The biggest Ponzi scheme of all is the one that the President of the United State and Congress are playing on the rest of the world.
We borrow more and more money and pay the interest with the new borrowed money.
Every year we have to borrow more and more money for wars and of course, to pay the interest.
Congress is in the process of raising the debt limit to over $14 trillion.
The Republicans are standing in the way to make the Democrats look bad but the Republicans had no problem with the finances spinning out of control during the Reagan and Bush administrations.
But Congress will, of course, raise the debt limit because if they don’t the whole Ponzi scheme will come to an end and we will be desperately poor as every tax payer in the United States now owes $150,000 toward the debt and we can hardly pay our own bills as it is…except for the people living under the local bridge who can’t do that.
How are all of those investors going to feel when the Ponzi scheme falls apart and we try to pay them off with worthless dollars? Perhaps they won’t be happy with us.
I think that will cause a world depression like we can not imagine.
The biggest joke that I can think of now is the United States lending our banks money at close to zero percent interest and then the banks buy US treasury bonds paying about 4 percent interest and make 4 percent interest on the billions that they borrowed.
Of course these huge banks get preferred interest rates of zero percent because they are too big to fail and are the biggest joke of all.
I met a banker in NYC several months ago and I asked him about the government’s Ponzi scheme.
He said that every time the federal government looks to borrow money there are all kinds of people lined up wanting to lend money. He thinks this will go on forever since the US government never defaults.
That may be the case but the dollars they pay in interest are usually worth less and less.
I don’t know why other countries line up to lend US money at 4 percent interest when the value of the dollar has dropped 14 percent since March.
But, all of our creditors are as much interested in keeping the biggest Ponzi scheme going as we are.
Perhaps we shouldn’t tell anyone that we are running the biggest Ponzi scheme of all. We might end up in the cell next to Madoff.
- Posted by Stephen Bickford