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Posts Tagged ‘Ponzi Scheme’

Social Security: To Draw or Not to Draw? That is the Question

I have just turned 66.  All my friends, family, colloquies, and people in line at Walmart tell me I should apply for benefits since now I can draw “Full” benefits and keep working which is the boomer generations equivalent of having a Winnebago and being a Snowbird.

First a word about “Full” benefits; every once in a while, on a seemingly random basis I receive a statement from the Social Security Commissar that tells me what’s supposedly my hypothetical Social Security Account  is in Bill Clinton’s mythical lock box.  When my turn in the barrel rolls around and I am lucky enough to win a report I notice that it always tells me if I am disabled I will receive X-1, is I claim benefits at 62 I receive X, If I wait and claim benefits at 66 I receive X+1, and if I wait until I am 70 I receive X+2.  So how does 66 equate to full benefits?

Perhaps it is because at 66 I can receive my X+1 and still keep working making 10X with no penalty?  This is what leads me to my current conundrum.

I hear from all sides, “You have paid into this system your whole working life.  That is your money.”  I also hear, “You’d be crazy not to take it.”  And of course, “They owe it to you.”

The problem is I know that every cent I ever involuntarily contributed to the Social Security Ponzi Scheme was spent at least 10 years before they confiscated my contribution.  I also know that to give me my X+1 they are going to confiscate a contribution from some poor working millennial who is making X or maybe even X-1 just to keep the illusion of solvency going.  Then every time I accept the automatic deposit of my fiat money my acceptance and my silence keeps the FDR’s great Ponzi Scheme going, and I have just become part of the problem instead of part of the solution.

Can anyone say Cloward-Piven Strategy?

According to Richard Poe DiscoverTheNetworks.org, “First proposed in 1966 and named after Columbia University sociologists Richard Andrew Cloward and Frances Fox Piven, the Cloward-Piven Strategy seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.”

Yes, I know I have had money confiscated by Uncle Sam since I drew my first paycheck.  Yes, I know that this is legal and I know that the rules of the system say I can now draw a monthly check.  However I also know that to pay me the government can pretend all they want that it is somehow related to the money they have confiscated from me, and I know they will pay me by making money magically appear in my account each month.  I also know that this money is backed by nothing more than borrowing from our foreign creditors or putting more IOUs in the mythical lock-box.

I don’t know if there is anyone else going through this type of anguish about whether or not to draw money from Social Security. Is it just me?

I feel like a square peg in a round hole.  A boomer who hasn’t worried, “Will Social Security be there when I am ready to retire.”  A boomer who hasn’t reached the gateway to X+1 who isn’t singing:

So long sad times, go long bad times
We are rid of you at last
Howdy gay times, cloudy gray times
You are now a thing of the past

Happy days are here again
The skies above are clear again
So let’s sing a song of cheer again
Happy days are here again.

Instead I am conflicted and lamenting for my beloved memory of a constitutionally limited government, personal liberty, and economic opportunity as I sigh:

The party’s over
It’s time to call it a day
They’ve burst your pretty balloon
And taken the moon away
It’s time to wind up the masquerade
Just make your mind up the piper must be paid.

Recent headlines like, “It may be time to put some money under the mattress” over stories filled with advice from some of the world’s largest hedge fund managers it should at least give people pause for thought.  When we as a people keep charging our Visa to our MasterCard and then charging our MasterCard to our Discover and then getting a cash advance on our Visa to pay our Discover how long can we keep asking ourselves in the middle of the night, “How can this go wrong?”  When we as a nation have Alfred E. Newman for a leader asking, “What, me worry?” how long it will be before we are saying, “That which I have feared has come upon me.”

It is thoughts like these that have me swaying both ways.  On one hand I don’t want to be part of the problem.  On the other I honestly believe we have passed the tipping point so what does it matter?

If anyone else is having this inner debate I would love to hear from you.  Or am I alone in this, and are my beliefs in limited government, individual liberty, and economic freedom merely a nostalgic impediment to my enjoyment of our shabby progressive utopia.

