International Forecaster Weekly

A Ponzi Scheme Within A Ponzi Schme

a scam that dwarfs Maddoff, war and debt historically have fueled the largest ponzi schemes, note how the poor are still poor and the rich are still wealthy, national debt has continued to grow, bailout paying for perks tor executives, the rest of us will get hyperinflation, we will have gargantuan repayments to make on the errors of wall street, not enought money left over now to keep social security going for more than a few  years

Bob Chapman | December 27, 2008

Dwarfing the Madoff Ponzi scheme, which in the end may turn out to be, at least in part, a scam to feign investment losses for purposes of ripping off insurance companies with invalid claims for fraud while bilking taxpayers out their hard-earned money with deceitful requests for government bailouts and tax breaks, is the Social Security Ponzi scheme.  While the Madoff Ponzi scheme, so-called, may be measured in the tens of billions, the Social Security Ponzi scheme can be measured in the tens of trillions, making it a thousand times worse.  The Social Security system is truly a Ponzi scheme in the classic sense, where the first contributors to the fund are paid benefits mainly out of the funds received from the contributions of later participants.
 
The Social Security system we are familiar with was originally enacted in 1935 by an incredibly corrupt Congress (much like the current one), and signed into law by FDR, a corrupt and ardent Illuminist who did as he was told to do by his Illuminist Puppet Masters (principally John Rockefeller, Jr. and J P Morgan, Jr.).  At that time, the Social Security system was known as the Old-Age, Survivors and Disability Insurance (OASDI) program.  The OASDI was not implemented until 1937 due to Constitutional challenges, but suffice it to say, the Illuminist puppets in the Supreme Court of that day, who were every bit as corrupt as FDR and the Congress, made sure the Socialist agenda went forward.  

The Ponzi aspects of this Social Security scam were enhanced by one of the main conspirators in this scheme, the Federal Reserve.  Shortly after the Social Security system was implemented in 1937, our central bank inflated our currency by increasing the supply of money and credit in order to boost prices and incomes and take us out of depression.  This process accelerated in 1941 in order to fund the war effort as WWII got underway following the 911 event of that time, namely, the attack on Pearl Harbor, which our government knew was coming way before it happened, but then turned a blind eye to the upcoming attack so we could be dragged kicking and screaming into the next Illuminist war for profit.  Incomes and prices rose as Americans went to work to power the war effort, thus causing incoming Social Security contributions to burgeon, while simultaneously debasing the value of the benefits being distributed, thus further enabling the Ponzi scheme to be perpetuated.

Note how in 1933, just prior to the enactment of the OASDI in 1935, bankster-buddy FDR took us off the gold standard domestically, leaving only dollars and dollar-denominated accounts held by foreigners backed by gold.  That meant we had a domestic fiat currency, which allowed the Fed to do as it pleased with the supply of money and credit in the US, and as you may have guessed, the Fed chose to increase the supply quite dramatically to fund WWII so the military-industrial complex could grow filthy rich.  This tied in perfectly with the Social Security Ponzi scheme as we became an economic powerhouse in the aftermath of WWII, with a peak in the late 1960s, by filling the Social Security fund with fresh infusions of inflated cash to keep the Ponzi scheme going, while debasing the fixed benefits being paid out to retirees.

Next came the Vietnam War, and more debt, especially to foreign nations, and more inflation from an increase in the supply of money and credit to fund the latest war for profit.  This brought about the final debasement of our currency after the London Gold Pool failed to cap the price of gold, resulting in a bank holiday in Britain during the Johnson Administration.  President Nixon, also an ardent Illuminist, at the request of his Puppet Masters, in order to stop the outflow of our national gold to foreigners due to war debt and to enhance the Fed's ability to increase money and credit to fund Johnson's Great Society welfare programs, took us completely off the gold standard in 1971.  As a result, inflation went out of control as our currency became purely fiat in nature, with double-digit inflation peaking in the early 1980s.  Once again, the resulting inflation furthered the Social Security Ponzi scheme, which was an integral part of Johnson's Great Society program.

In order to placate complaints about the effects of inflation on the purchasing power of benefits, which grew quite pronounced with the passage of time, an attempt was made to counteract the impact of inflation by providing for cost-of-living adjustments (COLA) based on official inflation rates.  Not to be daunted, the elitists made sure that the Bureau of Lying (Labor) Statistics (BLS), which they totally control with their puppets at the BLS, put out greatly understated official inflation statistics, usually at one half to one third of actual inflation, a process known as hedonics, which they use to screw Social Security recipients out of their proper COLA increases.  As you can see, Inflation is the best tool available to perpetuate the Social Security Ponzi scheme, by burgeoning incoming money at the full rate of inflation while benefits are increased by only a fraction of the actual rate of inflation.  This has changed recently, because wages have stagnated, and this has put stupendous pressure on our already bankrupt Social Security system, a huge, gargantuan Ponzi scheme that is about to unravel.

