Confidence Games and Ponzi Schemes
After hearing a lot of talk in recent days about hopeful signs for the U.S. economy and how it is vital that consumers regain their confidence in order for a recovery to truly take hold, it struck me once again that the U.S. economy, more so than most other economies around the world, is really just a "confidence game".
As in … a hustle.
As in … Paul Newman.
As in … not a good long-term plan (unless, of course, you’re the one running the swindle) because, at its foundation, the game is fraudulent.
a scheme in which the victim is cheated out of his money after first gaining his trust
Now, this is not some short-term hustle where some guy standing on a street corner signals his partner with a tap on his nose – this is a multi-generational scam that has as much to do with flawed concepts about how economies should operate as it does with fading empires and their tendency to transition from manufacturing powerhouses to centers of finance and money shuffling where, over time, the masses are duped into borrowing and spending their way to oblivion and the government does much the same simply because it thinks it has no other choice.
That’s kind of where we are now. Let me explain…