THE PHYSICS ESTABLISHMENT AND ITS NEW, IMPROVED PONZI SCHEME

The Ponzi Scheme – as most everyone in the “advanced” countries knows today – is based on the Greater Fool Theory. First, 6 investors put money into the scheme. It takes off. Then 36 suckers smell money and invest. From this newly invested money, the original 6 investors are paid off, with a handsome profit. The word of this phenomenal deal gets around, and 216 bigger fools invest. And so it goes. As the above diagram illustrates, the scheme has its limitations.

The intellectuals have improved upon this. Their secret deliberations have been leaked to this blog site:

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1. It is far more efficient and – legally – far safer to go after the national coffers than go after individuals investors.

2. The return of the principal and interest should be replaced by the return of some intangible benefit to the society. The media will be helpful in bringing about the acceptance by the society of this form of return on investment.

3. This ‘benefit’ should be made as esotric as possible – and as far removed from the comprehension of the taxpayers as possible. At the same time, the taxpayer should be made to feel like a country bumpkin in a modern art exhibition. He does not ‘understand’ what he is looking at, but feels embarrassed to say it.

4. Initially, the coffers should be hit upon for just a few millions. Then great results should be delivered. Then the coffers should be hit up for tens of millions. Then spectacular results should be delivered. Then the stakes should be raised to hundreds of millions. Then should be delivered “The greatest discovery of the century – if not of all times.” Now raise the stakes to billions.

5. Needless to say, to come up with the ‘returns’ at each step, the entire community of ‘investment advisors’ should work in concert. Some will cook up the returns, and others will say that these are good. To deliver the late stage Coup de grâce such as “greatest discovery of all times”, it will be necessary to deploy an especially big-name investment advisor.

6. This is a perfectly safe scheme. No one will go to prison, since the government has become inextricably a party to this. Critics and whistleblowers will be completely ineffectual since neither the government nor the media will give them any mind.

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The upshot of this intellectually improved version of the Ponzi Scheme: Big Bang Cosmology and String Theory.

Big Bang Cosmology – following its successive, escalating, multi-level “experimental verifications” (all bogus: inept science piled upon garbage science piled upon science fraud) – has now proceeded to be a big money-guzzling enterprise – presumably the vanguard in space-faring scientific civilization. But whatever big words you use, don’t forget that in the end all this translates to one thing and one thing only: Money in the pockets of individual investment advisors (as salaries, contracts, purchases, World travel opportunity etc).

The same is going to happen with String Theory.

Now reader, here is today’s thinky exercise for you. The scientific establishment is very quick to draw a distinction between science fraud and financial fraud – the idea being that the former is somehow less of an offense. What do you think?


They’re raking it in!
Your money!

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