Peter Madoff, Bernie’s younger brother, has been sentenced to 10 years in jail on charges that he was connected to his brother’s $50 billion Ponzi scheme that eventually collapsed and caused its clients to lose collectively $20 billion. Peter was a lawyer and chief compliance officer as well as managing director at his brother’s firm, called Bernard L. Madoff Investment Securities. Mike Adams of Natural News explained simply how the scheme worked:
“The con artist uses money from new investors to pay the apparent gains to previous investors, creating the appearance of dividends. With a solid track record of apparent gains, he attracts a growing base of new investors who funnel even more money into his hands. Behind the scenes, though, he’s burning cash on an opulent lifestyle, using other people’s money to make himself rich, even while cooking the books to make everybody think their money still exists.”
Such a system obviously can’t last, especially when people do a “bank run” and discover that their money is gone.
A few years ago, the media and politicians completely demonized Madoff, and he was fodder for the late night comedy hosts like Letterman and Ferguson. It was all funny, and Madoff should’ve been made to pay restitution for his theft. But where have the media, the politicians and the late show TV hosts been the last century when it came to not a multi-billion dollar ponzi scheme, but a multi-trillion dollar scheme?
Our massive welfare and warfare state has existed all thanks to the ponzi scheme called the Federal Reserve System. Fractional reserve banking itself is a complete scam. As many have pointed out, if Madoff had a money-printing press, he would’ve never been found out.
Our entire global financial system is a house of cards, and it’s only allowed to exist because those in power have written laws allowing it to continue. If anyone else tries to emulate them, like Madoff did, they’re demonized, mocked, ridiculed, and in his case, thrown in jail for the rest of his life.
Such should be done to all those involved in the international scam that has served as the foundation for massive government expansions, destruction of currencies and dictatorships. The Treasury creates pieces of paper it calls Treasury Bills (T-bills); the Fed buys these T-bills with digital units it calls Federal Reserve Notes created from nothing; the government then can bail themselves out as well as their buddies on Wall Street, international banks and foreign countries when they’ve all fallen victim to their own stupidity.
When will Bernanke, the Treasury Secretary, the Board of Governors et al. involved in the scandalous Federal Reserve System be arrested for fraud, counterfeit and all the rest?