The global Ponzi scheme

Posted: 09/01/2012 by zandtao in Finance

I started watching “Meltdown”, a US series of 4 programmes about the recessionstarted by the sub-prime loans. It started off as interesting because it contained some facts I didn’t know about, such as the light touch strategy of Gordon Brown competing with Wall Street to increase Britain’s profits in the trading markets. It focussed on names like Hans Poulson – messing it up at the treasury, Alan Greenspan – having absolute control, Adam Applegarth – a chancer in charge of Northern Rock, Jimmy Caine of Bear Sterns – smoking pot, and Richard Fuld of Lehman Brothers – presented as a dictator. And then I realised the programme was “spin”. Rather than pointing the problem at the economic system, they were presenting the Meltdown as a group of individuals who had screwed up and that the system is fine. As soon as I realised this I stopped watching, where was the truth going to be? I think you can get it from here, but I’m not promoting spin.

I had however just watched this clip from Adrian Salbucci:-

He describes the global financial system as a giant Ponzi scheme with these four sides of a pyramid (pyramid selling is one type of Ponzi scheme):-

Planned monetary insufficiency – need to go into debt.
Impose private bank money
Impose a debt-based economy
Privatise profits, socialise losses

Sounds a pretty clear description of the global economy.

After experiencing Argentina, what was his advice? Get your money out of the banks.

  1. […] measures about balancing the books or are they part of a scam – a Ponzi scheme? In an earlier blog I discussed an Argentinian’s description of a Giant Ponzi Scheme, it is worth watching this […]

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