“Dependent on inflating bubbles to evince “economic strength”
This graphic of Madoff in his prison cell answering his cell mate’s question about “where did you come up with this whole Ponzi Scheme idea anyway?”, and Madoff answers “Medicare and Social Security”, is really quite telling. Our lives are “caught up” in these schemes hatched by those in control and we just simply can’t keep up with the fleecing that’s being done to each and every one of us. Social Security being the “prime example” Poster Child of these types of Schemes.
Imagine if you are trying to get a job in a very bad economy, few jobs available. During a job interview the potential employer tells you that he will hire you, but part of the terms of employment with his firm is that you have to agree that 10% of your gross wages will be subtracted from your pay each month, and invested into a retirement account that you can then draw from when you retire. And the employer will have total control of these funds. You tell the employer that you’re not really trilled about this arrangement, as how do you know the CASH will be there when you retire?
The employer says, “you’ll just have to trust me”, and if you don’t agree to this arrangement, he won’t hire you. Desperate for a job, with all of your bills, and family needs, you agree, (reluctantly). As the months and years pass you get used to the routine of looking at your pay stub, and seeing the deduction for the employer’s retirement plan. As the years continue to pass unbeknownst to you, the employer has been personally “dipping” into your retirement fund, and leaving his “fancy” paper IOU’s behind in place of your CASH. All of the other folks who work for this employer have exactly the same arrangement. No one is aware that the CASH in the fund is being siphoned off, and replaced with fancy impressive official looking “paper IOU’s”.
And then when it comes time for retirement and time to start CASHING OUT on your retirement fund, the employer informs you that the CASH is no longer there, and unless he can arrange a “loan” from the other employees your RETIREMENT CHECKS MAY STOP. (Think I’m kidding, click that link. If they had our savings in CASH, why would they need to “raise the debt ceiling” to be able to pay you back the CASH you’ve paid in all these years?).
The only way the employer can keep the whole affair from imploding is to hire a whole lot of new younger employees that also agree to his “terms of employment”, and hope that he can keep all the balls in the air long enough to “exit stage left” before all of the employees catch on, and come after the employer with pitch forks.
Keep this in mind when reading the following article; You’re not likely to be real happy after you read this. But, this is one of those times when ignorance is “Not Bliss”. There is no time like the present to begin your effort to start your own method of retirement planning that is not based on someone else’s “Ponzi Scheme”.
Of course as you’re learn from reading this article, we’re all in such deep doo-doo that it seems like mission impossible that we can come out of this without being adversely affected by our “Ponzi Scheme Economy”.
Here aew some Quotes from this terrific article by Charles Hugh Smith;
“The financial underpinnings of the economy and society are rotting from within: finance, higher education, defense, healthcare, law, governance, you name it.
All Ponzi schemes rely on an ever-expanding pool of greater fools who buy into the scheme and pay the interest/gains due the previous pool of greater fools. Ponzi schemes fail because the pool of greater fools is finite, but the scheme demands an ever-expanding pool of participants to function. (Govt. sponsored border collapse, mass immigration “new hoards of fools” my annotation).
All Ponzi schemes eventually fail, though each is declared financially sound because this time it’s different. The number of greater fools required to keep the scheme going eventually exceeds the working population of the nation.
Here’s why Pay-As-You-Go Social Programs are all Ponzi schemes: 1 retiree consumes the taxes paid by 5 workers. Those 5 workers when they retire consume the taxes paid by 25 workers. Those 25 workers when they retire consume the taxes paid by 125 workers. Those 125 workers when they retire consume the taxes paid by 625 workers. Those 625 workers when they retire consume the taxes paid by 3,125 workers.
You’ve got to read this terrific article by Charles Hugh Smith. CLICK HERE TO READ SOURCE ARTICLE.