Here is an excerpt from an excellent news article regarding the Breakdown of Civilization that appears to lie right ahead of us. The link at the bottom will take you to the full article by Mr. Jon Bowles of the Church of God in Wales.

Financial System – Or Giant Ponzi Scheme?

How corrupt is this world’s financial system? According to the following article, it is all a giant ‘Ponzi scheme’. Here is a brief definition of a ‘Ponzi scheme’:

“A Ponzi scheme is a fraudulent investment operation where the operator, an individual or organization, pays returns to its investors from new capital paid to the operators by new investors, rather than from profit earned by the operator. Operators of Ponzi schemes usually entice new investors by offering higher returns than other investments, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the high returns requires an ever-increasing flow of money from new investors to sustain the scheme.(

The 51% Principle

Mr Armstrong, in his autobiography, recalls a quote from the then well-known statistician Roger Babson:

I looked to the source which determines future conditions. I have found that that source may be defined in terms of ‘righteousness’.

When 51% or more of the whole people are reasonably ‘righteous’ in their dealings with one another, we are heading into increasing prosperity. When 51% of the people become ‘unrighteous’ in their business dealings with their fellows, then we are headed for bad times economically!

Mr Armstrong’s comment on this quotation should ring in our ears right now:

I have never forgotten Mr. Babson’s explanation. I hope my readers today may remember and profit by it, too.( The Autobiography of Herbert W Armstrong Volume 1 – Chapter 12)

So can we profit by this information today?

  • Have we breached the 51% mark?
  • Are 51%+ of those who handle the world’s financial system ‘unrighteous?’

Just 30 years ago, the world was a very different place!

In a World Tomorrow Broadcast made some 30 years ago, Mr Armstrong gave the following perceived wisdom of that time…

“All the money that the government pays out they have to take from the taxpayer in the first place. They have no other place to get money. They don’t just print money – they can’t do that – no nation can!( World Tomorrow – Why Religious Confusion – part 3)

How times have changed!

As the following article points out, it seems that both bankers and governments are totally out of control. They apparently learned little from the crash of 2008! Government debt is now 40% up since 2008, while the banks have increased by 37%. We now have a derivatives market of over $700 trillion, backed by assets of a mere $9 trillion.

The 51% mark was breached some years ago. The whole system is now totally ‘unrighteous’ – it has to collapse.

The numbers that you are about to see are likely to shock you.”

They prove that the global financial Ponzi scheme is far more extensive than most people would ever dare to imagine . As you will see below, the total amount of debt in the world is now more than three times greater than global GDP. In other words, you could take every single good and service produced on the entire planet this year, next year and the year after that and it still would not be enough to pay off all the debt. But even that number pales in comparison to the exposure that big global banks have to derivatives contracts. It is hard to put into words how reckless they have been.

At the low end of the estimates, the total exposure that global banks have to derivatives contracts is 710 trillion dollars. That is an amount of money that is almost unimaginable. And the reality of the matter is that there is really not all that much actual “money” in circulation today. In fact, as you will read about below, there is only a little bit more than a trillion dollars of US currency that you can actually hold in your hands in existence.

If we all went out and tried to close our bank accounts and investment portfolios all at once, that would create a major league crisis. The truth is that our financial system is little more than a giant pyramid scheme that is based on debt and paper promises. It is literally a miracle that it has survived for so long without collapsing already.

When Americans think about the financial crisis that we are facing, the largest number that they usually can think of is the size of the US national debt. And at over 17 trillion dollars, it truly is massive. The following are numbers about the global financial Ponzi scheme that should be burned into your brain…

  • $1,280,000,000,000 – Most people are really surprised when they hear this number. Right now, there is only 1.28 trillion dollars worth of US currency floating around out there.
  • $17,555,165,805,212.27 – This is the size of the US national debt. This is the total amount of debt (government, corporate, consumer, etc.) in the US financial system.
  • $71,830,000,000,000 – This is the approximate size of the GDP of the entire world.
  • $223,300,000,000,000 – This is the approximate size of the total amount of debt in the entire world.
  • $236,637,271,000,000 – According to the US government, this is the total exposure that the top 25 banks in the United States have to derivatives contracts.But those banks only have total assets of about 9.4 trillion dollars combined. In other words, the exposure of our largest banks to derivatives outweighs their total assets by a ratio of about 25 to 1.

Most people tend to assume that the ‘authorities’ have fixed whatever caused the financial world to almost end back in 2008, but that is not the case at all. In fact, the total amount of government debt around the globe has grown by about 40 percent since then, and the ‘too big to fail banks’ have collectively gotten 37 percent larger since then.

Our ‘authorities’ didn’t fix anything. All they did was reinflate the bubble and kick the can down the road for a little while. I don’t know how anyone can take an honest look at the numbers and not come to the conclusion that this is completely and totally unsustainable.

How much debt can the global financial system take before it utterly collapses?

How recklessly can the big banks behave before the house of cards that they have constructed implodes underneath them?

For the moment, everything seems fine. Stock markets around the world have been setting record highs and credit is flowing like wine. But at some point a day of reckoning is coming, and when it arrives it is going to be the most painful financial crisis the world has ever seen. If you plan on getting ready before it strikes, now is the time to do so.” (

Is Civilization About To Break Down?