Social Security IS a Ponzi Scheme

Charles Ponzi would be proud. Gov. Perry has come under fire for stating the obvious, that social security is a Ponzi Scheme. That means that it takes in money from current investors to pay out the original investors, and the money keeps circulating. It will crash when the people realize that there is not money in the "social security trust fund" to actually pay benefits. Oh, I know, the social security actuary says there is $2.7 trillion in that fund, and there is... kind of.


See, what has happened since 1968 is that every single year Congress has spent the money that is paid into social security, beyond what is paid out(the surplus), and replaced it with SPECIAL CLASS NON NEGOTIABLE TREASURY BONDS. These bonds can not be traded on the open market, and therefore have no marketable value beyond their role as place holders for the hard earned money of taxpayers that Congress squandered.


This system worked GREAT, when there was 14 workers for every beneficiary, and the surpluses were rolling in, but now when there is 2.3 workers for every beneficiary, and we are paying out more than we are taking in, the Ponzi Scheme is reaching collapse.


We, the taxpayers, entrusted to congress our money to invest for retirement. They told us they were "investing in America". ROFLMAO, what this meant was placing those bonds in place of money. If a corporation did this, it's officers would be in federal prison. a corporation has to not only fund the pension program, but has to invest it in such a way that it will pay the retirees, or else they have to make up the shortfall, but not the government, they will simply tax you more to pay for your own retirement, that you already paid them for, but they spent in a manner that would embarrass drunken sailors.


So this year marks the beginning of the baby boomers retirement. From this point on, social security will spend more than it takes in, and every year this shortfall will have to be made up with tax dollars, in addition to the 43% of what the government spends that is borrowed. This is a situation that can not continue for long, before bankruptcy is the only honorable option. But then again, personal honor has never been an electable trait.