This website is a member of Liberty Alliance, which has been named as an

Patriot Update

Social Security: The Government’s ‘Legal’ Ponzi Scheme

Sunday, June 19, 2011

Bernard Madoff, former Nasdaq Stock Market chairman and founder of Bernard L. Madoff Investment Securities LLC, was arrested and charged with securities fraud in what federal prosecutors called a “Ponzi scheme” that involved losses of more than $50 billion. Some of the world’s richest people were duped by Madoff. He was turned in by his two sons. Since the arrests and investigations, Madoff’s 46-year-old son, Mark,committed suicide.

A Ponzi scheme is an investment program that promises to pay unusually high returns to investors after a specified period of time. A pyramid scheme is similar in that the person running the program pays off the early investors from money paid by later investors who were told that they too can get rich. The early investors, who are often unaware of the fraud, are used as testimonials for how well the program works. So much money is promised to investors that there is no possible way to get enough later investors to meet the investment promises. The Ponzi scheme is named after Charles Ponzi (1882–1949) who was involved in a multi-million dollar fraud scheme where nearly 40,000 people invested about $15 million. This was a lot of many in the 1920s.

The Federal government is quick to shut down these schemes and arrest the perpetrators, but they turn a blind eye to their own Ponzi and Pyramid schemes because it can print money without any legal ramifications. Ben Bernanke, when he was head of the Federal Reserve, said that a liquidity crisis that might lead to deflation could be averted by dropping money from a helicopter. Counterfeiting is illegal, but it’s an everyday occurrence in Washington.

Soon after Charles Ponzi was arrested for his pyramid scheme, Congress legalized one of its own — the Social Security System. When Social Security was implemented, the maximum amount any one person paid into the system was $60 per year — a total of two percent from employee and employer of a maximum $3000 per year. Today, the percentage is around 14% on up to $106,000 per year. This compulsory “contribution,” as in the “employer’s contribution portion of Social Security,” is the largest legalized pyramid scheme in history.

Post Continues on godfatherpolitics.com

This entry was posted in Uncategorized. Bookmark the permalink.

Posting Policy

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

Steve

In simple English there are 5 Baby Boomers for every 1 of the World War II recipients. There are only 2 of our children for each Baby Boomer. With a 3/5 reduction in contributors you have two choices: decrease output (benefits) or increase input (taxes).

Either one is not going to be well received.

But then you can truly blame the Democrats because in 1964 then President Lyndon Baines Johnson and a Democratically controlled Congress took Social Security from a Trust Fund into the General Fund to support their War on Poverty and other social programs (targeted at increasing voters who vote Democrat).

But then maybe the people that voted them into office are the ones to blame. Yes that means yet once again the American People sat on their behinds and did nothing to hold politicians accountable.
- Jeff
  
  How true!
- The Enemy
  
  Steve: Your last paragraph really hit the nail on the head. Like I’ve been saying for a long time, now, it’s high time we hold the VOTERS responsible for what’s happening to our nation.
  
  Couple the duped, dumbed-down, ignorant, naiive, hero-woshiping liberal sheeple voters with vote manipulation and fraud by the Democraps and what do you get? You get what we are now stuck with.
- http://Facebook Que Dub
  
  “”two choices: decrease output (benefits) or increase input (taxes).”"” NO.
  
  WHAT ABOUT STOPPING ALL S. S. $$$$ TO ILLEGAL MEXICANS, IMMIGRANTS, FOREIGN AID, & MOOSE SLUMS??
carlos J. Negron

Social Security is indeed a Ponzi scheme gone awry.

Money talks and everything else walks, to think otherwise is to be naive & in denial.

All you hear for reforming Social Securiy is raise taxes & the retirement age, this is exactly what the popular saying “kicking the can down the road” is.The foregoing and reducing benefits is meant to not lose the senior citizen vote.
It is time to admit the Social Security program has lost its’ original intent which was to provide retirees an independent way of life.

Not everyone is in need of Social Security, however, they must be compensated for having sustained the program to benefit those in need.All those deemed not to be in need should be provided the option of (A)- refund of FICA contributions or (B) – reinvestment of FICA contributions & paid an annual tax free dividend with the reinvestment being inheritable tax free.

