Erin Burnett Calls The Federal Reserve A Ponzi Scheme
CNBC Video: Erin Burnett - Aired January 8, 2010
Start watching at the 1:40 mark:
- "We had to issue one-and-a-half trillion dollars of new debt last year, in 2009, in this country, just to finance the deficit. Eighty percent of that debt was bought by the U.S. Federal Reserve which means ... I guess you could use the term Ponzi Scheme. How long can we continue doing that?"
The banking apologista earns back some credibility as she quotes Bill Gross' January letter which points out (but you know this already) that the Federal Reserve purchased 80% of all US Treasury securities issued in 2009.
That is some extremely serious quantitative easing. When we all wondered back in January of 2009 exactly who would be buying the mountain of debt on its way, no one I read anticipated the Fed stepping in and buying (monetizing) $1.2 trillion of the $1.5 trillion eventually sold.
It proves the point that the world has little appetite for our debt, and that interest rates will rise when the Fed stops buying. Assuming of course that they actually have any plans to cease their inflationary charade.
Jul 26, 2011 at 3:44 PM
Reader Comments (23)
Ponzi Scheme: The Federal Reserve Bought Approximately 80 Percent Of U.S. Treasury Securities Issued In 2009
The Fed is trumpeting its 45B "profit" this year, ostensibly from all the toxic crap it bought to save the world and all. (In actuality it's up just a bit from previous years -- just a reflection of the mere size of the balance sheet. On that basis, it's probably performing worse than in years past, but they want news headlines to say how the bailouts resulted in a "profit" for us.)
Also, O'Bankster is sending up trial balloons on a bank fee levy to cover losses from TARP (I thought we were profiting from TARP?) and to "pay down the debt" (yeah, right). Some reports say it might be c120B over the next (wait for it)... TEN YEARS. And even yet, is this really going to happen on the up-and-up?
Finally, there have been a few posts over at The Big Picture that I just can't help but think were put up by someone from the Fedtreasuryadministration. They were well informed on the technicals, and they wrote like a budding bureaucrat would write. In any case, the posts were all about defending the bailouts, saying how we would profit from them, etc. And they said how all the criticism of the Fed was doom-and-gloom conspiracy stuff. Something was fishy about the posts and I'd never heard the nik before. (Hey Gomp, I wrapped my entire computer in foil and it works like a charm!)
Financial crisis panel seeks bankers' testimony
Now just wait until they all realize precisely WHICH ONE these two groups they've all been assigned to by our Goldman Sachs Overlords.
As for Erin--WOOHOO! I will be your biggest cheerleader if you take that ball and just keep on running! You GO, baby!
The politicians are very happy to hear this, with the 2010 election cycle begining, they need a lot of contributions to reward their service to the international banking community.
"Hey Gomp, I wrapped my entire computer in foil and it works like a charm"
Try a Faraday cage, it will really help,LOL.
"I have to admit that there are encouraging signs indicating that mainstream America is apparently starting to wake-up to the notion which says that YES, perhaps we ARE indeed being HAD by Goldman Sachs et al. That perhaps Bernanke & Geithner are INDEED peeing on our legs and then telling us with smiling faces that "it's raining". That sending our kids to Iraq & Afghanistan has more with with increasing corporate profits than it has to do with "safeguarding our democracy". That we're bailing-out massive financial failures only because they're the major contributors who bankroll "our" elected representatives. That America is quickly becoming a land reduced to just TWO main social groups; namely the Haves & the Have Not's.
Now just wait until they all realize precisely WHICH ONE these two groups they've all been assigned to by our Goldman Sachs Overlords. "
I do believe you are "SMACKIN THAT NAIL WITH THE HAMMER!!! OHHH, YEAHHH!!!"
"Finally, there have been a few posts over at The Big Picture that I just can't help but think were put up by someone from the Fedtreasuryadministration. "
Here is an excerpt from one that I was spammed from Equedia Weekly, WARNING!!! do not read this pro FED propaganda without your beer goggles on, as it will burn out your nuerons. You have to love wranglers at play;
"Every day we hear about the US printing more money; that this will lead to inflation. But this isn't exactly what's happening.
The US Doesn't Print Money. It Borrows it.
Although in its simplest form this is true, we need to remember the US doesn`t actually print the money on its own printing press. It borrows it. And lots of it.
It's no secret the United States has decided to tackle their economic problems and crumbling banking system by throwing trillions of dollars at it. Just two weeks ago, in our newsletter titled, "The Impressive News Release," US debt sat at roughly $12,080,600,000.
