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A “Drastic” Budget Proposal — 1 Comment

  1. is the following of interest ? Reb
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    RIP-OFF BY THE FEDERAL RESERVE

    PREFACE: This mathematical analysis shows how:

    1. The present practice in the U.S. of creating book entry money via T-securities (deficit spending) in the amount of the principal of the security, with a promise to repay the principal PLUS the interest, is impossible. The interest is never created; the debt is perpetual and must continually be increased or the economy will collapse from de-leveraging;

    2. All other fiscal obligations of the nation must be curtailed while the growth in debt will escalate. The exponential growth of the interest and snow-balling debt will increase until the entire wealth of the nation, and of future generations, is inadequate to fund it;

    3. ALL money created by Treasury securities goes into the pocket of the Fed ($8.4 trillion last year). Not only does the Fed receive the interest (if not sold), but also the value of the security upon maturity (or by sale). Congress has temporary benefit of the fiat money (until maturity);

    4. The operation is, as in any Ponzi scheme, predestined for inherent national bankruptcy when buyers to roll over the debt cannot be found. As the scheme becomes visibly precarious, the interest rate will sky-rocket and accelerate the collapse.

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    The Federal Reserve uses euphemistic smoke and mirrors to obscure their scam. With full knowledge the following is not the way the Fed/government describes the system, allow me to offer a different analysis of their operation.

    snipped to fit post limits. continue at http://www.scribd.com/doc/49040689 and at
    http://www.synapticsparks.info/dialog/index.php?topic=32.msg192 .