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world wide inflationary spending
a consequence of cataclysmic financial structures
by scott patrick humphrey

As I look to history to gain insight into the escalating crisis we are facing today, I find disturbing parallels to an era that gave us extreme tyranny and human devastation. Given, that; I don't want to lose my load TOO fast, so lets take this one step at a time.

A common misperception of inflation is that it is the rising price index of goods and services; this is merely the consequence of inflation. Inflation is the increase in monetary notes into the existing money supply with no added production value. The end result of which is hyper-inflation and complete devaluation of the currency. The American monetary system is rocketing toward this unthinkable situation at record speed.

First of all, people should suspend the belief that the Government is too incompetent to pull off any major conspiracies against the American people; this statement is ignorant and uninformed. Since the glaring evidence is coming from the financial sector, it is truly unconscionable to dismiss the events of our collapse as mere financial mistakes and not a well coordinated process. As I have said in a previous column, the Government, along with the corporate and power elite have systematically gamed the system for profits while breaking the backs of the citizens of this nation.

The Government and central banks are the Siamese twins of global corruption. On every level, from local municipalities, to State legislatures, to the Federal Government; there is outright corruption all manipulated from the top; the Federal Reserve Bank. Every financial institution in the country is tied to the Federal Reserve Bank because it issues the currency and has control of the interest rates. All of the major private banks in this country are major stock holders in the Federal Reserve Bank. The machine is well tethered and spending is being inflated by the Government across the spectrum; the crisis we are seeing is a well executed, sophisticated plan.

On Sunday, Bill Black, a former tough regulator during the savings and loan scandal was on PBS to discuss the extraordinary fraud occurring in our financial system; Black was also the former director for the Institute for Fraud Prevention and is now a professor of economics and law at the University of Missouri, Kansas City. What we have in the sub prime mortgage crisis is a clandestine waltz happening between lending institutions and credit rating agencies. These practices have been discovered to be outright fraud. The video of Bill Moyer's interview with Mr. Black can be viewed here: http://www.youtube.com/watch?v=Rz1b__MdtHY

Mr. Black states that the way they have done this is to make really bad loans, a lot of them; meaning loans that carry crushing risk, because the sub prime lending schemes made more money for the lending institutions. In turn there is rapid growth because the amount of generated income on the books is growing at an exponential rate due to these bad loans being sold. Mr. Black refers to these as "liars loans" because in actuality they were extremely risky due to having no checks and balances for investigating income, job, and asset verification. The credit rating agencies were giving AAA ratings to unverified loans; they were categorizing highly risky loan assets as having zero credit risk. That is blatant fraud.

You may be asking: How can there be no checks and balances within these institutions? Well, if there were any duplicitous actions being taken within the firm they would have been reported directly to the C.E.O., which means it would only take the corruption of that entity to offset the integrity of the whole institution. This is exactly what happened. These fraudulent lending practices were not only occurring in the sub-prime market, they eventually became a part of the prime mortgage modus operandi. So all loans were being approved without verification and given AAA ratings. What absolutely set this trash can on fire was the investment firms selling guarantees on these bogus loans with huge fees upfront to lock in profits; then they were divvied up and sold on the stock market as derivative speculations. That means the money that was made on them as stocks was based on the future outlook on the profits coming in from interest on the bundled loan/guarantee products. These are the "toxic assets" we were told about; what no one told us is how they became toxic.

Stop. Take a breath. Reset.

Remember that all of this is based on fraud coming from the top down in the most elite financial institutions. A.I.G., Indie Mac Bank, Lehman Bothers, Goldman Sachs to name the biggest. This is a system that was created by the top financial executives and given impetus to perform by Government deregulation. Lawmakers in Congress worked with the Federal Reserve Banking machine to dismantle the systems of oversight within the treasury and effectively end all regulation of the selling and trading of financial products.

Well, why would members of Congress want to work to dismantle our financial system? The answer is simple; they are kept in power by the same huge corporate entities through campaign donations and fund raisers, not to mention special gifts. In return they are allowed to gang rape the system. Just like in Germany during the Weimar Republic, which was a Democratic system that failed; it was infiltrated by central banks, the leaders were bought and paid for; and then the system was imploded. I'll get to what happens after the implosion in a minute.

You may also be asking: How could professionals who knew this was fraud stay in the firms and continue to game the American people? The answer is simple; executive retention plans that included massive bonus payouts for ballooning revenues that in their essence amount to accounting fraud. And if you think the recent round of bonuses were distasteful, the ones being doled out during the actual ballooning of profits were relatively astronomical. This whole operation became a giant ponzi scheme; forget about Bernie Madoff, he is small time compared to the massive transfer of wealth perpetrated by big business and big Government.

This whole mess started long ago with the savings and loans scandal. Up until the late 70's growth was occurring at a normal rate, which compared to the growth of the past two decades looks like a snails pace. There is good reason for that; in the past Americans were living, for the most part, within their means. Manufacturing and production were still a part of our economy in a much bigger way than today, and and they were in relative balance with the populations spending.

