US Debt: Fantasies of the Grand Ponzi scheme
By Waqar Khan Kauravi
14. Aug, 2011
For those who are always overawed by the might of the West, especially the US, it may be informative to view the US debt debate and how it will affect the future of our next generation. The fantasy part of US economy is that it is robust, dynamic and has an aura of magic about it that can solve all the problems of Continental US as well as rest of the world. We in Pakistan have always been indebted to the US, at least publically (on papers), not realizing the cost paid.
Thanks God, sense has prevailed and Pakistan for the first time in her history has come out with the cost of the war fought on behalf of the US; $60 billion still counting against $18 billion. Who actually paid this paltry sum of $18 billion to Pakistan? The US! NO SIR, it may have been China, Saudi Arabia, Switzerland, Venezuela, Libya, Iran, Iraq, Bahrain, Qatar, Ecuador, Indonesia, Algeria, Gabon, Nigeria, Bahamas, Bermuda, Cayman Islands, Panama and even Pakistan. How come! This is the list of countries and Banking Systems who have loaned $4.4 trillion to the mighty US. In this Ponzi game of debt, Pakistani black money owned by the rich and the mighty (some estimates put it at $160 billion in Swizz banks only) may have been loaned by Swizz banks to the US treasury and in turn only 10% of this amount was doled out to Pakistan very generously by the Bush-Obama administration.
What is a Ponzi scheme? Referring to Wikipedia,(named after Charles Ponzi,1920s fraud case) “Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going”. Is the Bretton Woods System led by the west a grand Ponzi scheme being played on the economic chessboard of globe? This may require a complete book to answer, for brevity we move to the question of US debt.