Is Social Security A Ponzi Scheme? Let’s Chat Gov. Perry….

It has become somewhat axiomatic in my opinion that watching our so called leaders in D.C. formally and informally debate the social security issue among others, is somewhat like yours truly attempting to watch The Joy Behar Show. Difficult in the extreme, but as I digress, let us take a more serious view on this currently key issue.
When the program was initiated let us recall that the maximum allowable to be charged to a worker was 2% and not to exceed $3,000 annually. Seems reasonable. Have a look today and you will notice we are hovering in the 15% range and the current caps approximate $15,000. Ouch indeed!
In its infinite wisdom our Congress has spent the last 70 odd years increasing the annual burden. Why is this? Well in 1964 LBJ found a way to tap in to the so called trust fund and pillage it. Subsequently Congress had learned a new trick. Spend all the cash to buy more votes and stuff the trust fund box with IOU’s. Let someone worry about it in the next century. I submit if we actually had an individual account for these monies and allowed to watch them grow over time as a 401k program does, even if we were only allowed to invest in US treasuries, well I believe no one would be complaining at this point. Today if you were to pass on at age 62, the tens of thousands in which you had ” invested ” would become virtually moot. A pittance for your heirs at best. You have only to look at the dynamic change in Chile after they implemented such a program and needless to say, it has and is a major boon for that fine nation. And it can be left to your family in toto upon your passing. Great and wise deal.
Another interesting feature is the amount of people paying in to the fund today vs. yesteryear. At initiation we had 140 workers paying benefits per individual. Today it is down to 3 to 1. Obviously from an economic perspective this is unsustainable for the burden on the young must rise dramatically for the program to exist in its current state.
To make matters worse, we only have a promise and hope that future generations will be large enough to sustain what is now obviously a charade albeit a popular one if you are on the receiving end. It is not an investment nor is it a fund with your name on it. As the dollars come in via paychecks, they go right out.
I think for all the turmoil whipped up over this, Gov Perry who used the phrase is on the money. It is in fact the classic definition of the Ponzi scheme. There can be no doubt to any reasonable observer I contend.
I suggest we review the Chilean model as a reasonable cure to sustain this currently broken program or you ain’t seen nothing yet as the trustees for Social Security have foretold. It is indeed fixable but only if a true leader where to surface. Anyone have the courage? Don’t hold your breath but stay positive as that day will come. The sooner the better. Cute baby. Article first published as <a href=’’>Is Social Security a Ponzi Scheme? Let’s Chat Gov. Perry…..</a> on Technorati.?

Caution! Obama’s New Economic Guru And Jobs Plan…..Hide The Kids $$$…..

Curious is it not that former Speaker Nancy Pelosi has issued orders to her subordinates in Congress to refrain from the use of the word ” stimulus”.  Care to venture a guess as to why? I would surmise that the answer is quite simple.  They haven’t a clue as to what they are doing and never did and simply do not care. They have spent countless Trillions on stimulus and yet to no avail.  So what’s a good Pol to do? Change the terminology.  Brilliant in that it will work on some and stupid in as it surely is that. I am personally insulted at the shear condescension. Shame on you hucksters.

We are now back for more..  blah blah blah …not sure as to the term to use so we shall say the all encompassing ” Jobs Bill “. And the President has a shiny brand new head of economic policy adviser in his office.  I would say speculation is running rampant as to what policies he might promote and I would be pulling your leg. But if history is any guide and from my experience it always is, then he will advise more of the same medicine. Bottom line, Jobs Bills don’t work. They never have.  People free from constraints do. People need visibility and with rule upon rule compounding daily, there is no visibility.  It really is that simple to be honest.

I know my sarcasm is running over here this day, but please,  don’t these people ever learn?  The “so called ” smartest people ever by the media?  I just can’t help myself so please be patient with me. It is more a result of  the frustration I/we feel that brings out these unseemly sentiments.

So we recruit another theoretical type from academe, again one without any business experience and seemingly the same qualifications  as his three predecessors and then what?  We pray for a different result? I need not remind you of this classic definition and what it foretells.

If only they chose to give me a buzz.  I have an abundance of market ideas with far greater chance of success than the rehashed 100 year old ideological wish list that has proven over and over again ad nauseam and all over the world to be nothing more than shear fantasy.  As stated before, if it worked so well then Europe and Russia would be the dominant powers of the world. I need not remind you of their respective conditions today.

In short, wealth transfers simply do not work as they are non productive.  I will attempt to explain in terms a Senator or President might understand. Sorry more sarcasm.  I do believe they know the difference, but the allure of buying votes and privilege with your hard earned money is more addictive than my cigarettes.  Just in case here goes.

