Saturday, April 30, 2011

The Fiat Ponzi

The fiat ponzi is such because there is no underlying collateral backing the monetary system which would then back the financial system.  The underlying asset, which is gold, is not up for subjugation, for it has not been used as trade for bonds since Nixon relegated only dollars to pay for debt.  The fiat ponzi started with Delano Roosevelt, who negotiated that Americans need not rely on constitutionally backed monie.  In order for the US monetary and financial system to be appropriately called a ponzi, the underlying asset would be up for grabs.  It is not, because no one even knows if there is gold to be had.

The gold vaults of Ft. Knox and the New York Federal Reserve were last audited under Eisenhower.  There is a great possibility that there is no gold in the vaults, and that means there is no underlying asset that supports the US monetary and financial systems.  Once again, there must be an underlying asset for a ponzi to be such.  That is why the current system is better named a fiat ponzi.

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