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Debt or Ponzi?

October 20, 2008 by  

Debt or Ponzi?

I think the American people have a tendency to confuse the term debt with ponzi. The trouble is that we try to apply the conventional definition of debt as a legitimate accounting concept. It cannot be done as refers to the so-called national debt.

The terms fiat and debt are incongruent. Fiat by definition is default. The most learned writers that I read believe that there is actually a U.S. government debt and they repeat it, and they repeat it, and they repeat it. I can easily see why the government cabal wants the people to believe that there is government debt. Otherwise people might get the idea that the Fed was operating on printing press money (fiat).

What I am saying is that the reality of government monetary realism is that the U.S. government gets everything for nothing, even wars. That’s why we have so many.

John Maynard Keynes spilled the beans if anybody was looking, in his 1920 book, The Economic Consequences of the Peace, wherein he said “If governments should refrain from regulation (taxation) the worthlessness of the money becomes apparent and the fraud can be concealed no longer.” The pretense of collecting taxes supports the psychological syndrome that there is a national debt.

Translated, what he is saying is that without regulation through the tax collection system, and I would add, the propaganda paraphernalia of the national debt, that the people might come to wake up to the fact that the government is simply printing money and spewing it out and calling fiat “debt” as if it were legitimate and conventional accounting.

Again I say that so-called “debt” on everybody’s lips is nothing more than fiat ponzi and it has no more substance than whittenpoof dust. This is cognitive dissonance, which is the concept of holding two opposing thoughts at the same time. This is the irrational state of mind of the American people.

Of course their bailout, inflation and all the rest of it dilutes all the dollars in savings and circulation. It is my view that at present they are after the remaining trillions of dollars that the American people have in savings and retirement accounts. I believe that this is economic war on the American people. Unfortunately, not one in a million will ever figure it out until we become impoverished like the Weimar Republic in 1923. All of this is nothing more than witchcraft and created and concocted in such a way that it operates above the threshold of intelligence of the people.

This translates to government fraud on a worldwide and unbelievable scale.

Back to the current precious metals market, it appears to me that there has been so much damage to sentiment that we may be several months getting into another substantial rally, barring another war, which is highly possible as fiat needs war.

Of course government bureaucrats and propagandists love this mental suppression of the precious metals market because it extends their system of fiat.

Bob Livingston

is an ultra-conservative American and author of The Bob Livingston Letter™, founded in 1969. Bob has devoted much of his life to research and the quest for truth on a variety of subjects. Bob specializes in health issues such as nutritional supplements and alternatives to drugs, as well as issues of privacy (both personal and financial), asset protection and the preservation of freedom.

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  • david

    Seems to me that it use to be frowned upon to have a lot of debt. When did things change? I would love for teachers and parents to start teaching kids some fiscal responsibility, but I don’t even know if they have it themselves…

    • susan Tenofsky

      Present personal fiscal irresponsibility is what our children eventually learn. Yes, they must foot the bill for our indiscretions.
      The beginning of the end of our prosperity started with the acceptance of the encouragement of Credit Card Companies and Government Policies pushing the power of using credit, not cash. The American people fell for this offer, hook, line and sinker.The Getting something for nothing syndrome felt terrific. The Banks took complete advantage of the policy, as well as the poverty-stricken wrongfully investing in homes beyond their means.Presidents and Congress fell into the trap of condoning this philosophy. The immediate pleasure got votes! ACORN forced the issue by protesting for poverty-stricken to be treated as “equals” who should have homes they could not really afford. Banks found it a profitable indiscretion. Now all suffer because of the stupidity of short term thinking.Where could basic values of goodness, right and wrong go. For the many decent values disappeared. The ploy to create change….through socialism…. will steal our freedoms from us. Does the public know or care about
      their loss of Independence…..sadly for the most part…No. Each will be losing more than the value of the dollar, each will lose their soul. Yes, the stars were aligned for an Obama Nation, Chicago style. Now all Americans are Obama’s victims. What is left after the pretty picture Obama presents, I fear to think of that! May God help me bear the future.

      Susan Tenofsky

  • TeresaE

    David, no way the tax and spend liberals that teach in our schools understand the concept.  Look to Michigan as proof, thousands of working (or formerly working) citizens are leaving, schools and property tax revenues are shrinking, the average earned income has dropped like a stone,  yet our teachers enjoy the 6th highest pay in the nation-and in the top 5 for benefits, yet they strike (illegal) for more.  Even as their students come to school hungry and even homeless. 

