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Message: As capitalism wanes

As capitalism wanes

posted on Jan 29, 2009 04:43AM

Below are a quote and an excerpt from Dr. Schoon's article THE COLLAPSE OF CAPITALISM AND THE SAFETY NET OF GOLD

For Ponzi schemes to succeed, they must expand faster than the request
for redemptions. If they do not, they will collapse. This is what happened
to Bernard L Madoff Investment Services, the largest Ponzi scheme in
history. The same is about to happen to capitalism.



BERNARD MADOFF’S BROTHER SAM

In 1960, from the very beginning when Bernard Madoff first began soliciting money, the end of his scheme was destined. But because Bernard Madoff was unusually bright and capable, his Ponzi scheme lasted far longer and was far more successful than any such previous scam.

The same can be also said for the Ponzi scheme of Bernie’s brother, Sam, aka “Uncle
Sam”. But unlike Bernie, Uncle Sam did not think up his scheme on his own. He was
acting as the agent of the original schemers in England who realized that England’s
economy was no longer expanding as it had previously in the 18th and 19th centuries.

So, in the early 20th century, in 1913, the original schemers convinced Uncle Sam to run the same scheme in America that had been so profitable to them in England. The scheme was capitalism, def. commerce in combination with capital markets founded on credit-based paper money issued from a central bank.

The scheme was to profit by indebting businesses, entrepreneurs, workers and savers and government and, as bankers, the schemers would get rich off the hard work, savings and productivity of others; and, in the US, their scheme worked as well as it had in England.

As the economy expanded and the nation became increasingly indebted, bankers became increasingly wealthy. It is no coincidence that the “financial services sector, sic the paradigm of parasites” recently comprised the largest share of both the UK and US
economies, economies which correspondingly had the lowest rate of savings in the world.

It is also no coincidence that as the indebtedness of each nation grew the share of
economic activity and the exorbitant salaries and bonuses of bankers grew as well.
Unfortunately for the host and parasite in capitalist economies, there is a limit to how
much a parasite can safely take from the host before the host dies, a limit only discovered after the process has gone too far.

In December 2008, the end came for Bernie’s Bernard L Madoff Investment Services. In 2009, the same will happen to his brother, Sam who is now using Ponzi finance to pay for US borrowing. In 2009 or some time shortly thereafter, the credit-based paper money scheme of bankers, sic capitalism, will bring down what but a few decades ago was the most powerful economy in the world, the United States of America. Uncle Sam, just like his brother Bernie, is toast.

“Look, they’re circling the wagons.”
“But we’re not in the circle.”
“Thought you would be?”
BERNARD MADOFF’S BROTHER SAM

In 1960, from the very beginning when Bernard Madoff first began soliciting money, the end of his scheme was destined. But because Bernard Madoff was unusually bright and capable, his Ponzi scheme lasted far longer and was far more successful than any such previous scam.

The same can be also said for the Ponzi scheme of Bernie’s brother, Sam, aka “Uncle
Sam”. But unlike Bernie, Uncle Sam did not think up his scheme on his own. He was
acting as the agent of the original schemers in England who realized that England’s
economy was no longer expanding as it had previously in the 18th and 19th centuries.

So, in the early 20th century, in 1913, the original schemers convinced Uncle Sam to run the same scheme in America that had been so profitable to them in England. The scheme was capitalism, def. commerce in combination with capital markets founded on credit-based paper money issued from a central bank.

The scheme was to profit by indebting businesses, entrepreneurs, workers and savers and government and, as bankers, the schemers would get rich off the hard work, savings and productivity of others; and, in the US, their scheme worked as well as it had in England.

As the economy expanded and the nation became increasingly indebted, bankers became increasingly wealthy. It is no coincidence that the “financial services sector, sic the paradigm of parasites” recently comprised the largest share of both the UK and US
economies, economies which correspondingly had the lowest rate of savings in the world.

It is also no coincidence that as the indebtedness of each nation grew the share of
economic activity and the exorbitant salaries and bonuses of bankers grew as well.
Unfortunately for the host and parasite in capitalist economies, there is a limit to how
much a parasite can safely take from the host before the host dies, a limit only discovered after the process has gone too far.

In December 2008, the end came for Bernie’s Bernard L Madoff Investment Services. In 2009, the same will happen to his brother, Sam who is now using Ponzi finance to pay for US borrowing. In 2009 or some time shortly thereafter, the credit-based paper money scheme of bankers, sic capitalism, will bring down what but a few decades ago was the most powerful economy in the world, the United States of America. Uncle Sam, just like his brother Bernie, is toast.

“Look, they’re circling the wagons.”
“But we’re not in the circle.”
“Thought you would be?”

When wagon trains would come under attack, the wagon masters would “circle the
wagons” for protection. Such is happening today as capitalism itself is now under attack.

What Americans are finding out, however, is that only the bankers are currently inside
the circle—bankers are now the only ones being protected, the very ones responsible for the crisis in the first place. Observers and especially Americans might believe that
something is wrong with this picture.

What they do not understand is that the picture is a perfect reflection of the power
dynamic underlying capitalism. Bankers could not have accomplished their nefarious
ends had they not first secured the full cooperation and protection of government.

This they did in England when they promised King William they would extend all the
credit he wanted to wage his wars. This was replicated in the US when private bankers
staged a midnight coup by passage of the Federal Reserve Act in 1913 which illegally
transferred the right to issue money from government into the hands of private bankers.

This is the reason the US government has first protected the bankers, not the public, in
this crisis. Bankers give government the unlimited credit that governments overspend,
thereby indebting the nation and future generations into perpetuity. The US government bailout of bankers, TARP, is “owe-back” time.

The rest is history, or is about to become so. When people have their eyes shut and their minds closed, they will not see nor understand what is happening to them. Trust me on this, although many will not understand what is about to happen, it will not prevent it from happening.

What we are about to experience is an economic tragedy in personal terms that will
exceed anything in recent memory. Even the Great Depression of the 1930s will not
equal what is now about to be; and those who thought their adherence to a belief system about God was faith are now about to find out the difference.



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