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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of William Histed
December 30,2008
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HISTORY'S GREATEST PONZI

SCHEME STILL GOING ON, FOR NOW

By now, charged ponzi schemer Bernard Madoff is virtually a household name. There are even TV night show jokes being told about the massive hurt his "firm" did, though it's hard to see any real humor when people lose most of their wealth. Maybe the sick humor is because some of us know, deep down, the world's central bankers and governments have us caught up in a far greater ponzi scheme.

Instead of sick or guilty humor, we should be looking at the very clear comparisons between what this man allegedly did, and what the world's governments and central bankers are doing and have been doing for decades.

Unfortunately for Mr. Madoff, he was not able to legally print up more "currency" to cover his losses and alleged crimes. If he had tried what Washington is doing, the charge of "counterfeiting" would be added to his list of counts against him. If he could have printed up "money," Mr. Madoff would still be in business and he would not be much worse for the wear.

Unlike governments, he could not "print his way out" of his alleged crimes and mis-deeds. You read these days of state governments in the U.S. and big cities and counties facing massive financial crisis. There was a news item in the papers of one city that is actually thinking about printing it's own "money" to be called "script."

This harkens back to the days of the Great Depression. The major difference between today and the Great Depression is back then, money that was still backed by gold and silver had great purchasing power when you got it. Today,unbacked paper money is hard to get for tens of millions, but it won't buy much when you get it.

A far greater tragedy than Mr. Madoff faces the entire world right now. The ponzi

scheme by the Federal Reserve Bank, Congress (not necessarily the same things) and most world banks and governments may soon be revealed.

The only thing separating most governments today and their central bankers from being declared institutional versions of Mr. Madoff's alleged ponzi scheme is their exclusive legal ability to print up more "funny money." What the creation of this new

"money" and "credit" does, of course, is makes existing "money" worth less. It's similar to a farmer watering down his milk supply to make it appear he has more milk.

The old saying, "The more there is of something, the less it is

valued" holds true today as much as ever. You can figure all of the "bailouts" and "stimulus efforts" are another form of creating new batches of unbacked paper currency and creating "credit" out of thin air.

Thus far, for the most part, corruption of the U.S. Constitution, historic over-spending, world shattering "deficits" and debt have been literally "papered over" with the money printing presses.

To put it another way, Washington has "inflated its way out" of problems. So far, it has somewhat worked, other than the value of its currency---the lifeblood of a nation's economy---has diminished each and every year for decades. It has been a good 30 years or more since anyone who was serious uttered, "sound as a dollar."

Let's look at the comparisons between Mr. Madoff's alleged ponzi scheme and that of governments, including our own.

---A ponzi scheme may go on for many years, even decades, without the fact being generally revealed and finally admitted to by the participant or participants.

---A ponzi scheme seldom appears to be a ponzi scheme. It's as if the participants are financial geniuses and know more about wealth than the general populace. They are, in fact, deemed masters of money.

---There usually is some suspicion, by someone, that something is amiss. But as long as it appears folks are benefitting, and the thing has not collapsed, why question it? If it seemingly is working, at least for most people, let it continue to work.

---Not everyone loses in a ponzi sheme. The promoters often benefit quite well, at least until the ponzi crime grinds to a halt. Again, it appears Mr. Madoff's alleged scheme would still be well greased and working well if he could have printed up money the way governments and central bankers do.

---And perhaps most astounding is those involved in ponzi schemes seem to either think they won't be caught; they don't worry about getting caught--for now--or they honestly think they have found a new formula that will work for them even if it never worked for anyone else in the past.

These things are very, very instructive. For Mr. Madoff, allegedly, was not doing much of anything our world governments and their central bankers are doing.

Just as a ponzi operator entices eventual victims in by promises of great returns, our modern politicians running for office make similar promises by offering rewards in exchange for contribution and support. And they literally pay out in other people's money--never their own. These rewards for political support are usually pork projects, special interest legislation, funding for local projects and what have you.

Another point is that some of those involved as future victims in ponzi schemes figure some things aren't quite right, but as long as it appears they are benefitting, they don't question what they feel is wrong. We see this in the federal government today. Many people know things aren't right, but if they take more out of the pot than they put in, "oh well."

Some of those early in on ponzi shemes can actually make money, as they are paid with money of those coming into the "game" later.

In theory, no doubt some people who felt they were benefitting from Mr. Madoff's alleged ponzi scheme were not interested in rocking the boat and asking a lot of questions as long as they were being paid.

The world's paper currencies are a ponzi sheme waiting to be revealed.

As with Mr. Madoff, no one knows for sure what day the scammers in Washington and New York and around the world will stand naked before everyone.

Virtually the entire U.S. economy is on the ropes, with attempts to keep the patient drugged up with trillions of "dollars" in new funny money. This is largely---cheap and easy "money"--- what caused the boom and busts of recent years.

Our society and government have been great at preaching to our young people about avoiding artificial stimulants and steroids, but we have a paper economy high on both! And as many know, what some folks mistake for stimulants are actually depressants!

We have a corrupt economy, from Wall Street brokers, mutual funds that continue to levy again every mutual fund account yearly whether that fund increases in value or not.

Government, and its central bankers, The Federal Reserve Bank, have a monopoly on currency in this country, setting the direction of "interest rates," arbitrarily setting the "money supply," and the whole magical trick bags of "stimulus plans," "bailouts," and "financial lifelines" to some at the expense of others.

It's a ponzi scheme...the biggest in history, and its involves other governments and other fiat currencies. The truth is, our economy would be totally broken down now without the creation of additional "currency." It is broke...most don't see it as water is added to the milk supply to try to make everyone think there's still more milk in the can.

Unlike Mr. Madoff, Washington can continue to print up "money" to stay in the game longer. When it runs out, it just prints up more.

But one day, as with Mr. Madoff, the clothes come off. It's just a matter of when.

They can keep printing up more and more "money" and while the dollar continues to melt down in value, the game could go on for a while longer. But as Mr. Madoff may attest, the game can stop suddenly and unexpectedly.