Make no mistake about it; this was an Illuminist scheme to impoverish the middle class, not to provide for people's security.  Ask Social Security recipients how many of them feel secure based on the miniscule benefits they are receiving.  This was a Communistic spreading of wealth from the middle class to the poor, not from the wealthy to the poor, since FICA contributions have always been cut off at a level of income associated with the middle class, leaving the wealthy free of FICA liability on most of their income because Social Security benefits are capped, presumably making FICA deductions, above the designated maximum level of income, unfair.  In the end, the poor are still poor, the middle class has now joined the ranks of the poor, and the wealthy are now fabulously wealthy, which results are characteristic of any Communistic or Fascistic form of governance.  Between the Social Security system, the Income Tax system and the Federal Reserve System, they will spend, tax and inflate, respectively, the American sheople into oblivion.

Their Communistic, Fascistic mantra has been:  Give us your money and we will take care of you from the cradle to the grave.  They will take care of you all right -- in a Halliburton-built, slave-labor internment camp, complete with disinformation centers where they will brainwash your children to make them into good, quiet, dumb, cooperative sheople-serfs.  This mantra has in fact been used to help fund all their plans for world government by extorting a myriad of taxes out of you, and one of the main taxes which has been used to fund their plans has been the Federal Insurance Contributions Act (FICA), which funds their Social Security Ponzi scheme, which, as a result, has actually become a Ponzi scheme within a Ponzi scheme.

So how has our Social Security system become a Ponzi scheme within a Ponzi scheme?  We'll tell you how.  Our reprobates and sociopaths in Congress have regularly, over many decades, overspent money to fund their pork projects and social welfare programs to win votes, and to grease the wheels of the Illuminist wars for profit which power the military-industrial complex.  This has resulted in massive budgetary current account deficits.  

Adding to our woes are the trade deficits, which we have to fund by borrowing from foreign nations, thus increasing our national debt.  These trade deficits have been caused by the gutting of our manufacturing sector through free trade, globalization, off-shoring, outsourcing, and both legal and illegal immigration.  Illegal currency manipulations by exporting nations like China, Japan, Russia and EU nations have also contributed to the trade imbalance by giving these nations unfair trade advantages via debasement of their currencies, which makes their exports cheaper in our country, and which makes our exports more expensive in their countries.  These nations also provide subsidies to their domestic industries, thus decreasing their cost of goods and increasing their bottom lines.  All these currency manipulations and subsidies make a mockery out of the concept of free trade.  We need fair trade, not free trade.

And now we have trillions in bailout money being given to the so-called too-big-to-fail banks and transnational conglomerates to make sure that their executives keep getting their salaries, bonuses, dividends, stock options and golden parachutes while we get hyper-inflated into oblivion by throwing good money after bad.  
Now mind you, these are the same executives who, on orders from their Illuminist masters, have burned their once prosperous companies to the ground to screw non-insider shareholders and bondholders, to bust unions, to ship our good-paying jobs and our once huge manufacturing infrastructure overseas where they can take advantage of slave labor, to repudiate their obligations under pension plans, to cut off employee benefits, to hamstring our economy, to consolidate with and to eliminate their competition and to ultimately become nationalized by our government to form a fascist police state while we undergo hyper-stagflation, recession and then depression from the deleterious effects of all the bailout money being bandied about like booze at a wild party.

What has happened to our once dynamic auto industry is a perfect example of this intentional waylaying of some of our major corporations in the manufacturing sector while the insolvency of our major investment banks, commercial banks and insurance companies are a perfect example of this procedure in the financial sector.   The ultimate objective behind this intentional decimation of our leading companies and destruction of our economy is to bring us to our knees so we will accept a corporatist, fascist, feudal, Orwellian police state in lieu of our Constitutional republic.

