Politics & Rants

Social Security is a Ponzie Scheme from Start to Finish

As Social Security goes broke, I hear a great many progressives maintaining this government run investment fund does not meet the classic definition of a Ponzi scheme. Sadly for them, while they are entitled to their opinions, they are not entitled to their own definitions of commonly used English words.

Let's begin with how this entire mess was sold to the American public, by the great luminary, Franklin D. Roosevelt, (yes, the same F.D.R. that threw 500,000+ American citizens in concentration camps).

FDR: This is not an untried experiment. Lessons of experience are available from States, from industries and from many Nations of the civilized world. The various types of social insurance are interrelated; and I think it is difficult to attempt to solve them piecemeal.
Hence, I am looking for a sound means which I can recommend to provide at once security against several of the great disturbing factors in life--especially those which relate to unemployment and old age. I believe there should be a maximum of cooperation between States and the Federal Government. I believe that the funds necessary to provide this insurance should be raised by contribution rather than by an increase in general taxation.
Above all, I am convinced that social insurance should be national in scope, although the several States should meet at least a large portion of the cost of management, leaving to the Federal Government the responsibility of investing, maintaining and safeguarding the funds constituting the necessary insurance reserves.
I have commenced to make, with the greatest of care, the necessary actuarial and other studies for the formulation of plans for the consideration of the 74th Congress.


Investment (Noun):
The outlay of money for income or profit.


As you can see, by his own words, when FDR announced Social Security, it was advertised as a savings investment account in which the government would hold your money, grow it's value safely, and return it once you were old. This is not what was delivered. We have also proven that the very definition of "an investment" is to see a return on capital outlay.


Ponzi scheme:
A fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from profit earned by the individual or organization running the operation.


Well this is interesting... just like social security... a Ponzi Scheme claims to be an investment vehicle, when in fact it is simply paying returns from the money it is allegedly "growing."

Thus, a rational person can safely conclude that Social security does not just "superficially resemble" a Ponzie. It is in fact a clear-cut, one-hundred-percent perfect example of Ponzie scheme from top to bottom.

"Elaborate!" you demand?

Oh you wish to debate the fine points?

I am happy to oblige.

The government council arguing before the Supreme Court, (in one of several constitutional challenges to Social Security), acknowledged that there would be NO actual "lock-box." What does this mean? Simple - the money taken into the social security program is not earmarked in any way. There IS NO "fund." None. This flies in the face of what the government said they were providing the taxpayers when the law was created.

This deception is what the police refer to as "fraud" when they are handcuffing you.


Fraud (Noun):
An Intentional perversion of truth in order to induce another to part with something of value.


Since there is no actual investment fund, as FDR promised, this being the pretense by which the program was passed through congress and then signed into law, we have proven that there was in fact a "deception" that was deliberately concocted to trick the victims into believing the government was safely holding their money - and growing it's value on their behalf.

Social Security was later dumped into the general fund, allowing the government to not only "cook the books" on America's debt to tax-income ratio, but to also allow the unfettered wastrels to spend the money with far less oversight and transparency. As with any traditional Ponzie scam, the funds invested are siphoned off and used by those collecting them - not utilized to grow the fund's value.

Now, any Ponzi scheme eventually, inevitably collapses, as the promised returns plus what the scam perpetrators steal consumes all of the cash paid in. Right on cue... April 23, 2012 - The Social Security Trustees' annual report reveals that by 2032, the trust fund will be exhausted.

Social Security does not merely RESEMBLE a Ponzi scheme... it is in point of fact checklist definition of a Ponzie Scheme.

- We have established FRAUD.
- We have established there is no "fund" at all.
- We have established the "investment returns" are being paid from the capital going into the "fund."
- We have established that the government pillages the funds for discretionary use.
- We have established that by 2032, using the governments own numbers, the "investment fund" will be broke - the inevitable Ponzi collapse.