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Calz
4th September 2011, 14:06
"If you put the federal government in charge of the Sahara Desert , in five years there'd be a shortage of sand. ~ Milton Friedman


Why did Bernie Madoff go to prison? To make it simple, he talked people into investing with him. 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 Madoff 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. Madoff 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.

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BERNIE MADOFF
Takes money from investors with the promise that the money will be invested and made available to them later.

SOCIAL SECURITY
Takes money from wage earners with the promise that the money will be invested in a "Trust Fund" (Lock Box) and made available later.

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BERNIE MADOFF
Instead of investing the money Madoff spends it on nice homes in the Hamptons and yachts.

SOCIAL SECURITY
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.

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BERNIE MADOFF
When the time comes to pay the investors back Madoff simply uses some of the new funds from newer investors to pay back the older investors.

SOCIAL SECURITY
When benefits for older investors become due the politicians pay them with money taken from younger and newer wage earners to pay the older geezers.

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BERNIE MADOFF
When Madoff's scheme is discovered all hell breaks loose. New investors won't give him any more cash.

SOCIAL SECURITY
When Social Security runs out of money the politicians try to force the taxpayers to send them some more; or they cancel S/S to all those who paid into it.

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BERNIE MADOFF
Bernie Madoff is in jail.

SOCIAL SECURITY
Politicians remain in Washington .. with fat medical and retirement benefits.

ulli
4th September 2011, 14:32
I'm going to keep bumping this thread...
My mother's family lost everything in WW2, and yet she kept pestering me during the seventies to start a government pension fund.
I told her that I would focus on generating capital, which I would then invest on my own.

Then friends came and told me to invest in the Villalobos brothers, Costa Rica's version of Bernie Madoff. (what a name...mad- off)
They promised 40% interest on the capital. Early investors who were clever lived off those interest payments
And in the end got back more than their investments. All others lost everything. Having been in business myself I knew to distrust the 40% interest promise.
It's healthy to trust yourself, provided you don't sabotage yourself.
Trust no government, I say. Find your inner gifts, then offer them to others, then build a solid clientele.
Right now I'm making rosaries...the local people like to say their prayers using a rosary.

conk
4th September 2011, 15:24
I can't wait to try and spend my Social Security IOUs at the grocery.

Calz
4th September 2011, 15:33
I can't wait to try and spend my Social Security IOUs at the grocery.

You will be standing in line with all those people with a backlog of foodstamps.

trenairio
4th September 2011, 16:12
"Germany became the first nation in the world to adopt an old-age social insurance program in 1889, designed by Germany's Chancellor, Otto von Bismarck."-Ssa.gov

http://www.ssa.gov/history/ottob.html

ulli
4th September 2011, 23:56
"Germany became the first nation in the world to adopt an old-age social insurance program in 1889, designed by Germany's Chancellor, Otto von Bismarck."-Ssa.gov

http://www.ssa.gov/history/ottob.html

He meant well. Unfortunately it didn't work out...two world wars made sure that governments lost track of their people, as well as their obligations.

Calz
14th September 2011, 12:10
There were 42 workers supporting each Social Security recipient at the end of World War II. Today, there are only three.

By itself, that looks like an unsustainable trend. But the actual number of workers supporting each recipient is even lower ó 1.75.

CNS News, a conservative website, broke down the Labor Department data to exclude government workers from the ratio. Makes sense: Government workers draw their paychecks, ultimately, from the revenue taken in taxes from private-sector workers.

Thus, if you exclude the 18.1 million full-time government workers, that leaves 111.7 million full-time private-sector workers supporting 53.4 million Social Security recipients.

Thatís a ratio of 1 3/4 workers to 1 collector of benefits.


(no link - email from friend)