I think posting this targeting newbies is irresponsible.
For the record, I (and many other people) believe that Pirate is operating a Ponzi scheme. I'd urge all possible investors to research Ponzi schemes (Wikipedia, Bernie Madoff, etc) and decide for themselves whether they want to risk losing their money.
The major advantage of the bonds is that you will lose "only" 68% of your money (or more if the bond authors break their promise), instead of 100%. In exchange for this privilege, your rate of return is half or less of what Pirate is paying out to other people (33.5% / 30 days).
I think the word "Ponzi scheme" is overused, but this must be true. It seems more naked than most because there's not even an attempt to explain how the "fund manager" is generating profit. And even if they did generate profit, it would raise the question about why they don't self-finance. A credit card cash advance, for example, would be much cheaper to the "fund manager" without the overhead of making a zillion tiny deposits/repayments.
It's a scam almost by definition, just waiting for an opportune moment to never be seen again. Compare all the similar scams that happened on Second Life, which were shaken out at the same time when Lindon banned casinos.
Yet a lot of the folks here get riled up and defend it against common sense advice? I don't get that.
In my view, regardless if BTCS&T is a ponzi scheme or not -- BTCS&T and the various PPT bonds are bad for bitcoin.
First: the 7% weekly return is going to kill mining bonds. They can't compete with that rate. More and more bitcoin investment is going to go into these pirate bonds and miners will no longer have the capital necessary to improve their hardware and remain competitive. Perhaps this is pirateat40's plan?
Second: There is no legitimate way for a business to make a profit while paying a weekly interest of 7%. Pirateat40 must be engaged in something illegitimate (at best), though it is more likely to be something illegal, if not a ponzi scheme. Whatever it is, it can only be bad for bitcoin, and the bigger his operation gets, the worse the outcome will be. Don't support his activities.
So, I implore everyone to ratchet down their greed a little. For the good of bitcoin, please settle for 2%-3% per week, avoiding the pirate bonds even if they pay twice that. You will still get a great return -- 2%-3% per week is ridiculous in real-world terms (long-term Treasury bonds pay only the equivalent of 0.05% per week).