Here is the problem with that. Money that banks lend out does not necessarily come from the bank deposits in the institutions reserves. Our banking system is a fractional reserve system, meaning the Federal Reserve Bank pumps money into the system, only as a number on a computer; commercial banks then take this money and lend out portions of the total with accrued interest attached, thereby fractionally increasing its rate of return. This is the process whereby inflation occurs and bubbles begin; when inflation occurs rising interest rates also occur.

Why is this bad? These banks inevitably made bad loans in pursuit of profits. When interest rates began to rise and they had defaults which eliminates the income for that institution. The loans that were made with fixed interest rates attached to them were not bringing in a positive rate of return for that institution. This was known as "asset-liability mismatch". Rather than run an honest system they were looking for ways to expand and corrupt it. One of the reasons they cited for the failures during the savings and loans crisis was the "Absence of an ability to vary the return on assets with increases in the rate of interest required to be paid for deposits." In essence the ponzi scheme was hog tied. They were looking for new ways to pursue profits and prop up a system that was based on shaky and in many cases fraudulent business practices. Eventually, they got their wish.

What the Clinton administration did with the help of people like Timothy Geithner by dismantling the Glass-Steaglall Act was to allow giant investment firms like A.I.G. and Goldman Sachs to sell guarantees on these bundled mortgage products, which were known to be fraudulent, and sell them on the open market. This is what sent this catastrophe Global.

It is equally important to note that the U.S. dollar has taken the place of Gold in many countries reserve banks in order to prop up their currency. Since the advent of the Federal Reserve System in 1913 the dollar value has continually plummeted. Compared to 1913 today's dollar is worth about three cents. Our Government has not questioned this policy and practice of the Federal Reserve sans one; Dr. Ron Paul. The Federal Reserve Note gains its' credibility of value from "The full faith and credit of the U.S. government." Well, as you can see from all of my columns, that's about as useful to me as a freshly laid pile of dog s$$t. So what does this mean for the rest of the world?

You WILL have to excuse me, because now I'm really going to fart in your soup.

First of all this means that countries with the dollar tightly woven into their economic fabric will crash if the dollar becomes devalued to the point of monopoly money. Now with the globalization of business and trade our economy interlocks with many others. For instance, China has an extremely strong economy and is has been growing for decades, yet they own such an enormous stake in our treasury if we went down they would be in a lot of trouble as well. This begs another question: Why would we set up a system that would crush the world economy?

This leads us to the men behind the curtain, so to speak; the true power elite in the world. The influence of the corporate and power elite over Government comes in clandestine ways. The Council on Foreign Relations, The Trilateral Commission, the World Federalist Association, and the Bilderberg Group are the various foreign policy front organizations that wield their powerful agenda. There agenda is Global Governance, pure and simple. The members of these various groups, and especially the founder of the Council on Foreign Relations and Trilateral Commission; David Rockefeller, are all captains of industry and robber barons. What they are seeking is, to quote David Rockefeller, “A vehicle for multinational consolidation of commercial and banking interests.” Currently the Government, big business, and big media are all littered with members of these organizations whose goal it is to dominate us.

World Government for the purposes of big business, in which every nation would yield its’ sovereignty to the regulatory bodies set up by these same interests. We have already seen the implementation of their beginnings; with N.A.F.T.A., and now we have the European Union which stemmed from trade agreements originally. Next on the agenda is the North American Union, which under the Security and Prosperity Partnership has already begun, without approval from the Congress or the American people during President Bush's administration.

I’m sure we all remember the uproar over Obama stating he was against N.A.F.T.A. during the campaign, while it was discovered his staff was sending communications to the Canadian and Mexican leaders that this was mere campaign rhetoric and he still supported their colluded agenda. Our Government has been hijacked by the corporate and power elite. This will not bode well for us.

When you have a system in place where the banking oligarchs have manipulated and crippled the financial system of the greatest and most free sovereign nation, while at the same time reaping immense profits from it, that nation is, in essence, controlled by the bankers. Every major aspect of our lives is controlled by the Federal Reserve System. Think about; it determines whether or not you can get a mortgage, a car loan, a student loan, or a business loan. That's control over whether or not you can own a home, own a car, get an education, or start your own business. Also, if after you receive a loan for any of these things, your personal finances will then be affected by the devaluation of the currency due to inflation, and the inevitable rising interest rates.

We are told that the way out is through increased stimulus spending to create jobs; all this will accomplish is hyper-inflation. Pay attention to the way things are being done on a philosophical and functional level. As I said in reference to the C.E.O. of a company, the way to nullify the integrity of an institution is by having a relatively few well placed pawns. Throughout Government we have numerous sycophantic sentinels doing the business of the banking oligarchy.

We must all realize that these plans were made decades ago and are being carried out regardless of which party is in power. The influence and participation of the members of these power elite groups is broad, and the people’s affiliation with them is open to public record. All of the well placed sentinels actually move freely back and forth between their high positions at these banking and investment firms and high positions in Government.

