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Does the government operate Ponzi schemes?

December 17, 2008 by  

Look into the future...will your investment be returned?Ponzi schemes – in which existing investors are paid with new investors’ money – have been in the news a lot lately, with the revelation of Bernard Madoff’s fraudulent investment fund sending ripples across the world.

Writing in Time magazine’s Curious Capitalist blog, Justin Fox makes the argument that the government also operates a program that functions on a similar model: Social Security.

"Today’s taxpayers contribute money that is funneled to today’s Social Security recipients – and hope that tomorrow’s taxpayers will put in enough money to fund their retirements," he writes.

He also suggests that the idea of government finance operates on such a principle as well. When people purchase Treasury securities and municipal bonds, they assume that there will be future investors and taxpayers who will support the system, allowing them to profit.

However, Fox finally points out that there is an important difference between Social Security and Madoff’s Ponzi scheme.

The former does not make any attempt to disguise how it works, while the latter involved fraudulent activities in which investors were kept in the dark about where their money was going – or coming from.

Ponzi schemes are named for New England resident Charles Ponzi, who convinced thousands of people to invest money in postage stamp speculation in the 1920s.

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  • AlPon

    Hurray, hurray … some of us are finally getting to the ‘real’ truth. The world IS controlled by a few hundred, maybe a thousand or so, ultra rich, ultra secretive families. For all who still wonder why and for those that can’t seem to understand what’s going on in the world. For all those still divided by petty differences. For all those that still have a partisan mindset. In other words; us vs. them and Dems vs. Repubs. Let me present the ultimate evidence of world wide manipulation and control. Written over 150 years ago, by the evil doers, for the evil doers, this document has been denied by them as bigotry. But after you read it and see that all the plans and proficies have come to fruition there can be no denying the truth. They never denied the existance of this document, only to say it is racist and bigoted. They never deny the contents thereof. For over 100 years it has been hidden and censored.
    Every citizen of the planet needs to read this book. It will rock your world and you will never be or think the same afterwards. I’m not selling anything. Unlike so many web sites trying to get rich by informing us of what we should already be aware of. My only motive is too circulate this publication. To help the citizens of the US and the world in general to see and discern the truth. The REAL truth.
    At the risk of disappearing or being ‘rubbed out’ I am revealing this to all the world. The name of this tome is “The Protocols of the Elders of Zion”. If you can’t find it with your browser, as I said, they want this kept under wraps, I will provide it free as a PDF document. Just request a copy from I will promptly reply and attach said doc to my email. Let’s see how many people have a quest for the truth or just like to hear their own gums slam together.

  • http://none John Norris

    Thank you for your words of discouragement. I’m just joking. I needed to hear SOMEONE out there TODAY who understands the simple truth that “they are evil, we want good”. But it takes effort to acquire the knowledge to take down these cheap, counterfeit examples of humanity. If you don’t know who or what you are fighting, you are wasting your time and everyone elses. Thanks again and God bless you and yours.-John

    • AlPon

      Well John, if you really want to be introduced to the enemy just read the ‘protocols’. The truth is not always pleasant nor encouraging but it is the TRUTH.
      As far as what can be done short of revolution, go to Ron Pauls’ website. Google his name and you’ll find several pertainent sites. He and Dennis Kucinich are probably the last honest politicians left in America. His ideas on abolishing the Fed and the IRS would mean the beginning of the end of the banker elites’ hold on the world money supplies.
      Of course, nothing good comes easy and we would be in for a fight. The Neocons will not relinquesh their powerful stranglehold on the world without considerable resisitance.

      If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered… The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.”
      President, Thomas Jefferson

      “History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance.”
      President, James Madison

      “The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest.”
      President, Abraham Lincoln

      “You are a den of vipers and thieves. I intend to rout you out, and by the Eternal God, I will rout you out… If people only understood the rank injustice of the money and banking system, there would be a revolution by morning.”
      President, Andrew Jackson

      “I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. Our system of credit is concentrated. The growth of the nation, therefore, and all our activities are in the hands of a few men. We have come to be one of the worst ruled, one of the most completely controlled and dominated governments in the civilized world – no longer a government by free opinion, no longer a government by conviction and the vote of the majority, but a government by the opinion and duress of a small group of dominant men.”
      President, Woodrow Wilson

      • flyinghigh

        You had me going until you mentioned Dennis Kucinich.

  • s c

    Soc Sec is an illegal, immoral smoke-and-mirrors scheme to transfer wealth and create generations of indentured slaves. Anyone who refuses to believe that can look up the Supreme Court’s legal opinion of SS. The SC said ‘Americans have no right to expect their “money” will be there when it’s time to retire’ [paraphrased]. Regardless of what FDR’s apologists say, he created an entitlement plan that was designed to ruin America. Millions of Americans would not live long enough to understand it. SS is a PONZI SCHEME that gets politicians easy votes. It was wrapped in the flag of false patriotism. It drugged generations into thinking it was a solid-gold retirement plan. Soc Sec’s flaws should have been resolved [and politicians imprisoned] when we had a sound economy.

