Best of the Week
Most Popular
1.Crude Oil Price Trend Forecast 2016 Update - Nadeem_Walayat
2.Will Deutsche Bank Crash The Global Stock Market? - Clif_Droke
3.Gold Price In Excess Of $8000 While US Dollar Collapses - Hubert_Moolman
4.BrExit UK Economic Collapse Evaporates, GDP Forecasts for 2016 and 2017 - Nadeem_Walayat
5.Gold Stocks Massive Price Correction - Zeal_LLC
6.Stock Market Predicts Donald Trump Victory - Austin_Galt
7.Next Financial Crisis Will be Far Worse than 2008/09 - Chris_Vermeulen
8.The Gold To Housing Ratio As A Valuation Indicator - Dan_Amerman
9.GDXJ Gold Stocks - A Diamond in the Rough - Rambus_Chartology
10.Gold Boom! End Game Nears As Central Banks Buying Up Gold Mining Companies! - Jeff_Berwick
Last 7 days
Why Trump Lost, Hillary Won the 1st U.S. Presidential Debate - 29th Sept 16
Is a Dollar Crash Imminent After the Senate Overrides Obama Veto on Saudi 9/11 Bill? - 29th Sept 16
2017: Gold and Silver's Year of "Public Recognition" - 29th Sept 16
Did Trump Win the 1st US Presidential Election Debate? - There's Something Happening Here... - 29th Sept 16
FED Goes from ZIRP to NIRP! - 29th Sept 16 - Chris_Vermeulen
Here’s Why You Should Be in Cash Right Now - 28th Sept 16
The Fed Put a 50% Tax on Your Retirement Plan - 28th Sept 16
Massive Chinese Debt And Why They Are On A Gold Buying Binge! - 28th Sept 16
Stocks Commodities and FX Markets Waiting Technically While Fundamental Data Neutral Poised - 28th Sept 16
This Commodity Has Perked Up its Investors' Portfolios - 27th Sept 16
Charting the Continuing Gold Market Correction - 27th Sept 16
Stock Market Crash and Recession Indicator Warning: Extreme Danger Ahead - 27th Sept 16
Financial Markets and FX Setups 27th Sept - 27th Sept 16
Crude Oil, Forex and Stock Market Trend Forecasts - 27th Sept 16
Why There is Trump - 27th Sept 16
Save Up to 70% in Shopping Expenses for Daily Items - 27th Sept 16
Gold’s Moving Averages and Long-Term Outlook - 26th Sept 16
September Stock Market - The Not So Silent Demise of Deutsche Bank - 26th Sept 16
SPX sell signal confirmed - 26th Sept 16
SPX is testing the next level of support - 26th Sept 16
Outrageously Entertaining US Presidential Campaign Final Stages - What Happens Next? - 26th Sept 16
BoJ, FOMC and Where To Now? - 26th Sept 16
Stock Market New All Time Highs Next - 26th Sept 16
Why Trump Will Win US General Election 2016 Prediction Forecast - 26th Sept 16
Martial Law Rolls Out Across the US As Jubilee Nears - 26th Sept 16
Stock Market More Correction Likely - 25th Sept 16
US Presidential Election Forecast 2016 - Trump Riding BrExit Wave into the White House - 25th Sept 16
US Economy GDP Growth Estimates in Free-Fall: FRBNY Nowcast 2.26% Q3, 1.22% Q4 - 24th Sept 16
Gold and Gold Stocks Corrective Action Continues Despite Dovish Federal Reserve - 24th Sept 16
Global Bonds: Why Our Analyst Says Things Just Got "Monumental" - 24th Sept 16
Where Did All the Money Go? - 23rd Sept 16
Pension Shortfalls Could Be 4X To 7X Greater Than Reported - 23rd Sept 16
Gold Unleashed by the Fed - 23rd Sept 16
Gold around U.S Presidential Elections - 23rd Sept 16
Here’s Why Eastern Europe Is Doomed - 23rd Sept 16
Nasdaq NDX 100 Big Cap Tech Breakout ? - 23rd Sept 16
The Implications of the Italian Banking Crisis Could Be Disastrous - 22nd Sept 16
TwinLakes Theme Park Summer Super 6 FREE Return Entry for Real? - 21st Sept 16
Has the Silver Bullet Run Out of Fire Power? - 21st Sept 16
Frack Sand: The Unsung Hero Of The OPEC Oil War - 21st Sept 16
What’s Happening With Gold? - 21st Sept 16
Gold vs. Stocks and Commodities, Pre-FOMC - 20th Sept 16
BrExit UK Inflation CPI, RPI Forecast 2016, 2017 - 20th Sept 16
European banks may be more important than the Fed this week - 20th Sept 16
Gold, Silver, Stocks and Bonds Grand Ascension or Great Collapse? - 20th Sept 16
Mass Psychology in Action; Instead of Selling Gilead it is Time to Take a Closer Look - 20th Sept 16
Hillary - Finally Well Deserved Recognition for Deplorables - 20th Sept 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Power of the Wave Principle

