The Debt-Based Currency Scam Is Being Revealed

The central banking system in the United States was officially established with the creation of the Federal Reserve System. The Federal Reserve Act, which brought the Federal Reserve into existence, was signed into law by President Woodrow Wilson on December 23, 1913. The Federal Reserve System is the central banking system of the United States and consists of 12 regional banks and a Board of Governors in Washington, D.C. The Federal Reserve plays a crucial role in the country’s monetary policy and is responsible for regulating the money supply, controlling inflation, and promoting economic stability. The central banking system controlled by the Federal Reserve Bank here in the United States is at the center of the debt-based currency scam that is being revealed in real time today. The Federal Reserve Bank is a private corporation with shareholders.

Fractional Reserve banking is at the center of money creation

The US has a fiat currency system, where money is not backed by a physical commodity like gold or silver. Instead, the value of the currency is based on the trust and confidence of the people using it. Commercial banks play a crucial role in the money creation process. When people deposit money in a bank, only a fraction of that deposit is kept in reserve, and the rest is lent out. This allows banks to create new money through the extension of loans. This process is governed by the fractional reserve system, where banks are required to keep only a fraction of their deposits in reserve. When a bank issues a loan, it essentially creates new money. The borrower receives funds that did not exist before as a bank deposit. This means that a significant portion of the money supply in the economy is created through debt. Our currency created out of thin air is dramatically losing purchasing power. The loss of purchasing power is a direct result of the debt-based currency scam that is being revealed. The government even pays interest on the debt it creates out of thin air.

Financial scams have been revealed throughout history

The term fiat currency refers to a type of currency that is not backed by a physical commodity like gold or silver but is instead declared by a government to be legal tender. Congress does not control money creation, the Federal Reserve Bank does. While the concept of fiat money has historical roots, the United States formally moved away from the gold standard in 1971. On August 15, 1971, President Richard Nixon announced the suspension of the dollar’s convertibility to gold, effectively ending the US commitment to the gold standard. This event is often referred to as the Nixon Shock.

The value of fiat currencies is determined by various factors, including government policies, economic conditions, and market confidence. The fiat currency experiment that started in 1971 is on its last leg. The death of the fiat currency experiment based on debt is being revealed as we speak. The best-case scenario is we just lose significant buying power. The worst-case scenario of the debt-based currency scam is a total financial system collapse. The world has seen many financial system scams throughout history that have all ended very badly.

The early 1600s experienced Tulip Mania

The term Tulip Mania refers to a period during the Dutch Golden Age in the 17th century, particularly in the early 1630s when the prices of tulip bulbs in the Netherlands experienced an extraordinary and speculative bubble. While it wasn’t a scam in the traditional sense, the Tulip Mania is often cited as one of the first recorded speculative bubbles in financial history.

During this time, tulips, which were relatively new and exotic flowers in Europe, became highly sought after as status symbols. The demand for tulip bulbs grew, and their prices skyrocketed. At the peak of the Tulip Mania, some single tulip bulbs were reportedly selling for prices equivalent to the value of valuable properties or years’ worth of a skilled worker’s salary.

The bubble eventually burst in 1637. The exact reasons for the collapse are debated among historians, but factors such as oversupply, market speculation, and a lack of regulation likely played roles. As prices fell sharply, many investors faced significant losses, and the economic fallout had broader implications for the Dutch economy. Tulip Mania serves as a historical example of the dangers of speculative bubbles and the irrational exuberance that can grip financial markets. The episode highlights how the value of assets can become detached from any underlying economic fundamentals, leading to unsustainable price levels and eventual market corrections.

The South Sea Bubble was a financial debacle that occurred in 18th-century Britain

The Great South Sea Company scandal, also known as the South Sea Bubble, was a financial debacle that occurred in 18th-century Britain. It was centered around the South Sea Company, a trading company that was granted a monopoly to trade with Spanish South America as part of the broader effort to reduce the national debt. The Great South Sea Company scandal is often cited as one of the earliest and most notorious examples of a financial bubble and subsequent crash, highlighting the dangers of speculative manias and the need for regulatory safeguards in financial markets.

In the early 1720s, the South Sea Company’s stock became the focus of intense speculation. Investors were lured by the company’s promise of vast wealth from trading with Spanish colonies, even though the actual profitability of such ventures was highly uncertain. Company insiders and stock promoters engaged in various fraudulent practices to inflate the stock price. This included spreading false rumors about the company’s potential profits and bribing influential individuals to support the company. The British government, seeking to reduce its debt burden, actively promoted the South Sea Company and encouraged investors to exchange their government debt for South Sea Company stock.

In 1720, the speculative bubble burst, leading to a sudden and dramatic collapse in the stock prices of the South Sea Company. Many investors faced financial ruin as stock values plummeted. The crisis had far-reaching consequences, and public outrage led to parliamentary investigations and the enactment of legislation to address fraudulent practices. The aftermath of the South Sea Bubble saw legal actions against those involved in the fraudulent activities, including company directors. The scandal had a lasting impact on public perception of financial speculation and contributed to increased regulatory oversight.

