Sunday, February 6, 2011

Made-off vs. Social In-Security

Why did Bernie Made-off go to prison? To make it simple, he talked people into investing with him. The trouble was, he didn't invest their money. As time rolled on, he simply took the money from the new investors to pay off the old investors. Finally, there were too many old investors and not enough money from new investors coming in to keep the payments going. Next thing you know Made-off is one of the most hated men in America, and he is off to jail. Some of you know this but, not enough of you. Made-off did to his investors what the government has been doing to us for over 70 years with Social Security. There is no meaningful difference between the two schemes, except that one was operated by a private individual who is now in jail, and the other is operated by politicians who enjoy perks, privileges and status in spite of their actions.
 Do you need a side-by-side comparison here?  Well here's a nifty little chart.
Takes money from investors with the promise that the money will be invested and made available to them later.
Takes money from wage earners with the promise that the money will be invested and made available later: much later.
Instead of investing the money, Made-off spends it on nice homes in the Hamptons and big yachts, slow music, and fast women.
Instead of depositing money in a Trust Fund, the politicians  transfer it to the General Revenue Fund and use it for general spending and vote buying.
When the time comes to pay the investors back, Made-off simply uses some of the new funds from newer investors to pay back the older investors.
When the time comes to pay the investors back, the politicians simply uses some of the new funds from younger and newer investors to pay the older geezers.
When Made-off's scheme is discovered all hell breaks loose.  New investors won't give him any more cash, and the plan comes falling down around him.
When the Politician’s scheme is discovered all hell breaks loose. The politicians try to force the taxpayers to send them some more; or they cancel  S/S to all those who paid into it.
Bernie Madoff is in jail for life.
Politicians remain in Washington with fat salaries, medical and retirement benefits guaranteed for life.
                   The taxpayer: That's someone who works for the federal government but                 
                   doesn't have to take the civil service examination.'          
                   "If you put the federal government in charge of the  Sahara Desert , in five
                    years there'd be a shortage of sand."     ~ Milton Friedman
Our elected representatives no longer represent "We The Peeps". Its time, folks, to start a concerted effort to replace a lot of these buttheads. Just watch them in High Definition TV, and you will see how full of crap they are......they all have brown eyes!

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