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The Federal Reserve Ponzi SchemeSunday, February 15, 2009 10:58 PM
From: This sender is DomainKeys verified”MYRON MARTIN” View contact details
To: “Myron Martin”

In the simplest terms that I can put it, the “Ponzi Scheme” established in 1913 called the Federal Reserve Act is in its death throes and the “powers that be” are either clueless as to what the problem is, OR, they are knowingly attempting to crank it up for one more round rather than admit that the experiment with fiat currency created out of thin air as DEBT instruments requiring the payment of interest, was and is a scheme to enslave the masses through the hidden tax of inflation.

Educate yourself by checking the dictionary definitions of “fiat currency” and also “ponzi scheme” and then consider these simple facts. 1) “Every bank loan is a new creation of money and when it is paid back it ceases to exist” (Graham Towers former Governor of the Bank of Canada, our equivalent to the Federal Reserve) operating on the same principals as all Central banks now established worldwide.

2) Now consider a mortgage (French meaning death gamble) as an example of a high percentage of loans made! While interest rates are currently LOW, the reason for which will be explained later, (see item 4) with an average interest rate in the 5-7% range amortized over 25 years, the INTEREST is roughly as much as the original amount loaned! But where does that interest come from?

3) Since the interest is not created like the principal, out of thin air based solely on the reserves of the bank at as high as a 20 X 1 ratio, the only way sufficient medium of exchange can remain in the system for an economy to operate is if an exponentially increasing number of new loans are contracted to replace BOTH the interest and original principal that are being paid back! Refer to definition of a Ponzi scheme!

4) Like any PYRAMID you eventually run out of suckers willing to invest (in this case borrow to do so) and unattached collateral becomes scarce, so people can only be induced to borrow at much lower interest rates and less secure collateral! Think liar loans, (no verification of income) sub-prime mortgages, teaser rates on credit cards, anything to get people deeper in DEBT was the banksters answer! Since they must “lend or die” they had to find ever more creative ways to LOAN out more of their counterfeit money (which are really only I.O.U.s with no intrinsic value) using new debt instruments that stack the cards ever higher on the debt pyramid! Whether derivatives, CDO,s (collateralized debt obligations) or any other fancy new way to keep the paper pyramiding scheme going!

5) So what is the result that can be expected just applying sound common sense and simple Economics 101 principals? A) Misnamed easy credit, (which is really DEBT) causes people to STOP SAVING when they can have instant gratification in place of exercising discipline by saving for WANTS! B) The lack of savings means there is no capital creation to finance business growth and at the same time the lack of savings REDUCES the reserves the banks need to make new loans.

6) The ramifications are wide spread, but the freewheeling financial shenanigans of the politicians and the bankers need to be curbed if the problem is to be solved! Politicians love the system because they can BUY VOTES by making promises they can only keep by running deficits, and bankers like it because of the taxing power of governments to extract the interest, making government the lender of last resort! We see unfolding before us now the ultimate insanity of trying to resolve what is essentially a DEBT PROBLEM by simply creating MORE DEBT our children and grandchildren will end up paying, if the DEBT PYRAMID does not collapse of its own weight as all pyramids eventually do!

7) My charge is that every President since 1971 (if not since 1913) has by backing the Federal Reserve system sworn a FALSE OATH since fiat currency is not constitutional!

My conclusion is that what we have here is a classic case of “the Emperor having no clothes” and nobody in the aristocracy being willing to say so! The other alternative is, that like the story of the mice holding a meeting to determine how to remove the danger of being caught and eaten by the cat, nobody would volunteer to “bell the cat” so they could hear it coming They defined the problem well, but defining the problem is one thing, SOLVING it quite another, and just as the mice could not find a volunteer to do the necessary job, in this case I guess we are also more mice then men, other wise we would stand up to this iniquitous system! WHEN will enough people wise up and DEMAND HONEST MONEY and a repeal of the Federal Reserve Act by our elected representatives? They are supposed to act in the interests of ALL citizens, not create a monopoly for private bankers!

I have been a subscriber to your newsletter for a number of months now and was acutely interested in the postings that would have appeared in my inbox on second passports and tax strategies. Somehow, I stopped receiving your newsletter without opting out or anything else back in late November. I thought perhaps something untoward might have occurred (acident on the Autobahn at 250 km/h or temporary incarceration in some backwater location) to prevent you from publishing for awhile. I decided to “google” your site and picked up again with establishing my subscription, Did the former subscription “time itself out / expire” somehow? Is there any way I could read your posts for Dec. 16th & 17th? I will be grateful for any assistance you can provide here. Thank you!!

- the USD is backed only by the military, nothing else

- suggesting to buy EFT or options is, in my eyes, a great nono… all the outstanding derivatives will NEVER be paid. It’s all a big lie, american lie. The ‘american way of life’ after WWII was only possible because others financed it – and the payback is not possible.

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