A Ponzi scheme is a way to cheat investors who VOLUNTARILY pay to be part of the operation that promises high return on the investment but actually pays investors with money that is taken from new investors.

Social Security is worse because it is an INVOLUNTARY system, i.e., you are forced by law to invest!

The scheme is named after Charles Ponzi who became notorious for using the technique in early 1920, and his operation took in so much money that it was known throughout the United States. Bernard Madoff (as in “Berny Made off with all the money”) created the biggest private Ponzi scheme in history.

Charles Ponzi                                               Bernard Madoff

 

However, FDR’s Social Securty is the biggest Ponzi scheme of any type in the history of the world!

FDR

The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from new investors to keep the scheme going. Therefore, a Ponzi scheme requires a continual stream of investments from new investors to fund returns, and once the number of new investors slows, then  the scheme will begin to collapse under its own weight as the hucksters or (in the case of Social Security) the statists start having problems paying the promised returns to separate investors.

When it first started, Social Security was functioning at a ratio of 16 workers to every one recipient. Currently, there are only 3 Social Security tax payers to pay for the benefits of a single Social Security recipient!

Does this man look  familiar?

 

 

 

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