Ponzi schemes - how they work

Thanks for the heads up, I've never heard of this before. Had I been approached, I'd have assumed it was some sort of pyramid scheme.

There are no funds at all that promise that rate at all, where are you getting your information?

Also the Exchanges don't offer any return at all, WSE did offer interest on deposits but they no longer have anything to do with SL.

they really don't have control since they don't really have to answer to any one of the three branches..mainly because it is not their areas.
i probably should not have said privately owned but i was more or less repeating Allen Greenspan..
they appoint people but really thats where the control ends..i mean what branch of the three branches covers their area that they would have to answer to?

Bleh i'm sorry i don't mean to go into this either..i'm just tired from being in the woods all day and am a little groggy on the fed myself in some areas

The Federal Reserve System was created by an act of Congress, so ultimately it is Congress that has oversight - the US House Committee on Financial Services, to be specific. In addition to the Fed, that committee also oversees the SEC and the Treasury Department.

In my capacity as a software consultant to the financial industry in RL, I've been trying to get funding to build a Ponzi planning system that would optimize such a system.

For reasons that escape me I've gotten no support to date.

Yes it is complicated. They make it complicated so it is hard to see the wholesale fraud going on. The federal reserve is the biggest scam ever run. According to their own publications, they create money out of thin air. Those loans and morgages are just electronic bookkeeping entries. You spend 30 years paying off something that costs the bank nearly nothing, besides the clerking costs.

I have a link to a mp3 that gives a very good analogy of how the federal reserve system works.

https://www.orbitfiles.com/download/id195240692.html

There are a few books out there that explain alot too.
"The Secrets Of The Temple" by Paul Volker explained how he followed any monetary policy he wanted. When he was summoned by the President because the President wanted a certain course of action, he would talk in circles about high money theory for an hour or two that he knew noboby in the room would understand, and then proceeded to do what he wanted. The President and his men would leave scratching their heads. LOL This was by Volker's own admission in his book. His main concern was for the shareholders of the reserve, not the President's agenda.

edit: Paul Volker was the fed reserve chairman before Greenspan.

Another good one is "The Creature From Jeykle Island." It gives a good understanding of how the modern banking system works. Quite revealing.

Another scam running in SL is to offer to sell something but never deliver it. Like the B1 Enterprises Porno Store. Which offers a lifetime membership for L$5,000 and promises "Instant account activation with an email address. Your personal login and password will be sent to you immediately."

http://www.sluniverse.com/php/vb/general-sl-discussion/17926-porn-scammer-second-life.html

To be fair to Linden Lab they now have Ar categories for fraud and people really need to use them. Whereas I hope Linden Lab will engage with common sense to prevent malicious reports, if there is a pattern in the fraud AR's I'll be hoping they take action.

my understanding of the Federal reserve is that congress can eliminate it at any time..it can change it's duties but nobody can check it's books.
not even congress..ya like they would eliminate it ever lol
it has to answer to nobody..
not to the government or the American citizens..and it cannot be audited.
also that it gets it's funding from privately owned corporations appointed as the 12 central banks..
the stocks are not profitable and they also cannot be sold..


if you ask me the only thing that keeps it from being called privately owned is a few loop holes..
no we don't own the fed we just power it lol..

i don't really spend a lot of time learning about the fed and really there is a lot of misinformation on the net about them..i can understand the confusion about them because even looking at their site and anything that looks credible still sounds iffy to me..
I know how the treasury bonds work and all that but they seem to have a bit of power and i just never feel good about areas that don't have to show their books to anyone ever..

I suspect very few of the people who might be able to weild some power over the fed really understand how it all works - or want to admit that fact.
Everyone from the president down to the most uneducated person-on-the-street would rather tell themselves that the the chairman is a kindly wise prophet who will make everything be ok than try and figure out what is really going on.

Somebody should make a functional, completely accurate and legit accounting software program and name it "Ponzi", just to see what effect the name has on sales. It would be an interesting study.

Indeed. The experiment would probably be designed to evaluate if such a product really would be more attractive to people with higher scores on the greed scale and lower scores on the ethics scale.

Congress has the power to order the GAO to audit any Federal agency, even the Reserve.

I reported the fraudulant B1 Enterprises Porno Store owner and operation to LL numerous times, including AR'ing every single vendor box he has in his store. That was all done in Sept. 2008, but it is still in operation at B1 Enterprises Porno Store, Lunalis (179, 79, 550) with no changes to anything.

i'm not finding anywhere that the GOA or IRS can audit them..
i'm not questioning you in a way of not believing you but more just wanting to know for myself..
because really i would like to understand it more..i live in the bible belt and am surrounded by conspiracy theorists and the more logic you throw at them the funnier the attempts to walk around it are just too amazing hahaha

I think if I were you and they were using my good name in their scam I would be ar'ing them several times a day. It occurs to me that they count on the people who send them money to not make a fuss, perhaps because of the possible embarrassment connected with porn.

Every reserve bank is audited by outside auditors, usually on an annual basis, and by the GAO on a regular basis, with the outside auditors covering all financial (non-policy) issues and the GAO all but a few proscribed areas. The biggest hit against the Feds as banks is that they use their special status to create fiefdoms from user and transaction fees charged to member banks - by all means visit your local fed if you can and see what money can buy.

Most of what has to do with the Fed on a day-to-day basis is routine and transactional.

The policy side? Hardly hidden - my biggest problem is how many emails they want to send out. I think they have at least ten email lists, although I'm not sure. The problem is, the people on the committees, whether the policies are right or wrong, are really among the brightest and they deal at a level that most of us can't understand (speaking as a finance MBA/CPA that never had any real problem getting into Mensa) or if we could understand it, don't spend our days in that realm, with a large staff to process the details. Most of the reported mystery has been generated by conspiracy theorists. Its there, but no one was really paying attention. The Republicans were happy the businesses were getting the business and the Democrats were happy that their constituents were getting the loans and no one, no one, is blameless.

ya i just found that on a search myself Finally! lol
i feel a little better about the Fed now in that sense that they are being audited..
/me Bookmarks the link she found

now some clear info on them and a bunch of migrain power for the conspiracy theorists in my life

Yeah, although private accounting firms can themselves be crooked (a la Arthur Andersen), the GAO is good at making headlines when it finds mis-spending and inconsistencies, no matter where it finds them - including places like at the top-level of the Defense Department. This gives me some assurance that the GAO is less susceptible to malicious influence; so when they say things are OK, I don't have too much trouble accepting it.

I did that every day for about a week when I discovered it originally over a year ago, and again when I received another report from someone who had been duped last Sept, all apparently to no avail since his operation is still in business with no changes.

I wish my indignation on your behalf was worth more.

For a classic Ponzi, in the USA anyway, look at Social Security.

Was it actually set up as a Ponzi scheme or did it just become one after it's funds were borrowed to meet other needs?

The fraud is not in the books that they keep. I am sure they keep accurate records. The fraud is that the bills of credit that they emit are protrayed to be worth something.