WORLDWIDE PONZI SCHEME UNRAVELLING

I guess Obama, Pelosi, Kerry, Krugman, and Reid will blame the Tea Party extremists for the 2nd stock market crash in the last two weeks. Americans want sound bites. They want simple concepts because thinking makes their heads hurt. If you are an ignorant American, than you should stop reading now and go back to watching The View. The unravelling of the worldwide financial ponzi scheme has many tentacles and many interconnected pieces, but it all goes back to DEBT and the inability to service that debt with the cash flows being generated by governments, consumers and businesses. Here are the facts:

• Nixon closed the gold window in 1971 and unleashed a never ending torrent of fiat paper into the world.
• Politicians throughout the world, since the late 1960s, have made promises of social welfare benefits to voters in order to get elected. They didn’t worry about demographics or using complicated  mathematical concepts like multiplication and addition to figure out that the promises could never be fulfilled.
• The Federal Reserve enabled politicians to create as much debt as they wanted by methodically devaluing the USD by 90% since 1971.

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