A New York court just convicted Bernard Madoff in what is billed as the "largest Ponzi" scheme in history.
A Ponzi scheme is a fraudulent investment operation that pays returns to investors from their own money or money paid by subsequent investors rather than from actual profits earned. The scheme usually offers returns that other investments cannot guarantee to entice new investors, in the form of short-term returns that are abnormally high or unusually consistent.
The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going. Every Ponzi scheme is destined to collapse because the earnings, if any, are less than the payments.
For decades, Republican and Democratic presidents and members of Congress have advanced the worst Ponzi scheme on the American public in the form of Medicare and Social Security.
Medicare and Social Security payments are not placed in the mysterious "locked box," secure for generations to come. Current contributions fund current expenditures. With more of us baby boomers entering the system, the Ponzi scheme is destined to collapse.
It is estimated that the Social Security and Medicare program has an almost $1 trillion unfunded liability (obligations owed without funds to fulfill those obligations). Add to that the prospects of adding 10-40 million additional Americans to a government insurance program (like Medicare) and our nation's bankruptcy is closer than any of us realize.
This is not change we can believe in. This is change we cannot afford. Reform begins when we vote out all members of Congress and elect officials who will bring about real reform. Make 2010 and 2012 the Second American Revolution before it is too late.
Thomas Smith, Grovetown
The Augusta Chronicle ©2010 Morris Communications, LLC. All Rights Reserved.
Great analogy.
The Social Security ponzi scheme has been a potential problem for decades. When "W" tried to do something about it, he was attacked by both sides of the isle, most notably by the left and their media organs. This congressional scam is identical to the one Madoff was sentenced for, except it hasn't imploded...yet.
The article is a joke. A common attempt of shallow individuals to compare apples to orange and here is why: The entire country's founding and it's style of governing, some say, is a complex ponzi scheme. Too extreme U say, well, look at how ol' Madoff made it look sooooo easy. His life had been a good one. He has probably done everything he wanted to do and got away with it. Now, in his last decade of life he will be confined where his book will be constructed, while his family continues to hide money. Thats something of a success, while those honestly working for all those years (1967-09) probably feel betrayed by their government. Where is the justice? And comparing Soc. Sec. to this crook is childish, much like the ease that this con man played on his victims. The lesson here is diversity, because any minority would have seen this nut coming long ago and because no people of color were involved, "they" thought the scheme was legitimate. Wrong! So whose next or what other agency is a complete fraud? Capitalism...maybe.
justus4, did you make a point?
JUSTUS4: You don't have to be a brain surgeon to understand your point, but being able to read would help. Thank you for enlighting us again. Point well taken. HELLO! HELLO!
Oh justus4, you are so full of crap. The writer is completely correct. Social Security is nothing but a big Ponzi scheme. It would not have been if the money paid in had been put in government bonds and the interest collected. But Congress just could not resist getting their hands on that money and wasting it. Usually on some new social program. So the interest never came in and there is not enough money to pay the bills. Exactly a Ponzi scheme. As for waiting to 2010 and 2012 to revolt....well, if that's the best you can do. I think we should REVOLT NOW....TODAY....before they can implement Cap and Trade and Government Healthcare. After all, our government is already pretty REVOLTING. justus4 makes one good point. The investors were STUPID and GREEDY for not seeing through the Madoff scheme. And we are STUPID for letting Congress steal the social security money and THEN tell us they have to raise SS taxes and cut benefits. Hogwash. They stole it, prosecute them and give each of them 150 years. Better yet, PUT ALL OF THEM OUT OF OFFICE IN 2010. SS is another system that was forced on us by the Democrats and again, they did not uphold their end. Just as will be GOVERNMENT HEALTHCARE
Tshe two most ignorant poster (Justass4 and jackass234) just can't help the fact they are black and can't stand it. Neither could Michael Jackson.
JUSTUS, the only difference between SS and a Madoff scheme is that the SS isn't voluntary, even though it was supposed to be when it was created in 1937. You aren't asked whether you want that "FICA" taken out of your paycheck or not. The system is paying out more than taking in. Sounds like a ponzi to me, but according to JACK234, (HELLO!HELLO!) you are "enlightened." Bush spoke of this years ago, and was attacked by both parties. Seems congress would rather get re-elected than actually face the hard facts that our children and grandchildren will be dealing with due to congressional overspending and incompetence. Yeah, sounds like real "change we can believe in."
southernguy, the fact that 234 encourages and concurs with justus4 says a pant load.