Best of the Week
Most Popular
1.Gold Price Target of USD 2,300 - GoldCore
2.Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - Nadeem_Walayat
3.Why British Muslims Are Leaving Elysium Paradise for Syrian Hell - Nadeem_Walayat
4.Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - Nadeem_Walayat
5.Extreme Gold/Silver Shorting - Zeal_LLC
6.European Empire Strikes Back Against Greek Debt Fantasy, Counting Down to GREXIT - Nadeem_Walayat
7.Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - Michael_Noonan
8.Gold and Silver Price Headed for Breakdown - Jordan_Roy_Byrne
9.Greece Crisis OXI - Raul_I_Meijer
10.Flatline Investing and Dead End Debt Schemes - Doug_Wakefield
Last 5 days
Greece's Varoufakis: I will Resign if there's a 'Yes' Vote - 2nd July 15
The Student Loan Bubble: Gambling with America’s Future - 2nd July 15
Inflation Is Lurking, but This Asset Can Protect You - 2nd July 15
Three Total Wealth Stock Investor Tactics You’ll Need Because Greece Isn’t Over - 2nd July 15
Why This $5.6 Trillion Investor Profit Boom Is Set To Take Off - 2nd July 15
Greek Debt Crisis: "Too late to prepare now" - Video - 2nd July 15
Guaranteed US Dollar Death Dynamics - 2nd July 15
The Greek Stress Test & The Reality Of Incremental Changes - 2nd July 15
Forget Drachmas Greece Syriza Government Could Instruct Central Bank to Print Euros! - 2nd July 15
Greece Debt Crisis Trigger for Stock Market Crash or Bull Rally? Video - 1st July 15
Gold Stocks Break Below 2008 Low - 1st July 15
SPX Stock Market Retracement May be Over - 1st July 15
Silver Tunnel Vision 'Experts' - 1st July 15
Gold And Silver - Monthly, Quarterly Ending Analysis - 1st July 15
Europe’s Controlled Demolition - 1st July 15
The End of Dow 18,000; Bailouts No Longer Extended  - 1st July 15
Athens Mayor: Greek Government Should Resign - 1st July 15
China Stocks - This Is What a Bubble Looks Like - 30th June 15
Stocks Plunge on Greece Euro-Zone Financial Armageddon Blackmail - 30th June 15
Greece Crisis Shows Importance of Gold as Europeans Buy Coins and Bars - 30th June 15
Stock Investors Express Route to Profits in the Healthcare Sector - 30th June 15
Beyond the Greek Impasse - 30th June 15
Gold GDXJ : Impulse Move Pending - 30th June 15
Fed Interest Rate Increase Could Be Best Thing to Happen to Gold - 30th June 15
Marc Faber - Greece is Basically Bankrupt - 30th June 15
Greece - Shoot the Dog and Sell the Farm - 29th June 15
Grexit?, BIS Warning, Chinese Market Crash & Systemic Risk Shake the Global Economy - 29th June 15
The New "Sharing Economy" May Not Be the Profit Bonanza Everyone's Expecting - 29th June 15
Gold and Silver Greece and Short Positions - 29th June 15
Volatility and Sleep-Walking Markets - 29th June 15
Greece BANKRUPT! Financial and Economic Collapse to Follow IMF Debt Default - 29th June 15
Stock Market More Decline Ahead? - 29th June 15
China Stock Market Crackup - The Final Trap Looms... - 29th June 15
Greece Banking System Collapse Monday as ECB Pulls the Plug, Capital Controls Ahead of GrExit - 28th June 15
Investor Stock Play for Two Growing Missile Threats - 28th June 15
Stock Market Uptrend/downtrend Inflection Point - 27th June 15
Greece Crisis OXI - 27th June 15
Gold And Silver – Three Choices: Sell, Hold, Hold and Add. A Trading Treatise - 27th June 15
It’s Time to Change the Way You Look at Disney Forever - 27th June 15
Flatline Investing and Dead End Debt Schemes - 27th June 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

China Stocks - Where are they going?

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.


© 2005-2015 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

Biggest Debt Bomb in History