    If you think those over-educated morons could teach your kid fiscal responsibility, well then, I have an over valued home to sell you on the cheap.

    I too believe that the government is coming after us, their trade & immigration policies have already took away most of our jobs, the only thing the non-government union, middle class has is their retirement and savings.

    And, we are begging them to finish destroying us.

  • Wendell

       Since the Federal Reserve Act of 1913 we have been dupped with fiat money, debt, etc.
       The only solution is repeal the Federal Reserve Act and close down the IRS, plus get
        the nation’s gold back from the Federal Reserve.  Go back to real money with intrinsic
        value and replace the gold in Fort Knox.

  • Gordon Flaco

    Teresa:  this is capitalism.  if we want children to respect teachers, the latter will have to be paid a lot to give them prestige and make them seem worth listening-to.

    David: our value-system as a society deprecates ideals like dignity, temperance (in the original sense of “moderation”, not the vulgarised and risible “abstinence”), pursuit of knowledge, and rationality in favour of gratification with things from outside ourselves; this is the engine of our economy as we have made it (with the excuse of the need for a “Free” Market as a way of giving up our individual and collective responsibilities)…under these circumstances, people’s need to feel good, unsupported as they are by our mostly-unnecessary jobs and by relationships poisoned by lack of deep feeling and thinking, inevitably brings about over-spending.

    Wendell:  Gold is just a shiny metal; like everything else, including fiat money, it’s only worth what people agree it’s worth.  Nothing magic there—and do you _really_ want the value of our nation’s wealth to be dependent largely on the mining decisions made in South Africa and Russia?  If you _must_ have something backing our currency, why not a basket of energy-producing materials and infrastructure—with enough energy, you can do just about anything else, or soon will be once nanotech starts to mature.  (I’d leave out petroleum:  it’s too useful making drugs, plastics, dyes, and the like to burn.)

  • Richard

    If Obama can’t prove his citizenship, everything is moot

  • james


    If Obama needs to prove his citizenship so does Panamanian Born McCain because last time I checked Panama is not a part of our United States of America.

    So if McCain wants to claim Obama is now not a Citizen neither is he! at least Obama has an American Mother.

    • Veracruz

      James: McCain did not get elected.

    • Veracruz

      James, McCain was not elected president.

    • virginia

      Every polition should have to prove their citenship before they can run for office. Any canidate who won’t even when the public tells them to show proof is telling me they can’t show proof because they aren’t a citizen. But to millions it did’nt make a difference. Hillary Clinton would have made a great president.She is very intelligent, compasionate & lived in the white house during a time of great prosperity for Americans. Don’t waste time & money on a canidate unless they can prove they are an American born citizen.

    • JD

      8 U.S.C. 1403 Any person born in the Canal Zone on or after February 26, 1904, and whether before or after the effective date of this chapter, whose father or mother or both at the time of the birth of such person was or is a citizen of the United States, is declared to be a citizen of the United States.”

    • JD

      Parents of John McCain: Admiral John Sydney McCain, Jr. (from Indiana) and Roberta (Wright) McCain (from Oklahoma)

  • james

    Lets all face it the country sold out big time, we drive cars from China and wear clothes made in Japan, for Christ sake we even drink water from France.

    So why the heck are we all crying now that a hostile take over of the new world order is coming we sold out our on nation, bit by bit…  China owns most of the land in CA and we are stupid enough to sell it to them, because they are paying taxes on it, this is just crazy.

    We need to get back to America the real America where we invent and where we make our own cars, I see GM and Ford going down and Honda is doing well with all the other foreign car companies.

    I dont think Obama or McCain will be ready for anything that is coming McCain is just more Bush and more War and Obama is just too pie in the sky.

  • Mark Anderson

    Wow.  No wonder they got rid of Bob Livingston.  Bob is absolutely right here.  It takes dedicated study (independent of government accredited education) to really understand that what is at play here is a system that refuses to give up power.

    Just look at the IMF telling to China to buy up its gold reserves.  And what is the IMF going to do with those dollars, other than prop up failing regimes with bailouts?  Now juxtapose that with the fact that U.S. auto sales are slumping.  Do you all see the absurdity here?

    During an inflation, as David Hume articulated in 1752, this actually creates a negative balance-of-payments, rather than mitigating it, as prevailing economic orthodoxy teaches.  Inflation makes domestic goods comparatively more expensive than foreign goods, thus increasing dependency upon cheaper foreign markets to supply goods.

