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Showing posts with label ponzi scheme. Show all posts
Showing posts with label ponzi scheme. Show all posts

Friday, March 24, 2017

Legislator in India's ruling party asks finance ministry to investigate whether Bitcoin is a Ponzi Scheme

In the land that doesn't really appear to care at all about the wants, desires, and needs of their people when it comes to money, on March 24 a member of India's ruling political party sent a request to the Minister of Finance to investigate whether Bitcoin is a ponzi scheme in the wake of its volatile price nature, and the potential rise of its by citizens within their economy.

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Kirit Somaiya, a Member of Parliament of the ruling BJP in India, has raised concerns about Bitcoin being a Ponzi scheme. The rapid rise of Bitcoin has attracted attention in India, coming as it does during the government’s experiment with demonetization. 
Dr. Somaiya has written to the Finance Ministry, the Reserve Bank of India and the SEBI (Securities and Exchange Board of India) on the increasing use of an unregulated currency in India. The finance minister is expected to officially reply shortly.
Speaking in the Parliament, Kirit Somaiya said: 
“The use of Bitcoin, a hypothetical currency, is increasing at a rapid speed in India as well as in the world. Experts have expressed concern that Bitcoin is a pyramid Ponzi-type scheme. This issue should be taken very seriously and there is urgent need to have a study on the development of Bitcoin in India. There is no regulator. As it is functioning like currency and seems like Ponzi scheme, RBI and SEBI as well as Finance Ministry to take appropriate step to save the people from another big Ponzi fraud.” - Coin Telegraph
India has embarked over the past few months on a policy towards creating a cashless society, and banning the use of cash in many transactions.  And the advent of a decentralized currency like Bitcoin is an anathema to Prime Minister Modi's agenda to try to control every aspect of the nation's spending through the implementation of a digital monetary system.

Monday, January 9, 2017

To supplement the insolvent trust, Social Security increases the amount of income taxed beginning in 2017

When Social Security was first introduced in 1935, it was sold to the American public as form of retirement insurance that was based similarly to that of private insurance policies.  Ie... you put in a certain amount each pay period and at age 62 or higher, you can begin to collect the proceeds of your 'policy'.

But the reality is that Social Security is little more than a ponzi scheme, and a way for the government to siphon out wealth from its citizens.  In fact, a Supreme Court ruling in the 1960's specifically labeled the program a benefit rather than insurance, and the government has no legal mandate to pay these benefits to individuals who contributed to the program.

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Many people believe that Social Security is an “earned right.” That is, they think that because they have paid Social Security taxes, they are entitled to receive Social Security benefits. The government encourages that belief by referring to Social Security taxes as “contributions,” as in the Federal Insurance Contribution Act. However, in the 1960 case of Fleming v. Nestor, the U.S. Supreme Court ruled that workers have no legally binding contractual rights to their Social Security benefits, and that those benefits can be cut or even eliminated at any time. - Cato Institute
Over time the government has used Social Security as a political carrot, where in the attempt to get re-elected, politicians in 1956 expanded the program to include the disabled and began using monies set aside in the Trust Fund for retirees to pay for it.

Today Social Security is completely bankrupt and insolvent, and if anyone needs proof of this all they have to do is go back to the words of the Secretary of the Treasury Jack Lew who inferred that if Congress didn't pass a new budget and halt a potential government shutdown, then the ability to pay Social Security recipients would be at risk (despite the fact they were still collecting FICA taxes).

Now in 2017, and in a desperate attempt to keep their ponzi scheme going a few more years, Congress is increasing the income level that is taxed by FICA from $118,500 to $127,200.  However, this increase will do little to help the program since the total amount of revenues received from this increase will be minimal.  But what it does is provide the public the illusion that the government is going after the 'rich' to make them pay more, or at least their 'fair share'.

