Ponzi Scheme

Charles Ponzi

Remember David Stockman? He was famous for coining the term "trickle-down economics" during Ronald Reagan's presidency ... when he was head of the Office of Management and the Budget (OMB) ... and was later chastised for being too outspoken on economic matters. Well he hasn't changed a whole lot ... and now he is again pointing out the dangers inherent in out current government's policy of incurring massive amounts of debt ... if you will, a government-sponsored Ponzi scheme. If you don't want to suffer a churning stomach and many sleepless nights, then don''t read ... David Stockman Speaks.

The really unfortunate part of this essay is that Stockman has no easy answers to all the issues he poses. My guess is that the only real possibility is that our government (meaning the Federal Reserve Bank) must eventually inflate our way out of this described morass. It never will be able to cut back on social welfare programs to the degree necessary to keep our ship of state afloat.