First they are playing with money that does not belong to them – which means they cannot lose. Also, when the scams finally unravel, the perpetrators have invariably moved on to their next group of unsuspecting victims –where the fleecing begins anew.
Sound familiar? It should. This is the modus operandi of governments all over the world in our current era of Keynesian excess – an era in which new taxes, fees and fines must be continually created and levied in order to pay for promises made in previous years. Of course these government promises are never actually “paid for,” the IOUs just keep mounting as the burden of repayment is extended further down the line to future generations of taxpayers.
Crisis compels the scammers to grow even bolder in their efforts to fleece the taxpayers. In fact, these “too good to be true” scams have only grown more expensive in response to the recent economic downturn.
Not surprisingly, the root cause of the crisis that is threatening to bring down the global economy lies in the unsustainable expansion of the welfare state – which should be a lesson for American politicians of both parties.
25 June 2010
It's A Ponzi Scheme, And We Are The Last Generation Of Suckers
Excerpt from: Is the Welfare State a Ponzi Scheme?