The f ol l ow i ng t ex t w as pr epar ed f or i nc l usi on i n an emai l i n Mar c h 2013.

The emai l al so
i nc l uded t ex t f r om a pr evi ous message t o ot her par t i es; t hat addi t i onal t ex t i s not avai l abl e.

The t ex t bel ow has been edi t ed t o r emove per sonal i dent i f i er s or f or ot her
r easons; and some mat er i al has been added. Edi t s and addi t i onal mat er i al ar e
enc l osed i n squar e br ac k et s and hi ghl i ght ed i n r ed.

Hi [EDIT]. You have a valuable role in our community and there are matters important to
us as a community that I want to talk to you about. Part of this is related to financial
markets and to superannuation, which apart from a home is usually peoples biggest
asset: if people are fearful about their financial future, they are less able to keep track of
the other things that are happening around us.

Financial matters as they relate to superannuation are discussed further in the email
below [LOST IN SYSTEM CRASH A YEAR AGO] that I sent to [EDIT] on Saturday. In [early]
2007, I spoke to them (and others) about an imminent financial crash you know them
both and they will verify that if you ask them. [EDIT]

To reach the community matters I want to talk to you about, I need to explain first that
our whole monetary and financial system is a Ponzi scheme
(http://www.bing.com/search?q=ponzi&FORM=IE8SRC), guaranteed to fail because our
money is created through the issuance of debt. The devious uses this system can be put
to are simply understood, once you penetrate to the heart of it: if money is created
through debt, the only way the system can survive is through creation of more and
more debt at a faster and faster rate. The process must end in a crisis and/or crash. This
means the worlds current monetary and economic problems were not unforeseeable,
but in fact were foreseen and have been planned.


UNITED PONZI REPUBLIC

Look at it like this: imagine you have a newly-created country that has no medium of
exchange to enable buying and selling, saving and all the other functions that money
serves in a society.

This new country lets call it the United Ponzi Republic decides not to use gold or
silver coins, or seashells or jade carvings or all those other durable things that over
thousands of years have been used by various peoples as a medium of exchange and a
store of value. All these items either had to be wrought from the earth at great cost
(gold and silver), were not available in great quantities (specific types of seashell), or
were a product of human creativity (jade carvings). Whatever the item, it was difficult to
obtain and therefore tended to retain its value over extended periods of time many
hundreds and even thousands of years in some cases.

Instead, the United Ponzi Republic has the bright idea of introducing a paper currency
and setting up a debt-based financial system to get money into circulation in the
economy. The process kicks off with the powers-that-be (PTB) conjuring up a bank it
will have a solid, dependable-sounding name like First National Bank. The PTB decide
that $1 million is the minimum amount of paper money required in circulation to grease
the wheels of the nations economy by enabling the buying and selling of goods and
services, financing of business enterprises, etc etc and grease the wheels of their plan
to extract for themselves most of the wealth created by their nations entrepreneurs.

So First National Bank issues a $1 million loan to Borrower A for 12 months at an
interest rate of 10% (high, but it simplifies the calculations) and hands over 100,000 $10
notes. Borrower A spends the $1 million into the economy by buying goods and paying
wages to carry out a trading venture those 100,000 $10 notes have become available
in the economy and can be used by everyone else. The country has a paper currency,
enabled by debt.

At the end of 12 months, Borrower As debt can be wiped out only by the repayment of
$1.1 million (loan of $1 million plus $100,000 interest). That extra $100,000 does not
exist, so where does it come from? The way the system works, the extra $100,000 must
be created through another loan. But if the second loan amount was only $100,000 and
Borrower A paid First National Bank $1.1 million, there would be no money left in
circulation. To keep $1 million in circulation, Borrower B must borrow $1.1 million and
spend that money into the economy.

At the end of another 12 months, Borrower B has to pay his bank $1.21 million (loan of
$1.1 million plus $110,000 interest). So the bank must find Borrower C who wants $1.21
million and the cycle repeats, with Borrower C having to repay $1.331 million (loan of
$1.21 million plus $121,000 interest).

