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Why did Bernie Madoff go to prison?� To make it simple, he talked people into investing with him.� Trouble was, he didn't invest their money.� As time rolled on he simply took the money from the new investors to pay off the old investors.� Finally there were too many old investors and not enough money from new investors coming in to keep the payments going.
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Next thing you know Madoff is one of the most hated men in America and he is off to jail.
Some of you know this.� But not enough of you.� Madoff did to his investors what the government has been doing to us for over 70 years with Social Security.� There is no meaningful difference between the two schemes, except that one was operated by a private individual who is now in jail, and the other is operated by politicians who enjoy perks, privileges and status in spite of their actions.
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�Do you need a side-by-side comparison here?� Well here's a nifty little chart.
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BERNIE MADOFF |
SOCIAL SECURITY |
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Takes money from investors with the promise that the money will be invested and made available to them later. |
Takes money from wage earners with the promise that the money will be invested in a "Trust Fund" (Lock Box) and made available later. |
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Instead of investing the money Madoff spends it on nice homes in the Hamptons and yachts. |
Instead of depositing money in a Trust Fund the politicians� transfer it to the General Revenue Fund and use it for general spending and vote buying. |
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When the time comes to pay the investors back Madoff simply uses some of the new funds from newer investors to pay back the older investors. |
When benefits for older investors become due the politicians pay them with money taken from younger and newer wage earners to pay the older geezers. |
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When Madoff's scheme is discovered all hell breaks loose.� New investors won't give him any more cash. |
When Social Security runs out of money the politicians try to force the taxpayers to send them some more; or they�cancel�S/S to all those who paid into it. |
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Bernie Madoff is in jail. |
Politicians remain in� Washington .. With fat medical and retirement benefits. |
'The taxpayer: That's someone who works for the federal government but doesn't have to take the civil service examination.'�
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"If you put the federal government in charge of the� Sahara Desert ,
In five years there'd be a shortage of sand."���
~ Milton Friedman
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PASS THIS ON TO�YOUR FRIENDS! |