At the time of this writing, its already higher than $12,138,000,000.
It's no wonder the former U.S. Federal Reserve Chairman Alan Greenspan has called for politicians to put party differences aside and formulate a joint plan to tackle the debt this week. The economic guru warned that the country faced an unprecedented 'fiscal crisis' because of the record red ink from America's debt mountain.
To service this debt, the US must pay hundreds of billions of dollars every year on interest alone. For the 2009 fiscal year, the US will have paid over $383 billion dollars in interest.
To make matters worse, this debt is expected to spike dramatically as the Obama administration attempts to reform health care and social security.
But they're not finished.
Remember TARP? There's been a lot of talk regarding the banks repaying their TARP funds which should lead us to believe it will lessen the debt load. But Treasury Secretary Timothy Geithner has decided to extend the TARP program until next October - it was supposed to have ended at the end of this year.
Shortly after that, the US House passed a $154 billion economic-aid package (of which half will be funded by the remaining TARP funds) and added a $290 billion increase in the legal limit on government borrowing.
As the US administration is clearly demonstrating, they are not done spending. Not even close.
But where does all this money come from? How and where does the US borrow all this money from?
The Golden Question
The money comes from many different places.
Mutual funds. Foreign governments. Individual investors. Pension funds. Hedge funds. But more importantly, The Federal Reserve.
Before we get into that, we know that China is one of the largest foreign government holders of US debt and the largest foreign holder of US dollar. Fed chairman Ben Bernanke recently stated that China will likely continue to buy US debt because their currency is so strongly tied to the Greenback. But that's the reason why China so very much wants to diversify their incremental reserves into Euros, Yen, other currencies, plus assets such as gold:
"Gold is definitely an alternative, but when we buy, the price goes up. We have to do it carefully so as not to stimulate the markets" - Cheng Siwei, former vice-chairman of the Standing Committee.
As we stated in past newsletters, this suggests that China has become the driving force in the gold market and can be counted on to buy whenever there is a price dip, putting a floor under any correction. Yet another reason why we remain bullish on gold in the long term.
Now back to the Federal Reserve.
The Federal Reserve
First of all, we need to understand that the Federal Reserve is NOT owned by the US government. It is a private bank created, owned, and controlled by the richest well-known families in the world (although their board of governors says otherwise) to ensure their families will remain rich forever.
And they are doing a fine job at that.
The Biggest Lender
The Federal Reserve is one of the biggest lenders to US' insatiable appetite for borrowing. This past March, they printed $1.2 trillion and lent it to the US. (see video from March 2009 >>>>)
The US will not default on payments of their loans - that we know.
This means anyone who is lending the US money, will make a sure-fire bet on their return. Think about how much money the Federal Reserve will be making alone on their $1.2 trillion loan that's guaranteed to be repaid? And guess what? It costs them nothing. Zilch. All they do is print it. There's no such thing as a FED audit.
So while the same private bankers who control the world's financial systems continue to lend the US money, the average US citizen will be busy paying back the interest on those loans.
The Rich Get Richer, and the Poor Get Poorer
Wouldn't it be nice if we could print some money and lend it to the US? Obviously, we can't. Most of us do not belong to the banking families that control the world's wealth.
And we certaintly do not recommend trying to beat or expose their monetary policies and activities because they are an extremely powerful group you do not want to mess with.
The truth is, there is nothing we can do about it. "
Gompers here: You heard it from Equedia Weekly, "And we certaintly do not recommend trying to beat or expose their monetary policies and activities because they are an extremely powerful group you do not want to mess with. " I guess we all better just drop this ole FED stuff, and keep sucking up more debt because, "First of all, we need to understand that the Federal Reserve is NOT owned by the US government. It is a private bank created, owned, and controlled by the richest well-known families in the world (although their board of governors says otherwise) to ensure their families will remain rich forever. And they are doing a fine job at that."
Come on people, I have seen the light!!! We gotta help these poor rich bastards enslave us. Cause WE REALLY NEED TO BE SLAVES. And they are rich and powerful, and our politicians LOVE them.
Nahh, maybe not. Gotta love those wranglers, they have a tough job instilling confidence in Ponzi schemes, but hey, somebody has to do it.
Apropos the Federal Reserve NOT being owned by us the people but by a small group of rich families, it's clear that the rich get away with this absurd legerdemain because about 90% of the American people think they ARE part of the federal government.
(How did that happen?)
Why don't you try to start a movement to nationalized the Federal Reserve? (Even though, "Nationalize the Federal Reserve" sounds like an oxymoron.)
