Archive for July, 2014

Still struggling to undertand the nature of the global operating monetary system, what it is and how it works?

View this explanation using easy to understand graphics, part 4 of Mike Maloney’s  Hidden Secrets of Money, a series exploring these issues and their history;

View the whole series here;

Your true wealth is your time and freedom

Wealth is never destroyed, it is only transferred….




Ponzi Economics

Posted: July 19, 2014 in Debt
Tags: , ,

A Ponzi Scheme; the name of a financial swindle, originated from Charles Ponzi in 1919, who operated such a scheme which is defined as follows by Investopedia;

A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns for older investors by acquiring new investors. This scam actually yields the promised returns to earlier investors, as long as there are more new investors. These schemes usually collapse on themselves when the new investments stop.

To reiterate, at its roots lies a pattern of transactions which are based on a lie, whereby a pool of money, is supposedly invested in order to generate sustainable returns for investors. Constant flow of new money is needed to fund the entire scheme, and to keep the whole enterprise liquid, allowing redeeming parties to cash in when they require.

This very pattern can be seen in government debt issuance, otherwise known as Gilts/Soverign Bonds; The ruling power taps the finanical markets (ie. national and international instituional investors) in order to raise money to fund expenditure (on Wars and Welfare). They pay an annual rate of interest, and then at the end of a 5/10/20 year maturity period, for example, the Treasury must repay the principle sum back to the invested parties – a form of loan, it works in a similar way.

The only problem is…that it can only repay existing investors by raising new cash/ issuing new bonds, thereby never repaying the principle national debt, just adding more to it. And where do all the proceeds go…governments spend it…essentially on whatever they like, in the guise of provided ordinary citizens with ‘essential’ social services.

Wasn’t Bernard Madoff sentenced to 150 years in prision for doing exactly the same thing?? His was clearly illegal fraud, but what of national governments, is their ponzi scheme legal, and on what basis?

What does this mean for ALL governments that issue debt….they are all insolvent, borrowing money to make repayments on existing loans….any individual that ends up in this state would clearly need severe financial guidance, if an entire nation is in this position, let alone the biggest economies in the world..what will the end game be to all of this?

See these posts for more insight into this legal government fraud

This following piece sheds light on the actual costs needed to cover the US governments’ ponzi debt




J Rickards

Expert Jim Rickards discusses his forecast for the future of the debt based monetary system and the warning signs for the dominant position of the US Dollar in today’s state of geo politics….

Also read his blog regarding the few moves left for the Fed and it management of the US fiscal policy



This Blog does not advocate the contemporary economic/monetary system as being the sole contributor to Global Hegemony today

I put it to you that it is merely a sub component of a greater system operating on the basis of the supremacy of one Peoples over all others

The below linked document gives an overview of this thought, I would draw your attention to page 13, sections 5-7

To call “”the present world-system “capitalist” is, to say the least, misleading.
Given the hegemonic Eurocentric “common sense,” the moment we use the word
“capitalism,” people immediately think that we are talking about the “economy”.
However, “capitalism” is only one of the multiple entangled constellations of
colonial power matrix of what I called, at the risk of sounding ridiculous,
“Capitalist/Patriarchal Western-centric/Christian-centric Modern/Colonial World-
System.” Capitalism is an important constellation of power, but not the sole one

Decolonizing Post-Colonial Studies and Paradigms of Political-Economy – Ramon Grosfoguel

Interested readers of this subject should explore the Bandung2 blog which has a wealth of material further proving this assertion


View this event which took place earlier this year at The Muslim College in London, organised by the British Dinar Exchange, with guest speaker Umar Vadillo.

Watch Vadillo’s speech here;