Post by NOTTHOR on Mar 13, 2009 15:49:59 GMT -6
www.bloomberg.com/apps/news?pid=20601103&sid=aOZ5WKjIF5aE&refer=news
Let's see, Bernie took in a bunch of money from investors and then paid earlier investors' gains with money he took in from the later investors.
US Treasury will borrow a bunch of money from China and then return the principal on that with the proceeds of subsequent bond sales one, two, five or ten years from now.
Other than a printing press, I don't see too much difference.
It took me less than 10 minutes of working in the world of "high finance" to realize the entire debt system is functionally very similar to a Ponzi Scheme, the key is to not be one of the suckers holding the debt when the music stops and the company can no longer roll the debt over. I just thought I'd toss this story out there, it's a very interesting commentary on our nation and particularly timely in light of Mr. Madoff's recent plea bargain.
Let's see, Bernie took in a bunch of money from investors and then paid earlier investors' gains with money he took in from the later investors.
US Treasury will borrow a bunch of money from China and then return the principal on that with the proceeds of subsequent bond sales one, two, five or ten years from now.
Other than a printing press, I don't see too much difference.
It took me less than 10 minutes of working in the world of "high finance" to realize the entire debt system is functionally very similar to a Ponzi Scheme, the key is to not be one of the suckers holding the debt when the music stops and the company can no longer roll the debt over. I just thought I'd toss this story out there, it's a very interesting commentary on our nation and particularly timely in light of Mr. Madoff's recent plea bargain.
