The Largest Ponzi Scheme in the World
General Motors was the world’s most successful automobile company – until it wasn’t. The fearful world is buying Treasuries, but not because the tax revenues of the American state are so reliable; they’re buying Treasuries because the United States is the only substantial debtor in the world that can make good on its debts with money of its own making.
Tax revenues in the United States are falling sharply. Already, they’re far short of what is necessary to cover America’s public expenses. That’s why both Republican and Democratic administrations have run deficits – real deficits – since the Nixon administration.
And it’s why the United States is now the largest Ponzi scheme in the world. The only way to pay off the old lenders is to bring in new ones – or run the printing press. That’s all lenders have to worry about – inflation.
And for the moment, prices are going down. They’ll keep going down too – until they go up.
Continue reading The United States: The Largest Ponzi Scheme in the World
Filed under The Economy by on Apr 8th, 2009. Comment. 
Leave a Comment
Comments on The Largest Ponzi Scheme in the World
Prof. Chossudovsky explains who do the banks owe money to. Are those hedge funds affiliated with the very banks that were bailed out?
The Federal Government is running massive budget deficits which is creating a massive supply of Treasuries. But there is no demand and so the Federal Reserve is monetizing the debt. But these colored coupons merely amount to certificates of confiscation. So Congress will most likely follow Argentina's lead and nationalize the retirement accounts.