Best of the Week
Most Popular
1.Are UK Savings Interest Rates Finally Starting to Rise? Best Cash ISA 2017 - Nadeem_Walayat
2.Inflation Tsunami - Supermarkets, Retail Sector Crisis 2017, EU Suicide and Burning Stocks - Nadeem_Walayat
3.Big Moves in the World Stock Markets - Big Bases - Rambus_Chartology
4.The Next Financial Implosion Is Not Going To Be About The Banks! - Gordon_T_Long
5.Why EU BrExit Single Market Access Hard line is European Union Committing Suicide - Nadeem_Walayat
6.Trump Ramps Up US Military Debt Spending In Preparations for China War - Nadeem_Walayat
7.Watch What Happens When Silver Price Hits $26...  - MoneyMetals
8.Stock Market Fake Risk, Fake Return? Market Crash? - 2nd Mar 17 - Axel_Merk
9.Global Inflation Surges, Central Banks Losing Control and Triggered the Wage Price Spiral? - Nadeem_Walayat
10.Why Gold Will Boom In 2017 - James Burgess
Last 7 days
Stock Market VIX Cycles Set To Explode March/April 2017 – Part II - 23rd Mar 17
Is Now a Good Time to Invest in the US Housing Market? - 23rd Mar 17
The Stock Market Is a Present-Day Version of Pavlov’s Dog - 23rd Mar 17
US Budget - There’s Almost Nothing Left To Cut - 23rd Mar 17
Stock Market Upward Reversal Or Just Quick Rebound Before Another Leg Down? - 23rd Mar 17
Trends to Look Out For as a Modern-day Landlord - 23rd Mar 17
Here’s Why Interstate Health Insurance Won’t Fix Obamacare / Trumpcare - 23rd Mar 17
China’s Biggest Limitations Determine the Future of East Asia - 23rd Mar 17
This is About So Much More Than Trump and Brexit - 23rd Mar 17
Trump Stock Market Rally Over? 20% Bear Drop By Mid Summer? - 22nd Mar 17
Trump Added $3 Trillion in Wealth to Stock Market Participants - 22nd Mar 17
What's Next for the US Dollar, Gold and Stocks? - 22nd Mar 17
MSM Bond Market Full Nonsense Mode as ‘Trump Trades’ Unwind on Schedule - 22nd Mar 17
Peak Gold – Biggest Gold Story Not Being Reported - 22nd Mar 17
Return of Sovereign France, Europe’s Changing Landscape - 22nd Mar 17
Trump Stocks Bull Market Rolling Over? You Were Warned! - 22nd Mar 17
Stock Market Charts That Scream “This Is It” - Here’s What to Do - 22nd Mar 17
Raising the Minimum Wage Is a Jobs Killing Move - 22nd Mar 17
Potential Bottoming Patterns in Gold and Silver Precious Metals Stocks Complex... - 22nd Mar 17
UK Stagflation, Soaring Inflation CPI 2.3%, RPI 3.2%, Real 4.4% - 21st Mar 17
The Demise of the Gold and Silver Bull Run is Greatly Exaggerated - 21st Mar 17
USD Decline Continues, Pull SPX Down as well? - 21st Mar 17
Trump Watershed Budget - 21st Mar 17
How do Client Acquisition Offers Affect Businesses? - 21st Mar 17
Physical Metals Demand Plus Manipulation Suits Will Break Paper Market - 20th Mar 17
Stock Market Uncertainty Following Interest Rate Increase - Will Uptrend Continue? - 20th Mar 17
Precious Metals : Who’s in Charge ? - 20th Mar 17
Stock Market Correction Continues - 20th Mar 17
Why The Status Quo Is Under Increasing Attack By 'Populist People Power' - 20th Mar 17
Why the SNP WILL Destroy Scotland, Exit UK Single Market for EU - IndyRef2 - 19th Mar 17
Crypto Craziness: Bitcoin Plunges on Fork Concerns, Steem Skyrockets and Dash Surges Above $100 - 19th Mar 17
What ‘Ice-Nine’ Means for Your Money - 19th Mar 17
Stock Market 4 Year Cycle - 18th Mar 17
The Only Article You Need to Read to Understand the Trump Phenomenon - 17th Mar 17
Janet Yellen Just Popped the Stock Market Bubble - 17th Mar 17
Financial Crisis, Steve Eisman: Smart, Lucky, Abrasive & Now One Of Them - 17th Mar 17
Gold Cup – Horse Racing’s Greatest Show, Gambling and ‘Going for Gold’ - 17th Mar 17
Trader Education Week - Free Event to Help You Learn to Spot Trading Opportunities - 17th Mar 17
$1.4 Trillion of SPX Notionals Due to Expire - 17th Mar 17
Preserving Order Amid Change in NAFTA, U.S. Sovereignty v. WTO - 17th Mar 17
3 Maps That Explain Why Syria Raqqa Battle Will Drag On - 17th Mar 17
Crude Oil Price Outlook 2017 - Video - 16th Mar 17
Dutch and French Electons - Winners are Losers and Left is Right - 16th Mar 17
The Straddle Trade Stock Market Brief - 16th Mar 17
Gold Up 1.8%, Silver Up 2.6% After Dovish Fed Signals Slow Interest Rate Rises - 16th Mar 17
Stocks Get Close To Record High Again As Fed Hikes Interest Rates - 16th Mar 17
Scotland Second Independence Referendum War - SNP Determined to Destroy the UK - 16th Mar 17
Here’s How Pharma Is Using AI Deep Learning To Cure Aging - 16th Mar 17
Stock Market Chaos in the Chicken Coop - 15th Mar 17
Gold and Silver Price Manipulation: The Biggest Financial Crime In History - 15th Mar 17
“Ryancare” Dead on Arrival: Can We Please Now Try Single Payer? - 15th Mar 17
Fanaticism, Stock Market Crash 2017 or Continuation of Bull Market - 15th Mar 17
Stock Market Most Overvalued On Record — Worse Than 1929? - 15th Mar 17
Desperate Saudi Arabia Turns to Asia for Investment - 15th Mar 17
Startups Will Define the Future of US Employment - 15th Mar 17
Fed Rate Hikes, Fiscal vs. Monetary Policy and Why Again the Case for Gold? - 15th Mar 17
SNP Declare Scotland to Commit Economic Suicide Early 2019, 2nd Independence Referendum - 14th Mar 17

Market Oracle FREE Newsletter

Elliott Wave Trading

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