[concernedcitizen76]

Dedicated to Carlo Pietro Giovanni Guglielmo Tebaldo Ponzi (March 3, 1882 – January 18, 1949)

Sing a song of malfeasance, A District full of lies, Four and twenty black swans, Baked in their pies.

[TBP]

Crash, anyone?

[Uncle Miltie]

Hey everything is going to be just fine.

Until the very moment the market decides to stop loaning trillions.

That moment.

Then everything is much less fine. Forever. Deadly.

KYPD.

[clee1]

As least former POTUS Carter has to be happy.... he is no longer the worse president in US history.

[Nervous Tick]

Nice graphics. The astonished look on Lady Liberty’s face is a nice touch.

[ClearCase_guy]

Cassius:
“Default, dear Brutus, is not in our stars,
But in our future ...”
Julius Caesar (I, ii, 140-141)

[vetvetdoug]

Ponzi learned his trade in Wichita Falls, Texas, from Kell and Kemp back in the oil boom days of the 191—20’s.

[lucky american]

Don’t worry about the debt anymore. I just read an article about JPMorgan not accepting cash for payments anymore.
The banks want virtual currency.
Zeros on a computer screen. With an unlimited amount of credits, you can have an unlimited amount of currency.
Most people thinks its about tracking cash but it’s about an unlimited amount of virtual zeros and no more bank failures.
Wake up people, it’s the brave new world and we’re all falling for it like lined up dominos.

[P.O.E.]

Starting with 100 packets of $10,000 (100 $100 bills)

Video

[terycarl]

Just out of idle curiosity...what would happen if the U.S. just wrote off their debt and stated that we didn’t owe anybody anything???

[Pagey]

BTTT

[Organic Panic]

“Unfunded just means we don’t have to pay for it.” -Washington DC

[Mr. Jeeves]

That isn’t really debt - just a huge pile of political promises that will never be kept.

[stevio]

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

[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).

[SaveFerris]

That graphic with the Statue of Liberty is really incredible.