PONZI SCHEME ??
Basically bringing in money, by asking people to invest and promising good returns, then paying those returns out of that money. Works great if you keep taking in more than you have to pay out. Starting to sound familiar? People do it all the time by charging more on their credit cards than they make. Cities and States do it and the Federal Government especially has become expert at it. Well Ponzi’s scheme eventually failed and so do borrowers who can’t pay their bill. So to will the Government. They too owe money. They owe the people that dividend they promised. More and better services. Remember we pay these ever increasing taxes because we are promised BETTER services (dividends). Examples of getting less for more are across the board. Look at education, look at the response to disasters (Katrina, need I say more)? More and more police don't equate to less and less crime as Chicago is proving now. The problem is that the fed is running out of places to get the money from. They starte getting the money from taxing the people. When the common person's limit was reached , they went after the richer people, next came the business’s. When that limit was reached the fed has to borrow. We (the Fed) owe debt in larger and larger amounts to other countries. If you think we aren’t affected by that, think again about recent news. The value of our dollar has plummeted, our national credit rating has gone down. The value of the money we as citizens have has lessened. The same as a pay cut. The fed. keeps lowering the interest rates, but there isn’t much room left. Lowering the rates actually just make it easier to borrow keeping the broken system above water a little longer. Just like the fed finding more place to borrow from. When that effort is exhausted, inflation will come roaring back IMO. Food prices and gas already are jumping. This is simply our way of paying the piper what is due. What is due and payable is our free ride on our Ponzi scheme. It is coming due. At the state level I found an example of that bill coming due at Jack Hoogendyk’s web site below. He is a Republican State House Representative from the 61st district, around Kalamazoo.
The pertinent article in the above blog about HB5221 is below.
-----article from blog-----
Wednesday, April 23, 2008
More info on that big Capital Outlay bill (HB5221)
Here are some key points on the Capital Outlay Budget just given to me by a colleague in the House:
1. The bond cap (how much we can borrow) is being raised from $2.7 billion to $3.8 billion. It will cost the general fund budget about $100 million every year, money that would otherwise be used to pay for needed services.
2.This bill authorizes spending this year and every year through 2012.
3.Because the bond cap is a statutory measure, it can be increased every year.
4. This bill spends $400 million more than even the Governor recommended.
5. The actual cost of this bill is $1.8 billion in new spending.
One must ask...how many credit cards are we going to max out before the people are broke?
Posted by Jack Hoogendyk at 5:00 PM
Link to look up HB5221
Looks like it passed and is on to the Senate if I understand it. If not please correct me someone.
Well got to go unplug my drain, crawl under the house and get messy pull the you know what out of the system. Maybe when I’m done there I’ll have gained some experience in taking the you know what out of our clogged and broken Ponzi system.
Regards Live Dangerously Be A Conservative