What is the difference between a Ponzi scheme and the way in which the UK or the US is handling its debt?
Think about this for a moment: the Government spends money it doesnt have. It borrows money with a promise of interest to bond holders and then spends this money too. It then uses some newly borrowed money to pay back the old borrowers as it continues to spend beyond its means. A classic Ponzi.
In the UK it is more like a super Ponzi. Now that more and more appear reluctant to buy debt, the government are using UK banks (which they own) to buy debt which they then use to lend to the banks...
Bernie Madoff should become Assistant Secretary to the US Treasury - he could teach them a thing or two here.
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