FICA

Prior to the advent of Social Security, people were expected to provide for their own retirements and did so through frugality, sound investment, and reliance upon a currency that would not be devalued much over their lifetimes.  But since none of these things are a part of the American culture today, hundreds of millions of people who barely have $1000 in savings to their name will find it impossible to survive when Social Security finally fails, and all that money they put into the scheme will be for not.

Thursday, August 25, 2016

Retiring Baby Boomers could blow America's pension ponzi schemes wide open

There are a myriad of retirement vehicles out there, with some being run by the government and others being decided by the individuals themselves.  But as we enter into uncharted waters now that the Baby Boomer generation is moving into their retirement life phase, a boiling cauldron of doubt is coming onto the scene...

Could the fiscal insolvency of America's retirement system be completely shattered now that the nation's largest generation in history is about to siphon their money from these ponzi schemes?

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The reason I refer to most retirement plans as ponzi schemes is that by their very nature, they require others to put in money so that those who paid in first can receive their benefits.  And of these, at least two are now virtually insolvent while the others rely upon markets to continue to grow from the input of new money into them as well.

1.  Social Security

Initially, social security was a program created to provide basic incomes to individuals who paid into the system during their working years, and would be compensated from a trust that originally was well funded, and was receiving new monies from those people still working.  But over time the government added new recipients beyond retirees to the program such as the disabled and those who lost family bread winners, and of course over time the nearly $3 trillion in surpluses was stolen by legislators and replaced with debt instruments that have to be paid back by an insolvent government.

And as we saw during the government battle to raise the debt ceiling back in 2013, the Treasury Secretary validated that Social Security was insolvent since it needed borrowed money to pay out beneficiaries.
Treasury Secretary Jack Lew warned Thursday that timely payments to Social Security beneficiaries, veterans, active duty military personnel and Medicare providers would be at risk if Congress does not raise the debt ceiling. - CNN Money
2.  Pensions

Already in 2016 two of the nation's largest pension funds, both public and private, have reported that they are so underfunded that beneficiaries will need to take cuts, or in some cases, see their benefits ended altogether.  And this doesn't include most state pension funds that are now an estimated $2 trillion in the hole.
As the nation’s largest public employee pension plan, CalPERS stands out as the most irresponsible for having failed to prevent government pension spiking and for not forcing their government clients to pay for the spikes. But the pension fund’s $277.2 billion of investments leaves a $144.3 billion unfunded debt to cover 1.6 million state employees and retirees’ pensions, according to CalPERS’ October 31, 2013 report. 
California public employees now enjoy the highest benefits of any state in the nation. To pretend to fund this largess, CalPERS has become the worst “outlier” among public pension plans in using creative accounting to blur their grossly underfunded status. This has allowed its government clients to short-check their annual payment for the nation’s most lucrative pension benefits. - Breitbart
3.  Mutual funds, IRA's, and 401K's

As the Baby Boomers begin moving into their 70's over the next 11 years, the majority of them who hold a mutual funds, IRA, or 401K will soon be required to start selling their assets to pay Uncle Sam their tax obligations.  And this will mean a combination of less money being put into equity markets to prop up stocks, and a shift downward as sellers potentially could outnumber buyers... creating a disastrous scenario where the value of their retirements decline as the stocks they hold diminish in value.

4.  Bonds and Annuities

Ever since central banks embarked upon a policy of zero and now negative interest rates, the return on bonds has not even kept up with the rate of inflation.  Meaning that these former interest bearing yield instruments no longer hold a place in one's retirement portfolio.

Both government and private retirement managers have been able to keep their financial schemes going because there were enough workers that were inputting just enough to keep the system from collapsing completely into insolvency.  But now that the largest generation is ready to stop giving, and change course into taking what they rightfully invested during their working lives, the potential of nearly all retirement programs collapsing is each day becoming a very real probability.

Monday, May 9, 2016

London gold market a ticking time bomb as they have zero gold to backstop $200 billion in daily traded contracts

When central banks embarked on their course of zero interest rates and quantitative easing programs five years ago, the biggest threat to their schemes was if the public ever lost confidence in their power to devalue their currencies.  And the one key financial element that would be the catalyst for destroying that confidence was the gold price.