In a table the situation looks like this, if you aim to maintain $1 million in circulating
currency to keep the economy functioning:

TABLE 1 10% INTEREST TABLE 2 NO INTEREST
LOAN AMOUNT INTEREST PAID LOAN AMOUNT
INTEREST PAID
Step 1 $1,000,000 $100,000 $1,000,000 0
Step 2 $1,100,000 $110,000 $1,000,000 0
Step 3 $1,210,000 $121,000 $1,000,000 0
Step 4 $1,331,000 $133,100 $1,000,000 0
Step 5 $1,464,100 $146,410 $1,000,000 0
Step 6 $1,610,510 $161,051 $1,000,000 0
Step 7 $1,771,561 $177,156 $1,000,000 0
Step 8 $1,948,717 $194,871 $1,000,000 0
Step 9 $2,143,588 $214,358 $1,000,000 0
Step 10 $2,357,947 $235,794 $1,000,000 0

In just nine steps in Table 1, the interest burden on the economy has more than doubled
and in a $1 million economy more than 20% of economic output is going to the PTB
who, with the backing of their bribed cronies in the United Ponzi Republic Government,
set up First National Bank. At the launch of the bank, the punters got complicated
explanations about what a great system it would be for everyone, things will work
better, everyone will be happier, blah blah blah. The conspirators used lots of big words
and maybe waved a gun if any of the punters asked too many questions. Convenient
accidents are a useful tool, even to this day and not only in the United Ponzi Republic.

In fact, it reads pretty much like the history of banking in the United States, where the
creation of the Federal Reserve central bank in 1913 was the perfection of the thievery
nationally and the basis of a plan to spread the theft internationally through the World
Bank, Bank for International Settlements and other front groups or institutions. All these
organisations were set up after World War 2, when the US had become the big boy on
the block. You will not be surprised to learn this international expansion did not happen
by accident and that the strategic plan was hatched much earlier, ready to be put into
effect when the time was right or, more accurately, when the right time had been
guided into existence.

This is a much-simplified version of our national and global monetary systems,
obviously, but the essential facts and effects remain the same. You will see that in the
interest paid column in Table 1, the growth is not arithmetical but exponential
(http://www.businessdictionary.com/definition/exponential-growth.html). The purpose
of calculating the table to 10 steps is that by stage 10, the effect of exponential growth
is becoming easier to see: interest paid first increases by $10,000 (step 2), then
$11,000 (step 3) but from step 9 to step 10, the increase is $21,436 rather than the
$18,000 it would have been if the progression were arithmetical (in the arithmetical
case, the increase at each step would be rising by only $1,000 per step).

Multiply the number of steps by billions and you can see the debt burden becomes
increasingly significant the system must break, because the arithmetical increase in
production from the economy cannot pay the exponential increase in debt. What makes
the difference is that interest is being paid on interest and this is a financial killer in the
case of the overall system, just as much as in the case of individuals who over-use their
credit card.


EXPONENTIAL GROWTH

There is a useful explanation of exponential growth at
http://www.youtube.com/watch?v=hM1x4RljmnE although I do not necessarily agree
with the whole of the presentation, it serves the present purpose well and has the
advantage of being brief. The main point to take out is how exponential growth is
invisible early in the process, but blindingly fast near the end. With the global financial
system, we are at the end point after decades of unnoticed scum growth.

[EDIT]


BASIC REALITIES

Critics of my analysis of our debt-based monetary system might say it ignores many
factors and mixes the roles of central banks and commercial/investment banks. Those
critics would be correct, but only up to a point. I am not here to advise you about
disagreements over the finer points of economic theory and monetary systems (on
which, in any case, I am not expert), but to explore basic realities. The critics of a simple
explanation of these basic realities seek to confuse, rather than enlighten; in many cases
they themselves are confused, or are prime examples of youve got to be really
intelligent to be that dumb. Most economists arent worth feeding, because their
heads are in an even smaller box than us punters heads.

The negative effect of compounding interest on the overall financial system is the mirror
image of the positive experience that savers achieve through the miracle of compound
growth which works in their favour over the longer term. In the monetary system as a
whole, the dangers of compound growth in interest on debt can be neutralised
(temporarily) only by constant economic growth and faster and faster growth in credit
creation more and more loans have to be manufactured or the whole system is
crushed by the debt burden. You can see how all this progressed to liars loans lending
for housing in the United States, which was the approximate cause of the global
financial crisis that began in 2007/2008 and is not yet over.

