Three similar types of Ponzi schemes.

Three similar types of Ponzi schemes.

by tonytran2015 (Melbourne, Australia).

Click here for a full, up to date ORIGINAL ARTICLE and to help fighting the stealing of readers’ traffic.

(Blog No.20x).

#Ponzi scheme, #pension funds, #Social benefits,

There are three similar types of Ponzi schemes. They are:

1. Privately run Ponzi schemes:

Plan: Members are paid by joining fees of growing number of new members.

Winner: Early members.
Losers: Latest members.

Status: Illegal in US, Australia and most English speaking countries.

Fatal flaw:

Number of members must grow exponentially.

2. Local government run Pension schemes:

Plan: Members are paid generously by contribution of growing number of new members.

Winner: Early members.
Losers: Latest members.

Status: Some Pension funds in the US have run into financial problems [1].

Fatal flaws:

Number of members must grow exponentially and contributions by members must generate net investment profits.

3. Socialist national welfare schemes run by many nations:

Plan: Overly generous welfare benefits (payments for no work, unlimited health care funded by governments) for citizens and service payments to corporations are paid by taxes on growing number of new citizens, corporations and growing national debts [2, 3].

Winner: Early citizens, early corporations.

Losers: Latest citizens and latest corporations prior to the collapse, national identity, national coherence.

Status: Venezuela, Brazil currently have serious financial short fall. California is heading to bankruptcy. Australia is running out of space in cities.

Fatal flaws:

Number of citizens, their productivity and national mortgageable debt securities must grow exponentially.

Number of citizens may be limited by the physical environment of each nation. The whole area of each country cannot be urbanized. Each nation may also run out of assimilable prospective immigrants. Beyond this point, further immigration may cause Pockets of Foreign Settlements and No Go Zones [4]. The nation may then lose its coherence through “Multi-culturalism” and “Cultural and Language Diversity” [5, 6]. The nation will then be under foreign pressure [7, 8] from countries of origin of its immigrants [9]. This may lead to a dissolution of the nation or even its take over by another nation [10, 11,12].

If left totally to himself, a politician without any attachment to the national culture would go for the easy option of running this Ponzi scheme on national scale.

“When the people find that they can vote themselves money that will herald the end of the republic.”― Benjamin Franklin

https://www.goodreads.com/quotes/88664-when-the-people-find-that-they-can-vote-themselves-money

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship. The average age of the world’s greatest civilizations has been 200 years.”
― Alexander Fraser Tytler

https://www.goodreads.com/author/quotes/5451872.Alexander_Fraser_Tytler

 

References.

[1]. https://survivaltricks.wordpress.com/2016/12/10/can-most-pension-funds-last/

[2]. https://survivaltricks.wordpress.com/2018/10/06/immigration-is-the-heroine-of-politicians/

[3]. https://www.theguardian.com/australia-news/2018/apr/17/migrants-add-to-australias-wealth-government-report-finds

[4]. https://survivaltricks.wordpress.com/2017/09/08/no-go-zones-are-halfway-marks-to-surrender-of-sovereignty/

[5]. https://survivaltricks.wordpress.com/2018/11/14/diversity-may-be-beautiful-but-justice-seems-to-suffer/

[6]. https://survivaltricks.wordpress.com/2018/03/19/mass-immigration-causes-the-death-spiral-for-western-culture/

[7]. https://survivaltricks.wordpress.com/2018/10/15/some-australian-politicians-rely-on-foreign-influence-and-immigrants/

[8]. https://survivaltricks.wordpress.com/2018/09/02/comparative-risks-of-foreign-influence-on-different-us-political-leaders/

[9]. https://survivaltricks.wordpress.com/2017/04/12/understanding-the-strategy-of-conquering-by-over-populating/

[10]. https://survivaltricks.wordpress.com/2018/10/12/cincinnati-doj-report-authorities-crackdown-on-chinese-spying-have-charged-xu-yanjun-also-known-as-qu-hui-and-zhang-hui-after-he-was-extradited-from-belgium-to-the-u-s-tuesday-on-two-counts-eac/

[11]. https://survivaltricks.wordpress.com/2018/06/17/expansion-by-predatory-loans/

[12]. https://survivaltricks.wordpress.com/2018/10/30/the-life-cycle-of-a-nation/

RELEVANT MONEY Blogs

The Parasites of Western Economy, Part 10: Greedy politicians overpaid with our tax money.

The Parasites of Western Economy, Part 9: Over-chargers for unfamiliar types of service.

The Parasites of Western Economy, Part 8: Body Corporate robbing owners of low cost dwellings.

The Parasites of Western Economy, Part 7: Providers of invented inefficient service from tax money.

The Parasites of Western Economy, Part 6B: Robbers of pension money in Australia.

The Parasites of Western Economy, Part 6: Robbers of pension money in Australia.

The Parasites of Western Economy, Part 5: Company Asset Strippers and Conspirators posted on 13 August 2017 ,

moneyd20.jpg

,

, , , , , Cashless bartering for survival, Federal Reserve Bank charges undeserved fees to Americans., A satirical guide to signs of an impending crash for small investors, Your fiat money (Part 2), Your fiat money, Bankers given outrageous incomes by their boards, Signs pointing to an impending crash for small investors,Bankers earn more than interest margin on secured loans, Can most pension funds last?, … all

Click here for my other blogs

divider43.jpg 

  polymeraust100dollars 

   

Click here go to Divider63D400 Home Page (Navigation-Survival-How To-Money).

SUBSCRIPTION: [RSS – Posts], [RSS – Comments]

MENU: [Contents][Blog Image of Contents ][Archives ] [About]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.