Why The Fed (our Central Bank) operates a Global Financial Ponzi Scheme!
Let’s think about how our Federal Reserve (really a private institution) earns its income!
2009: Gross Income $53.4 billion with $6 billion spent for their operations
2010: Gross income $80.9 billion with 4.3 billion spent for their operations
2011: Gross income $83.6 billion with 4.7 billion spent for their operations
The above numbers are probably representative of the income booked (mostly interest income) from the operations of the Fed’s balance sheet (now some $3 trillion). Let’s think about how this income (and the increase in their balance sheet) is acquired given that our Fed (really a private operation) receives NO appropriation from our Congress (representatives of the American people). The Fed’s balance sheet has increased from around $800 billion in 2008 to near $3 trillion today. How can this happened given that our Fed is legally a private organization?
We call our Central Bank a Federal Reserve Bank yet this institution receives NO appropriation from our elected Congress (who is supposed to represent us and pay for all our collective government operations)…and then the Fed receives its income or revenue from collecting mostly interest on ‘money’ that it creates…out of nothing. In other words our Fed earns no real income (legitimately) nor does it receive tax payer funds (as it should if it was representing the American people) but creates ‘imaginary’ book entry dollars to purchase assets and then it charges interest on the ‘money’ that it creates (out of nothing)…and calls this result…INCOME. What a neat accounting operation! What kind of example does this operation set for the real market of traders and investors? The Fed tends to justify its accounting gimmickry by returning excess income each year to the Treasury (some 79 billion in 2011 was transferred from the Fed’s books to Geithner’s, our Treasury Secretary). Was any of this earned honestly and fairly by this private institution that we call The Fed?
Today, this accounting operation (really a huge Ponzi scheme) can funnel no interest dollars (created out of nothing) to select dealer banks who then earn their income from the interest spread. Wouldn’t you and I like part of this scheme for our investments and savings? We could borrow unlimited dollars (no interest or near zero interest) and then reinvest these dollars in low risk government bonds and earn the spread with no risk to us! What does this reveal to the American people and to those of us who desire knowledge about MONEY? Is the Fed a Moral Hazard?
First of all, our Congress and our President can be purchased for a ‘price’ (it seems). This is what most likely happened back in 1913 when the Federal Reserve Act was passed (the night before Christmas Eve) when most of our Congress was not even present to vote on this Act. The Act passed and it was then immediately signed by our then President, Woodrow Wilson. This Act was passed even though it completely contradicts our Constitution (Article I, Section 8) and the common sense of most American voters. A select few devious men and their accounting friends (probably with ‘good’ intentions) manipulated the Act through our Congress and then created what today has become a huge Ponzi Banking Operation (which operates all our monetary policy for the benefit of the TBTF banks and other global financial institutions).
I now can understand why this operation (mis-named The Federal Reserve) desires to operate in SECRET and without any public transparency in realtime. This whole operation is really a huge PONZI scheme (as many others now recognize…see below) and it works as long as no-one bothers to understand its operations and as long as our deluded Congress desires to accommodate this scheme. This entire operation is set up (legally) as a private institution with NO legal responsibility to our Government administrators or to the American people. They maintain their legal image by updating the Federal Reserve Act when situations demand a change in the LEGAL language. Who would set up this type of operation and why?
Could it be that the few who set up this operation (back in 1913) had an agenda that was also very SECRET and/or philosophically transcendental (and mischievous)? Paul Moritz Warburg, one of the master minds behind this Act, was most likely the accounting genius behind the Ponzi scheme which we call the Fed:
Who was he: Paul Moritz Warburg was a German-born, Jewish-American banker who was an early advocate of establishing the Federal Reserve System in the United States. In 1907, Warburg published Defects and Needs of Our Banking System and A Plan for a Modified Central Bank. After the creation of the Federal Reserve in 1913, President Woodrow Wilson appointed Warburg to the first Federal Reserve Board where he served until 1918. Following the twisting path of the Warburg family from Venice to Germany to England to the United States is a microcosm of the path to power, control and takeover of the American and British Empires by the Anglo-American Axis. A friendly competitor in the Axis, Mayer Amschel Rothschild best explained their “modus operandi” of subverting and controlling the political power in a nation when he frankly stated: “Give me control of a nation’s money and I care not who makes her laws.”
To understand this accounting shell game (which creates its own accounting rules and banking manipulations) we need to read about the history of money and power. Those who understand MONEY, also understand that POWER follows from controlling the MONEY. A great book to read on the thinking which created our Fed in 1913 via the Federal Reserve Act is: The Creature from Jekyll Island,
Who set up this accounting system for this organization that we call The Fed? As tax payers we allow this institution to buy our bonds (debt) with no income of their own (they create an imaginary book entry to serve as their income) to purchase our government debt…and then they collect INTEREST on their purchase amount (at the going market rate)…and they secretly operate their accounting scheme with NO realtime oversight or public transparency as they funnel our ‘dollar’s from their books to the books of their dealer banking friends.
Where is this leading as of 2012 and beyond? It now appears that our entire economy and our monetary System has been taken over by a devious MONEY CARTEL which is attempting to create a ONE WORLD MONETARY SYSTEM with the elite and a select few in CONTROL. Rulership over MONEY can lead to RULERSHIP over our entire planet! Now is the time to get yourself educated on the issues of MONEY and POWER. Our next President (assuming Obama is defeated in 2012) will most likely be purchased for the schemes of these elite Power Brokers who have plans for rulership over Planet Earth. Think it over!
History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance. -James Madison
”Instead of simply paying for maturing debt with receipts from financial sector creditors … the Fed has joined the party itself. Rather than orchestrating the game from on high, it has jumped into the pond with the other swimmers,” Gross writes. “There is no need — as with Charles Ponzi — to find an increasing amount of future gullibles, they will just write the check themselves.”