Due to all these deficits and psychotic overspending on moronic bailouts, in order to help plug the gaps, our morons and village idiots in Congress invade the Social Security reserves, handing back a worthless IOU that will never be repaid.  So they are using current Social Security benefits to fund both current and past deficits in the general budget, thus creating a Ponzi scheme within a Ponzi scheme.  They have promised you security in return for the tax contributions they have extorted from you to help fund your retirement and the retirements of others in the system, and have then turned around and spent your hard-earned money on their projects to implement world government, leaving the Social Security fund totally bankrupt.  So not only are they robbing Peter to pay Paul, they are using the funds robbed from Peter to pay Judas as well.

Now let's examine why the Social Security Ponzi scheme is about to unravel.  The first reason is the use of Social Security reserves to help fund the general budget, which by and large is used to fund the Illuminist scheme for world government.  This money will never be repaid.  Where could such gargantuan repayments possibly come from, the printing press?  Well, if that's the plan, get ready for a reenactment of the Weimar Republic, or if you prefer, put on your Mugabe costume and get ready to have a Zimbabwe experience you'll never forget.  This bankrupting of the system has been intentional.  The old and poor are now at the mercy of the Illuminati, while the rest of us slave away to keep our heads above water and to keep the Social Security Ponzi system from collapsing and impoverishing our parents.

The next reason is that the Social Security system is not just a pension system; it is an insurance and social welfare system, meaning that benefits are often payable to those who have contributed little or nothing to the system.  This is a thinly disguised form of Communism.  You are supposed to reap what you sow.  They should have had segregated accounts, and let voluntary contributions to charitable organizations, churches and hospitals take care of the poor and the sick as was done in the past.  Without taxes dragging us down, we could all take care of the poor quite well, thank you.  Instead, we now have an ingrained welfare mentality in a large cross section of our population.  Fraud and abuse is out of control.

Another reason is the population control agenda, spearheaded by Planned Parenthood and people like Commie Comrade Obama.  Thanks to their efforts, we now have a stagnant population that can no longer keep the Social Security Ponzi scheme going.  Soon there will not be enough new participants to contribute sufficient funds to pay current entitlements of the soon-to-retire Baby-Boomers, much less to fund future entitlements as well.

Also, as you might expect, Big Pharma and Big Medicine have gotten their digs in on the huge pot of extorted taxpayer money in the Social Security fund.  Doctor, hospital and prescription drug programs are spiraling out of control as healthcare costs push into the ozone.  The government is too loose with our money, unlike private insurers, who try to contain costs.  Our government is too busy flooding Big Pharma and Big Medicine with tons of cash as payola for the big campaign contributions they make via their powerful lobbies.  Many in our government have sat on the boards of Big Pharma companies.  And of course, our allopathic system of medicine is not meant to heal people but to treat their symptoms, keeping them alive and very sick so they continue to make office visits and buy tons of drugs which often hurt more than they help, necessitating the need for ever more drugs to fight the side effects.  People need to lose weight, get exercise and take supplements.  That would solve at least half of all the outstanding medical problems in society today and reduce Social Security medical, hospital and prescription pay-outs by hundreds of billions each year.  But of course we couldn't have that.  That would be too easy and make too much sense, and it would drain money away from these allopathic parasites.

We already mentioned the fact that wages have stagnated, not even keeping up with official inflation, and that has put a crimp in the Ponzi scheme by preventing contributions from increasing at a rate faster than the rate at which benefit pay-outs are being increased by COLA adjustments.  This is a huge problem.

Last, but not least is the destruction of our economy.  Unemployed people contribute little in the way of FICA taxes.  And as more and more become unemployed, FICA contributions will diminish at frightening rates.  You are about to see one out of every three Americans recently unemployed, unemployed long term and no longer looking for work, or only partly employed in part-time positions.  And as businesses go under and their employees hit the unemployment lines, their matching contributions to FICA will diminish as well, giving the Social Security Ponzi fund a double whammy. Just imagine FICA tax contributions being cut by a third from where they are now.  The government does not even have enough money to keep Social Security going for more than a few years as it is.  What will happen when contributions are cut by a third?  We shudder to think.

Based on all the above, all we can say is don't retire, and buy as much gold and silver as you can afford and lay your hands on after getting out of debt, buying freeze-dried food, purchasing a water filter and obtaining a weapon for self-defense.  IS ANYONE AS OUTRAGED AS WE ARE ABOUT THIS SOCIAL SECURITY PONZI SCHEME?!  Look at all the hubris about the Madoff scandal, and we have a Ponzi scheme greater by three orders of magnitude that is about to unravel while everyone goes ho-hum.  It is nothing less than surreal.

You have to love some of life's coincidences.  It certainly looks like Mr. Madoff had the perfect name, as he "made-off" with everyone's money.  You just can't make this stuff up.