The U.S. dollar. Yes, that’s right. The Federal Reserve note is a debt-based currency and Congress and the private Federal Reserve are burning through them at an ever increasing, and non-sustainable rate. The American national debt was a frightening $5 Trillion before 9/11. With President Bush, it virtually doubled in 8 years to $10 Trillion. Then, with President Obama, the national debt skyrocketed in 4 years to $16.3 Trillion, further accelerating the rate of indebtedness.
But is it right to call the Federal Reserve System a pyramid scheme?
Wikipedia tells us,
The Fed creates money out of thin air and supplies this newborn fiction to banks and they are permitted to loan out ten times this new money at interest. This practice of loaning more than you have is called “fractional reserve lending.” Don’t you just love those fancy terms? And wouldn’t you love to have that ability for yourself? I suppose only if you liked getting rich by doing nothing at all.
Fed Chairman Ben Bernanke has suggested raising the limit on “fractional lending” so that banks can loan an infinite amount of money for every dollar they hold in reserves. Or they could have zero dollars in reserves, too, and still loan out any amount.
So, each bank is adding to the pyramid scheme by suckering more people to borrow their debt-based currency. The “promise to pay” implied in every dollar is becoming more and more difficult to live up to. And this erosion is devaluing existing dollars. In fact, the devaluing has been going on ever since the Fed took over, a century ago.
The Federal Reserve System is a privately-owned Central Bank—owned by private banks who are, in turn, owned by private individuals. It is about as “Federal” as “Federal Express.” Try taking a filming crew into property owned by the Fed and you will be asked to leave their private property. Filming in a truly Federal building is perfectly okay, because it is public property. The Fed isn’t.
Each dollar is a “promise” of value, plus a percentage of debt. You have to pay back the dollar, plus interest. The problem is that there is never enough money in circulation to pay back all dollars and the accrued interest. Such a system is non-sustainable. Eventually the amount of debt will exceed the existing quantity of currency in circulation (if it hasn’t already).
And someone is pushing on the accelerator of this runaway train, pumping up the level of debt at faster and faster rates.
Debt is a form of slavery. And because the American public can never pay off their debt, they became, in 1913, debt slaves to the private Federal Reserve System and their owners. Gee, and you thought this was the land of the Free and home of the Brave.
The “Fed” was touted as a way to ensure bank runs and other problems like that of 1907 would never happen again. Did it work? How about the economic problems of the early 1920s? How about the Stock Market Crash of 1929 and the subsequent Great Depression. Instead of increasing the money supply to help the nation bounce back, the Fed tightened the money supply, deepening the Depression to an extreme. So much for the “Fed” solution.
Another great “solution” pushed on the American people in 1913, was the private income tax. If you still use a written, paper check to pay your taxes, they come back stamped deposited in the “FRS” (Federal Reserve System). Who owns this Central Bank? No one really knows for sure (unless you’re an insider), but G. Edward Griffin’s book, The Creature from Jekyll Island, offers some clues. Would you believe the Rockefellers, the Rothschilds and people like them?
But it isn’t just the money they’re after. It’s the influence. Washington listens to the Fed, but the Fed doesn’t have to answer the tough questions. In fact, retired representative Ron Paul had to create a bill just to force the Fed to reveal what they were doing with all of our money—not just a monetary audit, but revealing the policies they set and the deals they make with foreign Central Banks. The bill passed through the House by an overwhelming majority. The then current Senate Majority Leader, Harry Reid, blocked the bill from being discussed in the Senate, so it died with the end of the last Congress. You people in Nevada should elect a different Senator. But if it’s another Corporate Party stooge, then we haven’t gained anything for America.
Leaving bankers to govern the ethics of bankers is a bit like employees deciding how much work they have to do for the week, or letting the foxes control their entry into the hen house. All things being equal, selfishness takes over.
Pyramid Scheme Set to Collapse, or Alarmist’s Hysteria?
Wouldn’t it be nice to have a crystal ball? You could pick stocks by the minute and win with every upswing and downturn. Hook that crystal ball into a computer and have the whole thing run on autopilot. Sweet! Don’t you think the owners of the Central Banks could benefit from this kind of manipulation? When they influence the value of stocks and precious metals, I’m sure insider trading does not apply to them.