Why Owning Gold is Absolutely Essential – Charles Ponzi Meets Cassandra

Commodities / Gold and Silver 2013 Jan 21, 2013 - 05:12 PM GMT

By: DeviantInvestor

Commodities

One fine day on the streets of Washington D.C. the ghost of Charles Ponzi struck up a conversation with the ghost of Cassandra. He was a charming devil and assumed she would find him irresistible so he began with “It is ironic, I think, that I am a thief, while you see and speak the truth, but the people believe me and scorn you.”

Cassandra was not impressed and replied, “It is true. Most people would prefer a charming falsehood to the severity of truth. Since no one believes me anyway, you might as well tell me what scam you are currently promoting. I am truly interested. Please, do tell.”


Never one to miss an opportunity, Senator Ponzi replied, “I am finding great success with central banking, paper money, and ever-increasing debt. Frankly, they are an easy sell, and people come to me begging to be part of the scam. It has been quite profitable so far and looks to be good for a long time.”

Cassandra starred into the distance and saw a vision of something disturbing but decided not to mention it as nobody was interested in the truth anyway. Frankly, this was depressing, but she was used to the curse that prevented her visions from being understood. “And what else are you working on?”

Chairman Ponzi then smiled and said with obvious satisfaction, “Derivatives on European debt have proven to be a far better investment than expected. My friends and I have made $Billions on these pieces of paper. Actually I lost count – we might be into the $Trillions by now. Regardless, these and other derivatives have been huge winners.” He looked so smug that Cassandra wanted to scream the truth, but she merely smiled and fed his ego. “Yes, I see that it has been a grand success to date and that you have been very well compensated. What other schemes are you working?”

Representative Ponzi told her, “The deficit spending thing is doing well also. We take money that we collect in taxes plus we borrow a bunch more, and then we spend it on some really cool stuff, plus we buy votes and wars and a great retirement system for us, and then we lean on Wall Street, military contractors, oil companies, and Big Pharma for more contributions, and it works out really swell for my buddies and me. Every two years we do it again, but even bigger.

Cassandra looked away for a few moments to settle her stomach, saw another vision that involved a tsunami of dollar bills and some future unpleasantness (she preferred understatements) and could not stop herself from looking Representative Ponzi in the eye and saying, “You can’t spend money you don’t have without consequences. That scam cannot continue forever. Eventually disaster will strike.”

Representative Ponzi was supremely confident when he stated, “You are becoming rather tiresome, but I’ll give you a short lesson in politics. First, nobody wants to hear that this grand scheme will ever stop. Second, it has lasted a long time, so why shouldn’t it work for another 100 years? Third, nobody jumps off a moving gravy train. Fourth, people can’t see what they don’t want to see, so almost everyone will ignore your visions and the truth.”

Cassandra had heard it all before. She has seen empires rise and fall, huge armies that conquered all in their path but later collapsed, mighty kings who inspired people with impossible dreams and soon afterward all were destroyed, countries that spent themselves into insolvency, and worst, her beloved Troy had been destroyed by greed, arrogance, love of power, and massive delusions. Mr. Ponzi and others like him had worked their destructive magic countless times in the past, and she expected his kind would persist for many more years.

Cassandra was sick of the ghost of Charles Ponzi, regardless of what charming and smooth-talking form he took. She took a red pill and began to fade away as she called out to him, “It will only last a short while longer. Beware …” And then she was gone.

Mr. Ponzi was pleased to be finished with her annoying visions, briefly wondered what she had been about to say, and then popped a blue pill along with a healthy slug of whiskey and thought about other scams he could sell.

In the distance he thought he heard someone yelling, “Print more money, nothing can go wrong, it’s all good.” It sounded right to him, but it was nap time and he wanted to continue his dream of perpetual wealth without effort, cause without effect, and more for everyone, especially himself. It was a satisfying dream. He smiled contentedly, loving the illusions provided by the blue pill and feeling both important and invincible.

The ghost of Cassandra smiled from a distance and waited for “It came to pass” in the 21st century. She thought it would not be a long wait.

GE Christenson
aka Deviant Investor

If you would like to be updated on new blog posts, please subscribe to my RSS Feed or e-mail

© 2013 Copyright Deviant Investor - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife