The Bible declares when the righteous rule, the people rejoice and when the wicked rule the people mourn.
When the country’s social security account was created during the term of President Franklin D. Roosevelt, it was touted as a savings account for the future. Social Security has long been packaged as a trust account the government would keep secure for retirement when it was needed by senior citizens.
When Bernie Madoff scrambled to find new money to pay off dividends to old investors—he went to court for a Ponzi scheme.
When it was found that Madoff did not invest money at all, but instead paid himself a gigantic salary and squandered a lot of money---he goes to prison.
Ponzi schemes badly needs new money by offering higher returns than other investments. An ever increasing flow of new money is needed to keep everything rolling along. Severe problems erupt if the new money is not quickly injected into the process.
Texas Governor Rick Perry referred to Social Security as a huge Ponzi scheme and was soundly blasted by the press, democrats, and even republicans as well. It was outrageous to say that the government would do such a thing…..right?http://www.beliefnet.com/News/Articles/Will-your-Social-Security-check-be-in-the-mail-come-2015.aspx?p=1
There should be nearly three trillion dollars in the social security “trust account” notes retired economist and Professor Allen W. Smith according to an article written by Senior Editor Rob Kerry of Beliefnet. Smith wrote a telling book about Social Security entitled, “The Looting of Social Security”.
It becomes a matter of semantics whether one can call Social Security a trust account. It implies that the money is rightfully there for the investor or the investor’s benefactors. Unfortunately that somebody is not the American taxpayer.
One cannot blame President Barack Obama for the raiding of the Social Security money. Four previous presidential administrations spent it on an assortment of non-Social Security projects. So, how much Social Security money is in the alleged trust account?
Speaker of the House John Boehner made a shocking revelation on ABC’s “This Week” in October of 2013 by saying this about the money of Social Security and Medicare,
“The government over the last 30-years has spent it all”.
President George W. Bush in 2005 declared, “There is no trust fund, just IOUs that I saw firsthand that future generations will pay, pay for either in higher taxes or reduced benefits or cuts to other government programs”.
Smith acknowledged that much of the money in Social Security are represented in “special-issue Treasury bonds”, or just a fancy name for non-marketable government IOUs---worthless. This paper represents the category of unfunded liabilities which has become the economic curse phrase of the 21st century.
Before one can scream at the government for this reckless adventure, one needs to consult with Jim Horney of the Center of Budget Priorities who flatly said, “retirement programs are not legal obligations”.
Shockingly taxpayers have no legal right to the money that is handed over to the federal government in the form of Social Security tax payments. The reality is once money is handed over to the government as a social security tax, IT IS NO LONGER YOURS.
Politicians can reduce, confiscate, or use the money given to Social Security as they see fit.
Gee, is that exactly what the politicians have been doing for years?