The Sovereign Ponzi - Tick By Tick Research Email

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Fri, 12/30/2011 - 12:41 | 2021785 Georgesblog
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Following through on the line of reasoning, government bonds are an act of war, committed by governments, against their own people.

Fri, 12/30/2011 - 12:33 | 2021763 swani
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Oh my God. The UK has started raiding 'dormant' bank accounts and just taking the money. After hyper-rehypothecation, I wonder how much paper the stolen money will turn into.

Fri, 12/30/2011 - 12:32 | 2021756 Mr Lennon Hendrix
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This financial system is much more than a ponzi.  Because it is backed by nothing, whereas a ponzi scheme has one underlying asset, it is a Fiat Ponzi.  Fiat means, "Backed by nothing".  It is a ponzi with zero collateral.

Fri, 12/30/2011 - 13:09 | 2021890 disabledvet
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I've actually made this argument...a while back when TD was just another (albeit exceptional) raging maniac on Seeking Alpha namely: "relative to what the government is doing makes gambling a legitimate business enterprise. In other words "the government is simply robbing us blind in broad daylight." needless to say I have been completely wrong! Thay are indeed adding massive quantities of stimulus to the economy and in fact are free (apparently) to add more! You go figure cuz I sure can't! Anywho the one's we now know who are stealing are those who keep claiming "free market capitalism is the best path to (their) prosperity (by stealing your money/your gold/your wife/etc...)" that's right: The folks from New York City! Turns out any claim by someone who thinks there is such a thing as personal property in that town is in fact a complete moron and "they've got a Judge to prove it"! Again...have a happy New Year by avoiding everyone and everything in that place!

Fri, 12/30/2011 - 13:00 | 2021865 NotApplicable
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And what size of a ponzi does zero allow?

An infinite one, if they can manage the downward spiral of ZIRP4EVA.

As long as we keep accepting their notes in payment for goods and services, the game goes on. The instant they are shunned for an alternative form of currency though, is the instant it all blows up.

Got junk silver?

Fri, 12/30/2011 - 14:03 | 2022016 FeralSerf
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That is the reason that an alternative form of currency must not be permitted under any circumstances.

Fri, 12/30/2011 - 08:46 | 2021246 Vincent Vega
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Charles Ponzi was one man/crook who ran a scheme within the system. Today the system is a scheme/ponzi run by many crooks. If Mr. Ponzi had the bankster's and politicians in on the deal (as is the case today) it would have lasted much longer.

Fri, 12/30/2011 - 13:02 | 2021875 NotApplicable
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The creation of the Fed probably gave him the idea.

Fri, 12/30/2011 - 08:16 | 2021212 El Gordo
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By definition, a Ponzi scheme requires a steady stream of new investors to pay off the old.  I would submit that teh good old USA (as well as many others) is well beyond Ponzi since there are no new investors out there who have either the capacity or the desire to continue to fund our ever increasing indebtedness.  Thus we must resort to counterfeiting (or printing new money) to pay off the old as there are no new investment funds coming in.

Fri, 12/30/2011 - 07:55 | 2021197 toadold
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"Would I lie to you baby?"

"After reading Zero Hedge I must conclude that you have lied, you are lying, and you will lie to me."

It seems that slowy but surely the alternative media is providing better financial information than the Main Stream Media or the Talking Heads of government and Wall Street.

Fri, 12/30/2011 - 07:21 | 2021186 Peter Pan
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One wonders for how long the current Ponzi scheme of the USA can go on with money printing providing the "new" money. So many young people who would have provided the fresh funds are unemployed and indebted and thus unable to prop up an insolvent government and an insolvent Social Security Fund.

Government bonds of any nation lack credibility when nw bonds are issued not only to continue deficit expenditure but to also pay past interest due and payable.

Then again, governments get away with whatever stupid and/or complicit bankers allow them to do.


Fri, 12/30/2011 - 06:25 | 2021172 Blank Reg
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And I heard a voice in the midst of the four beasts, And I looked and behold: a pale horse. And his name, that sat on him, was DEBT. And Hell followed with him.
~ Book of Revaluations

Fri, 12/30/2011 - 12:50 | 2021820 NotApplicable
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I always read that in Johnny Cash's voice.

Fri, 12/30/2011 - 07:19 | 2021185 CoolClo
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When the lamb opened the third seal, I heard the third living creature say, “Go!” I looked, and there was a black horse, and its rider held a scale. 6I heard what sounded like a voice from among the four living creatures, saying, “A quart of wheat for a day’s pay or three quarts of barley for a day’s pay. But do not damage the olive oil and the wine.

-Rev6, 6-7. (GW) translation.


Two days wages to purchase one day worth of food. In other words: food price Hyper-inflation.

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