    If the government GOT OUT OF THE WAY, the market could function and would quickly self-correct.  Our problems were brought on BY TOO MUCH “LIQUIDITY.”  But where did this “liquidity” go?  Foreigners.  Thus, if the POLITICIANS GOT OUT OF THE WAY, the U.S. could solve the “liquidity” problem and reverse the negative balance-of-payments by and boost auto sales by….becoming an exporter again.  The trouble is, politicians refuse to relinquish an inch of power.

    In a true free market, a liability on one balance sheet is an asset on another.  The problem here was NOT a few bad loans.  Loan defaults would do no more damage to an economy than would charitable contributions, in which case no repayment is expected.  Furthermore, foreclosures are only symptoms and do not determine economic conditions.  The underlying problem is the monetary system itself.

  • Terry Neal

    But Gordon, gold IS more than a shiny metal and has been for over 5,000 years. The constitution of the USA says it is more than that too!  Any kind of money is whatever we decide it is, something that eases the bartering of goods. You don’t have to take the pig to market, just swap some ‘money’ with the guy holding the corn. Gold has always been seen as something of great value and always will.
    If you’d just as soon hold fiat as gold, then you are delusional. Fiat will always disappear. Gold will endure!

  • Chuck m

    To Whom It May Concern:
    I feel it is time that we follow the lead of our forefathers and form a declaration of Independence from the Confederate government who is holding power over this great nation. In reality the Washington crowd is corrupt in every sense of the word and have become a confederate government. They no longer respect the Constitution of the United States or its’ Bill of Rights. In fact they consider it the least binding law when passing regulations that effect us all. They no longer respect or represent the will of the people who they are elected to serve. They have even corrupted our elections with non traceable and faulty voting methods. Registering one person hundreds of times and allowing such criminal acts to stand, even after being exposed. It’s unbelievable what has happened to us over the past 15 years and more so in the past 5 years. Who would have thought that we would need to watch what we say in America because Big Brother is Watching. We now have Word police, thought police, fun police, city police, county police, federal police, airport police, park police state and federal, fbi, cia, animal police, and several hundred others i cannot think of. We are being regulated, taxed, and policed out of existance.There is nothing this Washington crowd touches that is not completely corrupted. More and more of our Constitutionally guaranteed rights are being eroded each day these people remain in power. We will wake up very soon and it will be too late. They will have stripped us of every means of rebelling and taking our lives back. There is already a consensus by a few in this country that we would be better off as Marxists or some resemblance thereof. These people are assimilated into our educational institutions and are controlling the curriculum in our schools. Our young people have not even been taught patriotism and the rights guaranteed them by our Constitution, so they do not know what they are loosing. This was taught in our schools just a few years ago, and required subjects, not elective.
    We are being taken over by the multinationals with our own money that we have given them. How ignorant can we be? Our elected representatives have legalized graft, corruption, and pay offs for votes, by taking the money through the back door in their campaign finances and brother in law deals with friends and relatives. They have even been accepting money from foreign governments in this manner. This is strictly prohibited by our constitution. All of the above are criminal acts and need to be treated as such. Due to this corruption, you see a law being passed and you say, “how can that be good for America”, but it passes anyway. It is completely contrary to common sense and many of these recently passed laws should be considered Treason. They have destroyed this country, morally, economically, and have negatively impacted the USA worldwide.

    We have a Constitutional duty to overthrow these thieves and criminals and form a new and (Independent United States of America) which will again serve the will of its’ people. This can be done by a simple vote of the people from each state that chooses to become a part of the New America. We have the perfect format in our Declaration of Independence, our Constitution and our Bill of Rights. We simply re-implement these documents and any law to the contrary “NOTWITHSTANDING” as is stated in our Constitution. We obey no laws that are contrary to the rights enumerated in our Constitution and Bill of Rights. We elect a new President  and Congress in the manner prescribed by our constitution, we elect new state officials, all current corrupt government agents must be fired. They seem to think they are above us and have no allegiance to us, we implement a fair tax system, possibly a national sales tax. We refuse to acknowledge any and all laws or regulations that are rooted in this current Confederate government. We pay no money to this corrupt system.  All member states retain their National Guards and their right to keep and bear arms of course, as protection against the corrupt Washingtonites.
    If you think Obama or McCain will be the savior, you are completely confused. These people are part of the problem. By the way , spreading the wealth around, is one of the main platforms of ” The Communist Manefesto.”
    Please forward this email to everyone on your mailing list


    • Gail

      I agree with all you said. I’m in.

