PONZI EXPOSED = SOCIAL SECURITY
A few months ago I wrote how Mr. Madoff, now in jail, was caught with what was called the biggest Ponzi scheme ever uncovered. Chicken feed. It seems ole Charlie Ponzi created the scam about 80 years ago.
He promised people they would have a guaranteed return on their investment with government documents. He paid out to older “investors” with part of the money he took in from new victims. Finally the number of new fools could not keep up with the out go and the scheme collapsed.
When President Roosevelt started Social Security he did what all politicians do. He promised more than he could deliver knowing he would not be in office when final payoff came due. No politician ever considers the unintended consequences.
As recently as 1950 an insurance company went to the government and offered to take over the SS program. Of course, our honest politicians would not allow anything like that to happen. They are there to protect us from the insurance companies. (I think I have heard that lately.)
It also meant that the politicians would no longer have access to the people’s money. To “protect” us folks they had set up a Trust Fund.
When Congress needs money (as they always do) they had the Treasury issue a bond (an IOU) and transfer the real money to the General Fund where they could spend it on their pet projects – unneeded airports and bridges to nowhere. As long as there were more people paying in than taking out everything works. It was projected by the Budget Office that SS could run on until 2014 or 2024 or some other fictitious number. No problem.
Uh oh! All of a sudden RECESSION. YUK ! There are 8 million people out of work. That’s 8 million fewer folks paying into the “Trust Fund”. It seems they are going to run a little short this year, and maybe next year, and the year after. Who knows when the employment rate will stabilize? All Washington does is give lip service to the problem.
Congress can solve the problem of the shortfall. They increase the FICA deduction, increase the starting age at which a person may collect back his own money or increase everybody’s taxes. None will be popular. A committee will study it.
Also consider the possibility of adding 12 million illegals to the tax base with the amnesty program about to be shoved down the throat of the American public. They haven’t given us any phony projects on how much revenue that will bring in (or take out).
Mr. Ponzi and Mr Madoff were real cheapskates when it comes to extracting money from the public. Congress is the best thief.
You and I are victims to the most colossal theft of taxpayer money in all of history. And we keep voting them in.
Al Thomas’ book, “If It Doesn’t Go Up, Don’t Buy It!” has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he’s the man that Wall Street does not want you to know.
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