  • Scott Brown

    Why do I watch TV, I’m asked (why am I a cynic? I’m asked). Like Grant sending Pinkerton’s up the hill to observe Lee’s troops, I like to know what the enemy is up to. Like the Allies sending spies into occupied WWII Europe, I like to know what the public mood is, how effective the enemy’s propaganda is. I like to know what my neighbors, soaking in their daily brain-baths of controlled consciousness are thinking, what they’re basing their world view on. That is why I usually have the TV on in the background while surfing the net. I simultaneously channel-surf the “news” at the same time.

    Recently I posted a comment to negative reviewers of a YouTuber who’s been nibbling away at the NWO concept for awhile now; a couple years ago he didn’t believe there was a unified conspiracy to control the personal life of every individual on the planet. The deeper he digs, the less sure of this he’s become, as reflected in his posts over time. I wrote:

    “…Key is the word “BIG.” Big Media, Big Finance, Big Pharma, Big Food, Big Energy, Big Military. Toss in Big Gov if you wish, but…they’re really just a press release, via Big Media, for the aforestated Big Six. How do we know this is all there is? Watch TV and other MSM: the ads pay for the pablum, so that is who attempts to control your mind. And each of the Big Six is comprised of approximately 6 sisters, give or take.

    Perhaps three dozen corporations control the New World…”

    The promo pays for the pablum, a modern day Marshall McLuhan might opine. These promoters, whether directly or as subsidiaries, are household names. Reuters, AP, Murdoch’s News Corp, ComCast, Time Warner; the Federal Reserve, Goldman-Sachs, AIG, Bank of America; Johnson & Johnson, GlaxoSmithKline, Pfizer, Merck; Monsanto, Weyerhaeuser, Archer Daniels, Cargill; Exxon, Bechtel, BP, Chevron; Lockheed Martin, KBR, Raytheon… Only 36 multi-nationals? How true is this? Actually no one knows. The financial interlinks and interlocks between the Media Big 6 alone (or 5, or 7, the spundits can’t agree), control of mainstream media itself defies the analysis of the most assiduous researchers, and even a snapshot in time is only accurate till the next merger, buyout, bailout, bankruptcy, restructuring or collapse. If Media, who are in the biz of expose and communication, are this opaque, what of Finance, Military, or Government?

    New World Order. Used to be a “conspiracy theory” among kooks who spoke of shadowy, powerful organizations and alliances such as the Rothschild groups, CFR, and the Bilderbergers. Since G. Herbert Walker’s famous 1991 announcement, NWO is common political parlance. What’s it mean?

    Consider the word “order.” It can mean “structure,” as used by those who promote the concept as the answer to the world’s ills (disunity, poverty, pestilence, famine, pollution, overpopulation). New World Structure sounds somewhat benign, even loftily idealistic.

    Or the word “order” can mean “a command,” as used by those who once warned of an international conspiracy taking control of our lives by such means as censorship, control of the monetary system, medical and psychiatric laws, monster agricultural monopolies, private power grid management in the hands of a few, police and military/industrial domination. All apparently presided over by national governments with murky international accords. New World Command…sounds ominous. New World Control, worse.

    Now consider the term “world.” Is it being used here in the same sense as is meant in the phrase “a world of difference?” Perhaps “age,” as in “the modern world,” synonymous with “the modern age?” Or does “world,” in New World Order literally mean planet?

    Even the word “new” might here come under scrutiny. Does it mean “fresh?” Or rather “consciously redesigned,” “changed?” As in “regime change?” As in “new regime.”

    These definitions matter because, starting with Bush senior in 1991, the phrase now being bandied about by so many of our public figures might mean Era of Fresh Outlook, or it could mean Planetary Control by Design. The latter meaning should matter to the individual because it clearly does not include his/her input or consent.

    Does this difference in terminology matter?

    It does, if you doubt the benevolent intent of manipulated media, if you swallow the Kool Aid concoction being served up 24/7 by a very small handful of multinational corporations and interests. If you question whether these few interests have your best interests as inherent within their collective mission statement. Certainly the first question we should ask is: Who are these guys?

    An eye-opening exercise: on a piece of paper draw six columns. Title the columns Media, Finance, Pharma, Agriculture, Energy, Military. Add a seventh for Government. Turn on your TV. Every time a commercial comes on, put a checkmark in the appropriate column of the interest attempting to convince you to buy, or buy into, a product, service, or concept. On a separate sheet write down the names of products or concepts which do not fall into one of the Big 6 (+1) categories. Channel surf for awhile. Do this for a few hours per day for a week.

