ITWASSOOTED: Federal Reserve Ponzi Scheme

Tuesday, September 15, 2009

Federal Reserve Ponzi Scheme

Anonymous said...

Sept 31 is the day of reckoning supposedly unless barack bush pulls a George bush and ignores the deadline for bank solvency derivatives adjustment day.(basically meaning they have to account for all the money they made from thin air when new loans are written)

its supposed to happen ?

to sum it up a little . remember a bank is supposed to only loan out up to 90% of its deposits, lets examine how derivatives fudges the equation.

lets say we are the first national bank of only 1 depositor. and we are going to give a lesson on derivative fractional banking. let's begin.

depositor #1 deposits 1000.
now our bank is open for business.
in comes our first customer.
its the bank president, he wants to borrow everything he can. so as the teller tells him he has 900 dollars available to lend. Mr. president
accepts the loan and is given a 900 check. with derivatives he now can show the original 1000 deposit and a 900 deposit for the money now owed back to the bank.

in comes customer #2 , he asks the teller for everything he can now borrow. the teller does a quick calculation and determines that 90% of the original 1000 deposit and the promise of 900 owed is 1710. customer #2 accepts a check for 1710, and makes a promise to pay it back.

in comes customer #3. he asks the teller for everything he can borrow. the teller makes a calculation and determines that the bank now has 3610 in deposits and promises of which he can now lend 3249 dollars by the rules he has to follow. customer 3 accepts the check for 3249 and agrees to pay it back.

get the picture yet, you might intelligently ask who keeps cashing these checks the bank writes . that would be the federal reserve , who simply prints the money when a loan is written. and now is due day when they have to open up the books because its jig has been called and the original depositor wants his money back and there isnt enough there to give it back to him. cause the bank president has it all

there you have a simple lesson in the federal reserve and fractional derivatives , so now you know when you hear all these complex terms that its all just a big ponzi scheme by supposedly legalized racketeers

abolish the federal reserve , and once again allow congress to mint the money , at least if they make it out of paper we want have to pay the interest , it can be apportioned like the constitution allows

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