I have never wondered, “Would the money be there for me when I reach retirement age?” Why, because I have always known the government would continue to transfer the money even if they don’t bother to print it or if they have to borrow it from China or steal it from future generations. They will never stop transferring the money because to do so will be to expose the fact that the emperor has no clothes and it has been a Ponzi scheme all along. So don’t worry, you will get the electronic transfer even if it will only buy a loaf of bread by the time you get it.

Should I sign on the dotted line and let Social Security pay back my student loans as the serpent of socialism eats its own tail?

Dr. Owens teaches History, Political Science, and Religion. He is the Historian of the Future @ http://drrobertowens.com © 2015 Contact Dr. Owens drrobertowens@hotmail.com Follow Dr. Robert Owens on Facebook or Twitter @ Drrobertowens / Edited by Dr. Rosalie Owens

 

Why Social Security Hurts Society and Isn’t Secure

The concept of a social safety net is well accepted throughout the Western World.  The idea that some provision should be made for those who through no fault of their own are unable to provide for themselves first appeared as a state policy in Germany in the 19th century as the Iron Chancellor, Bismarck, sought to coopt the popular appeal of socialism and strengthen the newly founded German Imperial state.  The idea struck a chord in the hearts of most people in Europe and in the hearts of its descendants around the world.

In days gone by the family, the parish church and the local community had filled this need.  However, with the growth of cities and the near total separation of these urban populations from the land, it became necessary for the wider community to accept this responsibility.

It was inevitable that since some sort of agency or bureau was needed to supervise the distribution of such aid this public apparatus would follow the trajectory of all bureaucracy: growth.  Mission creep would inevitably set in as the bureaucrats would seek to build their kingdom.  Services would increase so that the servicers would increase and one layer would insulate another.  From providing the bare necessities to those who through no fault of their own could not do so we have reached a stage where the modern ideal of fairness intersects and we have the self-selected indigent demanding a living wage for doing nothing.

This amounts to those who make provision for themselves being forced to make provision for those who don’t.  This must necessarily be so because the only way such a system to exist for any length of time is for it to become compulsory upon all to contribute for the benefit of some.  This then brings into play the economic truth that whatever you subsidize you get more of and viola the welfare rolls keep growing as the benefits keep increasing.

One of the tricks used to sell this scam to an unwitting nation was the use of the word insurance.  Everyone was familiar with the concept of insurance: pay a premium and expect coverage if the event insured against occurs.  The government called it Social Security Insurance and it seemed so reasonable.  The problem is the money has always gone directly into the general fund.  Therefore it was spent today with no provision for tomorrow.  Combine that with yearly deficit spending and the inevitable growth of the national debt and the money coming in has no relationship to the money going out.

It is a Ponzi scheme pure and simple and it always has been.  FDR and his Brain Trust social engineers knew that from the start.  The problem with a Ponzi scheme is that eventually the music stops and there are never enough chairs.  The most successful Ponzi scheme we know of was with Bernie Madof. It eventually came crashing down, and it was a pittance compared to the tenuous superstructure we have built up with Social Security.

In 2013 Social Security ran a $71 billion deficit.  This means there have been four years of consecutive cash-flow deficits, which means that the inflow is less than the outflow. According to the 2014 annual report from the programs’ trustees, the combined 75-year unfunded obligation of the Social Security and Disability Insurance Trust Funds (referred to collectively as the OASDI Trust Fund) is $13.4 trillion. That is a $1.1 trillion increase from last year’s unfunded obligation of $12.3 trillion, and this is without calculating the tens of millions more who will enter the system under President Obama’s amnesty decree.

Does anyone really believe we are ever going to make that whole?  Are we ever going to take enough out of other portions of our budget to fund these obligations?  If we don’t eventually someone will have to pay the piper.  If it isn’t us it will be our children or their children on and on until it crashes against the reality that the cupboard is bare.

