PONZI Scheme for the Ignorant, Uninformed, or Liberal Morons
A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from 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. The scheme is named after Charles Ponzi who became notorious for using the technique in early 1920. Ponzi did not invent the scheme (for example Charles Dickens’s 1844 novel The Life and Adventures of Martin Chuzzlewit described such a scheme decades before Ponzi was born),but his operation took in so much money that it was the first to become known throughout the United States. Ponzi’s original scheme was based on the arbitrage of international reply coupons for postage stamps; however, he soon diverted investors’ money to support payments to earlier investors and himself.
Lets analyze Social Security: When It started it called for over 100 people to contribute to the fund!
Now there are only 1.45 people contributing to the social security of one person.
As more baby boomers retire and there are less and less people working to support them then as is commonly known Social Security will go Bankrupt. Another reality is that people live longer and longer since the scheme was invented, consequently they will get benefits longer, this is unsustainable.
How is this not a Ponzi, Pyramid, scheme?
