01-11-2009 Is the U.S. a giant Madoff – a giant Ponzi scheme?

charles-ponzi-1910Charles Ponzi

Is the US a giant Ponzi scheme?
Frauds, according to one reporter, always end up in the orient, because that’s where the money is.
Well, where have we ended up.

Why do people buy our bonds. Not because we have value. Only because people think we have value.

And

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A Ponzi scheme is a fraudulent investment operation that pays returns to investors out of the money paid by subsequent investors rather than from profit. The term, “Ponzi scheme,” is used primarily in the United States, while other English-speaking countries do not distinguish colloquially between this scheme and other pyramid schemes.[1]

The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in

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