Bill Gross: We’ve Got a “Ponzi-Style Economy”

George Washington’s Blog
Friday, Jan 9, 2008

Bill Gross is managing director of the world’s largest bond fund, Pimco, which manages some $790 Billion Dollars in assets. Pimco also is managing the commercial-paper assets for the Federal Reserve as part of the government’s Commercial Paper Funding Facility program. As such, Pimco is in many ways an insider.

In his January 2009 Investment Outlook, Gross writes that it is not only Madoff who ran a Ponzi scheme, but the entire U.S. economy is a Ponzi-like scheme. He calls it “our Ponzi-style economy”.

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This may be obvious to many of us. But the fact that Gross said it is news.

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One Response to “Bill Gross: We’ve Got a “Ponzi-Style Economy””

expatbrit Says:
January 9th, 2009 at 6:18 am
Seems that the bulk of the western financial ’systems’ have /are being operated as some kind of ponzi scheme. If we take the UK national old age pension scheme as an example: Then it is quite openly set up as ponzi. All NI contributions paid in by workers this week, through direct taxation (approx 11% of earnings), goes out the same week to directly pay narional old age pensions.

With the ever increasing number of OAPs and the dwindling numbers of workers paying into the NI scheme then obviously the books can’t balance.

PONZI

Bill Gross: We’ve Got a “Ponzi-Style Economy”

One Response to “Bill Gross: We’ve Got a “Ponzi-Style Economy””

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