Why is nobody going after the governments long-lasting Ponzi scheme?
If you’re a news junkie, it’s more than likely you’ve seen at least a dozen stories regarding the $50 billion Ponzi scheme orchestrated by former NASDAQ chairman, Bernard Madoff.
Just to recap, a Ponzi scheme is an illegal investment practice that pays out an unusually high return to investors by simply redistributing money that comes in from new investors.
Often times these schemes come to a screeching halt when a few larger investors try to pull out their money at the same time, leaving the scheme operator in a position where there is a withdrawal request that simply cannot be accommodated because the money has already been redistributed elsewhere.
Obviously these schemes are dangerous, and it’s quite common for those who made investments to never see their money again.
After seeing a few stories on how Bernard Madoff built this scheme over the years, I couldn’t help but notice the many parallels to our current Social Security system.
I’m having a hard time seeing this broken system as anything but a giant Ponzi scheme that has the seal of approval from the federal government.
Every year Americans put billions of dollars into this system, only so their hard earned money can be redistributed to another person that they’ve never met. While Madoff’s $50 billion scheme is huge, why is nobody questioning the government’s annual Ponzi-like reallocation of over $500 billion of tax-payer dollars? Ah yes, because the government is untouchable.
Just like the situation that landed Madoff behind bars, the United States is soon going to find itself in a position where people will come looking for their money, and there simply wont be enough for them to get paid.
What did the government do when Madoff couldn’t pay up? They seized his assets, and are making him cough up every dime he has.
Of course when the federal government’s Ponzi scheme comes crashing down, they’ll demonstrate the opposite behavior and make new investors pay even more in other fees and taxes, while still spending more and acquiring new assets at the same time.
Double standard? Only in America.