A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.
Knowingly entering a Ponzi scheme, even at the last round of the scheme, can be rational economically if there is a reasonable expectation that government or other deep pockets will bail out those participating in the Ponzi scheme.
Bail out is a familiar phrase these days. Trillions of dollars have just been used to bail out the current US economy and also the European Union. How is it so many Americans can continually believe in a false industry such as banking. Since 1920 when Charles Ponzi duped many of investors, there has a become an awareness for Ponzi schemes first described in Charles Dickens 1857 novel Little Dorrit.
It has been said the biggest Ponzi Scheme in history was discovered on December 10, 2008 when the FBI arrested Bernard "Bernie" Madoff totalling in over $64 billion dollars of loses from duped investors. Yet as the unraveling of bail outs and the current fiat money system of the World unfolds it is very clear to those who have any sense of financial education to recognize the real largest Ponzi Scheme of history which is the Ponzi Scheme of Central Banking. The tax payers continue to pay for the bail outs while the super rich are protected with T-notes of borrowed money from the Federal Reserve. Or in other words Government prints money and inflates the currency system.
One of two things will happen... 1. is total collapse or 2. is floating the Giant Ponzi scheme to a World Currency and World Banking System.
Dooms dayer's can sit and dwell on the fact that it is a dual edged sword, yet it is fact. So the question is what can you do to protect yourself?
1. Invest in your knowledge and financial education.
2. Buy food Storage.
3. Eliminate bad debt, ie debt that takes money out of your pocket and not into your pocket.
4. Invest in commodities, ie gold, silver, wheat, tangible usable items.
5. diversified portfolio in the system. NOT 401k's and IRA's, yet get knowledge in the bull markets and invest there.
The B Side To The Truth is the World Economy is not in a good position. The good thing is this, with the right knowledge many can come out a head through this recession. The bad thing is, many will not take control of their life to gain the necessary knowledge needed for the years to come and many will lose everything.
Start today to change the world by changing yourself. If everyone did that one thing... the world would be a better place.
Colton - discover your true'ness'
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