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Fraudulent Deposit Insuranc Con

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a few on here know it is

when will the rest wake up




Modern banking is akin to a shell game. As long as the public doesn’t catch on or the

unexpected never happens (as in a banking crisis) the fraud can and does continue. The

banking crisis during Great Depression, however, almost brought the banker’s shell game

to an end by exposing it for what it was—a shell game.

When US depositors rushed to the banks between 1930 and 1933 to withdraw their

savings, they found the banks didn’t actually have their money and thousands of banks

were forced to close.

This is what happened to Bernie Madoff’s clients when they requested their money en

masse in 2008. This was Bernie Madoff’s nightmare. It is also the nightmare of all

bankers because—just as with Bernie Madoff—the depositors’ money isn’t really there.

When the Great Depression alerted savers to the fact that the banks didn’t actually have

their money, bankers and government decided something had to be done to prevent bank

runs from occurring in the future.

So, they created the FDIC, the Federal Deposit Insurance Corporation, which would

maintain a fund composed of bank insurance premiums that would protect depositors

against any losses up to a certain proscribed amount.

But while Americans now believe their savings are backed by premiums paid into the

FDIC fund, no such fund exists; and, although the FDIC regularly reports how much

money is in the FDIC fund, the fund itself, like modern economics, is a fraud.

The following is an excerpt from an article, The Mythical FDIC Fund, by William M.

Isaac, former Chairman of the FDIC. It should be titled:




By William M. Isaac

William Isaac, former Chairman of the Federal Deposit Insurance

Corporation, (FDIC)

…When I became Chairman of the FDIC in 1981, the FDIC's financial statement

showed a balance at the U.S. Treasury of some $11 billion. I decided it would be

a real treat to see all of that money, so I placed a call to Treasury Secretary Don


Isaac: Don, I'd like to come over to look at the money.


Regan: What money?

Isaac: You know . . . the $11 billion the FDIC has in the vault at Treasury.

Regan: Uh, well you see Bill, ah, that's a bit of a problem.

Isaac: I know you're busy. I don't need to do it right away.

Regan: Well . . . it's not a question of timing . . . I don't know quite how to put this,

but we don't have the money.

Isaac: Right . . . ha ha.

Regan: No, really. The banks have been paying money to the FDIC, the FDIC has

been turning the money over to the Treasury, and the Treasury has been spending

it on missiles, school lunches, water projects, and the like. The money's gone.

Isaac: But it says right here on this financial statement that we have over $11

billion at the Treasury.

Regan: In a sense, you do. You see, we owe that money to the FDIC, and we pay

interest on it.

Isaac: I know this might sound pretty far-fetched, but what would happen if we

should need a few billion to handle a bank failure?

Regan: That's easy - we'd go right out and borrow it. You'd have the money in no

time . . . same day service most days.

Isaac: Let me see if I've got this straight. The money the banks thought they were

storing up for the past half century - sort of saving it for a rainy day - is gone.

If a storm begins brewing and we need the money, Treasury will have to borrow

it. Is that about it?

Regan: Yep.

Isaac: Just one more thing, while I've got you. Why do we bother pretending

there's a fund?

Regan: I'm sorry, Bill, but the President's on the other line. I'll have to get back to

you on that.

I don’t know whether Treasury Secretary Don Regan ever answered Isaac’s question,

Why do we bother pretending there's a fund? But the answer is obvious. Modern


economics, i.e. central banking, is a shell game, a shell game where bankers with the aid

of governments have foisted a highly lucrative fraud on society; and, while the fraud of

the FDIC fund is egregious, it is no more egregious than the fraud of the Fed or of the

economy itself.

In economies based on the fraudulent issuance of money as debt, there are only predators

and victims. Bankers are the predators, society is the victim (businessmen are victims

who often believe they’re predators) and governments are the well-paid-off referees in

the rigged game being played out in today’s capital markets.



This is our salvation. The debasement of our money and our enslavement by bankers into

perpetual debt is finally coming to and end; but not because those oppressed realize their

plight and are finally revolting. Their slavery is ending because those so enslaved are

now so indebted they are unable to pay what they owe and the prison of debt itself is now


Banker’s credit creates constantly compounding debt and; today, so much debt has been

created the economy can no longer expand fast enough to service it or pay it back.

Homeowners, workers, farmers, business people, corporations and governments are all

indebted beyond their means to repay and. when debtors can’t pay what they owe, the

shell game of debt-based capitalism collapses—game over.

The Federal Reserve System which substituted debt-based paper money for the gold and

silver based money issued previously from the US Treasury is now 96 years old; and, if

the US economy continues to decline because of the compounding levels of debt created

by the Federal Reserve, the Federal Reserve System itself may be called into question

before it reaches its 100 year anniversary.

The end of the Federal Reserve System should be the collective goal of all Americans;

for all Americans—black, white and brown, men and women, rich and poor, tea-baggers

and tree-huggers, the already born and yet-to-be born—have all been enslaved by the

Fed’s substitution of its debt-based money for the gold and silver currency previously

issued by the US Treasury.

