A Ponzi Scheme Within A Ponzi Scheme

Bob Chapman
Infowars
December 30, 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The Social Security system we are familiar with was originally enacted in 1935 by an incredibly corrupt Congress (much like the current one), and signed into law by FDR, a corrupt and ardent Illuminist who did as he was told to do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.