Tag Archives: Retirement

Ponzi schemes: Illegal for Bernie Madoff but not the government

As I noted in Repeat after me: There is no Social Security “trust fund”:

There is no trust fund.  No. Trust. Fund. Anyone claiming there is such a thing is ignorant and/or trying to deceive you.

The government does not have the capability to set aside funds in a bank account like we do.  When the Social Security funds come in they are spent on Social Security, or, as they have done for decades, on other spending projects they didn’t want to raise taxes to fund.  Decades of dishonesty and financial mismanagement by both parties are becoming more visible.

If Social Security taxes stopped today there wouldn’t be a penny saved to meet the commitments the government made.  It is the world’s largest Ponzi scheme.

If some of these Social Security funds went to private investments that you could control then that would limit how much the politicians could abuse.  But they don’t want to lose control, so they play on your fears that something bad will happen.

Yes, the market could crash and you could lose your investments.  It is a risky world.  But think about this: Whether your private account crashed or not it isn’t like the government is saving our taxes today to pay out tomorrow.  Either way the payouts they will make 10 years from now will come from taxes paid 10 years from now.

Simply put, we can’t lose by having at least part of current contributions devoted to private accounts.  The politicians will lose because they’ll have to find a way to fund current spending, or not spend the money at all.

Don’t let fear-mongering by politicians fool you.  The system has been broken for a long time.  Democrats didn’t want you to be informed and Republicans didn’t try hard enough to inform you.  But it isn’t that complicated.

Here are some great ideas from Time to Opt Out of the Social Security Ponzi Scheme.  I urge you to the whole thing.  Now is the time to educate people on how Social works, why it is doomed to fail, and what we can do about it now.  Those young people who swallowed Obama’s lies and are now unemployed and saddled with massive college debts may be willing to listen to some truth now.  Same thing for middle-aged people who will realize that they will spend their careers paying into a system that will be beyond bankrupt when they retire.

The Social Security Ponzi scheme is perhaps the most consequential government infringement upon our lives.  Conservatives are justifiably outraged that Obama egregiously mandated that we purchase health insurance.  However, the individual mandate is not nearly as meddlesome and tyrannical as the government’s complete control over our retirement security.  The only reason why these two programs are regarded differently by the public, is because Social Security has been around for 75 years.  Consequently, most Americans are conditioned to believe that a person’s retirement is indissolubly tied to government-run Social Security.

Now that Social Security is running a perennial deficit and is facing insolvency, conservatives have an opportunity to reverse one of the most flagrant violations of our property rights, by offering workers the option to opt out of the Madoff-style program.

As the unfunded liability for Social Security balloons to $21.4 trillion over the next 20 years, it is painfully obvious to young workers that they will not enjoy much retirement security, if any, from the government program.  Democrats are totally apathetic to their grim future; they will be long retired by then, enjoying the full array of government benefits that they secured for themselves.  Meanwhile, they would rather demagogue the issue, using fallacious scare tactics to stir up current retirees.  Accordingly, we should harness the Democrats’ Mediscare demagoguery towards seniors, and direct it towards younger Americans.  If Paul Ryan’s Medicare plan will push granny over the hill, the status quo of the Democrats’ Ponzi scheme will prevent the grandchild from making it up the hill.

With high unemployment and polls showing a precipitous drop in support for Obama among young voters, now is the time to reach out to those voters.  Congressman Pete Sessions is proposing the SAFE ACT (HR 2109), which would allow younger workers to control all of their retirement savings.  Here are some of the key details of the proposal:

  • Every American would be able to opt out of the current system and direct the full 6.2% of payroll taxes to a personal retirement account beginning January 1, 2012.  Conversely, anyone who wishes to remain in the current system would not be affected.  An employee who chooses to opt for the SAFE account can switch back to the current system during the first five years after opting out.
  • After 15 years of the bill’s enactment, employers would be able to contribute “their share” of payroll taxes to the employee’s SAFE account.
  • Self-employed individuals would be able to divert the full amount of their payroll taxes to a SAFE account.
  • The SAFE accounts would be tax free and any cash contributions would be tax deductible.   Also, all post-retirement distributions from the account would be tax free.  Any pre-retirement distributions would be taxed as income.
  • Upon the death of the account beneficiary, irrespective of his/her age, the inheritors of the estate will be able to assume full ownership of the account.

