Isn't China doing this? Lending USA money which they will spend on chinese goods which will boost chineese economy? Both dollar and chineese economy are bigger and bigger buble. When it will finaly splash on full (and not like last time when US government printed trilion dollars and said crysis is over), it will be HUGE.
Yes, you are absolutely correct. It is BY ALL MEANS a ponzi scheme, where the new lenders are the Chinese, and the dollar printing press. New investor not need to be "people" per se for the definition of a Ponzi mechanics to apply.