Without such niceties, we’re left to look at the facts we have available to us. For instance, American public debt is skyrocketing and unsustainable. Given the fact that a debt-based currency can never be paid off, we’re left with the reality of an ever-increasing debt load which will keep increasing until the country is bankrupt. Just imagine what that will do to international finances when the dollar becomes worthless.
One possible solution is to create a competitive currency—a silver-backed dollar or a gold-backed dollar, like we used to have. Start paying off the Fed’s debt-based dollars and wean the country of that form of currency. The value of Fed dollars keeps going down, and I would not be surprised if gold-dollars held a constant or increasing value.
But this solution, by itself, would not be enough. We would need to eliminate the insane spending of the Federal government.
Imagine you make $100,000 per year, but you spend $200,000 per year on your credit card. Your credit card company keeps bumping up your credit limit every time you get close to your ceiling. Nice, right? Sound familiar? The American Federal government does this, along with its partner in crime, the private Fed. But what happens when you owe so much on your credit card that your $100,000 per year in income is not enough to pay the interest each year? When does such a scheme fall apart?
Are these your elected officials? Wouldn’t it be nice to know who voted on what so we could kick out the insane ones and keep the good ones? Ah, but the Corporate Party owns the news media that tells you who is good and who isn’t. So, how do you ever know for certain, if you only ever listen to the Corporate Party news? You don’t.
And increasingly, legislative bills are introduced for voting so quickly that congressmen have no time to read them! That’s like driving blindfolded. Personally, I can’t believe America has gotten this crazy.
Frankly, I don’t see enough people snapping out of their Normalcy Bias to do enough about it soon enough.
Thriving Despite the Pyramid Scheme Bubble Burst
The best way to thrive despite the runaway train that is America is to distance yourself from paper assets. Okay, maybe you still use dollars, but convert them quickly into real assets. Try using barter as much as possible. Your friendly IRS agent won’t like this, but how are they going to put a dollar value on the barter transaction? And if one dollar changes hands, does that mean your house for their yacht is only a $1 transaction? Talk to your tax attorney about such things.
Frankly, I’m beginning to agree with a few politicians who tell us that taxation is legalized theft. One look at where the tax dollars go, and it’s easy to agree with that sentiment. Does America need military bases in nearly every country on the planet? Do we need so many in uniform overseas when 9/11 was really an inside job? (And if you still believe the Bush “official conspiracy theory,” then you really haven’t looked at the evidence.)
Boycott the corporations. I wonder if there are any truly ethical corporations left. There may be, but many of the largest conglomerates don’t care squat about America or “life, liberty and the pursuit of happiness.” Halliburton stands as one of the more egregious examples of wholesale greed at the expense of lives and honesty. Interesting how Vice President Dick Cheney still received payments from his former company especially when they were given those lucrative Iraq War contracts. Can anyone spell “conflict of interest?”
The dollar pyramid scheme is going to go bust. This pyramid scheme, like all others, is unsustainable. It’s only a matter of when.
Cities are perhaps the last place you should think of living. Growing your own food should be high on your list. Stocking non-perishable foods and water should also be high on your list. Guns and ammunition might be a good thing to get early on, before the Second Amendment is repealed like so many parts of the Constitution and Bill of Rights, so far.
Under certain circumstances, it is now a felony to protest what the government is doing. That’s right. Free speech is no longer entirely free. You can go to jail for a decade, if a Secret Service agent doesn’t like what you yell or the words printed on your t-shirt.
The erosion of rights is so gradual that most people don’t think anything of it. Like the proverbial frog, though, when the water starts to boil, it will be too late to do anything about it. So, in order to thrive despite the coming pyramid scheme bubble burst, you need to act early.
And despite the apparently undeserved misfortune of all this tyranny, learn to forgive. You can’t be truly happy if you’re lugging a ball and chain of resentment behind you.
What ideas do you have for surviving the coming dollar pyramid scheme bust?
This article was originally published 2013:0429 on http://And-The-Pursuit-Of-Happiness.com.