How high? Our former Secretary of the Treasury was Ron Paulson; this is the man responsible for the monetary functioning of the Government. He just happened to be the former C.E.O of Goldman Sachs, which received over 12 billion dollars in bailout money, while not telling us how they were spending it. How about Timothy Geithner, our current Secretary of the Treasury? He used to be the President of the Federal Reserve Bank of New York. Mr. Geithner's job during the ballooning fraud of the nineties and recent decade was to regulate the actions taken in the financial sector. We can all see how that turned out now.

This type of control model by the central bankers has been the catalyst for absolute tyranny in our worlds recent history. The Weimar Republic in Germany was a Democratic Republic during the era before the rise of Hitler. They were a highly progressive republic, with intellectual and artistic epicenters of Europe. At the time they had the most progressive constitution in the European world. What eventually brought them down was similar to the situation we find ourselves in today. Let's see if any of these attributes sound familiar.

After WW1 the Germans found themselves in crushing debt because of war expenditures. On top of that the country was no longer producing or manufacturing on a level that was brining in revenue. Manufacturing and G.D.P. are crucial to any republic's survival. The central banks were there to push loans on the republic that increased the debt to astronomical heights and the currency became worthless. Not only that, the Nazi party was becoming a minor player in Parliament. The country was extremely divided politically, and the Nazis took advantage of this. In the end, even without a majority, the central bankers boosted the Nazis into power.

They then went about passing directives and actions that stifled liberty and helped create the police state of control we have all come to know so well from our history books. They invoked fear of a common enemy, the Jews; began spying on their citizens, created a civilian national security force, and began growing their military industrial complex at an exponential rate in preparation for WW2. It may surprise you to know that our country is in lock step with many of the actions that were taken during this time. Only this time they expanded the mission to include the global economy. Soon the IMF or some other monolithic central bank will introduce a super currency to replace all other currency, and then we will all be in for a good time. What will happen with one bank controlling the worlds economy for the corporate and power elite?

Well I'm glad you asked. If you're the only bank in town and the whole world has there hand out; then without question, you rule the world.

We need the aegis of our founding fathers ideals, and we cannot wait.
While it is nice to be able to regurgitate academic textbook information about our country's liberties; people need to start to synthesize and reconcile the actuality of reality concerning our country's actions towards its citizens. Our financial system has been used to bury us in debt and defraud us. Our laws have been compromised to severely limit the exercise of our freedoms. Our military industrial complex has been instigating violence and abuse of power throughout the world. And at this moment we are on the brink.

Our liberty, our privacy, and our individualism will no longer be required; what will be required is the quickening acquiescence of our indoctrination. We are transforming our country into an Orwellian universe. Through the Governments strangle hold on your civil liberties and right to privacy. New York City just approved a plan to put high tech surveillance system on every block in the City. This is only the beginning.

I should make it clear that I do not advocate revolution or violence in dealing with matters of Government redress. I am a believer in the Constitution; I believe that with true open transparency and dialog our country can find its way again. At the moment the cards are stacked against us, yet we have persevered in times like these before. I will take all of us, to be informed, and to be active. I implore you to stand up.


A post modern culture enthusiast with a penchant for radical thought. I am very close to becoming a Theatre and English teacher here in New York City. I have Bachelors degrees in Theatre and English and I am completeing a Masters in Secondary Education. I most certainly believe we live in a hyper-real non referential world which none the less holds a great amount of hope and mystery for me. Lets tease this thing out and see where it lands.

more about scott patrick humphrey


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published: 5.27.09

expansion of power by fanning the flames
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published: 3.28.09


adam kuehn
6.1.09 @ 1:25p

Sigh. Yet another conspiracy theorist co-opting a valid message.

There is risk for the U.S. financial system, and that risk is very significant. The system requires continual growth. Like it or not, sustainable growth is simply an oxymoron. But we're not in this situation because of a cabal of power-hungry elites. We're here because it is easy, and we lacked the foresight to do the hard things needed to NOT be here.

Hanlon's Razor applies: "Never ascribe to malice that which can be adequately explained by stupidity."

Conspiracy theories are counter-productive. They make an otherwise receptive audience tune you out. If you can get past the rhetoric, we have some real problems in desperate need of real solutions. Please, please become a part of the solution.

scott humphrey
6.1.09 @ 11:26p

So, I am merely a conspiracy theorist? I also happen to be an active member of my community through the Green Party. To call me stupid is interesting; your position that we are not in the position we are in because of the elite should be fascinating. Although I prefer the discourse of professional debate, rather than cock-sure petulant insults. This is one position in an evolving process of research and dissemination. If you would like to give me your platform and positions on these issues; my email is scott_humphrey@live.com. If you wish to only leave smarmy comments with no substance; best of luck to you.

mike julianelle
6.2.09 @ 4:47p

No offense, Scott, but Adam wasn't calling you stupid. Might want to read his comments again.

He used a quotation to illustrate his point. He was saying the stupidity of people in charge caused our current financial situation, rather than actions they took out of malice.

At worst he called your mindset "counter-productive." Just because the word "stupidity" was in there doesn't mean it was directed at you.

scott humphrey
6.3.09 @ 8:47a

Got it; miss read it. Thanks.

scott humphrey
4.22.10 @ 9:52a

link to hulu

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