Analysis
Technical Evolution
The development of any Ponzi scheme is best examined, in three distinct phases or stages. Consequently and as follows, please consider how Social Security and Medicare compare to well established and accepted definitions for classic Ponzi schemes.
Ponzi schemers always covet the ability to directly execute Phase-II, which is the very heart of the fraud and precisely where the money is made. But Phase-I exemption is a luxury, which the classic Ponzi schemer can never possess. However; the federal government enjoys such great luxury, by utilizing multi-millions of conscription investors. Such Americans are compulsory investors, who function perfectly as ideal Phase-I substitutes.
Phase-I: Setup of Investor Victims
In any classic Ponzi scheme, the scheme operator capitalizes on human greed; by recruiting investors, who are tantalized by the promise of extraordinary and unrealistic returns or gains. To setup vulnerable investors as suckers, for fraudulent purposes, a classic Ponzi schemer performs the following four preliminary actions.*
"The Benefit"; Guarantees an extraordinary high rate of investment return*
"The Setup"; Offers a believable reason for achieving the promised rate of return*
"Initial Credibility"; Convinces investors of schemer's trustworthiness*
"Initial Investors Paid Off"; Pays initial investors exactly as promised*
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Exemption: The federal government wields immense power to obtain investment principal, for both Social Security and Medicare. Mounted astride such an ominous and menacing socialism saddle; equestrian Uncle Sam achieved authority, by the Social Security Act, to directly execute Federal Ponzi operational Phase-II.
Consequently; with a national corral of saddle-broken and ready investors, it is unnecessary for the government to perform any part of Phase-I. Whereby and instead; conscription investors are utilized to feed the maw, of such massive virtual machines. Investor compliance is guaranteed by the coercive might of federal law; but grievously, rebellious conscripts face felony incarceration.
*[Ref.; About.Com.Economics: http://economics.about.com/od/financialmarkets/f/ponzi_scheme.htm ]
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Phase-II: Acquisition of Investment Principal
During phase-II, the pool of investment money always balloons enormously; whereas, Social Security and Medicare are no exceptions.
"Communicated Successes"; For all Ponzi schemes, subsequent investors are ultimately attracted by fame and hype, of the Ponzi scheme operator's success.*
Empowered by the inherent Phase-I exemption; FDR's government earnestly got down to serious business, by implementing federal Ponzi operational Phase-II. Consequently the largest government infrastructure on Earth was constructed, which enabled the collection of 'investment' principal for retirement; throughout every hour, of each day, of every year.
Such a vast quantity of money is continually appropriated, for government sanctioned wealth redistribution. Dear Uncle Sam robs from young Peter to pay Paul's retirement pension today; while guaranteeing Peter’s future retirement, with a fraudulent promise.
In the beginning of Social Security and with a virtually unlimited worker pool available; congress was eager to communicate their successes to voters, while being giddy with the praises received. Moreover, as the fame of Social Security's successes became widespread; congress has continued to hype the program and offer more money and benefits, to a ravenous American population.
Consequently, American citizens have been obliged to congress by such 'gifts' which include; the Social Security pension, cost of living raises, disability benefits, dependent benefits, Medicare health insurance, prescription drug insurance and SSI welfare. Congress has also made special inclusion for certain groups, who have paid very little into the system. Grievously; at the election booth within our republic, such socialistic benefits have sown the seeds of money-biased voter perversion.
Phase-II may be considered as the golden years of Social Security; while FDR's virtual dream machine worked its money making magic so prodigiously. Moreover, the program served well to meet critical financial needs of the Boomer's parents and grandparents. However the golden years were merely a prelude to the Phase-III financial storm, which will be of historically unparalleled intensity.
Note: Any references within this document, to SS-Ponzi and MC-Ponzi; refer to the Social Security and Medicare federal Ponzi operations, respectively.
*[Ref.; About.Com.Economics: http://economics.about.com/od/financialmarkets/f/ponzi_scheme.htm ]
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Phase-III: Collapse of Fraudulent Scheme
All Ponzi schemes inevitably fail because the pool of available money becomes insufficient to repay investors, who begin demanding refunds because of panic in the markets. Consequently, remaining investors are left broke and disillusioned.
"Theft of Investment"; As any classic Ponzi scheme collapses, the Ponzi schemer steals the accumlated principal.*
With impunity; the Social Security Trust Fund has principally been squandered, for congressional pork projects. But as with any Ponzi scheme, most Americans would maintain that such actions effectively constitute embezzlement. Legally stolen with immunity from prosecution; such misapplication of the People's money, by the congressional trustees, is a serious fiduciary breach.
When the available number of tax-paying workers falls below critical mass, SS-Ponzi will collapse. Social Security will then be doomed, as the pool of inflowing money becomes insufficient to repay investor retirees.
This ominous change is occurring steadily, as the ratio of workers to retirees has declined over the years, from 41.9 (1945) to 2.9 (2010).**
According to the SSA; through 2022, annual cash deficits will be made up by redeeming trust fund assets from the General Fund of the Treasury.***
But since the United States routinely operates on credit; insufficient general funds remain, with which to redeem such trust fund bonds (IOU's). Consequently; government use of the term "redeeming" is deceptive because even more money must be borrowed for deposit into the general fund, to cover such bond obligations. Therefore, American workers can find little comfort in the box of fraudulent and worthless federal bonds, which stand as legal securities for the bankrupt Social Security Trust Fund.
Placed against the collective futures of the Boomer’s descendents; such foolish new debt is over and above the current national debt, which is in-excess of 15 trillion dollars and rapidly increasing. It's outrageous, but we've built far too many railroad, cowboy and fine art museums; but not to mention, the Alaskan bridge to nowhere.
