Our Banking System: A History of a Government-Sanctioned Ponzi Scheme

Fractional reserve banking dates back to the seventeenth century, when trade was conducted primarily in gold and silver coins. It predates the existence of governmental monetary authorities and originated when bankers realized that not all depositors demand payment at the same time.

From the Chicago Federal Reserve in a booklet called “Modern Money Mechanics”:

“It started with goldsmiths. As early bankers, they initially provided safekeeping services, making a profit from vault storage fees for gold and coins deposited with them. People would redeem their “deposit receipts” whenever they needed gold or coins to purchase something, and physically take the gold or coins to the seller who, in turn, would deposit them for safekeeping, often with the same banker. Everyone soon found that it was a lot easier simply to use the deposit receipts directly as a means of payment. These receipts, which became known as notes, were acceptable as money since whoever held them could go to the banker and exchange them for metallic money.

“Then, bankers discovered that they could make loans merely by giving their promises to pay, or bank notes, to borrowers. In this way, banks began to create money. More notes could be issued than the gold and coin on hand because only a portion of the notes outstanding would be presented for payment at any one time. Enough metallic money had to be kept on hand, of course, to redeem whatever volume of notes was presented for payment.

“Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could ‘spend’ by writing checks, thereby ‘printing’ their own money.”

Regarding the mathematical impossibility inherent in a system of bank-created money lent at interest:

“[I]magine the first bank which prints and lends out $100. For its efforts it asks for the borrower to return $110 in one year; that is it asks for 10% interest. Unwittingly, or maybe wittingly, the bank has created a mathematically impossible situation. The only way in which the borrower can return 110 of the bank’s notes is if the bank prints, and lends, $10 more at 10% interest . . . . The result of creating 100 and demanding 110 in return, is that the collective borrowers of a nation are forever chasing a phantom which can never be caught; the mythical $10 that were never created. The debt in fact is unrepayable. Each time $100 is created for the nation, the nation’s overall indebtedness to the system is increased by $110. The only solution at present is increased borrowing to cover the principal plus the interest of what has been borrowed.” -- Roger Langrick, author of "A Monetary System for the New Millennium,”

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Global Warming: A Pollution Ponzi Scheme?

Global Warming Doomsday Called Off gives very good scientific information on the subject, seldom found.


Over the last few years, how many times have you  heard the following questions: Are the temperatures we're experiencing unusual? Is the climate becoming more variable or extreme? What role does human activity play in the current global warming trend? Does global warming even exist?

Well, in answer to the last question, if it does exist, it's probably not anthropogenic (man-caused) according to Glaciologist Jorgen Peder Steffensen, curator of the Neils Bohr Institute, Department of Geophysics, and scads of other scientists who up until recently, were under a gag-order.  As Steffensen said, those who came to the "global warming is man-made" conclusion, conducted an extremely poor experiment.  They started observing meteorology at the coldest spot in the last 10,000 years - only 140 years ago - so, of course, the 20th century temperature spike looks like an anomaly.  Moreover, when you start following the money (carbon trading: potential multi-trillion dollar business), it becomes all too clear as to why the "global warming is man-made" conclusion was constructed.

Steffensen, extracted ice core samples from Greenland, which bear the fingerprints of climactic conditions over the last 120,000 years. From that sample, the temperature data revealed longer periods with much higher temperatures than we experience today. The coldest point occurred 140 years ago in what they call the "little ice age". Other core samples, from Greenland and elsewhere around the globe, in addition to using other methods such as carbon-14 dating from organic matter from peat bugs and tree-rings confirm the pattern. In other words, major fluctuations in climate are normal, and the recent warming may be a natural consequence of leaving the little ice age in 1875, the lowest point we've had over the last 10,000 years.

Former senior official of the United Nations and billionaire industrialist, otherwise known as the Godfather of the international environmental movement, Maurice Strong,  who played a major role in organizing the United Nations Conference on the Human Environment held in Stockholm, Sweden in 1972, thus launching the "Green movement" is the "wizard behind the curtain" regarding the global warming scam.