    • Zoltan Hahn

      Chuck M

      Seldom, in fact, never have I seen a case put forward more succintly, elegantly,
      and factually than your writing… It all 100% true and sadly so. Congrats !
      I cant disagree with a single point except one .. spreading the wealth around, is
      one of the main platforms of “the Communist Manifesto ” the fact is that
      while it naively says that, true enough, what is left out in practice is WHO the
      recipient of that wealth is, and I can tell you from personal experience ,, that
      the wealth (money, real estate, perks, power, ect, ect, is reserved for the top
      .01% of reliable co-horts, party colleques, obedient servants and on.
      Not too different from Washington
      What the solution is clouded in mystery, since the interlocking control of
      all power centres (congless/senate/whitehouse/judiciary) at federal/state and
      to a lesser degree at municipal levels is pretty complete.
      Where is there a man or many men, who can put their ego,financial matters,
      their very freedon at risk, to fight the Great Monster (NWO)., knowing full well
      that any effort will be mostly ignored by great uncaring and unwashed masses, too ignorant and naive to know or see the truth. However knowing full well that it
      will be brought into the light by the ever watching Big Brother with their mineons,
      of bought and paid for “public servants”
      Perhaps those brave men are forever gone.
      A thought has come to mind, in 1991 I believe the Russians had a small “coup”,
      remember the one that threw out Gorbachev for a couple of weeks.
      During the first few days of it the Russian army was in Moscow, manning the checkpoints ect, during one or two evenings when the crowd got somewhat
      noisy and rambunctious, some shots were fired, but for the most part no large
      scale shooting ensued, the following morning some officers and ordinary soldiers
      were interviewed and by in large they said the they would not fire on civilians, or
      as one put it ” on my people”
      I wonder in the days to come when the as army/marines/nat guard/ will be on the
      streets in most american cities, will they also disobej and not fire on citizens ??
      We’ll see.!

  • Bob Livingston

    Terry’s comments are dead on.  Bob.

    • virginia

      Bob are you trying to push gold prices up by making it sound to good to be true. I’d rather have cash to take to shopping than gold. If everybody in the media pusges gold it will go yo if you all push stocks they will go up. If you badmouth them & hammer them they will go down. Frankly if the media would tell good news instead of doom & gloom all the time people would buy more. I know I would. I would like to buy big ticket items but everybody is so pessimistic I’m scared to spend what I have or buy on credit.

  • winsmith

    tax and spend ?
    Harry Hopkins was the aide to Franklin Roosevellt who said, “Elect, elect, elect, tax, tax, tax and spend, spend, spend” the people are too damned dumb to understand.” Can YOU
    understand that elections change niothing but the faces of fascists, taxes are illusions with the Fed saying their system “works only with credit” and ALL REPORTS OF GOVERNMENT SPENDING ARE LIEs.  They cannot get money from you in this system that works us only with credit and they have no need for money when all of us will risk our lives for credit. 

  • Steve Smith

    Can the crap critising Obama stop now. He has whipped McCain and now has the humongeous task of (1) restoring respect to America, (2) restoring hope to the American people, (3) restoring America’s financial solvency.
    Obama needs your help and mine (despite how selfish and misguided you may be). America is bigger than all of our individual stupidity, racism and bigotry and if we are to repair the rape that was the last eight years, we have to work together and rise above the bullshit we so easily spew.

    • Veracruz

      The criticism of “the man” will stop whenever he can show that he is not the Marxist-Leninist his past shows him to be. Whether or not he whipped McCain (he most certainly did) is irrelevant. McCain was no better than Obama. His policies had been shown to be failures. It will help when people like you stop being so thin skinned. I saw no name-calling in these posts until I got to the ones where they loved Obama. Then the hatred came spewing out.

    • Harold

      Steve, you are too stupid to even reply.

  • Dave

    While I still have the freedom of speech to some degree, Obama can kiss my freedom fighting ass and I will never call him president

  • patty

    My husband and I were blogging on ABC News yesterday about Obama and all our posts have been deleted. What happened to freedom of speech. They were not mean and we did not use filthy language in the blogs we just stated some facts!!!

    • Veracruz

      Patty, the liberal media does not like facts. Facts make them look bad.

  • larry e ludeman

    The good jobs are gone,We can not make $$$$$ like we use to.Pay to much tax on every thing.The america dream is gone.Hold on to your $$$$$ if you have any.

