Sunday, December 20, 2009

Brad hits the Wall

Saskatchewan premier's political Ponzi scheme collapsing
By John Conway

Ponzi schemes are suddenly well understood by many -- the fraudster promises great returns on investment, takes your money and keeps it, paying off those demanding some payout from the funds which continue to flow in from greedy suckers. Those schemes not uncovered by authorities eventually collapse, especially when a recession hits, financial panic sets in and investors scramble to get their money out.

If and when the economy tanks, the stage is set for payback and the government is forced to renege on promises by cutting spending, cutting programs and, horror of horrors, raising taxes. This can lead to humiliation and defeat -- though no prison time, of course.

Saskatchewan Premier Brad Wall's Ponzi scheme has been hit by the world-wide recession before it even got off the ground. Last March, Wall brought in a budget with huge cuts in education property tax, with the biggest cuts going to rural and small town Saskatchewan, combined with large increases in school board funding.

Read John Conway's full Winnipeg Press article.

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