Today, all Americans collectively owe more than can ever be repaid. America has been

delivered into perpetual bondage by the Federal Reserve. It’s about time that changed.

The descent into perpetual debt happened on our watch. It is our responsibility to now do

something about it. If we owe anything to anyone, we owe this to ourselves and to our


Edited by lowrentyieldmakessense(honest!)

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some more

sell into the recent rally methinks


In a recent Barron’s, the noted David Rosenberg (former chief economist at Merrill Lynch) remarks:

“The trailing P/E on an operating earnings (adjusted to take out everything that is bad) is now at 24 times, while on

trailing reported earnings, the multiple a mere 760-plus!â€

“Something tells usâ€, Dave explains, “that the marginal buyer of equities today at that price may well be the same

person who was loading up on REAL ESTATE during the summer of 06.â€

And he is correct. This is a bounce in markets and economy engineered by Washington and Wall Street to FOOL you

before the next leg down into depression unfolds. To get new FOOLS to BUY their TOXIC stock, loans and bond

holdings before they decline to their REAL values, making the public and investors their

PATSIES once again. If you or I attempted this, it would be called PUMP and DUMP,

and we would be prosecuted for it; when WALL STREET and the Treasury do this it’s a

wink and a smile… Dave goes on to say:

"Consumer spending came in at -1.2% annualized, twice the decline expected by

the consensus. This occurred in the face of gargantuan fiscal stimulus and leaves

wondering how this critical 70% chunk of the economy is going to perform as the

cash-flow boost from Uncle Sam's generosity recedes in the second half of the year.

Imagine, government transfers to the household sector exploded at a 33% annual

rate, while tax payments imploded at a 33% annual rate and the best we can do is a

-1.2% annualized decline in consumer spending in real terms and flat in nominal

terms? What do we do for an encore? In the absence of the fiscal largesse, it is

quite conceivable that consumer spending would have shrunk at a 10% annual rate

last quarter!"

Undoubtedly, Dave had to leave the banksters of Wall Street before he was FULLY

allowed to utter these truths.

Take a look to the left at the Russell 2000 to get another picture of what ORWELLIAN

stock valuations have become, courtesy of the www.wsj.com.

Tedbits Newsletter: August 6, 2009

Copyright © 2009 Ty Andros -- Portions of this document may be reproduced ONLY with full credit and contact information to Ty Andros

at tedbits@TraderView.com and www.traderview.com Past performance is not indicative of future results. There is risk of loss in trading.


WOW, trailing earnings almost 50% HIGHER than any time in the last 30 YEARS; I think my nose is beginning to bleed at

these heights. Buying the S&P 500 or Russell 2000 requires an investor wears a parachute… When you hear green

shoots, consider the source. It is nothing more than the trillions of printed Quantitative-easing money going somewhere,

aided by government manipulation of the markets and the MAIN STREAM media headlines. Risky assets of all types have

risen with the stock markets (bonds, etc.), as desperate fiat currency holders seek returns and SHELTER from the hot fire

hoses of money ROLLING off the presses. Maybe this is the beginning of the Zimbabwe Effect.

A Morphine high is the result of printing and injecting TRILLIONS of little pieces of paper known as G7 currencies and

calling them capital, when in reality they are nothing more than accounting fictions. Their citizens, thinking they are

receiving money, realize before it’s all over that they are holding nothing in their hands and nothing in their futures.

To fight the economic collapse, most government programs are nothing less than the implementation of political goals of

government expansion, as well as government control over everything (also known as fascist socialism), and calling it the

solution to practical problems we face today. The only solution is income growth in the PRIVATE SECTOR, not the

demise of it.

To rescue the financial sector, the Inspector General of the TARP program reported that the total outlays and

commitments have now EXCEEDED $23 trillion (that is 23 million, million). He was immediately called into the White

house and viciously attacked for saying the truth. The next day the Treasury and White House VIGOROUSLY DENIED

the reports. And we have heard not a peep from the supposedly independent auditor. Chicago politics at work….

The STIMULUS Bill and 2009 budget are perfect examples, 11 to 15% actual stimulus and the rest just expands

government by 90% IN ONE YEAR. Only the locusts have not arrived yet, as the government cannot spend and

implement their new schemes as fast as they fund them, with dollars printed out of thin air and NEW BORROWING…

Abraham Lincoln once said:

􀂃 You cannot help the poor by destroying the rich.

􀂃 You cannot strengthen the weak by weakening the strong.

􀂃 You cannot bring about prosperity by discouraging thrift.

􀂃 You cannot lift the wage earner up by pulling the wage payer down.

􀂃 You cannot further the brotherhood of man by inciting class hatred.

􀂃 You cannot build character and courage by taking away men's initiative and independence.

􀂃 You cannot help men permanently by doing for them, what they could and should do for themselves.

