Monday, August 8, 2011

Ponzi Scheme Government

The single biggest problem we face today in the United States of America is that our leaders have created a "Ponzi Scheme" Government.

You might remember the phrase from the story of Bernie Madoff, the financier/con man who swindled people out of about 25 billion dollars. Madoff ran around bilking gullible people by promising sky-high rates of return on their investments. Many people fell for his fraudulent scheme.

When he was arrested, he took a swipe at the US Government by calling it "the biggest Ponzi Scheme" in history.

He was right about that.

The problem all started in 1971 when President Richard Nixon took our country off the Gold Standard. Prior to 1971, one U.S. dollar was the equivalent of $1 of gold held in the reserves of the United States Treasury...much of it at Fort Knox, Kentucky.

Now, we have what is known as a "fiat currency" that holds value only because our government says it does. The basic problem with this is that investors can lose faith in a government and cause the value of their money to collapse. This often happens with stunning speed.

The country of Zimbabwe has lost such faith with their currency that it takes $100 billion dollars to buy three eggs!

Unfortunately, the United States is headed in this general direction.

Excessive spending by liberal leaders has created an "entitlement society" in America, where half the people don't pay any taxes, yet believe they are entitled to the benefits awarded to those who actually do pay into the system.

Mathematically, it creates an economic fantasy world which cannot continue to exist.

If our country does not change its spending habits, it will bankrupt our nation and destroy our future.

We are approaching that day of collapse.

They can keep raising the debt ceiling. It won't work.
Eventually, it will all collapse. The numbers point that out.

Our country has to wake up and analyze its attitude towards liberal social spending programs.

If we don't do something soon, our country will collapse economically.

This is not pre-destined. We can change our spending patterns.

But we have to start now.