A historical financial fraud that took place was the Nation of Poyais

The Nation of Poyais scam is a historical financial fraud that took place in the early 19th century. It was orchestrated by a Scottish adventurer named Gregor MacGregor. In the early 1820s, MacGregor promoted a fictitious Central American country called Poyais, claiming that it was a prosperous and thriving nation with abundant natural resources. MacGregor went to great lengths to create an illusion of legitimacy for Poyais. He published brochures, maps, and other promotional materials describing the country’s supposed wealth, lush landscapes, and promising opportunities for European settlers. He even created a flag, a national anthem, and appointed himself as the “Cazique” (chief) of Poyais.

With the help of these elaborate marketing materials, MacGregor managed to convince hundreds of investors to buy Poyais government bonds and invest in the development of the fictional nation. He promised them land and riches in exchange for their investments. In reality, Poyais did not exist. MacGregor’s scheme was exposed when a group of settlers, eager to claim the land they had invested in, arrived at the supposed location of Poyais in Central America. Instead of finding a thriving nation, they encountered inhospitable jungle terrain and harsh conditions. Many of the settlers died as a result of disease and exposure.

The Poyais scheme resulted in financial ruin for many investors who had bought bonds and invested in the imaginary nation. MacGregor managed to escape legal consequences for his actions, and he continued to engage in various dubious schemes and adventures in the years that followed. The Nation of Poyais scam serves as a cautionary tale about the dangers of investment fraud, the importance of due diligence, and the vulnerability of individuals to charismatic individuals promoting unrealistic opportunities.

An early scam in the US in the 1870s was The Credit Mobilier scandal

The Credit Mobilier scandal was a major financial and political scandal in the United States during the early 1870s. It involved the Union Pacific Railroad and the Credit Mobilier of America, a construction company associated with the railroad. The revelation of the Credit Mobilier scandal led to a public outcry and damaged the reputations of several politicians involved. Investigations were launched, and the scandal tarnished the administration of President Ulysses S. Grant.

The Credit Mobilier of America was formed by key insiders of the Union Pacific Railroad, including Thomas C. Durant, a vice president of the Union Pacific. Credit Mobilier was tasked with the construction of the eastern portion of the First Transcontinental Railroad. Credit Mobilier significantly overcharged Union Pacific for the construction of the railroad. The excess profits were then distributed among shareholders, including influential politicians. Members of Congress were implicated in the scandal because some of them were shareholders in Credit Mobilier, including high-profile figures such as Vice President Schuyler Colfax and several congressmen.

The scandal was brought to light by investigative journalists, including Samuel Bowles of the Springfield Republican. The New York Sun published a series of articles exposing the fraudulent activities of Credit Mobilier. The Credit Mobilier scam was exposed just as the debt-based currency scam is being exposed today. Unfortunately, the currency scam today will be seen as historically gigantic, enormous, and global.

The currency scam is evident based on today’s dollar

$1 in 1971 has lost 87% of its purchasing power. $1 in 1999 is now worth $.55. Our US currency called Federal Reserve Notes has lost 20% of its purchasing power since 2020. As our government takes on more debt, our currency loses value. As our government does more deficit spending, our currency loses value. As our government issues more debt, our currency loses value. This is the best-case scenario of the current debt-based currency system being revealed. Our currency will inevitably lose buying power in a central banking-type system. The drastic outcome of our fiat currency system could be the total devaluation and collapse of market paper assets that continued to be based on debt. The debt-based currency scam is being revealed through economic chaos, financial market chaos, banking safety chaos, and social chaos. The answer from our leaders to save the world will be to print trillions of dollars because We have to do it.

The United States since 1929 has seen many financial frauds. Some of them include the Match King Hoax (1929), the Baker Estate Swindle (1936), ZZZZ Best Cleaners (1986), the Great Insider Trading Scam (1986), the Savings & Loan Scandal (1989), the Enron Bankruptcy (2001), the Madoff Pyramid (2008), and the Mortgage-Backed Security rip-off in 2009. While all these scams were meaningful, they dwarf in comparison to the ongoing debt-based currency scam that persists today that started in 1971. The implosion of the US fiat currency, i.e. Federal Reserve Notes i.e. US dollars, will ultimately bring the entire global financial system to its knees. There are over 200 different fiat currencies that exist today all based on debt. Fiat currency is a global scam that will not end well. A debt-based fiat currency system always leads to a currency crisis, hyperinflation, or economic instability. There is a high probability that we will see all three.

$1 worth of gold in 1971 is now worth roughly $70 of gold. $1 worth of gold in 1999 is now worth roughly $8 in gold. Gold is up roughly 13% in 2023 while our Federal Reserve Notes continued to lose buying power. This is a drastic difference when we compare our money as a fiat currency or as gold. The debt-based currency scam that is being revealed will result in lost buying power from our paper currency but a higher gold value. We haven’t even mentioned the safety and privacy aspect of paper currency versus physical gold. The currency scam that is being revealed today will further point out the importance of physical gold as money. Gold is the only form of money that has survived throughout time in its original form. And yes, history does matter.

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