Saturday, March 14, 2009

Madoff shows us how governments work

Bernard Madoff pleaded guilty to a $50bn (£35bn) fraud and was sent to jail to await sentencing in June. Madoff has pleaded guilty to 11 charges - four counts of fraud, three counts of money laundering, making false statements, perjury, making a false filing to the US financial watchdog, and theft from an employee benefit plan. He ran a Ponzi scheme, whereby early investors were paid off with the money of new clients and as long as he could get new clients, he could keep up the charade.

Now this sounds vaguely familiar doesn’t it?

A Ponzi scheme is the favorite activity of every government that has ever existed. They do this in two ways, both of which is very popular all over the world, recently also a way to cope with the recent financial crisis which has been created by the same thing they are doing to stop it. Meanwhile they are talking about the elusive animal “The Market” as a way to cover up their little plot. But lets do a recap first.

A politician knows he cannot get elected without promising to spend people’s money. And while in office he needs to fulfill this promise and even surpass it in order to get reelected. So the politician take on the cape of righteousness and solemnly declarers that he/she is going to help the poor or that we (always “we” not, “I”) need extra funds to build a school, a hospital or to better the highways. Humans, low in intelligence as they all are, says: “Duh! Of course we need to help the poor, the children or the sick. Please take my money so you can give it back to me!”. And the politician gladly accepts your offer. But governments can only do so much and people, even if most of them are dumber then a cactus, cannot be fooled to pay taxes that are too high. There is a limit. So the politician, that have to keep the spending travesty up in order to keep his constituency happy, needs to magically get more money. So off he goes to borrow it. It can be from the people themselves but normally it is from other governments. The security for those loans are the country itself, after all, there is unlimited supply of idiots in the future who pay taxes. So on the backbone of today’s children the politician borrows money to keep the theater going another act. Bernard Madoff isn’t even close to the amounts we are talking about here. He is an amateur when it comes to politicians.

But it doesn’t stop there. Politicians have another ace up their sleeve, the God of all politicians, the printing machine! With this ingenious invention politicians can print money and spread them around to people without them even detecting that this is both an indirect way of taxing them and a way to increase loans even further. With more money in their pocket officials can keep spending it on “free” stuff like subways or homes for the elderly. Ponzi shouldn’t have got the dubious honor of naming this madness, it should be called ‘the politicians scheme’.

This is what caused today’s financial crisis together with other idiotic governmental designs like “subsidiaries”. And what is the answer to this crisis according to all the economy “experts”, journalists and politicians? We do it again! Let’s borrow more money, and let’s print some too! Let’s inject the world with more of the same stupidity that gave us this crisis, but let’s do it at a higher speed and with lots more money than before! Maybe we can keep us going for one act longer and if it doesn’t work; blame the market! And let’s also blame those rich sons of bitches that keeps getting richer despite us taxing them more and more.

Sooner or later this ends. Not even governments and countries can keep doing this forever. I think the time is almost here, maybe they can keep tricking you idiots out there for some more years, but we are heading for a fall and our children will need to pay up. And this is when that oh so funny apocalypse comes in. Because the idiots of this world will not see the truth even when people are dying from hunger, instead they will turn to dictatorship and more socialism. That’s how people work. And you wonder why I keep calling you all idiots. Idiots.

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