The Government Mess

People who are advocates of what is transpiring now are going to be really disappointed. When they realize how misled they really were, all hell is going to break loose. Obama (and others) stand up each day professing the virtues of government intervention. Sadly, this is a path to failure. Everywhere we look, government fails. Yet some still hold the notion that it is going to change.

Is there anyone with any common sense who believe the rhetoric we are served? Many of the programs instilled during the last great "economic crisis (the Great Depression) are now coming back to haunt us. Take Social Security as an example. It is completely broke. The CBO is now estimating that there is only a $3 billion surplus left in that program. This is a radical difference from the $80+ billion estimated a year ago. (Read article here)

Once again the political establishment screwed things up. For decades, the greedy politicians raided this program to fund their out of control spending. They took the dollars set aside for our elderly and use it for their own selfish ends. Now, we are at the point that this Ponzi scheme is blowing up. There is no more money to fund it.

The article makes a valid point about the changing in times since FDR created this program. With only a 3 to 1 worker to retiree ratio, there is not enough money coming in. It is that simple. Bernie Madoff understood this the last few years. Guaranteed returns become impossible to meet after enough time when you consistently have to raise money. This is what Social Security is now facing.

Our government is worthless. The people in it are not only inept, but mostly corrupt. Each of them deserves a cell next to good Ole Bernie. He screwed many out of their futures and the U.S. Government is doing the same thing. Everyone over the age of 50 is going to quickly realize they were lied to by all those talking heads in Washington. Right now, President Obama is the head liar in charge. Remember this article the next time you see him promising how government is going to fix the problem.

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Legal Corruption

Can anyone explain to me why Bernard Madoff is not in jail? Instead, he is living in his penthouse apartment while awaiting trial for the bilking of billions of dollars from investors. In what is the largest Ponzi scheme in U.S. history (next to the Social Security scam), Madoff is personally responsible for the ripping off of almost $50 billion. And, as I write this he is a free man.

To make matters worse, he is mailing millions of dollars worth of jewelry to friends and family. This is in direct opposition to a court order forbidding him from unloading his assets. Today, a judged allowed him to remain free. Instead, he requested an accounting of all his assets and assigned a security detail to periodically check that the objects are in Madoff's possession. (Read article here) This is absurd.

Let me ask you this: do you think that you or I would receive the same treatment. Of course not. In fact, you look at other high profile criminals to see they werent treated the same way. OJ Simpson sat in jail for over a year until he was let off the hook. Fortunately for society in general, karma came back to roost with him. The fact that Madoff is being accused of a "white collar" crime should matter little. He is a corrupt man who destroyed a lot of people.


I have no idea what the track record of Judge Ronald Ellis is. He may be a terrific judge. However, I question his decision on this one. Bernard Madoff harmed a lot of families while casting emotions which thus far is tied to 2 deaths. While he might not have pulled the trigger, he is responsible. And for that, he deserves to await trial from within the confines of a cell.

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Ponzi: The Government's Favorite Scheme

The "Ponzi Scheme" is getting much attention with the arrest of Bernard Madoff. His fraud (alleged) is going to total billions of dollars. However, while it is illegal for an individual to run a scheme such as this, it is apparently the government's favorite financial tool. When one looks at things closely, the Frederal government is really operating a number of giant Ponzi schemes.

Before getting into detail, I copied this from Wikipedia to define what the scheme is:

"A Ponzi scheme is a fraudulent investment operation that pays returns to investors out of the money paid by subsequent investors rather than from profit. The term "Ponzi scheme" is used primarily in the United States, while other English-speaking countries do not distinguish colloquially between this scheme and other pyramid schemes.

The Ponzi scheme usually offers abnormally high short-term returns in order to entice new investors. The perpetuation of the high returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors in order to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments. Usually, the scheme is interrupted by legal authorities before it collapses because a Ponzi scheme is suspected or because the promoter is selling unregistered securities. As more investors become involved, the likelihood of the scheme coming to the attention of authorities increases."

I already wrote about the ruse that the Federal government call Social Security. This is nothing more than a glorified Ponzi scheme. (Read it here)

There seems to be a new system that is going to be structured in the same way. It is the proposed Universal Healthcare System. This is something that you all have heard about. The Federal Government is going to provide insurance for everyone who is not presently covered. This sounds wonderful until one asks "where is all the money going to come from?". The simple fact is that there will not be enough money coming in to cover the expenses that are going to need paying out. Of course, initially, the funds will be available. However, over the decades, we will see the deficit grow to cover this. This is no different than Social Security.

If we want to take this one step further, we can expand this to mean the entire Federal Government is nothing more than a Ponzi Scheme. The existence of this entire institution is based upon money taken in today. However, the services are paid out immediately with no future certainty that those services will be offered to those stuck with the future payments. This seems very similar to what MAdoff did.

Simply put, we are receiving the payouts today based upon the continual investment by others. Sooner or later, when the incoming money doesnt cover the expenditures, the system collapses. That is the present fate of the American government. This is an entity which will implode because of the excessive spending. Our children will not be able to pay enough to cover all the payouts presently promised by the existing leadership in this country. Hopefully, the American people will wake up to this ruse before it is too late.

Bernard Madoff is going to jail. However, he is not the only one who belongs there. Each of the individual Congress people, President, and anyone else who is involved with this illegal system of government should be there with him. They are willing participants in one of the greatest crimes mankind ever witnessed.

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Wall Street Corruption

Wall Street was shaken with the announcement of the arrest of Bernard Madoff for securities violations. It is now evident that the hedge fund he ran was nothing more than a glorified Ponzi scheme. He survived the last few years by using "smoke and mirrors" to hold it together. Ultimately, like all Ponzi schemes, the money from new investors dries up. That is what occurred in this situation.

The tipping point came when investors requested withdrawals from the fund in the total amount of $7 billion. Obviously, this money was not there. Typical of schemes like these, the investors who got in last are the ones left losing. Everything moves smoothly so long as there are new funds coming in since money is raised to pay off previous investors. When the new investment ceases, there are no profits to pay the investors.

Madoff is being charged and will most likely spend the rest of his life (since he is up there in years) in jail. He lost billions of dollars. Many affluent people are now realizing they are broke. This is a crime which destroys many families and deserves ample punishment. I have faith that Madoff will get his due.

Ponzi schemes are illegal for obvious reasons. It is a system which is not sustainable after a certain period of time. The concept of taking in new money to pay older obligations is not what the government feels is appropriate. Therefore, they outlawed this type of system.

But did they really? They made it illegal for a private citizen or corporation to utilize. However, the government believes that it has the right to run Ponzi scheme. It has no problem taking new money in to pay for old obligations. This is where it tells us that it is taking care of us. We are led to believe that a failed system is in our best interest.

What is the Ponzi scheme I am referring to: Social Security. This is the grandest of all pyramid schemes. We are now confronted with a situation where this mechanism is going broke since there are not going to be enough people paying in as compared to those making withdrawals. Sound familiar. It got Madoff into a bit of hot water. This makes me think perhaps the Justice Department ought to arrest those involved in this corruption also.

This is how our government operates. An activity which is illegal for the average person is undertaken by the powerful in government. Social Security is the epitome of this idea. The government engages in an illegal activity all for the "betterment of the people". This is a bunch of garbage. We ought to jail everyone involved in this with Madoff.

One final thought, now that you know that Social Security is a Ponzi scheme, is it any wonder that it is going broke?

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