The Biggest Ponzi Scheme in the History of the World "When She Blows It'll Be Krakatoa Redux"

April 22, 2015 | Self

[USFRIENDINVICTORIA]

That essentially what the U.S. does, in part, whenever the greenback is devalued, vs. other currencies. Having the world's reserve currency gives you that power.

Most international debt of most countries (e.g. Canada) is denominated in U.S. dollars. When the Loonie is devalued against the Greenback, as happened in recent months, Canada's debt obligations automatically go up. A dollar we borrowed last year is now equal to over $1.20 CDN in debt -- because that's what it costs us to convert to U.S. dollars for repayment.

OTOH, U.S. debt is denominated in ... U.S. dollars. If you were to devalue the greenback by (say) 50%; you would, in effect, only owe half as much as you would before the devaluation.

If the greenback loses reserve currency status (something that's happened to all previous reserve currencies), that could cost the US. trillions.

[MHGinTN]

He had already started replacing the money supply!

[concernedcitizen76]

True, these are not termed debt. These are fiduciary financial obligations of the federal government under the law. They are the entitlements, guarantees, pensions and so on that constitute the major part of the annual federal budget, so called non-discretionary spending. Little things such as Social Security, Medicare, Medicaid, Defense spending, civil servant pensions, railroad pensions etc.

[EternalVigilance]

Prior generations of politicians broke their oaths, lied, stole, and used the stolen money to bribe voters and feather their own nests.

Now this generation of politicians says you must continue to pay for their lies, theft, and bribery, because the ones they lied to and stole from before deserve to have all the false, unconstitutional promises kept.

This is the sort of game of musical chairs that can only end with no one having anything left, not even a chair.

Or maybe I should say a game of economic and governmental Russian Roulette in which all the chambers are loaded.

[concernedcitizen76]

‘Twas ever thus. It sometimes crosses my mind that Jade Helm, pincer moves by DHS, cash withdrawal curbs, rash of banker suicides, a disinterested useless Congress and other omens signal foreknowledge of a major financial event that’s none too pretty. Billionaires quietly exiting the USA or staying away from the mainland would be the thing to watch for.

[al baby]

Nope NEVER EVER FORGET

[dp0622]

you guys are right. I miss them. I hate the new building I know I am in the minority. The twins made the skyline different. Now there’s just some needle like ugly building there. like I said, looks like jersey city.

[Toddsterpatriot]

That essentially what the U.S. does, in part, whenever the greenback is devalued

There is no fixed exchange rate, how do we devalue?

[stevio]

I don’t understand how it’s holding together this long.

[Toddsterpatriot]

The ‘Federal Reserve’ is a private banking cartel.

LOL!

treasury issued money not compiled through debt to the private banking cartel

You know that under the gold and silver standard, most money was "debt money"?

[Toddsterpatriot]

Every time the economy grows, they book OUR debts as THEIR assets.

If you took an accounting class, you'd know that a debt is always someone else's asset.

If you put money in the bank, the bank is now in debt to you.

[Toddsterpatriot]

He had already started replacing the money supply!

Wrong.

[USFRIENDINVICTORIA]

Here’s a link to an article that explains a lot.

http://www.forbes.com/sites/charleskadlec/2012/02/06/the-federal-reserves-explicit-goal-devalue-the-dollar-33/

The article is a bit dated, mainly because of the recent, and sudden drop in the price of oil, and the great increase in domestic U.S. production of oil and gas (the two are obviously tightly linked). Those events have bolstered the Greenback, at the same time as they hammered the Loonie. Nevertheless, the strategy remains intact.

A lot of countries want to move away from the Greenback as reserve currency; because of U.S. policies to devalue to, in essence, default on its debts.

[huldah1776]

“...a debt is always someone else’s asset.”

I actually did take a principles of accounting and now I understand so much more with that one sentence.

I also now understand why God said do not owe anyone any money and why we should never charge interest.

Being in debt is slavery, and being the asset owner is power and leads to pride and greed.

[infowarrior]

I don’t understand how it’s holding together this long.

I often think similarly about *all* the conditions prevalent today. Then, I come to the realization that the Hand of God must well be involved, patiently and painstakingly lining up *all* the dominoes which are necessary for the fulfillment of *HIS* plan...

the infowarrior

[Toddsterpatriot]

A lot of countries want to move away from the Greenback as reserve currency;

What currency do they want to move towards?

because of U.S. policies to devalue to, in essence, default on its debts.

Considering the recent strength of the dollar, it's one of the best currencies to hold lately.

[concernedcitizen76]

The magic of fractional reserve banking, a concept that originated centuries ago when Medieval goldsmiths devised paper script for gold held on deposit for safe keeping. The idea is based on the idea that not everybody would call for their gold at the same time. A commercial bank A receives a deposit of $100. As required by the Federal Reserve, Bank A retains $10 (10% of 100) as fractional reserve and lends out $90. Money supply increases by $90. Borrower spends the $90, and recipient deposits the $90 into Bank B. Bank B, as required, retains $9.00, and lends out remaining $81 which is spent. Money supply increases by another $81. Recipient of $81 deposits the $81 into Bank C. Bank C retains $8.10, lends out remaining $72.90 which is spent. Money supply further increases by $72.90. Recipient deposits the $72.90 into Bank D. Bank D retains 10% of the $72.90, or $7.29, and lends out remaining $65.61 which is spent. Money supply increases again by $65.61. Through the magic of fractional reserve banking, the original $100 deposited has increased the money supply in this example by $309.51 ($90 + $81 + 72.90 + 65.61).

[Toddsterpatriot]

Through the magic of fractional reserve banking, the original $100 deposited has increased the money supply in this example by $309.51 ($90 + $81 + 72.90 + 65.61).

Same thing happens if your deposits are convertible into gold or silver or if your deposits are gold and silver coins.

[editor-surveyor]

.
>> “Amen, FRiend. And the first places to crash and burn will be the urban liberal utopias... about 10 minutes after the welfare checks stop arriving.” <<

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And they will all be trapped there as “Urban Mass Transit” and electric cars screech to a stop, leaving all that were foolish enough to rely on such empty promises to quickly starve to death in their precious cities.
.

[editor-surveyor]

Its an old graphic.

Should we just burn all the pictures?
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