American Ponzi

Ponzi Scheme - A Ponzi scheme is a fraudulent investment operation that pays returns to its investors by using the investors' own money or the money paid in by subsequent investors. There is no legitimate business operation or any actual profit earned by the individual or organization running the operation.

Ponzi Schemes are often uncovered and/or collapse when there are not enough new investors or existing investments to pay returns to the investors (Bernie Madoff was discovered this way).

Question: What is the difference between a Ponzi scheme and the Social Security System of the United States of America?

Question: Is the downgrade of US bonds from AAA to AA+ an indication of increasing doubt that the US Government has enough investments to pay returns to its investors?

Question: If the external debt of the USA is $13.98 trillion (as of June 30, 2010), and the US GDP is $14.66 trillion (2010 est.), is that not proof that there is not enough money in this entire country to pay returns to investors? (ref. CIA world factbook)

The big question: What happens when the global economy is heavily invested in a Ponzi scheme that collapses?

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Thanks A&Y!

Hindsight

I find it an interesting thought that if someone had said 10 years ago, "In 10 years, Barack Hussein Obama will order the assassination of Osama Bin Ladin.", most people would have had no idea who either of these people were and would have assumed that this was some regional dispute in the Middle East.

No hidden meaning in any of this. I just find it to be an interesting fact.

Boat

I finally bought a boat (with a motor). Hope to be on the water this weekend.

LSU WINS COTTON BOWL!

CONGRATULATIONS TIGERS!!!