Pyramid Schemes Big and Small
Recently some of my Russian friends introduced me to a new
money-making scheme going on in Russia, but participated in by people all over the
world. It is actually a financial pyramid scheme that is returning, according
to the latest reports some 30% per month!
Quite a good return, wouldn’t you say? Of course the whole scheme has nothing to
support it except future players. The thing that is interesting is that the
organizer, one very clever man by the name of Sergey Mavrodi, quite correctly
points out that the entire global financial system is organized the same way—every
currency in the world is also a Ponzi scheme—every one!
I can explain that quite easily.
It is almost common knowledge by now that money is loaned
into existence. That is to say, when somebody takes a “loan” the bank does not
give them something that they have, which is the normal meaning of the word
loan. No. The money that is given to the borrower is created from the borrowers
own signature on the note. It is the borrower who creates the money with his
signature, but the bank doesn’t tell him that. Instead, the agreement states
that the borrower will repay to the bank the principal and interest.
The bank doesn’t give the borrower anything. It merely
credits his account with “money” that he is free to draw on when making
purchases. The money was created by the loan, that is, it was loaned into
existence. If you watched the video “Zeitgeist” that I posted on this blog several days ago,
or if you have watched some of the videos under the heading “Your Economic Tutorial”
on my website, you should understand this. If you don’t understand this, then
take the time to get an education on this most important of subjects that affects everything that you do.
Key Factor
It is important to note that the amount of money returned in
interest payments is not created at any point in time. That money
must come from money that is already in circulation. It must be pulled out of
the economy, reducing the amount of money in circulation.
The result of this is that if future loans are not made, and
if money continues to be withdrawn from circulation as interest payments,
before long there is not enough money in circulation to meet the demands of
normal commerce. This is called a recession.
If the situation continues then the circumstances become
extreme and this is called a depression.
Both the recession and depression are deliberately created
by policies of the banks (as in not making loans), and both of them are “cured”
by the policies of the banks, as in making more loans.
The banks therefore, and not the government determine the
health of the economy. They regularly create “the business cycle” so to steal,
or harvest wealth from the public. When over the last few years millions of people
lost their houses, who got them? The banks. But note that the banks didn’t give
anything of value for the houses to begin with! They gave account digits—mere numbers
on a ledger. And this whole scam works because everyone has been trained to
accept it as “commerce.”
Back to the point I was making about Ponzi schemes. Because money
is continually withdrawn from circulation, the entire financial system depends on
new people coming and taking loans. This is the definition of a Ponzi scheme.
Take a moment to let this sink in...the entire world financial
system is a Ponzi scheme...based on nothing...
The question naturally arises, “well why do the banks
(bankers actually, or even more accurately the stockholders of the banks) get
to keep the interest??? Good question. Great question! Because they set up the
scam in the first place and have convinced everyone to participate. And through
this system they are sucking the wealth of the entire world. It is these people
(actually it’s too generous an expression to call them people, bloodsuckers
would be more appropriate) who make up the one-half of one percent that the 99%
are complaining about.
Sidebar – It's Actually The "85%"
Occupy Movement
And while were on that subject, the Occupy Movement has it
quite wrong. They think that they are the 99%. But that is quite inaccurate. The
people of that Movement are actually the 90% or even 85%. It is the upper 9-14%
(from 85-99%) who run the show for the 1% and who also are rewarded handsomely
for their trouble (statistics later). Without those 9-14% the whole thing
couldn’t function. But they have sold themselves to do the bidding of the 1%. “The
People” who are out in the cold are the 85%. More on that later.
Real and False Economic
Development
The fact is that the only real honest-to-goodness economic system
is agriculture. It is based on life, depends on spirit, not on dead matter. You
plant one seed and a living spiritual being takes birth in that body and by his
agency you get back 50 or 100 or 1000 seeds—a 5000% or 10,000% or 100,000%
return respectively in about 3 months time (that even better than Mavrodi gives!).
All economic development depends on living beings. It is they that turn the material
energy that nature gives into something of value, whether that be by growing their
own bodies (plants) or mining minerals from the earth, or manufacturing something
in a factory. Living beings create value. Dead material energy does nothing and
has no value without the living element.
The modern economic system, based on materialistic values
for materialistic ends, is a system of falsity. It uses paper currency that has
no value but gives the illusion of value, and in the same illusory way it
multiplies itself, stealthily taking from others. It has all of the earmarks of
the Kali yuga: dishonesty, lying, cheating, theft, illusion and results in
suffering and hardship for the vast majority of people—the 85%.
If we want to solve the economic problems once and for all
we need to stop using the false economic methods and begin to use the real
ones. Plant seeds. After all, that’s what we need money for in this modern
world—to eat, and to get clothing, both of which come out of Mother Earth as a
gift. If we simply receive them as gifts meant for our sustenance rather than something
to exploit for other purposes we miss the spirit of the entire creation and
must suffer accordingly. Isn’t that what is going on today? The people of the world have been misled down a path of greed, hoping to exploit a cheating system for their own gain, and instead are becoming consumed by it. Poetic justice.
If we actually want to solve the economic problems we have to give up our own base qualities, because as long as we cling to them other people smarter than us will use our own bad qualities against us.
