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An Alternative To The Official Ponzi Scheme

October 29, 2009

Madoff_SocialSecurity

Galveston, Texas, opted out of the nation’s biggest institutionalized scam, Social Security, years ago and its employees are better off because of it.

On his TV show Glenn Beck facetiously asked the designer of the plan, Rick Gornto, “how insolvent” his “risky scheme” of a privately run retirement plan was.

Gornto said the plan was

very solvent. The funds are protected by the insurance companies that they’re being held by, and audited and regulated by 50 insurance regulators throughout 50 states in the U.S.

The Galveston plan consistently outperforms Social Security.

Beck correctly described Social Security this way:

When somebody takes money from a group of people and they take that money and instead of investing it, they take it and they pay the old investors – that’s called a Ponzi scheme. That is exactly what Bernie Madoff went to jail for and those in Washington are not going to jail for.

Beck’s right.

Social Security came out of President Franklin Roosevelt’s New Deal, a historic vote-buying expedition from which America has never recovered.

Imprisoned embezzler Bernard Madoff  (pictured in graphic at top) seems to have been inspired by FDR.

Through his Social Security-like Ponzi scheme that paid older investors with incoming funds from newer investors, Madoff, a heavy donor to Democratic candidates, also did irreparable harm to the liberal and far-left causes he loved.

Madoff’s $50 billion scam killed the left-wing JEHT Foundation and the Picower Foundation both of which had invested with Madoff’s hedge fund.

JEHT, an acronym that stands for Justice, Equality, Human dignity and Tolerance, funded the ACLU, the anti-American Center for Constitutional Rights, ACORN affiliate American Institute for Social Justice, Alliance for Justice, and Tides Foundation.

The Picower Foundation, whose billionaire namesake Jeffry Picower was found dead in his swimming pool a few days ago, funded Planned Parenthood, the Southern Poverty Law Center, and ACORN affiliate Project Vote.

Two huge foundations, hundreds, maybe thousands of investors were destroyed when Madoff’s pyramid scheme collapsed.

That was only $50 billion. Social Security is on the hook for $17.5 trillion.

The damage done to people and institutions by the Madoff fraud pales in comparison to what Social Security will do to Americans unless it is reformed.

And don’t even get me started on Medicare: it’s on the hook for a staggering $89 trillion.

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7 Comments
  1. sean permalink
    October 29, 2009 10:03 pm

    I think everyone agrees that the Federal Gov’t will not default so both plans pay out with the same dollars. If you believe future Social Security payments will result in inflation and a loss of purchasing power, it will hit both plans equally – both are in USD. You have to ask yourself, what is the risk adjusted return in the private plan.
    I’m 100% for privatizing some or all of Social Security but lets be honest about how we look at risks and returns.

  2. October 30, 2009 5:44 am

    That is a telling point which may only be resolved by placing the funds into a stable foreign currency or gold; but the fund managers will then have to be financial whizzkids and who knows where that will end up.

  3. Wayne permalink
    October 30, 2009 6:07 am

    Bernie Madoff may have been a piker in bilking clients with his Ponzi scheme — at least in comparison to the big league Ponzi scheme being run by the Federal Social Security.

    If Rick Gornto was to roll his Galveston Plan out nationally making it available to more people he’d never be able to keep up with the demand for his service.

  4. Christy permalink
    October 30, 2009 6:34 am

    I think two other counties in Texas opted out of S.S. about the same time as Galveston. But I think I read somewhere that as soon as that happened, the Congress changed the law so others could not opt out, nice huh?

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