    On your second, separate sheet you may have listed items which belong in a column on the first sheet. Toilet paper, for instance, may belong properly in Agriculture or Pharma, depending on who makes and/or sells it. Car insurance, or any insurance, goes in Finance as they deal strictly in ink-on-paper for money, and they invest your money to make more money; they produce no real product. Political campaigns may go in Government, unless you know the candidate is primarily owned by one of the Big 6 (Bush/Cheney=Energy, for example, or possibly Military depending on what that administration was “hawking” that year). Cell phones, videos and TVs go in Media. Ads for military service, or for military-industrial complex products or consumer products made by them, Military, of course. Auto ads, Energy. Credit cards, Finance. Walmart…hmm. They belong in a lot of them: just pick one, although I like Finance, since they’re selling primarily their name and their “right” to benevolently wipe out American-owned retail business. By the same token, any of the large box retail stores are in Finance, since they have no allegiance to the products they sell, but only to the profit they make from you. Auto parts stores are, however, in Energy because without our reliance upon petroleum a great deal of what they sell would be useless. Real estate? Hmm…can’t eat it, inject it or do drug-aided surgery with it, producing power (solar, wind, geo-thermal) is not the primary purpose for selling it to you, it’s not military or media…the only things real estate companies are good for is generating interest payments and property taxes, so either Finance or Government. You get the idea.

    We look around ourselves and see a lot of things which don’t seem to have a direct relationship to the Big 6+1. What does a vitamin pill bottle or a disposable pen have to do with any of the Big 6+1? Well, there is no great movement on the part of plastic pill bottle or aluminum can or street sign or toy or household cleaner manufacturers to directly take control of your life, so chemistry and manufacturing are not listed among the Big 6+1, although you will see ads for the products of chemistry and manufacturing. The question is, who do these endeavors, manufacturing and chemistry serve? Who do Dow Chemical and 3M research and make products for? You guessed it: nearly all of the above. A research lab does not work in a vacuum, it works for Big Ag, Pharm, Energy…at least one, usually more, of the Big 6+1. Just as mainstream media feeds us entertainment and infotainment, chemistry and manufacturing give us composite skateboards, synthetic apparel and accoutrements, and ShamWows. However, they also lobby Big Gov for draconian laws against hemp (an all-purpose agriculture product which Henry Ford built car bodies with, and our forebears made clothing and rope from), they design and produce all munitions and all other Military supplies and technology, figure out myriad uses for petroleum, and obtain ironclad patents on expensive drugs designed to mimic the effects of natural herbs used traditionally for hundreds of years, which they then attempt to outlaw. Place ads for chemistry and manufacturing products accordingly; without the Big 6+1 most of these things would only exist as we currently know them if they were (a) vitally useful, and (b) able to stand alone against alternative more readily available solutions.

    Now start flipping through magazines and newspapers, tallying the ads. Now start watching the TV news, notice the slant. With each bit of structured information you find yourself presented, ask yourself who tailored the message, and why. Who wants you to believe this? Why? Cui bono?

    When you’ve done this exercise for even a short while, you begin to get the “Big” picture. It is one of control, it is one of design. NWO actually stands for Planetary Control by Design, and you my friend are no more important in the designers’ Big Picture than is an ant on a toll road.

    • Common Name David

      Yup. And when you think of it, what else could happen? What else has ever happened? Corporations have always done this. It’s the “purloined letter.” Right in front of face all the time. Inevitable. America was one of the first. Trade is far more important than monarchies which come and go. Owning planetary resources is done by trade. Nationalism was a dead idea as soon as corporation started. Lincoln talked about it. Nothing can stop it, after it starts. The only attempted cure, revolt, is something the corporates wish to avoid if possible. And they will say, “Grow up–nationalism is stupid. Don’t get hurt.” It is already a fait accompli. The corporates want to avoid conflict but they know they have it all–they can roll out various methods of population control. The NWO is already in place, only what to do about the nationalists is a problem. “But I love [name your country].” The public NWO is a program to invite the populace and their little leaders to the new deal with sugar instead of something bad. Corporate takeover of Earth was inevitable. Monarchs, presidents…things of the past, now puppets.

  • s c

    Governments specialize in Ponzi schemes. This particular administration IS a Ponzi scheme itself. A Ponzi scheme is a way to abuse wealth. When a government uses one, it is an attempt to control wealth and abuse power. Madoff used a Ponzi scheme (and he was obviously wrong to do it). Therefore, that makes this government WORSE than Madoff. Madoff is an individual, and he was easy to throw away. A
    government is a collection of career criminals, and trying to throw them away isn’t as easy. Sometimes, it takes a revolution to do the job. In this case, B O is the head Ponzi schemer (including Biden and most of Congress). Getting rid of this collection of perverts, criminals, communists and mindless robots won’t be easy. The cost will be horrific. Let the housecleaning and fumigation begin!

    • sean murrey

      i agree with you.

  • Plane Jack

    If you read the SS part of the law, it plainly says that it “is a tax on wages”, whch is unconstitutional. I don’t understand why no onw has ever contested it at the Supreme court level.

  • sean murrey

    i think it does look at all the lying they do, they do this with our moneyw we should try them for a ponzi scheam when we do sentence them to prison.


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