The Fraud Of The Fed

By CAPTAINHOOK, GoldSeek

Far too many look for easy ways to get rich quick these days, only to be disappointed or shocked when reality bites in the end. Because of this there are no shortage of Ponzi like schemes characterizing the financial landscape, one by one being found out to be frauds, with Bernie Madoff at the top of the list in history thus far. The public was shocked when they discovered the size of the Ponzi scheme he was able to put together and perpetuate for so long, as usually, operations like this fall apart much quicker. Of course the reason for this was because a far larger Ponzi scheme of which the public remains oblivious enabled Bernie to maintain the illusion for as long as he did as it is at the very heart of our fiat currency based monetary system, that being the Fed. The Fed (and Treasury) have been issuing credit and printing fiat currency on an increasingly unhealthy basis for years now, since Nixon went off the gold standard in 1971, putting the US (and world) on the fiat currency system we find ourselves today.

In case you have not realized it yet in knowing this, it should also be understood that because US credit is issued in USDollars ($), that it too is a Ponzi scheme like bubble as well, to go along with all the other bubbles in stocks, bonds, and real estate. So you see, because of the Fed’s easy money policies all these years, the entire financial system is in fact a giant de facto Ponzi scheme, and that because the $ is presently the world’s reserve currency, the entire global economy has been built on this house of cards. What’s more, and like Madoff then, it should also be realized that although it could still take a few years, we are also coming to the point where the rest of the Fed’s Ponzi schemes will be recognized for what they are as well, with it’s fiat currency printing shenanigans central to the fraud. You should notice I do not use the term ‘fiat money’ when referring to what the Fed does because it does not print money. In order to qualify to be called money, whatever is being exchanged must hold some sort of recognizable value, which the $ does not in being fiat specie backed by a country that owes more than it owns.

So you see, it’s the Fed’s Ponzi scheme that’s the biggest and central, where they are now having to create copious amounts of new currency at break neck speeds in order for Peter to pay Paul in all the smaller Ponzi Schemes that are the result of the Fed’s unbridled printing presses. In knowing this, the next question that naturally arises is ‘how long can they keep this up’? In order to answer this question, one must first understand there is a difference in the Fed’s Ponzi scheme (and other central banks) compared to others, which is why it has gone on for so long. This difference lies in the fact it does not need to find a new batch of suckers on a regular basis to perpetuate the illusion like Madoff and the others must do in order not to get caught. No, all the Fed has to do is expand its balance sheet whenever needed (print currency), which in effect creates the cash flow it needs to feed all the smaller Ponzi schemes down the chain. This keeps everybody fed, which in turn keeps them happy, and maintains the illusion something of worth besides pushing a whole lot of paper around is actually happening.

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