So to ensure that central banks could perpetually continue a money printing ponzi scheme, they had to also embark on a program of gold price suppression.  And they did this with a two-fold process.

1.  Lease (sell) gold on the markets to help suppress prices.
2.  Naked short the futures market (which currently determines the daily price) with hundreds of thousands of contracts.

The result of course is that it created a lack of confidence in the gold markets, because buyers were less willing to invest in this commodity/money if they knew that prices would be manipulated downward in a concerted effort by the Comex, the bullion banks, the Fed, and the regulators.

But as with all ponzi schemes, it only takes one slip up to blow the whole thing wide open.  And with a growing understanding that the banks have little or no gold at all to backstop what is a $200 billion per day paper market, the clock is ticking on a massive time bomb that only needs a small push to blow the scheme wide open, and free gold to fair price discoveries once and for all.

Intuitively, we think that central banks might have lent/leased gold to maintain the status quo and mask what is technically a default. However, rather than being used to provide temporary liquidity, it is possible that loans/leases are being rolled. This is not sustainable and implies dual ownership claims.
Going forward, the market is vulnerable to several trends in physical gold trading patterns: 
  • Since 2009, central banks have switched from net sellers to net buyers ;
  • The extraordinary strength in Chinese gold demand as indicated by withdrawals of bul-lion on the Shanghai Gold Exchange, e.g. an astonishing 2,597 tonnes, or more than 80% of all of the gold mined worldwide, in 2015;
  • The rebound in gold held by London-based gold ETFs, which has been increasing since January 2016, as western investors dip their toes back into physical gold; and
  • Net gold exports by the UK - mainly to support strong Asian (especially Chinese) demand - which have been a feature of the market since 2013.
But the vulnerability is not confined to current trends in physical bullion.
If there is no gold float, there is nothing supporting more than US$200 Billion of trading every day in unallocated (paper) gold instruments which accounts for more than 95% of gold trading in London. 
The convention of trading unallocated gold has been based on a fractional reserve system. It works as long as gold buyers retain confidence that the banks could deliver physical gold if demanded, but our analysis suggests that they could not.For more than four years, selling of paper gold overwhelmed growing demand for physical gold from the likes of China and central banks (in aggregate). The “gold market” became a chimera as fundamentals were turned upside down. Banks added paper “gold supply” in almost elastic fashion on occasions when western investors increased net gold exposure via paper gold instruments. 
We’ve argued for many years that a breakdown and bifurcation in the gold market between physical and paper gold substitutes would be necessary for accurate price discovery of physical gold bullion. The lead article in the January 2016 edition of the LBMA’s quarterly magazine was titled “Wholesale Physical Markets are Broken”, which might be confirmation that this process is reaching an advanced stage. - Zerohedge

Thursday, November 19, 2015

Last year, law enforcement ‘stole’ more from Americans than burglar’s did in all their crimes

Government’s are very good at spinning criminal activity into what legislators and judges deem as ‘legal’ programs.  From enacting a ponzi scheme back in the 1930’s and calling it Social Security, to legalizing counterfeiting under the guise of monetary policy through the creation of a private banking system to control the nation’s currency, corruption by government against its people is as old as history itself.
And thanks to the ideological ‘War on Terror’ and ‘War on Drugs’, outright theft is now legalized under the name of Civil Forfeiture.  And according to a report from the FBI, legal theft by law enforcement has now exceeded the total amount stolen by labeled criminals in the all the burglaries committed last year.

Read more on this article here...

