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British Columbia's Ponzi Party with Norm Farrell

  • Broadcast in Politics



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Charles Ponzi did not invent the racket that bears his name. He merely used it with amazingly destructive effect to be forever synonymous with it. The promise to deliver greater value than anyone else. Create an effective campaign to convince people it is for real. Avoid factual discussion and exposure as much as possible. As funding comes in, it leaves just as fast to expand market control and maintain the illusion. Build a massive asset portfolio, acquired with debt and promises. Never ever stop telling people what a great enterprise it is. The future holds no limits for such a guaranteed winner. Until, that is, the money slows considerably coming in. Never mind the money stopping altogether. The debt and future commitments don't slow down, the amounts owed don't decrease and someone is left holding the bag. Meanwhile, all that cash flow ended up somewhere. Just not where the prospectus said it would. What's left is a deep hole, ripped off investors and always too few to pay the price either monetarily or criminally.

Consider the 21st century economy's incentives, BC Hydro's exponential debt, the growth of speculative paper wealth in real estate and the promise of the LNG miracle. Forecasts of perpetual growth despite so much evidence against it. Hold that up to the flatline real income growth of the vast majority for decades. The flatline demand for electricity despite the sales pitch of never ending demand. The disappearance of disposable capital from the players sold as the enablers of the future.

Will BC wake up before it's too late? Or will the warm fuzzy fantasies go on until the collapse into reality comes? Norm Farrell returns to discuss the similarities in the historical lessons and the current trajectory. Be up to date and visit Norm's excellent site   for all the latest on BC political happenings.