This so-called insurance meant from the beginning not merely compulsory insurance it also meant compulsory membership in a unitary system controlled and enforced by the state.  The main reason such a centralized system is widely accepted as necessary was the administration convenience and the economy of scale that alone could make provision for everyone at once.  This is nothing except a government monopoly.  Not a closed monopoly where no one can compete against the 800 pound gorilla, but an open monopoly where everyone is forced to participate even if they make provisions for themselves and never take recourse to the guaranteed payout.

Even though competition is possible the accepted principle that all sheltered monopolies become inefficient over time applies here.  Just because the pyramid hasn’t collapsed yet does not mean that Social security earns the praise it garners as a successful program.  As the saying which typifies government inefficiency goes, it still equates to having the DMV run your retirement plan.

How has a system that was sold to the American public as a means to relieve the abject poverty of a few morphed into a tool for wealth distribution?  How has the once vigilant American public been convinced in not only the efficiency but the necessity of a program which is little more than a new way of packaging the discarded aims of Socialism?  It was done incrementally.

It reminds me of the story about the two pastors who meant at a conference.  Pastor A was approached by Pastor B who had once been the pastor at A’s current church, but he had been thrown out because he tried to move the piano from the right side of the platform to the left.

Pastor B: Hi, I heard you have moved the piano from the right side of the platform to the left side and that the people love you there.  When I tried it they threw me out faster than the Holy Spirit can say Jesus.  How did you do it?

Pastor A: One inch every six months.

What won’t be accepted today will be accepted ten years from now if we move there slowly.  This is classic Alinsky, and is straight out of his Rules for Radicals.

Whereas the people of the West fought for fifty years to resist the smothering embrace of Communism we have allowed ourselves to accept it by degrees under other names until what we have is in many ways indistinguishable from what they tried to make us accept.  The practice of the welfare state’s attempt to bring about a just distribution for everyone who has reached a certain age by distributing incomes in such proportions and amounts as it sees fit is merely another method under a new name of achieving Marx’s long promised goal, “From each according to his ability to each according to their need.”

It is of paramount importance that we understand the difference in a situation where a society decides to prevent the utter destitution of a few and a situation in which the state assumes the right to determine the just portion everyone must pay and the just portion everyone receives with state sponsored coercion to back it all up.  Individual freedom, personal liberty, and economic opportunity are profoundly threatened when the state is given the exclusive power to provide certain services.

This system was designed in the 1930s.  It has been tweaked and massaged several times since then however it is in essence a 1930s construct.  Whenever someone suggests finding a new way to provide for any or all of the needs now associated with the Social Security System we are greeted with visions of heartless robber barons throwing grandma off a cliff.  However it is eminently reasonable that when the best available solution based on the best available knowledge is frozen in place it becomes the most efficient way to prevent any new knowledge ever being applied to the problem.

When our desire to provide out of the public treasury for those in need is combined with a system for compelling everyone to make provision against being in need we have in effect created a third system.  This is a system under which people in certain circumstances such as old age or disability are provided for without consideration of whether or not they are able to take care of themselves or not.  Under this system everyone is provided with the standard of which the government has deiced they should have.  With no means testing we have the specter of people who make $100,000 per year receiving pensions forcefully taken from contributions from people who make $15,000 per year.

With the current average life span and the caps on the amount of income eligible for taxation almost everyone who lives long enough to collect collects more than they ever pay in.  How is that supposed to work?

Since most people want to earn what they receive and do not want a hand-out the reality of the SS Ponzi scheme has been wrapped in enough insurance type language to fill a phone book.  This has become an effort through concealment to persuade the public to accept what is in reality an income redistribution plan.  This was instituted and has evolved from an acceptable half-measure designed to induce hard-working people to accept what they haven’t earned and yet think it is fair, because they have paid in.  No matter that they routinely receive far more than they ever pay in.

