o Ponzi Schemes

A Ponzi or pyramid scheme is a fraudulent operation that pays returns to investors out of the money paid by subsequent investors rather than from profit. Below are a list of Ponzi schemes:

• Bernie Madoff
• Social Security
• Medicare
• National Debt
• Trade Deficit
• Fractional Reserve Banking System
  

Bernie Madoff is a drop in the bucket compared to the Ponzi scheme run by the US government and the current banking system. As soon as the interest rates begin to rise, the full consequences of the debt problem will have real impact on the borrow and spend economy.