He organized the U.N. sponsored conferences, including Kyoto, Japan in 1997 (Kyoto treaty on greenhouse gas emissions, aimed at fighting global warming) and he was instrumental in establishing the IPCC  (International Panel on Climate Change). In 2005, Strong stepped down from his UN post because he was involved in the food for oil scandal. Evidence later showed that Strong, in 1997, while working for Kofi Annan, endorsed a check for $988,885, made out to “Mr. M. Strong,” issued by a Jordanian bank.   Strong is also one of the nine directors on the Chicago Climate Exchange (CCX)which describes itself as “North America’s only cap and trade system for all six greenhouse gases, with global affiliates and projects worldwide.”  Climate scientist, Dr. Benjamin Santer, supposedly Strong's right-hand man, altered a crucial United Nations report on climate change to convey the misleading impression that there is a "discernible human influence on climate".

And we can't forget Al Gore, appointed poster boy and expert on global warming. Not only is Gore a partner in  Hara Software, who helps companies manage their "carbon footprints," and who admittedly stands to rake in between 10% to 50% of the trillion dollar business its supposed to become in the next few years, but he and David Blood (former CEO of Goldman Sachs Asset Management) co-founded Generation Investment Management (GIM), in 2004 “to take financial advantage of new technologies and solutions related to combating global warming”.

In November 2009, Gore minimized the significance of the so-called "Climategate" scandal that grew out of confirmed reports that the top scientists at the Climate Research Unit (CRU) in England, possessor of the world's largest temperature-data set, had secretly and repeatedly manipulated scientific evidence in order to conceal or destroy data that contradicted their claims.

Links:

The Hockey Stick Illusion

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Is Bernie Madoff the Only Cockroach?

Evidence of misconduct by Bernie Madoff, who admitted to stealing $50 billion from clients, including numerous charities and foundations, stretches back to at least the 1970s. The SEC received plenty of warnings and missed plenty of red flags about Madoff.

Unfortunately, the ripple effect of Madoff's deception will be much larger than most scams, due to so many charities entrusting their money to Madoff. The Jewish community lost between $600 million and $1 billion from Madoff's Ponzi scheme. One victim, Holocaust survivor and activist Elie Wiesel, reported it lost $15.2 million, nearly all of its assets, and Yeshiva University lost about $110 million, or 10% of its endowment, and that's just to name a few.

Yet a wide swath of foundations and philanthropies entrusted significant portions of their portfolios to the secretive Madoff. Several were run by prominent Jewish families who were socially connected to Madoff and his children, often through common memberships in country clubs and boards.

Madoff's strategy dwarfed market in trades 'never done'. The trading strategy he claimed he used "would have required at least 10 times the contracts that trade on U.S. exchanges". Obviously Madoff never did this...in fact, it would have been impossible, hence, it's possible that he was the one and only cockroach. However, even if he was the "only" player, it's very clear that he was not the only one claiming to be on the job when he was not. He had help in the form of disengaged "regulatory" bodies, who missed the elephant sized cockroach sitting on their desk.

Madoff’s marketing documents said he used a “collar” strategy, which limits gains and reduces potential losses. New York-based Fairfield Greenwich Group’s Fairfield Sentry fund, which invested exclusively with Madoff, reported an average annual return of 11 percent and no down years since 1990, according to data compiled by Bloomberg.

"The U.S. economy has yet to feel the worst from the financial turmoil", according to Bank of Israel Governor Stanley Fischer, who feels just as investors "were lulled into complacency by his consistent returns", he says, "those who piled into mortgage-backed securities were aided by AAA ratings that proved as flawed as forecasts of rising house prices."

One thing for certain, Bernie Madoff is not the only cockroach, as bailed out bank executives on the verge of failure, collected $1.6 billion in salaries, bonuses, and other benefits last year.

Benefits included cash bonuses, stock options, personal use of company jets and chauffeurs, home security, country club memberships and professional money management.

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