Before I get there a little background. In September, 2007, I posted about Web of Debt based on the book of the same name written by Ellen Hodgson Brown J.D.. Our Constitution says:
Article I, Section 8, Clause 5. The Congress shall have Power…To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures.When the U.S. created the Federal Reserve, we gave up the power to create money, as outlined in the Constitution, to a cartel of banks who create money out of thin air. We are finally in a situation, not unlike a Ponzi scheme, where the banks have run out of borrowers. The banks are now insolvent. Brown in her latest writing at Le Metropole Cafe says,
A Ponzi scheme is a form of pyramid scheme in which new investors must continually be sucked in at the bottom to support the investors at the top. In this case, new borrowers must continually be sucked in to support the creditors at the top. The Wall Street Ponzi scheme is built on “fractional reserve” lending, which allows banks to create “credit” (or “debt”) with accounting entries. Banks are now allowed to lend from 10 to 30 times their “reserves,” essentially counterfeiting the money they lend. Over 97 percent of the U.S. money supply (M3) has been created by banks in this way.[2]The banks will be looking for a bailout from a party with deep pockets, but no pocket is big enough for the $681 Trillion of derivatives that were written. Many solutions are being floated by the PTB.The problem is that banks create only the principal and not the interest necessary to pay back their loans, so new borrowers must continually be found to take out new loans just to create enough “money” (or “credit”) to service the old loans composing the money supply. The scramble to find new debtors has now gone on for over 300 years – ever since the founding of the Bank of England in 1694 – until the whole world has become mired in debt to the bankers’ private money monopoly. The Ponzi scheme has finally reached its mathematical limits: we are “all borrowed up.”
When the banks ran out of creditworthy borrowers, they had to turn to uncreditworthy “subprime” borrowers; and to avoid losses from default, they moved these risky mortgages off their books by bundling them into “securities” and selling them to investors. To induce investors to buy, these securities were then “insured” with credit default swaps. But the housing bubble itself was another Ponzi scheme, and eventually there were no more borrowers to be sucked in at the bottom who could afford the ever-inflating home prices. When the subprime borrowers quit paying, the investors quit buying mortgage-backed securities. The banks were then left holding their own suspect paper; and without triple-A ratings, there is little chance that buyers for this “junk” will be found.
Now that good news that I first wrote about. The U.S. is looking into nationalizing our banks. Whether the Nordic model is used or we come up with some other solution, the end result will be the dismantling of the cartel of banks that own the FED.
Norway ensured that shareholders of insolvent lenders received nothing and the senior management was entirely purged."The law was amended so that we could take 100pc control of any bank where its equity had fallen below zero. Shareholders were left with nothing. It was very controversial," he said.
[2] See Ellen Brown, “Dollar Deception: How Banks Secretly Create Money,” webofdebt.com/articles (July 3, 2008).
