You all remember him, don’t you? He robbed his ’investors’ of some $50 million. Word got out that he was giving a 12% return every year for funds left with him to invest. Thousands flocked to his door, and Madoff became a celebrity. He and his wife and sons lived the lavish life style, and had huge, well appointed offices. It was nothing but a classic ’Ponzi’ scheme, and everyone lost all they had entrusted with Madoff. Charles Ponzi was born in Italy in 1903, and came to the U.S. in 1920, where he did the same thing as did Madoff, and that was con people into investing with him. He got his idea from a Charles Dickens novel, published in 1857. Ponzi took money and paid dividends with the money of new fools who invested with him. The whole thing collapsed, quite naturally, as did Madoff’s. Scott Rothstein and Scott Petters did the same thing after Mafoff, and there have been several others of late who took people’s money on a promise of being an expert investor, and promising a lovely return. In Denver, Sean Mueller and Mark Jackson are doing time for the same thing.
The world is full of Ponzi Schemes, and perhaps the most blatant and largest, is the fraud being committed by the United States Government. The world, and especially China and American citizens, are emptying their bank accounts, buying U.S. debt, which of course, is backed by “The full faith and credit of the U.S. Government.” This, in spite of the fact that every day, word comes out of huge waste, bribes and corruption emanating from Washington D.C. the home base of frivolity and blatant lies. The United States has current debts of $13.2 trillion, and takes in revenue of less than the interest on the debt. In addition, the same D.C. Gang, has committed itself in future years, to at least an additional $150 trillion in the form of promises to pay Social Security, Medicare, Food Stamps, and myriad other handouts. If you were running a bank, and a potential borrower came to you with a request for a loan, and his portfolio showed him with far less income than his expenses, and endless promises to repay extant debts, with your loan to help him out, would you grant the loan? Not on the skin of your chinny chin chin.
Every day, Americans, bankers, China, and the world are buying U.S. debt, and there isn’t an ounce of gold or silver in the U.S. cash drawer…only empty promises. Admittedly, the debt is usually semi short term, in the three year range, but there are lots of ten year Treasury Notes out there as well. China alone, holds a trillion dollars of U.S. debt, and they are getting a bit squeamish about it, by decreasing their purchases and trying to get out slowly enough, so that it doesn’t trigger a massive collapse. Fear of collapse doesn’t deter American citizens and bankers though, who keep on ’investing’ in the massive U.S. Ponzi scheme.
Just like Ponzi, the U.S. sells debt with the promise of a return, and sells more debt to pay the interest on the debt already sold. Exactly like, and a pure dictionary definition of: a huge Ponzi scheme. Then, there is additionally the compulsory Social Security Ponzi scheme hatched by, and run by the U.S. Government. Like Ponzi, it extracts huge sums from all paychecks to pay the oldsters, and there isn’t a dime in the treasury to pay for it. The promises of future payments are huge, and especially since the baby boomers by the millions are applying for payments when they reach 62. Dishonest economists and judges on the payroll of the U.S. Government, like the judge who ruled against the Arizona attempt to seal its own borders, will always rule with their boss, and lie through their teeth by telling the public that all is well and going smoothly. Judge Susan Bolton should be ashamed.
After World War One, in an unprecedented then, and still never done since ruling, the loser was made to pay for the damage done in a lost war. When Japan lost World War Two, America sent money by the billions to rebuild her steel mills with the most modern equipment, while America’s were worn out from the war effort. The hideously stupid Marshall Plan did the same with Europe, helping to further bankrupt America. After WW I, Germany was forced to pay for the damage, but she didn’t have any money, and her nation was ruined. She simply printed the money, which became worthless. Within four years, the Reichsmark went from a quarter U.S., to requiring a wheel barrow full to purchase a loaf of bread. In America, a dollar in 1967, is worth but 15 cents today in purchasing power. Does America worry about China and others slowing in their U.S. debt purchases? No, because it actually is buying its own debt! Literally! It prints the notes and buys them itself. Whoopee, a new day has dawned, to postpone the eventual collapse of the dollar Ponzi scheme.
Not to preach to the choir, but gold and silver need no backing from the ’full faith and credit’ of any government, Bernie Madoff, or others of his ilk. Gold and silver stand alone in their worth, value, beauty, and fungibility. In other words, gold and silver can be converted into any currency. and always have been, throughout history, regardless of what currency was or is in use. You say, “I can’t buy things with gold?” True, you have to sell gold to get currency, but you can’t buy things with stocks or T bills either! You have to sell them to get dollars to buy things, and gold and silver are just as easy to sell as a share of stock or a T bill.
Governments throughout history have used their citizenry as pawns and slaves, fighting useless wars, passing and enforcing worthless and ruthless laws, punishing citizens for not abiding their commands, or paying outrageous taxes on everything consumed or used. As Ronnie Reagan said: “The taxpayer: That’s someone who works for the federal government but doesn’t have to take a civil service examination.” Remember, the federal government is America’s largest employer. Doesn’t that give you the heebie jeebies?