Best of the Week
Most Popular
1.Gold Price Trend Forecast, Where are the Gold Traders? - Bob_Loukas
2.Stocks Bear Market of 2017 Begins? Shorting the Dow At its Peak! - Nadeem_Walayat
3.Betting on President Trump Leaving Office Early, Presidency End Date - Betfair Market - Nadeem_Walayat
4.Why Stock Market Analysts Will be Wrong About 2017 - Clif_Droke
5.Is This The Best Way For Investors To Play The Electric Car Boom - OilPrice_Com
6.Silver Price 2017 Trend Forecast Update - Video - Nadeem_Walayat
7.Gold Price Set For Very Bullish 2017, Trend Forecast - Austin_Galt
8.10 Things I learned From Meetings With Trump’s Transition Team - - John_Mauldin
9.How Investors Can Profit From Trumps Military Ambitions - OilPrice_Com
10.Channel 4 War on 'Fake News', Forgets Own Alt Reality Propaganda Broadcasting - Nadeem_Walayat
Last 7 days
Here’s Proof Rising Rates Are Good for Gold - 21st Feb 17
Gold and Silver Weekly Update - 21st Feb 17
US Dollar and Gold Battle of the Cycles - 21st Feb 17
NSA and CIA is the Enemy of the People - 21st Feb 17
Big Moves in the World Stock Markets - Big Bases - 21st Feb 17
Stock Market Uptrend Continues - 21st Feb 17
Brent Crude Oil Price Technical Update: Low Volatility Leads to High Volatility - 20th Feb 17
Trump’s Tax System Could Spark The Wave Of Self-Employment - 20th Feb 17
Here’s How to Stay Ahead of Machines and AI - 20th Feb 17
Warning Signs Of Instability In Russia - 20th Feb 17
Warning: This Energy Investment Could Wreak Havoc On Your Portfolio - 20th Feb 17
The Mother of All Financial Bubbles will be Unimaginably Destructive when it Bursts - 19th Feb 17
Gold’s Fundamentals Strengthen - 18th Feb 17
The Flynn Fiascom, the Trump Revolution Ends in a Whimper - 18th Feb 17
Not Nearly Enough Economic Growth To Keep Growing - 18th Feb 17
SPX Stocks Bull Market Continues to make New Highs - 18th Feb 17
China Disaster to Trigger Gold Run, Trump to Appoint 5 of 7 Fed Governors - 18th Feb 17
Gold Stock Volume Divergence - 17th Feb 17
Gold, Silver, US Dollar Cycles - 17th Feb 17
Inflation Spikes in 2017, Supporting Gold Prices Despite Increased Odds of March Rate Hike - 17th Feb 17
Roses Are Red... and So's Been EURUSD's Trend - 17th Feb 17
Gold Trade Note Sighted - 17th Feb 17
Gold Is Undervalued Say Leading Fund Managers - 17th Feb 17
NSA, CIA, FBI, Media Establishment 'Deep State' War Against Emerging 'Trump State' - 16th Feb 17
Silver, Gold Stocks and Remembering the Genius of Hunter S. Thompson - 16th Feb 17
Maps That Show The US’ Strategy In Asia-Pacific - 15th Feb 17
The Trump Stock Market Rally Is Just Getting Started! - 15th Feb 17
Tesco Crisis - Fake Prices, Brexit Inflation Tsunami to Send Food Prices Soaring 10% 2017 - 15th Feb 17
Stock Market Indexes Appear Ready to Roll Over - 15th Feb 17
Gold Bull Market? Or was 2016 Just a Gold Bug Mirage? - 15th Feb 17
Here’s How Germany Buys Time From China - 15th Feb 17
The Stock Trader’s Actionable Guide to Trump - 15th Feb 17
Trump A New Jacksonian Era? The Fourth Turning (2) - 14th Feb 17
Stock Market Yet Another Wall Street 'Witch's Brew' - 14th Feb 17
This Is Why You Don’t Own A Lot Of Stocks - 14th Feb 17
Proposed Tax Reforms Face Enormous Headwinds - 14th Feb 17

Market Oracle FREE Newsletter

State of Global Markets 2017 - Report

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