  • Willie

    What’s worse is the shell game deception. With all the bailouts what is happening I am certain was planned well ahead of time. Most of the world is socialist. Americans are being duped into believing that the bailouts are needful things. But what is actually happening is America is owning corporations. That’s not capitalism, that’s communism. Time to hold those in Congress accountable to their votes for a communist America. Those who openly oppose the bailouts of course will be viewed as non-patriotic Americans. (evil is good ~ good is evil; proof that we are in the last days) All my 401K money hasn’t just disappeared. It went somewhere and for a reason ~ always follow the money. And let’s not forget the “extra billions” the government got from oil revenues when they allowed the price of gasoline to skyrocket. Did they orchestrate this in order to have more money for the bailouts (transfer from capitalism to socialism ~ unawares)? We are being told that we are in a recession, but where is the proof? Black Friday had far greater profits than last year. What will the recession fear cause to happen? Don’t look where the magician points that’s misdirection and serves his purpose just like how our government is reporting on a recession. They want people to act in a certain way. We are like sheep only bigger and dumber.

  • Gail

    Anyone who still had their money in stocks, 401K, etc. You are being fed the biggest lie “Leave your money in for the long haul, it ALWAYS comes back. Who do you think is feeding you that line? The people who are taking all of their money out now because they know that within one year the Dow will be at 500. How many years do you have left to wait for the long haul comeback that is not going to ever happen? You better get your cash and hide it. One year after we were in a recession we were told that we were. During that one year period all you heard was that we weren’t in a recession. We are now or will be within 6 months in a depression. Here’s what you need and better start stocking up now on non perishables food to feed your family, water, guns and ammo and if you can buy all the gold and silver you can and hide it. Change is gonna come and it is going to be sooner than you think.

  • http://msn ronald cottrell

    if you gave the poor peope 1 million dollars then they wood by houses and cars

    • Allen

      If you gave the poor $1M, they would work less than they do now and would spend it all within a year or less and want more. That does us and them no good. Stop the free money and make them work for a living and we’d all be better off. Cut the taxes on small business, get rid of the Federal Reserve, get rid of the personal income tax which was implemented without the consent of the required states and then and only then will we start to move forward. Also, if we locked up the borders and sent the illegals home, there would be 14,000,000 more jobs for citizens and legal immigrants. The cost to round up illegals and send them home would be more than offset by the savings in social services that we are currently paying for with our tax dollars. We need to take back our country from the politicians and foreigners who are destroying her.

  • s c mailen, jr.

    Regardless of what it’s called, we can’t tolerate debt or ponzi schemes. These ideas are leading America down the path to slavery.
    America has millions of people who do not understand the difference between slavery and freedom. God knew what He was doing when he compared us to sheep.
    When people understand that Washington is full of predators [and we are their prey] we will no longer be forced to sacrifice for those who do not deserve to lead us.

  • morison dony

    Thanks for this. Just subscribed.

  • Eric g

    I dont believe chinia own most of the land in california . I think Chinia holds mostly gorvernment bonds . Its the same old story of the poor financing the rich , big spenders and high livers . I guess mexicoe loans us money too .
    Now I understand the poor states are going to finance california . I would rather throw California out of the United States , if they cant balance their budjet . States should be forced to balance their income with their expenditures . Raise taxes or reduce spending . California has plenty of money for foolishness , but seems to want the rest of us to pay for their neccesities . I say hell no

  • Kowboy

    BOB,..The Government may be spewing out Fiat money,..but it is bought from thr privately owned corrupt illegal Fed Reserve at the face value on each bill,…not for the 5 cents a bill it costs the Fed for paper and ink.The Fed Reserve does not belong to the Government,..and is a total SCAM,…and most are unaware of this fact. That is where the debt comes from (Fed supplies/loans money to Government/ThePeople,..a hundred dollar bill costs Fed 5 cents to make and they loan it to the Gov as a hundred dollar loan)on top of hich the Fed Reserve charges interest ! And that is where the income tax comes into play, is to pay the interest on the money loaned from the Fed to the Gov/people.
    WENDALL,..It is said that the GOLD has vanished, and what’s there is plated.
    STEVE and VIRGINIA,..Wake up !Do your research,..there’s no difference,..they’re all related, ..’selected’ not elected, bought and paid for,..elections are a SCAM to make people think it’s a free country and you have a choice,..there is no choice but to wake up to the Truth. Join Restoretherepublic and Campaignforliberty, grass roots.
    JAMES AND CHUCK,…Right on !!


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