This is PRECISELY the public policy being implemented today. It is exactly what he warned us not to do, specifically

designed to engineer the collapse of income and economies which our PROGRESSIVE, aka Socialist, public servants will

use as their excuse to seize power and private-sector money, all to SAVE you. These are the teachings of SAUL

ALINSKY in action. Every policy they implement destroys income in the private sectors, which equates to personal

freedom, and INCREASINGLY puts the government in charge of who gets what. As Alexander Tytler observed in 1775

during the Revolutionary War:

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover they can

vote themselves largesse from the public treasury. From that moment on, the majority always votes for the

candidates promising them the most benefits from the public treasury, with the result that a democracy always

collapses over a loss of fiscal responsibility, always followed by a dictatorship. The average of the world's great

civilizations before they decline has been 200 years. These nations have progressed in this sequence: From

bondage to spiritual faith; from spiritual faith to great courage; from courage to liberty; from liberty to abundance; from

abundance to selfishness; from selfishness to complacency; from complacency to apathy; from apathy to

dependency; from dependency back again to bondage."

The G7 is firmly in the latter two stages of this observation; private property and the private sectors are SUBSUMED to

feed the dependency of the captive victims known as CITIZENS. Now we know what the progressive Democratic Party

and its standard bearer, aka the President, meant when they said they would be the agents of change:

Tedbits Newsletter: August 6, 2009

Copyright © 2009 Ty Andros -- Portions of this document may be reproduced ONLY with full credit and contact information to Ty Andros

at tedbits@TraderView.com and www.traderview.com Past performance is not indicative of future results. There is risk of loss in trading.


In other words, change means increasingly becoming SLAVES of


The naked corruption emanating from the capitals of the G7 and

their crony capitalist handmaidens is breathtaking in its depth and

breadth. Climate change and health care bills written in a back

room, read by NOBODY in the legislature and passed by “paid

for†public serpents, er… servants. They are Benedict Arnolds to

their oaths to uphold the constitution and partners in the


One of the primary missing ingredients is the acknowledgment

that wealth is not generated from the GOVERNMENT and

PUBLIC sectors; in fact, they are the destroyers of it.

“Government spending cannot create additional jobs. If

the government provides the funds required by taxing

citizens or by borrowing from the public, it abolishes on

one hand as many jobs as it creates on the otherâ€â€¦

-Ludwig Von Mises

Unfortunately one other CRITICAL difference is also left unsaid,

so I will say it: most of the jobs in the private sector “produce

more than they consume†and create wealth (otherwise the

business goes bankrupt), and ALL of the jobs created by

government “consume more than they produce†and represent a

never-ending DESTRUCTION of wealth and capital. They must

continuously be supported by more taxes and borrowing from the

producing sectors of the various countries. One needs look no

further than the ETHANOL industry to see this in action.

Such as, reducing the seed corn CAPITAL from the private sector - entrepreneurs require this to create new and

innovative businesses which provide “MORE FOR LESS†as rising new competitors put crony capitalists OUT OF

BUSINESS. In the G7, this cannot be countenanced. What would: GM, Chrysler, Wall Street and the biggest banks,

AIG, Fannie Mae and Freddie Mac, Airbus, GE and soon the public health insurance option do if they were not protected

by LEGISLATORS? Since 1998, Wall Street and the big banks have contributed OVER $1.8 billion to REELECTION

campaigns. What did they get? PROTECTION from their own mistakes (privatizing profits and socializing the

losses) and new competitors… They get the profits and their mistakes are paid for by You, Me and our children, better

known as the public.

Look no further than the new financial regulation bill, no doubt written in the executive offices of the Big Banks and

Brokerages, creating a new class of too-big-to-fail firms, which are NEVER going to be reduced to a size which is not

threatening to the public. This allows them to take even bigger risks, firm in the knowledge that government has

ENSHRINED into law that they CANNOT FAIL. Those financial institutions outside this SAFETY net then become

the PREY of the government-supported entities, such as JP Morgan, Goldman Sachs\ and Morgan Stanley. All the

while, letting lose a plague of locusts on their smaller competitors (government regulators) so they can no longer be

challenged in the MARKETPLACE, as their competitors fall under the brass knuckles of UNCLE SAM. Bought and paid

for on a regular basis…


“All political thinking for years past has been vitiated in the same way. People can foresee the future only when it

coincides with their own wishes, and the most grossly obvious facts can be ignored when they are unwelcome.

Political language... is designed to make lies sound truthful and murder respectable, and to give an appearance of

solidity to pure wind.†- George Orwell

Ditto the INVESTIGATION in OIL speculation, lead by a former Government, er… Goldman Sachs partner; a farce, as

they guide the coming boom in the commodity sector into the hands of the CORRUPT big banks and brokers on Wall

Street (JP Morgan, Morgan Stanley, r Goldman Sachs) who form a chorus of support. Isn’t it interesting that not once

during this hearing did the fact come up that the dollar has lost half its purchasing power in less than 10 YEARS?

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Abraham Lincoln once said:
  • You cannot help the poor by destroying the rich.

  • You cannot strengthen the weak by weakening the strong.

  • You cannot bring about prosperity by discouraging thrift.

  • You cannot lift the wage earner up by pulling the wage payer down.

  • You cannot further the brotherhood of man by inciting class hatred.

  • You cannot build character and courage by taking away men's initiative and independence.

  • You cannot help men permanently by doing for them, what they could and should do for themselves.

Someone needs to start teaching this to British school kids, maybe a few posters at HPC too.

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