Tuesday, October 15, 2013

Lew’s Testimony on Debt Mirrors SEC's Definition of Ponzi Scheme

10/15/13


When Treasury Secretary Jacob Lew testified in the Senate Finance Committee on Thursday, urging Congress to enact a new law allowing the administration to increase the federal debt, his description of how the Treasury handles that debt mirrored the Securities and Exchange Commission’s definition of a Ponzi Scheme.
“A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission.

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