Friday, July 17, 2009
The picture is of Charles Ponzi,from whom we get the name "Ponzi" scheme. Jon Markman writes a very insightful article linked to above that shows the disturbing linkage between the US and Chinese economy. While this articles attacks a tough subject, it does so in an easy to understand and readable format and shouldn't take you more than five minutes to read - you should read it.
From the article:
"The credit is good only so long as China keeps recycling funds through the Ponzi scheme. But if Beijing leaders ever decide that it's just too risky to own U.S. dollars and debt, then the system is going to come crashing down. Of course, it is not really in China's interest to stop the scheme, even if it wanted to, because its own economy would likewise blow up."
Scott Dauenhauer CFP, MSFP, AIF