One last aspect of this corrupt bargain that transfers the wealth from future generations to the present is that the SS administration uses some of the funds gained through compulsory deductions to employ publicity agencies to convince the majority of payees that the system needs to constantly expand.  Some of the money is also spent to lobby Congress for this constant expansion.  This amounts to nothing less than a group of self-interested executives allowed public funds to agitate for a larger organization to administer which means even bigger budgets for publicity and lobbying.  It is a self-perpetuating pyramid scheme that uses the money of the victims to gain authority over ever larger portions of the victim’s income and lives.

This superstructure has been built over generations by the elected representatives of the people and the bureaucrats they employ.  However, I believe it is doubtful if Americans would have turned their backs on the work ethic which made us great and embraced spreading the wealth around as a tool for social engineering.  If they had fully known where they were headed and what the end result would be: a centrally planned collectivist entitlement machine hurtling towards a fiscal cliff, they would have rebelled.

When we add this all up we find that the scales are now weighted against individual liberty, personal freedom, and economic opportunity.  In the end after every deduction and every benefit Social Security hurts society and it isn’t secure.

Dr. Owens teaches History, Political Science, and Religion. He is the Historian of the Future @ http://drrobertowens.com © 2014 Contact Dr. Owens drrobertowens@hotmail.com Follow Dr. Robert Owens on Facebook or Twitter @ Drrobertowens / Edited by Dr. Rosalie Owens

 

