Archive for October, 2010

Ponzi Schemes and the US government

October 28th, 2010 No comments

Quick note on an interesting article that I found in the Telegraph this morning.  Is the US government printing money in a manner no different to all the other ponzi schemes out there?  Is this not just the biggest Ponzi scheme of them all??

The following quote is from Bill Gross – MD of Pimco – the world’s largest Bond house (he knows what he is talking about!).

“[Cheque] writing in the trillions is not a bondholder’s friend; it is in fact inflationary, and, if truth be told, somewhat of a Ponzi scheme,” he wrote on his investment outlook, arguing that creditors have always expected to be paid out of future growth.

“Now, with growth in doubt, it seems the Fed has taken Ponzi one step further,” he said. “The Fed has joined the party itself. Has there ever been a Ponzi scheme so brazen? There has not.”

Leave your thoughts in the comment box below – this is a topic worthy of discussion.

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