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It is not because the entity issuing the dollar (America) grows and produces stuff. Ponzi schemes are money laundering schemes. These are entirely different.
by LargeTomato 3y ago
It is not because the entity issuing the dollar (America) grows and produces stuff. Ponzi schemes are money laundering schemes. These are entirely different.
- Terr_ 3y ago> Ponzi schemes are money laundering schemes. No, that's like saying "bank-robberies are drug-smuggling." A Ponzi scheme involves investors being defrauded by someone lying about the status of assets and money flows. It does not automatically imply any kind of money laundering, and in fact it can operate just fine even when every single scent being invested is from entirely clean sources.
- LargeTomato 3y ago"Money laundering" as in the flow of cash and assets is obfuscated to appear as something it is not.
- Terr_ 3y agoNo, laundering it's far more specific than that, it means the original money is somehow "dirty" (revenue from criminal activity) and is being "cleaned." In contrast, a Ponzi scheme can operate just fine with 100% clean investment money coming in some unsuspecting victims, and the (smaller) amounts flowing back as dividends would also be clean.
- LargeTomato 3y agoThe most precise definition of money laundering may be that. But in general, laundering anything means to pass it off as something it may not be, particularly in a dishonest way. But good on you for really getting your definitions down I'm sure you're super fascinating at parties.
- kaliqt 3y agoWrong. Fiat is fake, the US government does not grow or produce things, people do, they just believe the dollar has value. You cannot make up an arbitrary metric and try to compare them.
- Madmallard 3y agoThe USD is the world reserve currency. So yeah, they really do not compare at all.
- LargeTomato 3y agoIf your argument reduces to "money isn't real, it just stands for something real" then I'm just not sure you and I are going to have a constructive discussion.