It is easy to envisage how along the way to this end point, control of interest rates and
money creation has been used by the PTB to periodically confiscate real assets from the
productive sector of the United Ponzi Republic economy. Let us assume things have
reached the point in Year X where theres a $100 million economy with an expanded
monetary base. At 10% interest, and for the sake of simplicity ignoring the compounding
effect of paying interest on interest over the intervening years, at the end of Year X
borrowers will have to repay to the First National Bank $110 million ($100 million in
loans plus $10 million interest). First National Bank decides to issue only $100 million in
credit for the following year, meaning the system is $10 million short of what is needed
just for the economy to keep turning over at the same level.

First National Bank jawbones the punters and the newspaper headlines scream
Economy overheated and Inflation a danger. First National Bank rations the $100
million among the businesses and individuals seeking a total $110 million by increasing
interest rates to 20%. Borrowers scramble for cash to pay what they owe and/or seek to
roll over their loans. Profits accruing to First National Bank almost double (interest rates
have doubled, but less credit is being issued than otherwise would have been the case),
but the real greatest value to the PTB is not in the profit from interest rates.

The real value is that because of the shortage of money, businesses go bust and their
assets can be bought for the proverbial song and whos got money except for the guys
running the scam? The same rort applies to individual borrowers and residential real
estate. The losers in this game of monetary musical chairs retire to the sidelines. Theres
a rash of suicides among businesspeople who cannot cope with failure, retirees who
have seen their expectations of a comfortable life go down the plughole, and those
scraping a living at the margins of our system for whom the latest privations are the last
straw.

The game has been reset. Everyone shrugs their shoulders and gets back to life as usual.
Soon the headlines say Inflation under control and Interest rates cut. The price of
physical assets begins to rise and the assets that were stolen by the PTB at the lows are
returned to the pool at top dollar.

Theres no law against this, but it is criminal. There is no law, because the PTB write the
laws. There is no law, because our financial, political and legal establishments are a
farce. Australias alleged financial market regulators are a joke, as masterfully detailed
by Dr Benway who is linked below. [Dr Benway is the moniker used by a guy who in
2012 or thereabouts began exposing financial sector criminals and the
incompetency/neglect/connivance of Australian regulators at Photobucket
http://s1144.photobucket.com/user/_DrBenway/library/The%20Great%20Australian%2
0Investment%20Ponzi?sort=6&page=1 Photobucket is a user-unfriendly format for such
activity but his library there contains valuable information which has not been
reproduced in total at the blog to where he shifted his activity in July 2013
http://drbenway.blogspot.com.au/]
.


WHAT DOES THIS MEAN FOR OUR COMMUNITY?

An ill wind is blowing, hard. Not too far in the future, it will be a tempest. People in the
allegedly ignorant Third World are far more aware of what is going on than are we
pampered Australians, who continue to benefit (so far) from Chinas growth and the
willingness of our leaders to prostrate themselves before the US, including by keeping
us open to economic exploitation. Even when a lesson does have to be handed out here,
as it was to Gough Whitlam and his government all those years ago, it is through the
gentler methods of subversion and entrapment rather than via the iron fist which is
generally applied to any brown, yellow or black and even the occasional white
upstart elsewhere who does not roll over and allow their countrys resources to be
stolen. There are, after all, some benefits in being a paid-up-in-blood member of the
Western brotherhood.

You, a warrior, might find something of interest in the writings on this subject of retired
Marine Corps Major General Smedley Butler, the only two-time recipient of the USs
Medal of Honor. His book War Is a Racket is linked and some basic information about
him is available here http://en.wikipedia.org/wiki/War_is_a_Racket. This is not the
place to tell the full story, but Butler in 1933 headed off a coup in the United States,
planned by wealthy businessmen. There was an inquiry by a congressional committee in
1934 and it found Butlers claims to be true, but the names he disclosed in his evidence
were suppressed and surprise, surprise no-one was prosecuted. The offspring of
these conspirators will be among the perpetrators of the current crimes of the USs
business, financial and political elites. Once again, there will be no prosecutions of any
consequence, just a few minor players thrown to the wolves as scapegoats.

So, here we are in 2013 with the drive for a New World Order and a One World
Government entering the final stages. It is not even a secret: the desire for a New World
Order has been openly mentioned for years using that exact description by a
succession of leaders, at least as far back as the first President Bush and in more recent
times by another war criminal, Britains Tony Blair. [You can include Obama on the war
criminal list; his credentials were established early on and his guilt can be denied now
only by the most obtuse of his defenders. The next president will be no different.]