Putting the Pieces Together
If you have been browsing you have by now run across explanations of fractional reserve banking, the money supply (such as M3), how money is created, credit, and debt. You may have put the pieces together already to see that this is a huge "Ponzi" scheme. This scheme has been taking place for over 300 hundred years and from time to time it reaches a breaking point. Bankers and people in the Federal Reserve call this a systemic failure.
The problem is that after the system breaks people (that's us, or in the Ponzi world know as the suckers) allow the creators and those that benefit from the scheme to pick up the pieces and start all over again. Isn't one of the definitions of insanity doing the same thing over and over and expecting a different result?
One of the clearest explanations of how this scheme works is given by Dr. Ellen Brown [ 1 ].
The Ponzi scheme that has gone bad is not just another misguided investment strategy. It is at the very heart of the banking business, the thing that has propped it up over the course of three centuries. A Ponzi scheme is a form of pyramid scheme in which new investors must continually be sucked in at the bottom to support the investors at the top. In this case, new borrowers must continually be sucked in to support the creditors at the top. The Wall Street Ponzi scheme is built on "fractional reserve" lending, which allows banks to create "credit" (or "debt") with accounting entries. Banks are now allowed to lend from 10 to 30 times their "reserves," essentially counterfeiting the money they lend. Over 97 percent of the U.S. money supply (M3) has been created by banks in this way. The problem is that banks create only the principal and not the interest necessary to pay back their loans, so new borrowers must continually be found to take out new loans just to create enough "money" (or "credit") to service the old loans composing the money supply. The scramble to find new debtors has now gone on for over 300 years - ever since the founding of the Bank of England in 1694 - until the whole world has become mired in debt to the bankers' private money monopoly. The Ponzi scheme has finally reached its mathematical limits: we are "all borrowed up." [ 2 ]
[ 2 ] Credit Default Swaps: Evolving Financial Meltdown and Derivative Disaster Du Jour www.globalresearch.ca/index.php?context=va&aid=863