Ponzi Scheme Government (via http://www.economicnoise.com)
It is interesting to go back and look at thoughts and interpretations of events from the past. Sometimes it is embarrassing. This post from almost three years ago, seems rather accurate in light of subsequent developments. The Ponzi Scheme that government had become only continued, as expected. At…
“… all Ponzi schemes eventually fail under their own weight. The US debt scheme is no different.”Sprott Asset Management
is akin to belief in Santa Claus. Both make us feel better, but both are unlikely. We may have another quarter or two of government-driven GDP growth, but we will not have a recovery, at least not with the next several years. Government spending may be able to raise GDP, but the ability to continue spending is near an end.
If the government can no longer finance its deficits overseas, there are two probable alternatives left. Alternative 1 is living within its