The Ponzi Scheme That Masks The Obama Great Depression

Hello, I’m Wayne Allyn Root for Personal Liberty. At this moment, despite the lies and distortions you hear from the Barack Obama-adoring mainstream media, we are experiencing an Obama Great Depression to rival anything we experienced in 1929. But the truth is being covered up by an ever-rising stock market (that is completely disconnected from the economy) and a country awash in “Obama money.”
The Kool-Aid-drinking media is shocked by hundreds of hard facts I’ve put together proving we are in a Great Depression. They ask me: “Well then, why is the stock market doing so well? Why are there no bread lines or tent cities like 1929?”
The answer is simple: Big-government spending on an unimaginable scale masks the true picture of our economy. What you’re seeing is a fraud: the biggest Ponzi scheme in world history. There would certainly be bread lines and tent cities, if government wasn’t handing out billions of dollars in checks, paid for by the Federal Reserve printing trillions in fake dollars.
You’ve seen the numbers. Obama is the biggest spender in world history, adding $6 trillion to the debt in only four years. Where do you think that money is going? To all-time record numbers of Americans on food stamps, disability, welfare and unemployment benefits. Now, of course, we’re embarking on free healthcare for 40 million new patients, with money we don’t have (and no new doctors to treat them).
And just to be certain that the U.S. economy is completely destroyed, now for good measure we want to legalize 12 million illegal aliens, giving them access to more than $9 trillion in entitlements. Makes sense, doesn’t it?
The government is borrowing 46 cents for every dollar it spends. It’s all crazy… literally. We have borrowed from China to pay entitlement checks to Americans who no longer feel it pays to go to work, and to hand out billions of dollars in foreign aid to countries that hate us and support terrorism.
All of this while the Fed is running the printing presses day and night to fund its weapon of mass distraction: Wall Street. As long as the stock market is up, the lapdog media can report the economy is “in recovery.”
The plan is brilliant. You’d almost think Obama is relying on Bernie Madoff as his chief economic consultant — except even Madoff wouldn’t have the cajónes to pull off this scam. Obama has succeeded in turning Wall Street into a rigged craps game. The government is guaranteeing the results. Obama demands the Fed hands out $85 billion of fake money each and every month and drops it onto the plates of the richest publicly traded companies. This guarantees the stock market goes up while their CEOs get filthy rich with rising stock options, which guarantees banks, Wall Street and billionaires like Warren Buffett continue to support Obama.
Meanwhile, on Main Street the real economy is dying. There are no jobs. There is no recovery. Ninety million able-bodied, working-age Americans are not working. The workforce participation rate is setting all-time records for futility. U.S. worker hours are down and U.S. worker salaries are stagnating, while our cost of living is skyrocketing. Recent college grads are drowning in debt, with record levels of student loan default and post-college-graduation unemployment. Older Americans are dipping into their retirement savings in record numbers; 16.4 million Americans live in poverty in the suburbs; and almost 50 percent of Americans have less than $500 in savings.
The middle class is being systematically destroyed. Wiped out. Left with the short end of the stick. The real economy on Main Street is dying. And worst of all, our children and grandchildren will get the bill. This $85 billion per month being used to fraudulently prop up the stock market is all debt being piled onto future generations.
Then there’s Part II of this Obama Ponzi scheme. Separate from the Fed’s $85 billion per month of fake money is the government spending scheme. Obama has handed out billions of dollars in stimulus, bailouts, green energy investments and government contracts to the biggest publicly traded companies, the most corrupt unions and the most connected Democratic contributors. But none of the benefit goes to small business or the middle class that is stuck paying the bill.
Government deficit spending with money we don’t have is now paying for everything, at every level. It’s all to hide the reality that we are living in an Obama Great Depression. There are no bread lines or tent cities because we’re all living on the government dole, paid for with debt. Fraud on a massive scale. The greatest Ponzi scheme in world history.
Housing allowances and food stamps prevent bread lines and tent cities.
Free breakfasts and lunches at school make it seem like children aren’t going hungry.
Earned income tax credits are handed out to millions of lower-income Americans (including illegal aliens) who pay no taxes in the first place.
At the same time, government keeps interest rates artificially low to pump up home and car sales — and to keep the interest on the national debt from eating up the entire budget.
And if record low interest rates aren’t enough, government purchases of GM cars are up 79 percent. The government is artificially propping up GM with your tax dollars. It’s all a scam.
Take away all this spending and printing by government, and it would look exactly like 1929.
We are in an Obama Great Depression masked by government spending and debt that didn’t exist during the first Great Depression. The true extent of this economic Armageddon is being hidden, disguised and propped up with government spending, programs and Fed printing never imagined in the 1930s.
What’s the end game? First, all this spending and printing is to prevent economic collapse and total panic. Second, it’s to achieve the Marxist dream: redistribution of wealth to Obama’s voters and contributors. Third (and this is the big one), it’s to create a two-class society.
Karl Marx hated the middle class. He felt they needed to be eliminated to create equality, fairness and social justice (i.e., shared misery). Will people be hurt? Sure, they’ll lose their jobs and homes. But to Marxists, the end justifies the means. Obama needs a two-class society to make his plan work; the two classes are the super rich and the poor. The key is both are dependent on government to survive.
The super rich love crony capitalism — with Obama handing out stimulus, Fed printing and government contracts like candy. That’s how the super rich and politically connected stay rich and get richer. The rest of us will be poor, which makes us dependent on Obama for government checks to survive. Government will pay for our lives from cradle to grave, while confiscating most of our income.
This is a Ponzi scheme that even Madoff could never have imagined. That’s why you need to develop Y-PODS: Your Personal Obama Defense Shield. It’s all included in my new No. 1 national best-seller, The Ultimate Obama Survival Guide. I wrote it to show the middle class and small business how to survive, thrive and actually prosper from every move Obama makes for the next four years.
Don’t get mad, that does nothing for you. Get even!
You can find my best-selling book, The Ultimate Obama Survival Guide, online at Amazon.com or at Costco, Barnes & Noble, Sam’s Club, Books-A-Million or any fine bookstore. Or you can buy it in e-book form to read on your favorite e-reader.
That’s how you turn lemons to lemonade. And Obama is certainly the biggest lemon in the history of America. You can find more information in the box right under this article. Just look for the bright yellow book cover of The Ultimate Obama Survival Guide to order your very own copy.
I’m Wayne Root for PersonalLiberty.com. See you next week. Same time, same place. God bless.

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