over. Thats all that is going to happen.  

Mon, 09/19/2011 - 15:10 | 1685231 baby_BLYTHE
baby_BLYTHE's picture

of course, the FED and government know it is an impossibility to extract tax revenue in a deflationary environment. That is why it will be QE?

The way I see it now, this Buffett tax will be passed as a way to control the double-digit inflation QE 3 will produce (of course it will not work to stem any of it off meaningfully). I don't see QE 3 till early 2012 which will coincide with the expiration of the Bush taxcuts and the implementation of the new Buffett tax. Good luck to our central planners.

Mon, 09/19/2011 - 13:11 | 1685215 drbill
drbill's picture

How is this news to regular Zero Hedge readers?

Mon, 09/19/2011 - 14:00 | 1685407 Oh regional Indian
Oh regional Indian's picture

Perhaps ZH is always looking for a larger, un-exposed audience?

ORI

Mon, 09/19/2011 - 13:15 | 1685233 JW n FL
JW n FL's picture

 

 

This is Un-American Talk!

The Job Creators need those dollars..

The Job Creators are doing God's Work with the Transaction Fees collected on the Trillion's in Debt!

The Job Creators need their share of dividends from the Federal Reserve Bank (which they own) to go along with the Transaction Fees to continue doing God's Work!

Job Creators know what you Sheepish Consumers (who have been maxed out by the system) Don't know! it is very expensive doing God's Work!

Have a Heart! Vote for Austerity! Vote for Tax Cuts for the Job Creators!

After 2 years and $30 Trillion Dollars they still have to lay people off to show a bottom line gain to ensure the Bonuses get passed around at the top!

That Hurts! Not being able to make lots of money and cut jobs.. call it a loss of 50% come Bonus Time!

and without HUGE Bonuses how do you expect the Dumb Money to come back to the markets? it is hard to put on a happy / feel good show when your Bonuses are half as big as they could be!

Thank God for the Job Creators and our Service Economy!

For those of you that are now Jobless! You took one for the team so that Bonus monies could flow to the top! God needs you to suffer so the Top can look like they are profitable! Be Proud of your new found poverty! and no worries! More Austerity is coming! All so that God's Work can continue!

If you cannot tell the difference between God's Work and Corporate Bonuses.. neither can I, you are not alone!!

 

Mon, 09/19/2011 - 13:23 | 1685266 Henry Chinaski
Henry Chinaski's picture

God's Work?  While I appreciate sarcasm, this is clearly the work of the Other Guy.

Mon, 09/19/2011 - 14:21 | 1685483 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

"God moves in mysterious way His wonders to perform; He plants his footsteps on the sea and rides upon the storm."

 - William Cowper 

Mon, 09/19/2011 - 13:18 | 1685247 espirit
espirit's picture

The ponzi is believing that medicare and SS will still be there in the immediate future.  Take that away, and TPTB crime syndicate no longer have any carrots left to dangle.

I say bring it on!

Mon, 09/19/2011 - 13:58 | 1685397 Grinder74
Grinder74's picture

You have been reported to AttackWatch for using the banned word "ponzi" when referring in any way to our great benefactor.

Mon, 09/19/2011 - 13:18 | 1685248 wombats
wombats's picture

Nothing to see here...move on.

Mon, 09/19/2011 - 13:22 | 1685260 jmc8888
jmc8888's picture

Why utter credit, when you can borrow it? (we should alway indebt ourselves instead of create it out of thin air ourselves!  /sarcasm off)

American Credit System, the federal gov't for real projects, not EVERYTHING, can emit the credit.  It doesn't need to borrow it.

Regular taxes, excise, tariffs, cover the rest. 

 

The actual physical economy portion of our economy...the big projects that kickstart this...from which all other real private business can hook onto, DOES NOT NEED TO BE BORROWED.  It can be emitted.

The federal reserve is a scam.  It forces us to borrow to do everything.  Either we borrow and do something, or we don't borrow and things collapse.  Talk about stick a king dong dildo in my ass or mouth choice.  Throw away the dildo.  It's not necessary.

Of course we like the dildo in our ass and mouth at the SAME TIME..because we now today borrow and STILL do NOTHING.

Emit credit for the worthwhile projects, and there are a ton of them with decades/centuries of payoff once completed.

Monetarism is not conducive for the physical economy.  The American Credit System is. 

Of course people still borrow from banks.  They're just not the only game in town regarding everything that is done in this country. 

Does mag-lev funds have to be borrowed from banks? NO

Does fusion funds? No

NAWAPA funds? No

Space program (all facets of NASA)? No

Other worthwhile projects that people say can't be 'borrowed'...NO...because it WON'T be borrowed.

 

If you think this is inflationary, you are a fool.  When you create wealth, supply, so on and so forth, you increase the amount of goods those dollars are attached too.  Also the credit emission in many cases can be 'retired' through paying off the debt.  (you see since it isn't money flowing into a bank....it can be RETIRED...not just funneled into another sub prime loan)

We don't need the scam.  We need to end the scams, the frauds, our belief in monetary dogmatic bullshit that do nothing but limit our reality based on nothing.

Glass-Steagall

American Credit System

Reject ALL FORMS of fucktard Monetarism.

 

Mon, 09/19/2011 - 13:23 | 1685269 Gandalf6900
Gandalf6900's picture

excuse me I'm gonna be sick

Do NOT follow this link or you will be banned from the site!