Nationalizing the FED will not work, for the same usuary reasons. We need to return to monetizing the economy through Article 1 Section 8 of the U.S. Constitution, that is that document we hear about and can see in the museum, but no longer applies to us, since all law prior to the 1930 bankruptcy is null and void.
Read the Creature from Jekyll Island for the details of how it happened, and study the crime of 1873, and our Founders on the dangers of central banking. It would not hurt to check out the Lincoln and Kennedy attempts to correct this situation. Our Founders fled to this nation for two reasons, freedom of and from religion, and to escape from the totalitarian governments of Europe that were controlled by these very same banking systems.
Lincoln recognized the threat of the banking cartels when he wrote:
• “The government should create, issue and circulate all the currency and credit needed to satisfy the spending power of the government and the buying power of consumers..... The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government's greatest creative opportunity. By the adoption of these principles, the long-felt want for a uniform medium will be satisfied. The taxpayers will be saved immense sums of interest, discounts and exchanges. The financing of all public enterprises, the maintenance of stable government and ordered progress, and the conduct of the Treasury will become matters of practical administration. The people can and will be furnished with a currency as safe as their own government. Money will cease to be the master and become the servant of humanity. Democracy will rise superior to the money power." Abraham Lincoln Senate document 23, Page 91. 1865
The Europeans recognized the danger to their financial cartels when the London times published in 1865 this piece regarding our government printing its own currency as Lincoln wished to do:
• "If this mischievous financial policy, which has its origin in North America, shall become endurated down to a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will go to North America. That country must be destroyed or it will destroy every monarchy on the globe." - Hazard Circular - London Times 1865.
That is just for starters, it is a long road if you start down it, and it will lead you away from everything that you hold to be true…
People really are herd animals. It is not really a conspiracy when they tell you straight up what they are doing and you choose not to accept it. Lead the animals out of a burning barn, and they will just run back in.
Damndest thing I have ever seen.
A sheep gave birth to a dead lamb with a human-like face. The calf was born in a village not far from the city of Izmir, Turkey.
Erhan Elibol, a vet, performed Cesarean section on the animal to take the calf out, but was horrified to see that the features of the calf’s snout bore a striking resemblance to a human face.
“I’ve seen mutations with cows and sheep before. I’ve seen a one-eyed calf, a two-headed calf, a five-legged calf. But when I saw this youngster I could not believe my eyes. His mother could not deliver him so I had to help the animal,” the 29-year-old veterinary said.
The lamb’s head had human features on – the eyes, the nose and the mouth – only the ears were those of a sheep.
http://english.pravda.ru/science/mysteries/12-01-2010/111621-sheep_human_face-0
But seriously--what's with the body? It's not lamb sized. And it's not a newborn's face. Plus there's the little problem of the enzymes required for the fertilization and implantation processes--that damned science getting in the way. You guys don't really believe this, do you?
(sorry--that's my only 'Ken moment'...)
and gompers was referring to this candidate for georgia governor...
http://wonkette.com/408277/secessionist-mule-raping-georgia-governor-candidate-would-also-kill-own-son-for-liberty
http://crooksandliars.com/john-amato/neal-horsley-mule-loving-republican-can
I really don't like them...
Thanks for re posting the Horsley link, what a whack job.
I can't even remember what this page is about! How did we get to a human-face lamb and a Georgia governor candidate that admits to having sex with a mule?
Now, how exactly am I supposed to explain to my wife that this isn't a silly site?
BTW, DB, she still loves you. (I don't think in a weird way...)
i never promised focused discussions....
so back to erin burnett...she showed some serious sack...
it really does mean something that more and more people talk about this openly...the Fed ponzi scheme theme...
progress my friends, progress...
The police took 45 minutes from the first phone call to get to this close-in island in Norway, the shooter(s) is/are members in good standing with the free masons. Norway's economy has a very low amount of debt and ample oil resource for at least 200 years.
England is approaching toast status unless the royalty unload bigtime. and(THIS APPLIES TO 9-11 AND THE EXTENSIVE STOCK MARKET LOOTING) the shooter's father is a Norwegian diplomat to England. You know how a guy wants to impress his dad. And how the Skull and Bones crowd did the deregulation to facilitate the looting and the lack of oversight and arrests. Free masons do not, by charter, arrest each other.
It is a great day when corporate TV lets out that the fed is an exposed ponzi scheme.It is huge news. Look at the big difference it made. Our congress must have mewled an extra hour and a half that day. They are paid to instill confidence. That takes a shitload of mewling.