Tuesday, November 3, 2015

Economic Recovery? American veterans relegated to selling off their pensions to pay debts

The world is now a construct of debt in nearly every facet of the global financial system.  Governments cannot stay within their budgets and must borrow more just to stay solvent even as their people’s are relegated to austerity and capital controls.  Corporations borrow money to buy back their own stock when they cannot make a profit from selling goods or services, and banks of course need zero percent interest rates just to keep their ponzi schemes going.
And for the average person, especially in the U.S., debt is no longer simply an emergency measure in case one’s car breaks down, or if they have to take an unforeseen trip because of a death in the family.  No, for the average American, debt is a way of life and it can be seen in no greater example then the new phenomenon where military veterans are now having to sell off their pensions just to get enough money now to pay on their outstanding debts.

Saturday, October 24, 2015

Got Karatbars? Social Security again at serious risk from U.S. insolvency as Nov. 2 approaches

In the U.S. there are over 46 million Americans on food stamps alone, and over 100 million who rely upon government benefits to some degree.  And with the U.S. coffers approaching insolvency as soon as Nov. 2, tens of millions of Americans who need their social security checks as their primary source of income stand to lose everything if Congress doesn't vote to increase the national debt limit to just under $20 trillion.

The definition of insolvency is having less revenues or assets than you do debt and liabilities.  And with a national debt of at least $18.1 trillion dollars obligated to debt holders like China, Japan, Russia, and even the Federal Reserve itself, this massive liability is much greater than the total annual GDP for the United States, which came in at $17.48 trillion for the year ending 2014.


Yet why is the current debate over raising the national debt for an insolvent country important?  It is because the promises and mandates the U.S. has to its welfare and social security recipients are being held hostage by the Obama administration, and show that these ponzi schemes cannot function on the taxes withheld from everyone's paycheck each month, and instead require new money in the form of debt just to be able to make these monthly payments.
Appearing on "Fox News Sunday," Lew said that "I don't think there are serious people who think the consequences" of being forced by the debt ceiling to miss a payment on the government's obligations "would be minimal." 
Lew warned that missing any payment could cause economic disruptions, and mentioned one negative effect of a debt ceiling delay that up until now the administration has shied away from, namely the possibility that the government could fail to pay the bills of its most popular entitlement programs. 
"What happens if you don't pay millions of people on Social Security? What happens if you don't pay hospitals and health care providers across the country?" Lew asked. - Washington Examiner
So even with a lawful increase to the national debt, the Secretary of the Treasury has already validated by his own words that the money taken out of our income for Social Security is no longer able to pay recipients their monthly checks, and that there is no 'trust' or lockbox holding the proceeds of decades of SSN payments.


Millennials who are now paying into Social Security over the next 30-40 years of their working life will never see their own benefits when they retire, as nearly all mainstream and alternative economists are in agreement that the system will be completely insolvent within 2 to 10 years.  And in fact, because of the massive increase in recipients due to baby boomers retiring over the next 14 years, very soon there will be less than 2 workers paying taxes towards every SSN recipient.

So if logic and economics proves that this ponzi scheme is bankrupt, and is relegated to the government's needing to print trillions of dollars per year just to pay people's promised checks, what options do you have now to protect yourself from an insolvent government program that won't be there when you need it?

One option to look at is with a company called Karatbars.



Buying gold through Karatbars is one of the easiest things on the net.  In fact, the business model of Karatbars is to sell gold in affordable quantities, such as 1, 2.5, and 5 gram increments, and allow customers to get into the metal without having to shell out $1200+ for a single ounce coin.

And as added perks to signing up with Karatbars, as a customer or affiliate, Karatbars is working on a new e-wallet system that functions just like an offshore bank account, and is outside the authority of the banking system.  From there, you can take your fiat currency in any denomination... dollars, euros, yen, etc... and purchase physical gold which can either be delivered directly to you, or stored for free at one of Karatbar's vaults.

Additionally, any gold that you buy can easily be sold back to Karatbars, or any metals dealer, and if with Karatbars it is then exchanged for currency that is uploaded to you through a pre-loaded debit Mastercard which is connected directly to your e-wallet.  And as we know, MasterCard is recognized in nearly every country around the world, and usable in any currency that accepts it.

