What is a Ponzi Scheme? Basically, it is paying old investors off with new money, and keeping doing that as long as possible so the old investors don't pull their money when they don't get paid.
In China this week, and I don't have a link, The Government made it "illegal" to not keep funding the insolvent projects. While this would appear to expose their Ponzi scheme enforcement at the point of a gun, few likely noticed and even fewer have a link.
What happens when a Ponzi scheme collapses? This is when everyone realizes that there really is no lender of last resort, no backing of the scheme at all, and that money promised is already "spent". Typically leading up to the collapse is a last ditch effort to convince everyone involved that the economy is really growing at 7% a year, like China has been doing...
-------------------- Anxiety is what you make it.
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yeah you basically got it.
one way is like this
you create a company, which is investing in other companies, and you get people to "invest" based on your previous track record as a good investor.
so then those who invest first start getting a trickle of their own money back for a while.
then more comes in and everyone gets a trickle back.
and this happens for as long as they can, they pull a salary, when the investments stop coming in they transfer the money where it cant be seized. then they attempt to flee the country and spend all that cash.
-------------------- ->$10 FLOW HOOD ALTERNATIVE <- . i cleaned a mold contaminated live culture and saved it. (might have useful applications) [quote]Enlil said: I'd be the guy with thousands of minions doing my bidding and all of the hot women locked in a cage for my use.[/quote]
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Every country is doing this now not just china. Besides Greece which is almost in default, many other countries are headed that way. Look at usa, we keep borrowing money to stay afloat but the likelihood of paying it all off with today's dollars is about zero. We have an annual trade deficit, budget deficit, underfunded pensions, and debt all over the place.
At least china is making money, they export a shit ton of goods every year, have a net favorable balance of trade, much cash in various currencies, gold, etc. They own quite a bit of usa debt as well as from other countries. They own mineral rights all over the world. While the fool in chief is playing war games all over the world wasting our resources, they have been quietly gobbling up strategically important resources and establishing trade relationships. Don't worry about china, worry about our own affairs.
The only way we, japan, most of Europe, etc can pay off their debt is with inflated dollars, euros, yen, etc. The purchasing power of money must be weakened dramatically. If our $18T debt is only worth $1T in old dollars but we pay with inflated money, we can say we paid it off while cheating those who loaned the money.
They way they will do this is by raising interest rates. Wonder why they are at historic low levels all over the world? Because if the interest rate goes up, we can't even pay interest let alone the debt so the Ponzi scheme collapses. It will happen, yellen makes noise about raising rates later on, they have been saying that for a long time and always decide at the last moment the economy is needing more help so they don't. When rates actually go up, the collapse is near. Get out of cash except for emergencies and get into commodities you own like gold, silver, r/e, and so on.
-------------------- “A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.” (attributed to Alexis de Tocqueville political philosopher Circa 1835) Trade list http://www.shroomery.org/forums/showflat.php/Number/18047755
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Quote:
rxb said: yeah you basically got it.
one way is like this
you create a company, which is investing in other companies, and you get people to "invest" based on your previous track record as a good investor.
so then those who invest first start getting a trickle of their own money back for a while.
then more comes in and everyone gets a trickle back.
and this happens for as long as they can, they pull a salary, when the investments stop coming in they transfer the money where it cant be seized. then they attempt to flee the country and spend all that cash.
This sounds just like the "trickle down" theory of printing money that is the Ponzi scheme of all these central banksters. They are buying real gold with the funny money they get fresh off the presses for the day when the "banking holidays" start. Only a few oldsters are around to remember the last "banking holidays". We probably will start with cash being abolished, that's coming sooner than many would think and being "implemented" in places and pushed by JPM etc. Speaking of bankster conspirators, just now caught again this time colluding for YEARS in the Forex arena...
-------------------- Anxiety is what you make it.
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