Saturday, July 16, 2011

Ponzi Scheme!

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

The system is destined to collapse because the earnings, if any, are less than the payments to investors. 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.

Doesn't this describe the Social Security system? I have to tell you Medicaid and Medicare come to mind also. If John Q Citizen tried to sell this to the public, they'd find themselves in jail! So why is the federal government permitted to deceive us?

Social security was passed or enacted in 1935, a plan by the democrats and President Roosevelt. The United States of America existed for 159 years prior to the passage of this farce; how do you suppose those citizen's survived?

Medicare and Medicaid were enacted in 1965, again a democratic plan under President Johnson. And yet again America had existed for 189 years without such programs? What changed? How did we get talked into morphing into a dependent society, from a free and independent nation?

We find our country on the brink of financial disaster, up to our ears in debt, and the biggest consumer of our nation's tax income are these three programs. We can't dissolve them because not unlike a crack addict, our population has become addicted to the entitlements. It's the gift the democrats gave us that just keeps on giving, or should I say taking.

That's not the worse of it! We have looming over our heads the health care legislation this current administration passed. As history has shown us, it'll also become a parasite that sucks our nation's budget dry. In fact it just maybe the straw that breaks the camel's back. It doesn't take a prophet to foresee this disaster. We need to repeal this legislation in the next election cycle. We also need to do exactly the opposite of what the President broadcasted in his speech yesterday, and produce legislation that demands not only a budget, but a balanced one. Did anyone else find it interesting that our President decided all by himself we don't need to pass and amendment to the Constitution demanding Washington produce paperwork that restricts it to living within it's means? I know we have such a history of doing so, especially since the biggest offenders are in office right now. They've not only failed to pass a budget, they've racked up the largest deficient spending in America's history. I have to believe that's related.

God Bless!
Capt. Bill


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