Beware that the fraudulent SS-Ponzi games have about run their course. Moreover, as citizens ultimately discover that Social Security checks are not coming anymore; Uncle Sam's grand pork-fest will have consumed the remainder of the trust fund.
Social Security is not a classic Ponzi scheme, but please don't misunderstand the following distinction. Social Security is the greatest Ponzi operation on Earth. Moreover; the business end (bore) of Social Security is fully capable of causing all the same catastrophic results of any classic Ponzi scheme, which is a behemoth of full national size/scale.
*[Ref.; About.Com.Economics: http://economics.about.com/od/financialmarkets/f/ponzi_scheme.htm ]
**[Ref.; Social Security Admin; History: http://www.ssa.gov/history/ratios.html ]
***[Ref; Social Security Admin; Actuarial: http://www.socialsecurity.gov/oact/trsum/index.html ]
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Authentication of Ponzi Scheme
The following validation tests are all perfectly applicable to Social Security and Medicare; except for the second, where the government is completely exempt. Relatively speaking, element two is for amateurs; whereas, federal professionals utilize conscription investors as ideal substitutes. American workers thus make the perfect puppets, for pumping such scams of social insecurity.
Critical Validation Tests*
(1.) A Ponzi scheme is a fraudulent operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned.*
(2.) The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent.* (Federal Government Exempt)
(3.) The perpetuation of the returns, that a Ponzi scheme advertises and pays, requires an ever-increasing flow of money from investors to keep the scheme going.*
(4.) The system is destined to collapse because the earnings, if any, are less than the payments to investors.*
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Due to an ever increasing pool of retirees and a shrinking work force; the federal government must continue to reduce Social Security benefits, by hiking the payroll tax rates and also by delaying the age of retirement eligibility. But such concerted cover-up tactics constitute utterly futile attempts, to stall and prevent complete collapse of the schemes.
Moreover; Social Security has been trending toward complete collapse, ever since it was first implemented. To comprehend the government's heroic efforts, which have been made to prop-up SS-Ponzi, one merely has to study the escalating trend of SS tax rates since inception.
The combined employee and employer Social Security OASDI tax rates have progressed steadily during the years, from 2.0% (1937) to 12.4% (2010).**
As a red-flag true Ponzi indicator, such insidious and alarming SS-Tax rate increases are in complete accordance with Ponzi scheme validation elements 1, 3 and 4 above. Consequently; by masterful political manipulation, an inherently fraudulent scheme was made into American law.
*[Ref.; Wikipedia.org: http://en.wikipedia.org/wiki/Ponzi_scheme ]
**[Ref.; Social Security Admin; Tax Rates: http://www.ssa.gov/OACT/ProgData/taxRates.html ]
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Quintessential Proof of Ponzi
The first monthly Social Security payment was issued to Ida May Fuller on January 31, 1940, in the amount of $22.54.* In 1937, 1938 and 1939, the recipient paid a total of $24.75 into the Social Security System. The same recipient lived to the ripe old age of 100 and collected a total of $22,888.92, which is a pay-back ratio of 925:1.
Without a doubt, Ms. Fuller was a very wonderful person; however, she obviously reaped a great windfall profit from being a very early participant in the world's greatest Ponzi operation. Where else could anyone reap a profit ratio of 925:1, in any legitimate investment, after investing just a mere three years? LOL!
Consequently; Ms. Fuller's grand, but completely unrealistic, windfall profit is the very best 'Quintessential Proof' available; which establishes that Social Security is a Ponzi operation or scheme.
Investors beware! An inviolate Ponzi scheme truth of Nature dictates; (1) Enter early and 'reap a bonanza', (2) Enter late and 'get the shaft'.
*[Ref; Wikipedia.org: http://en.wikipedia.org/wiki/Ida_May_Fuller ]
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Calamity in Waiting
Protected by federal law for about seventy five years, Social Security has taken advantage of such a unique sanctuary to insidiously evolve and become very massive. But like gargantuan twin boils which are festering to a head, both Social Security and Medicare now clearly show all of the signs; which foretell of eruption, collapse and bankruptcy.
For all American workers; the innovative Social Security design originally promised a secure retirement income. However; from initial conception, such a virtual machine was a doomed contrivance. Consequently; in exactly the same manner, as with all mechanical perpetual motion machines, it is utterly impossible to design, create, build, make or "fix" any successful perpetual money machines. But with both Social Security and Medicare, many political innovators continue to believe that such a reliable construction is possible.
While glowing with promised benefits and great pomp, these federal programs are cloaked with many justifications and high-moral sounding themes. However; Americans should beware that initial Ponzi game participants always come out with a big smile and smelling just like a rose.
But an inviolate truth of Nature dictates; that many mid-term and all late-term players get defrauded, which is a grievous outome. Such schemes of making perpetual money will ultimately evaporate as a mere wisp of vapor, thus robbing many citizens of the American dream.
Prerequisites of our federal Ponzi operations have been fulfilled and the cannon is now completely charged. Moreover; a match is lighting the slow fuse, which is beginning to burn with a sputter. By about the year 2025, more or less, the fuse will be burned down to the barrels edge. When the powder ignites, the Social Security cannon will blast Americans with a grievous retirement calamity.
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Dump the Ponzi
Save Your Retirement
Take the first crucial step in the political conflict to save your retirement and personal future.
Communicate the following webpage address, to other persons or groups* as suggested below.
http://www.stumping-for-ole-glory.com/
* Internet social networks; such as Facebook, Twitter, Friendfeed and others
* Internet websites; such as political news, blogs and labor unions
Include a brief message about the importance of privatizing Social Security.
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