The Greatest Ponzi Scheme Ever!

jhv48 · #1 (**permalink**) 05-20-2009, 07:01 AM

The U.S. economy, Social Security, Medicare, etc.

All are based on the continued spending from the masses.

And guess what? They have stopped spending. Why do you think the Government is trying so hard to make us get back to our reckless behavior and borrow and spend.

Look for a huge collapse if we fail to react the way they want us to.

You thoughts?

trularin · #2 (**permalink**) 05-20-2009, 07:21 AM

With the increase in unemployment, the state revenue for Michigan is in the hamper.

They say that even with federal bail-out money, there will not be enough.

I just hope I survive to see my children grow up.

Ron61 · #3 (**permalink**) 05-20-2009, 07:26 AM

California is just as bad. They can't even borrow money and the vote yesterday on some initiatives was the most pathetic thing yet. I don't know about the rest of the state but in this county they mailed out 50,000 ballots and as of Monday they had only received 19,000 back. I tried to get some people that I know to vote and they just don't care any more. And they will be at the head of the group yelling the loudest because the state is broke.

Ron

cobra de capell · #4 (**permalink**) 05-20-2009, 08:06 AM

Consumer spending is about 70% of the GDP - no jobs, no spending. The economy is really not a ponzi scheme, but SS is and Medicare is close to one.

427sharpe · #5 (**permalink**) 05-20-2009, 09:39 AM

To me, anybody that thought SS would be solvent in 10 years is hallucinating. But it doesn't really matter, because I am sure our socialist government will be glad to step in and subsidize it. Heck, the newslines today say that the US G feels 'California is to big to be allowed to fail'...sound like what they said about a car company we all know?? The feds will step in to 'cure' Kalifornias huge budget shortfalls because they can't pi$$ off all those liberal voters who want everything as long as somebody else foots the bill. I thought all the talk of enacting Texas' right to secede was off the wall, but if we are expected to subsidize Kalifornia, GM, Chrysler, etc, etc,.. it might be time for another look.

jhv48 · #6 (**permalink**) 05-20-2009, 12:06 PM

Why don't we just get Mexico to subsidize California?

All their people live here any way!

Bartruff1 · #7 (**permalink**) 05-20-2009, 01:48 PM

because the Gov has the authority to compel universal participation unlike Madoff. The solution to all of these programs has been studied to death and it is a simple matter of reducing benefits and increasing contributions. It is just that Politicians want to leave it to the next Congress and so the problem gets worse but it is hardly unmanageable. The sky is not falling although it might have dipped some if we would have done what Bush wanted to do and put it in the stock market.

bomelia · #8 (**permalink**) 05-20-2009, 02:54 PM

When you take some time to study the Federal budget (top level summary), it becomes clear what the problem is. Mandatory spending, discretionary spending. Time was, there was NO mandatory spending. And the discretionary spending was the natural part of doing business. All mandatory spending is social (medicaid, SS, etc). Entitlements. These items MUST be funded before anything else. This means in front of crumbling infrastructure, before defending the homeland, and before any law enforcement (and many other things).

It is a ponzi scheme. And the withdrawals are coming at an ever increasing rate meaning there is little to spend elsewhere. And it is colapsing arround us as we can see. GM, Chrysler, and Ford are examples of this on a smaller (but still enormous) scale. They failed because unions insist on their own form of mandatory spending over discretionary spending.

And every year, more legislation is introduced at state and federal levels that keep increasing mandatory spending while eco nut jobs get water supplies turned off for entire areas of the country so little fish can survive. And new legislation on CAFE standards will assure (due to increased auto prices) that many will not buy new cars in favor of cheaper used cars, further killing off the remains of the auto industry.

Government and unions have become too big. Its time for a reverse course decision.

Mike

Bartruff1 · #9 (**permalink**) 05-20-2009, 07:02 PM

Mandatory means nothing if Congress wants to change it...they just don't want to take the heat... the actual solutions to these problems is amazingly easy compared to what families and small business do every day to live within their budgets...there is something very attractive about that girl but I am too old to remember what is it... but she sure looks soft and comfortable ... that must be it....