Saturday, December 20, 2008

The Social Security Ponzi Scheme

There is an interesting article by Peter Schiff (the guy who predicted the meltdown with frightening accuracy) on Euro Pacific discussing the Social Security Administration and how it compares to the recent scam perpetrated by Bernard Madoff.

(Look for the article 'In Madoff We Trust')

The Ponzi scheme is fairly simple to understand. A guy gets you to invest in his business. Then when new investors arrive and pay into your program he uses that money to pay you 'dividends'. You think he is a wise and good soul and so you spread the word. More people invest, and the older investors get some more dividends (after the schemer gets his cut, of course).

The scam has other names like pyramid, chain, etc. The problem results in when the new investors slow down. The older investors do not get as much 'dividend' and so they pull out. The house of cards then crumbles and falls.

Look, now, at our social security program. What used to be a trust fund, earning interest, is now nothing but one, big Ponzi scam. Youth pay into the program, and the elderly get the dividends. What happens when the numbers are flipped?

I'll tell you: The revolution is at hand. Will you be a leader or a follower?


  1. I'm really coming to understand Big Government's trickle down economic systems. It's very different than Reagan's. It's more like one of those Calvin cartoon representations.


  2. Sean,

    I'm taking a look at the figures the Government is giving us for GDP and such. GDP that doesn't actually produce wealth... is not real GDP. It's what we manufacture and build in the US that produces wealth. It would seem to me that the real service sectors that truly create wealth are services that are provided in "export" - sold to other nations that thereby increase the "real wealth" of the USA. This concept that we can redistribute wealth in the US and that is "GDP" is poppycock.

    We need lower costs of energy. We need increased disposable income. We need lower costs of housing and food and basic costs of necessities so that disposable income is increased.

    If we are in debt, we are not producing wealth - we are producing debt and decrease of national wealth. It's just that simple.

    Delusion sets in when people become greedy for gain. They want to "dream on". Seems to me politicians amass power on the basis of getting people to dream. They are deceivers by profession, seems to me - in general terms and most specifically from the left.

    I am "sensing" so GREAT an economic SLAM to the USA... it's incredible. I have a "sixth sense" and I think it's based on logic and facts for the most part. Anyway, I think we need to research GDP.

    Because when Ponzi schemes are afloat throughout Government, YOU KNOW... they are COOKING THE BOOKS at a political level. We're in deeper stuff than what we know. I do know it from looking around me in the young people trying to make it - the middle class being thrown backwards in foreclosures, etc.

    I think the Great Depression has already begun. It's like it's beginning to hit in the shock waves of it... and they are going to spread... spread... spread... until the bottom drops out because there is no foundational strength under our economy. Right now, I'm looking to see how these politicians have "cooked the books". Reality and their statistics are NOT lining up!! And this lie that we could become a "service nation" and have a "service industry" and remain wealthy as they created tax systems that drove US business out of business or overseas and benefitted multinational corporations as well as foreign companies... is all coming down on us NOW!!

    I think the Great Depression has already begun. The only way they are trying to "stave it off" is by borrowing money and creating employment thereby - making things worse. Sometimes I don't like seeing what I see - but I see it. It's going to hit like a tsunami... soon. Within 1-2 years I think... with no way to stop it once they have exhausted foreign capital lending. It's all a big Ponzi scheme and cooked books to cover up the reality of what they've done in selling out the average American to multinational companies and foreign nations, etc. All because they couldn't say "no" and let us realize we were on the wrong path and losing wealth as a people. They politicized economics... and destroyed us. We CANNOT HAVE a large centralized power in federal government or we will go the way of communist nations into abject poverty. That is exactly what has happened, imo, and they are HIDING THE TRUTH from us by borrowing, borrowing, borrowing - and then turning to spend... trying each of them in turn to avoid the political ramifications of us realizing as a people that we've been sold out and robbed and impoverished as a nation.


    Rantola. Shees. Sigh. Well, you and I will have to figure out how to "beat them" at this game. I'm about to "turn loose" my "intellectual assets". My books and tapes should sell very well. I want a new nation. :)

    It's the only solution: secession. People will begin to see that I'm not radical or extreme... I'm a realist. This nation is DONE. TOAST. We're about to be destroyed economically. That's the reality of their departure from conservative principles, values, and ideals and methods of governing and economic policy, etc. All so they could be hedonists and pretend that socialism (the welfare state) and shipping our wealth overseas... was good for us.

    No, it was the move towards global socialism. We've been sold down the river. Let's lead the revolution. :) Check out my blogs on GDP and false figures and let me know what you think. Given the facts, an action plan needs to be in place to prosper in the midst of collapse. I think hard assets in Southern states may be the way to go... not sure yet.

    Rant off.