https://www.zerohedge.com/markets/creditors-finally-wake-apocalyptic-reality-bond-losses-high-99
"Well, I'm no expert, but, what we used to have was a sound monetary system, backed by gold and silver. In fact the American dollar is technically 1 troy oz of fine (.999) silver. As this was heavy to lug around and make purchases, the treasury department created Bill's, or notes rather, that act as the same legal tender. Worked well, America prospered.
Well, on December 23, 1913, that system was destroyed by a private banking cartel that still operates to this day know as The Federal Reserve. This privately held institution essentially usurped the monetary system from The People, and has been systematically strip mining wealth out of the country. Enter Richard Nixon on August 15, 1971 removed any peg of the USD to physical metals. Since then, the FED can simply print money out of nothing and you end up with massive inflation and subsequent loss of purchasing power.
All that was necessary next was the invention of complex computer systems to digitize wealth and create an instantly accessible network of bonds and interlinked bank accounts, mortgages, bond products, insurance, etc. From here, the owners of the FED can simply push few keyboard strokes and viola, trillions of wealth stolen. They do this by lending the money they created out of nothing to banks (themselves really), who then lend it out to poor schmucks like you and me for "All Debts Public and Private". The banks know there will be loss rates for some bad loans that they gave people people with zero real chance of paying the loans back, and bundle them into what called a CDO, or collateralized debt obligation. They do this to hide bad loans with some good loans in a bundle, and then sell those CDOs to other banks as the yield goes up. Then, knowing the CDOs they sold were utter crap, the banks then take out insurance policies on the CDO at leverage, 40, maybe 50:1 even, so a CDO worth 1 billion is now 40 billion in insurance on it. When the underlying securities tank because of non-performane the whole thing goes bust.
Then, that collapse usually yields a nice fat bailout from the very people that just got screwed by the banks for the loans in the first place. The banks are made whole, and then buy eveything that isn't nailed down at fire sale prices.
Rinse and repeat and you topple nations. - Lt. Frank Drebin"
SAD