Wednesday, December 17, 2008

Let us Scam

Sung to the tune of "let it snow"

Let us Scam, Let us Scam, Let us Scam.

This from CNN's Cliff Mason...

"But I can't deny the similarities between how social security operates and what Bernie Madoff was allegedly doing with his investors, or should we call them marks?

With the Social Security system, workers pay 12.4% of their salaries into the system to cover payments to retirees, who themselves paid into the system when they were working. Except the original recipients of social security in the depression never had to pay payroll taxes because the system didn't exist when they were working.

Now look at the definition of a Ponzi scheme courtesy of wikipedia: "A Ponzi scheme is a fraudulent investment operation that involves paying abnormally high returns to investors out of the money paid in by subsequent investors, rather than from the profit from any real business."

As a creation of the previous Great Depression, the Social Security System may find its end in the coming years, as Baby Boomers begin to collect their dues and the system's obligations begin to rapidly outpace new deposits. Indeed, should the next few years be as turbulent and costly as 2008, the system could simply unravel.

But many of you are already either fed up or frustrated. You've had enough, and you just want to know something for certain. You want to know the truth. And rightfully so, because so much of the world economy really is just lies piled on top of more lies piled on top of even more lies.

The charts and graphs that give ‘economists' all their power...are honestly just a sham...

But hey.........interest rates are at zero %.......I'll refinance my house which is now worth less than what I owe on it and live large off of the money I'll get back.


GUYK said...

Although I am now getting that socialable security check I have always contended that it was a ponzi scheme...

the original intent of social security was an insurance for old age to supplement savings or other retirement. In fact if the congress had not raided the system and filled the coffer full of worthless IOU's it might remain solvent indefinitely. But now it is anyone's guess how long it lasts. I may break even on what I put in if I live another three and a half years...if that money had been compounded in even a pass book savings account for about nearly fifty years it would add up!

kdzu said...

I can remember opening my very first passbook savings account (remember those) in the late 50's and earning 4% interest. When I closed that account after getting married in '68 it was still paying 4%. Wish the hell I'd left it in there.