. . .

So, young Obama zombies with skulls full of mush; with whom do you trust your retirement security: your bank account or Obama’s defunct ATM?  How about Bernie Madoff?

What is your retirement plan?

No, not your financial plan (Though I hope you are saving regularly via a 401k or some other mechanism.  Do not count on Social Security!).  I’m asking about your plans for your post-retirement activities.

Self-indulgence would get old very quickly.  The Bible doesn’t speak of retirement.  God numbers our days and we never know what might happen health-wise, but there is plenty we can influence with our habits. Of course I hope to spend time with family, enjoying hobbies and doing a little traveling.  But my larger goals are to continue to teach, study, serve, etc. as long as I can.  I try to keep myself in great shape so I can be energetic and stay on the giving end of the service spectrum as long as possible.  God willing, I’ll still be doing prison ministry, mission trips, teaching, and more for a few decades.

John Piper made some excellent points in What Happens When You Turn 65, including a laundry list of people who did amazing things after the age of 65.  His closing thoughts:

Dependant Till the End

And don’t forget, if you are running this marathon with Jesus, you have a great advantage. God has promised you: “Even to your old age I am he, and to gray hairs I will carry you. I have made, and I will bear; I will carry and will save” (Isaiah 46:4). Nothing to be ashamed of here. We’ve been dangling in the yoke of Jesus ever since he called us. At out peak, we were totally dependent. So it will be to the end.

So, all you Boomers just breaking into Medicare, gird up your loins, pick up your cane, head for the gym, and get fit for the last lap. Fix your eyes on the Face at the finish line. There will plenty of time for R and R in the Resurrection. For now, there is happy work to be done.

What are your plans?  I hope you are aiming at a strong finish!

Hat tip: Randy Alcorn

Good news: 65% of Americans haven’t lost their minds. Yet.

See 65% of Americans reject gay-affirmative lessons in elementary school: poll | LifeSiteNews.com.  Emphasis added:

A recent poll released by Wenzel Strategies and World Net Daily indicates that a large majority of Americans – 65 percent – do not approve of gay-affirmative lessons in grade schools.

The poll was conducted for World Net Daily by the public-opinion and media consulting company Wenzel Strategies.  The telephone survey conducted April 19-21 asked the question: “Do you believe elementary school children should be taught that homosexuality is a normal alternative lifestyle?”

Only 22 percent of respondents said they believe such teaching would be right, while another 13 percent said they were unsure.  The vast majority – 65 percent – said they do not approve of such teaching.

“Whether they object on moral grounds or simply out of concern that many U.S. schools are failing in their core missions of teaching basics doesn’t really matter – the vast majority of American adults want this type of curriculum kept out of the classroom,” Wenzel chief Fritz Wenzel said.

“Americans are particularly averse to the introduction of gay issues into the curriculum of the nation’s elementary schools,” Wenzel said. “Even among Democrats, who have been much more sympathetic to the promotion of gay issues, just 32 percent said they believe this should be taught to elementary school students. Just 11 percent of Republicans and 25 percent of political independents said the same thing.”

. . .

To the question, “Should students be taught how to perform gay sex acts as part of ‘safe sex’ lessons in school?” more than 73 percent of respondents said no.

This isn’t some made-up issue, by the way.  It is the logical consequence of making civil rights out of sexual preferences.

The issue of pro-homosexual teaching in schools has had renewed debate recently in California with a bill that would mandate such teaching in the curriculum.

Many have also noted the renewed vigor with which gay issues are being promoted in schools following the appointment by President Barack Obama of well-known gay rights activist and founder of the Gay, Lesbian and Straight Education Network (GLSEN), Kevin Jennings, as assistant deputy secretary of the Office of Safe and Drug-Free Schools.

. . .

“Teaching children sexual techniques is simply not appropriate. Unfortunately, it is part of a consistent pattern by some homosexual activists to promote underage homosexuality while pretending that their mission is simply to promote tolerance for so-called alternative lifestyles,” the newspaper said.

“It is outrageous that someone involved in this scandal is being paid by the taxpayers to serve in a high-powered position at the Education Department, of all places. At some point, [Education Secretary Arne] Duncan, Mr. Jennings, Obama administration spokesmen and the president himself are going to have to start answering questions about all this. Refusing to do so won’t make the issue go away.”