Bernie Madoff was able to get away with his fraud by using the same technique as Charles Ponzi did in the 1920s. He sold fictitious securities, promised a high return, and paid off old investors out of monies taken in from new investors. It collapsed when new victims could no longer be found to support withdrawals from old victims.
The Social Security swindle has worked exactly the same way. It receives “contributions” in the form of FICA taxes, pretends to place those funds in trust, and pays benefits to current retirees out of taxes collected from current workers. Just as in the case of Madoff, there is no trust, there is no income to the non-existent trust, and the payments are simply made from current collections. Madoff’s scheme lasted 20 years before collapsing. The Social Security swindle is now in its 74th year…the end is near.
Our politicians know Social Security is in danger yet they are unwilling to address it. They know the country is broke yet they continue to spend money they don't have by juggling the books and deceiving the people.
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