Contrary to “news” stories coming from the Ministry of Propaganda, Bernie Madoff did not run the biggest Ponzi scheme in history. To begin with let us look at the definition of a Ponzi scheme. From Merriam Webster dot com:
an investment swindle in which some early investors are paid off with money put up by later ones in order to encourage more and bigger risks
While Madoff plead guilty today to roughly $63 billion in fraud, the biggest Ponzi scheme is several times that amount. The biggest fraud began on August 4, 1935 and is still running to this day. Unlike Madoff, whose scheme had to eventually end, and did, when investors began asking for their mony back, the biggest Ponzi scheme probably won’t end until an entire nation is bankrupt. The scheme is social security and its perpetrator is the Federal Government.
From PI online:
Without reforms, cash flows for Social Security will turn negative in fewer than 10 years, meaning the U.S. will have to draw on general revenue to support withdrawals from the Social Security trust funds to pay current benefits, said Treasury Secretary Henry M. Paulson Jr. at a press briefing today. Trust funds for the Social Security program are expected to be exhausted by 2041. Social Security’s unfunded obligation equals $4.3 trillion over the next 75 years and $13.6 trillion on a permanent basis.
Granted, Henry Paulson words have to be taken skeptically, but other estimates have the scheme’s deficit much higher, $53 trillion. And everybody should know what the government means by reforms, later payout periods and higher taxes.
Further, unlike Madoff’s vicitms who could have used private research firms to look into their investment, “investors” in social security have no choice, they are forced to dump hard earned money into the known abyss. Contributors are not investors, but vicitms of endless extortion. They can ask for thier money back, but the time period at which they are told they will receive it, can and will, get endlessly extended. At the same time ever increasing sums of money will be extorted from them to pay for yesterday’s false promises.
God help us!