Tuesday, 9 February 2010
All Ponzi Schemes Fail In The End
The Welfare State was created as a massive Ponzi scheme, where the first pensioners and receivers of benefit were the big winners, they had paid nothing in and so they got 'free treatment'- which was in effect being paid for by the next generation of subscribers. The scheme would not have got started at all unless the USA had not paid the UK millions of Dollars in Aid, a national debt created by WW2 that took over sixty years to clear.
There is a large bulge going through the Ponzi scheme at present caused by the 'babyboomers' and those who are in receipt of benefits that have never contributed to this investment scam. The new subscribers are much fewer in number than the baby boomers who are going to be expected at the point of the gun to subscribe to the scheme. All Ponzi schemes go bust when the new subscriber base is smaller than the one that goes before, or they are unable or unwilling to prop up the edifice.
Last night on Look West, our local cute kittens and granny show, a former WW2 bomb aimer who is now suffering from dementia has been told if they want the luxury of respite care to give his wife a break from being a full time carer, they will now have to pay for the'service'. Needless to say the storyline was of an injustice to the former serviceman who had paid into this scheme and now expects the benefits in his old age.
Unfortunately the storyline was not that the whole scheme is a scam, and those who promoted such a scheme had they worked in private industry would have Lord Mandy on their backs, but in the State sector you can indulge in all sorts of criminality if it is in the 'public interest'.
The main reason why 'Lord' Mandy cannot privatise the Post Office, Billions of Pounds worth of underfunded Pension entitlements. So we are all stuck with being forced to prop up that Ponzi scheme.
Eventually all such schemes fail,as they cannot defy gravity for ever.