Metallic Pea

Frustrating People Since 1971.

Social Insecurity

with 2 comments

   

‘Now such persons we command and encourage in the Lord Jesus Christ to do their work quietly and to earn their own living.’  II Thessalonians 3:12 

     

The cries of outrage and righteous indignation arising from the criminal activities of Bernard Madoff and his financial misdeeds have reached a fever pitch.  Indeed, Mr Madoff’s mischievous dealings are in fact criminal and have financially crippled a large number of people–including government officials and filthy rich family dynasties alike. 

In essence, Madoff’s confidence game was nothing more than a run-of-the-mill Ponzi Scheme promising extremely lucrative returns on investments, returns that were, quite simply, too good to be true.  Sadly, his investors had allowed their judgment to be clouded by the lure of quick riches and forgot the age-old (yet ironclad) maxim that there is no such thing as a free lunch.  (Second only to, ‘If it sounds too good to be true–it probably is.’)

The curious aspect about it all is that there are shouts of ‘Off with his head!’ at all.  After all, the u.S. Government has been running its own lucrative (for those drunk on political power, anyway) Ponzi operation for nearly 80 years.  You may know it as Social Security.  What was sold to the American taxpayer as a ‘retirement savings account’ is nothing more than a bankrupt vote-buying operation used by politicians to manipulate the voting public and enrich themselves in the process.  A nefarious side effect has been the creation of an increasingly expanding dependent class.

What, pray-tell, does this have to do with Masseur Ponzi?  The dirty little secret (that everybody knows) is that the Social Security fund is bankrupt.  The funds that were ‘set aside’ were long ago spent and current payments are made with I.O.U.’s and shifty, baseline budgeting tricks.  However, were the fund in fact solvent, that would not legitimise its creation nor administration.  The fact is that far more people receive payments than there are those who pay into it.  Add to that that folks are living longer (65 is not as old as it was in 1933) and you have the perfect Ponzi storm.

The end game is just as frightening as it appears inevitable.  With the exponential growth expected to the Social Security rolls due to the waves of Baby Boomers reaching ‘retirement age,’ there simply will not be enough money being paid into the system by wage earners as will be paid out.  The only solutions are 1) to decrease the amount(s) paid out, 2) to raise the age of eligibility, 3) to significantly raise S. S. taxes, 4) end the S. S. programme altogether.  I prefer number 4 (but, then again, I have always been a dreamer) but numbers 2 and 3 seem more likely to occur than the others.  Regardless of what actions the government does (or does not) take, the system is designed to fail and someone–who remains to be seen–will feel the financial pain.  And lots of it.

Madoff will probably go to prison for his Ponzi shenanigans.  What happens to those who saddled us with the Social Security boondoggle?

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Written by ninepoundhammer

December 18, 2008 at 10:26 am

2 Responses

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  1. Oh the humanity!

    Good post. Hulabaloo for tax funded Ponzi schemes. I guess that means that we should run for public office?

    Trey

    December 18, 2008 at 3:51 pm

  2. There’s a conspiracy running through the blogger world. You just uncovered it.

    Watch your back. Or should I say, your ba-rack?

    Trey

    December 19, 2008 at 8:26 am


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