These changes are honest and will reform the Social Security program without the raising of taxes or reduction of benefits to retirees.
DaNangMe

I’m willing to point the finger of blame at SOME voters.The unliving,undocumented,unconscious,unregistered,uncaring,and most of all the unwilling.Those of us that don’t fall into the aforementioned categories,should be more vigilant than ever for voter fraud even to the extent of pro-active efforts to bring an end to the corruption of a system that allows a candidate to buy their way into office.
DaNangMe

Sorry I veered off the subject taking exception with blaming voters,but regardless of how someone gets elected,it does not release them from the blame of immoral or unethical performance of their office.Indiscriminate spending on unintended uses put Social Security in the crapper and unless and until that stops,it will flush into non-existence.
waltd

If the Gov, would stop giving Social Security money,to all of those that have never put a dime into the system. Look at the people on Welfare, who have never worked, but still take tax payer money. When a Mother has 8 kids, and Grandma takes care of them and draws $144,000.00 per year. This is only the tip of the Ice Berg. I know people who would work for 1/5th of that amount of money.
Larry

someone has finally agreed with many of us that new that the Government is jest another Organized crime Family that has been made legal by a group of rich people. The Government continues to do the same things they do arrest other people for doing the same thing they do not like competition so they have made any other group or what the Government has named them as crime family’s and named them as illegal criminals. They have made themselves the only legalized crime family in the USA. The Government has been slowly moving from a protection role to a full blown Pyramid scheme. Look at the Russians and the Chines before they became communist country’s and how they morphed into full blown communism that is controlled by the rich and powerful.
- The Enemy
  
  Larry: And the IRS is the biggest crime syndicate on the planet. Why has there been no Congressional action on the “flat tax” or “fair tax” ideas? The answer is obvious. The politicians would be giving-up too much of their power and control by implementing a fair tax system and abolishing the IRS.
  
  Can we, The People, ever wrest control of our central government back from the elite politicians? Not likely with all the duped, dumbed-down, naiive, ignorant, welfare-dependent sheeple voters out there.
The Enemy

It’s interesting to note that Galveston County, Texas opted-out of the Social Security boondoggle back in 1981. They set-up their own privatized system which is still working well today.

Also interesting is the fact that shortly after Galveston did that, the feds outlawed that opportunity. Now, why would they do that? I think we know the answer. They needed to preserve their big federal piggy bank which they could rob from. And, they have robbed it into insolvency. Typical federalism.
- Frank
  
  In fact the Galveston plan, last I check about 4 years ago, was paying out 16 times what SS was paying out. I think everyone who wants to opt out should be allowed. I’ll invest the $14,000/yr that I pay into the system myself.
am2sweet

Since Madoff went to jail for a Ponze Scheme you’d think that other people could as well. But no one is going after the government for doing the same thing considered illegal. Of course there would be a whole lot more people to go after. Is Johnson still alive? As it understand it he started it so should be the first to go to jail. And then on down the line. It’s no wonder that people don’t trust the government. They have proved they aren’t to be trusted.
Dee

I cannot believe someone asked if Johnson is still alive! My Goodness doesn’t anyone know American history? LBJ has been dead since 1973. His “Great Society” continued FDR’s down hill run of hand outs! This is why no one knows how to pick themselves up by their bootstraps and ” work”! My goodness I am in my 50′s and have worked since I was 15 years old, never had a problem finding some way to make money. This “pitty me” attitude and sitting back waiting for the welfare check for years on end, has to stop. Now there is an entitlement that should cease especially for able body man and women. There is no way illegals should ever get entitlements period end of discussion. No food stamps, section 8, medicaid, nada and certainly no American jobs! This is exactly why Americans won’t do such supposedely “meanial” jobs they are waiting for the government to hand it to them, sorry but we the people should no longer tolerate this attitude! No work No eat!
We Want American jobs, well stop hiring illegals, tax the crap out of imports, repeal NAFTA and SEAL up our borders. Bring our troops home and have them secure every part of the border top and bottom and tell them to shoot as soon as they cross, IT does not matter who they are, It is an invasion, Give notice. All employees, landlords and relatives harboring illegals should have to pay by losing their business license, their homes, their land and then turning it over to people who lost their jobs over the years to illegals in the contracting bussiness, the meat packing plants etc.
The government also needs to get out of the housing business all together. Turn over the section 8 housing to the people living in them saying this is it folks if you bust it up live in it as it is tough luck. I suggest you get a job that no one wants to do to feed your family and fix up your spot of the world that you busted up, be accountable case closed!Please do not play the race card I am a minority and it is a cheap shot. Go ahead and call me Uncle Tomasina!
ARMYOF69

It’s time to stop stealing the hard earned monies of WE THE PEOPLE from our checks, and let us do our own caretaking. We ARE better at it than you assholes in Washington.
melissab

Amen Dee! Dito all the way ….
http://AnoitaNofFreeloadersetal Gary Geers

In 1937 the Supreme Court declared the Social Security was constitutional, thus legal. We the people were charge with our portion, an income tax and our employer an excise tax. So here is the question,”why do we pay tax on the SS benefit?” Anyway you slice it, it is double taxation. Social Security is not a tax deductible contribution, like IRA’s, so how do they justify it? Answer, the Supreme ruling of 1960.
Shame on us for allowing this to happen. The real answer is total privatization. When I ran my numbers from 1971, I would have had 4.5 times the money available for retirement.
Not only is Social Security a Ponzi scheme, it is also a way to “spread the wealth” Oh one more point that came out of the 1960 ruling, we Americans’ who have contributed to Social Security, do not have a legal right to the benefit. Wake up America!