But perhaps the best feature with Karatbars is their affiliate program, where you can earn money off commissions from getting others to sign up and become a customer or affiliate.  Not only do you receive commissions from their purchasing of physical gold, but you also earn commissions from anyone who buys a commission package, with that money going directly into your debit MasterCard when you have enough units to cycle.

Imagine the ability to earn the money in which to buy your gold savings simply by purchasing a commission affiliate package one time, and then getting others to sign up and do the same thing.

How many businesses or entrepreneurs can build an infinite business with spending less than $400 of their own money?  And there is never a mandatory requirement to buy beyond what you desire, on your own schedule.  And there is nothing to lose, because you're using money (paper dollars) to buy gold (physical money) and in the end you don't lose a thing.


The global financial system, along with dozens of respected economists, are telling us that now is the time for the end of our current form of money, and the beginning of the transition into a new monetary system that is expected to be backed by gold.  And with banks, governments, and even Harvard professors mandating that central banks have no choice but to eliminate cash from usage by the people to stave off collapse, will you wait until it is too late to make a decision on how you will protect your wealth, and be able to function within the coming new monetary system?

To learn more about Karatbars, you can contact the individual who sent you this article, and click on their referral link to open a free account and begin buying, or building your own gold savings or business with the company of the future.

Monday, November 21, 2011

The MF Global Ponzi Scheme and why they fell while others still operate

Here is another side I am hearing about regarding MF Global.

All of the banks and financial institutions today have offshore hedge funds, or two sets of books. When the regulators come by to do their cyclical assessments, all the toxic assets get moved to the hedge funds, or off the standard books and into a holding company, making them look solvent, or even good.

What happened perhaps with MF Global, is that they were inspected by a regulator and didn't have TIME to move their primarily accounting offshore. Thus, regulators saw the MF Global ACTUAL numbers, and TSHTF.

It also caught them red handed in a ponzi scheme... as they had been using customer money for awhile, and since most investors keep their accounts long-term, they only had to payoff individuals on an occasional basis, which meant they could channel enough money from elsewhere.

Except Corzine had leveraged the company 50-1, and bought billions in Euro trash bonds. Now, here is the REAL conspiracy theory.

No economist or financier with half a brain would be buying these, except that MF Global was a primary dealer. Guess who probably FORCED them to take on these toxic and worthless assets?

The Fed. As a means to covertly bailout the ECB, which is lockstep with the FED and all other central banks anyway.  Corzine is a former head of Goldman Sachs, and pure and simply, is a tool of the central bank.

I don't know which regulator broke protocol and caught MF Global with their pants down... usually the regulators give institutions ENOUGH err... ahem... warning they are coming over, and enough time to fudge the books to offshore, but this is probably why you are not seeing any real investigations or indictments yet.

The Fed is running this show, and Obama, Geithner, and Holder and bought and paid for tooks as well of the kleptocracy.

Wednesday, September 14, 2011

Nearing the end of the Social Security ponzi scheme

A ponzi scheme is where a program or con must depend upon future contributions to pay those who contributed earlier in the game.  ie... because the US government spent over $3 trillion from the Social Security trust fund in the past 4 decades, the only way it survives is by taxing todays generation of workers.

A new report by the Census Bureau however, shows that the jig is almost up as the amount of people working comes out to a ratio of 1.75:1 for every recipient of government largesse.

There were only 1.75 full-time private-sector workers in the United States last year for each person receiving benefits from Social Security, according to data from the Bureau of Labor Statistics and the Social Security board of trustees.
 That means that for each husband and wife who worked full-time in the private sector last year there was a Social Security recipient somewhere in the country taking benefits from the federal government. - The Patriot Update
So soup for you!
We can all thank the Baby Boomers who proudly voted in scoundrels to propagate the never ending growth of the welfare system.  Now however, as they retire, the younger generations may seek to exact their revenge in a soon to be economic class war.