This is a follow up of the previous article
What really is the difference of the U.S. economy and the Madoff controversy. Is the U.S. economy really a Ponzi scheme or is it not a Ponzi scheme since the United States does not have an intent to defraud its citizens? But are both instances really using the same scheme?
Try listening intently from 1:34 in the video. Max Keiser says that what keeps the fund growing in the U.S. is 25 years of growth in the economy, but as the economy contracts the new money needed to sustain the scheme disappears. He then continues that this is the reason why the Madoff Ponzi scheme collapsed.
I can imagine that there are so many other institutions using this system with or without good intentions. And I can imagine a number of them collapsing.
Is our economic system tolerant of even a mild recession or should we always ‘sound the alarm’ the moment the economy contracts?