The Great Jamaican Ponzi

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Oh you can talk about your Bernie Madoffs, reflect back on others who pulled it off for a while, but where do they end up?

Broke and in Prison.

Imagine a Ponzi where you’ll never ever be caught.
And if caught can never ever be prosecuted.
Seem impossible?

Welcome to the Great Jamaican Ponzi.

For many years the Government of Jamaica has been spending far more than it makes on rewards to those who support it, and those whose silence is necessary.

To finance these gifts; (that they come with titles and salaries doesn’t alter the fact they are gifts as most ‘advisors’ ‘consultants’ ‘experts’ and other who head up agencies, commissions, projects are as qualified as my dog) the Government of Jamaica runs a Ponzi scheme.

Here’s how it works.

The Government issues ‘Treasury Bills’, which pay more interest than any other investment.
There were times the interest reached 45% other times 24% but whatever number is necessary to make it the most attractive investment, is used.

These millions or billions are collected and squandered.
Nothing comes from these investments.

There isn’t even a fried fish shop which could ostensibly pay back the money used to open it. To pay the interest, the Government of Jamaica issues more treasury bills, so that all those who purchased the previous get their interest.

Many roll over the investment, hence on $1M, for example, the governemt hands a check for $240,000.00, the Invester buys more Treasury Bills, so that the demand for the whole sum is not made, after all, why disturb the Investment since it’s doing so well?

So more Bills are issued, paid for, and the money used to pay the previous interest.
There is no other money.

If a private citizen or a bank was doing this, there’d be an investigation and of course, Bernie would have company.
But it’s a Government.

As the point of ‘no return’ has been reached, the current Government flings one hell of a tax hike on the citizens, knowing that dare it try to tax the interest, even a 2% tax so that instead of giving the Investor $240,000.00 the sume of $4,800.00 is deducted, the possibility of demanding a complete payout would end the farce.

So the tax payers of Jamaica are being called upon to pay Interest on Investments to multi-millionaires. Of course, Jamaica will have to issue more Treasury Bills, at a slightly lower rate, (but still higher than other finanaical institutions) to prevent withdrawals. So tell me how any Ponzi scheme ever invented can compete with the Jamaican Government?


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