Today I made $100.  I sweated for 10 hours and worked very hard. Senator Boxer thinks/feels she is entitled to give you my $100 for some altruistic reason.  Fair enough for the moment I would stipulate.  What happens next is the problem. By the time the skimming has occurred on all the various levels of power, there is likely $30 left to give you. In other words a 70% haircut.  Ouch for me and the recipient of my hard earned dollars.

Suppose the hard earned money where left to me in a reasonable fashion ie.. I get to keep $85.  On Friday I might choose to invest in a small local firm that needs the investment and I am eager for the ground floor opportunity.  Lo and behold, the next Microsoft has been created.  Countless thousands of jobs created, yours truly is now comfortable and additional wealth continues to be created.

Under the former scenario, $30 gets transferred and spent without the opportunity of creating wealth.  Perhaps a little gas or some groceries.  Not a wise use of  the funds coerced from me by threat of force in my opinion. Ultimately I and the recipient have lost a little something. The point is it is we the workers who create wealth.  Not the inverse. Government’s do not create wealth. They take it and spend it and mostly unwisely. We all know this. Countless trillions vanish and who is the better for it?  No one I know. Maybe an evil banker or two who have the temerity  to charge $1 or so to use an ATM. Pure evil! Forget the trillions already wasted and to be paid by an unborn generation as the intentions were honorable, if ineffective and wasteful.

But I again submit our politicians know this oh so well.  It would just mess up their day if we did not desperately need them to ” do something ” for us.  It really is a shame as this behemoth of a road block has prevented what could have been. The lost wealth from this charade is mind boggling.  So what to do?

It seems obvious we must clean political house across the board. Top to bottom.  More importantly the entrenched bureaucracy must be dismantled.  It is they who tend to run wild with roadblocks, rules and regulations once legislation is passed.  Most of the time it results in unintended consequences.  Take for example the several paragraphs in the federal Register describing how to dispose of your lip balm in the different states.  Am I kidding?  Not a chance unfortunately. I think the only solution at this point to steal a phrase is to ” starve the beast”

To steal one more phrase ” If you love me, help me pass this bill”. What hubris. Sorry my friends for I could not resist.  It was too easy.

9/11, We Shall Always Remember The Fallen…Always!

Rest in peace brothers and sisters as your time on this surface was brought to an abrupt and unexpected conclusion long before was expected.  That this loss came without any meaning or purpose renders it even more unfathomable than the mind can tolerate.  I could not be more proud of your courage as displayed for all to witness on this despicable day and with such ungodly cowardice by those who would inflict injury on the innocent. We can only take comfort in knowing that you are most assuredly in paradise.

As all set forth on the normal tasks of a typical day in American life, thunder and chaos reigned on a world class city. Most of you turning on your computers or sipping the first brew of the day. Planning your daily agenda without any thought of the events about to occur. Maybe as most of us do on a sunny day you looked out the window daydreaming of a day on the beach or perhaps spending time with your families. So we then think and look forward to this thought at the end of the work day with anticipation.

What you saw out the window can only be described by one not there as horrifying. We will not replay these events as they are no doubt emblazoned in our minds forever more. We will never forget that day and more importantly we will never forget the bravery on display by all of you and more. Our hearts ache for your families and survivors and will always be thus.  I can not even begin to comprehend what they have had to endure these many years.  We will continue to pray for you all and your loved ones.

And as to all those who responded with aid and comfort, well I border on the speechless and unquestionably humbled. Absolutely incredible human behavior. Valor the likes  of which you might find in a combat zone.  Yet New York was now a combat zone. Remarkable loss and remarkable response by a great people.  What more can one say.

The beautiful memorial just unveiled will be a constant reminder to us however I am certain not a one of us will likely ever forget that day  and we wish God’s blessings on you all.

Happy Labor Day or Happy Civil War?

My fondest wishes that you all enjoyed a spectacular Labor Day Holiday. We are indeed a hard working nation.  By any measurable standard, there is no nation remotely close to our productivity and for this I applaud you all. We are indeed industrious, entrepreneurial  and have a fine spirit and tradition.

Now herein lies what I view as a form of division amongst the ranks. Teamster leader Jimmy Hoffa was quoted as using very combative phrases targeted at ” Tea Party and Republicans “.For some reason he has jumped to the conclusion that simply wanting a budget in balance is in turn a declaration of war on labor. Call me naive but I can not connect those dots.

The last I checked these so called Tea Party individuals where gainfully employed for the most part as I find most Republicans.  So at the end of the day, we are all laborers so who is it he wants to fight and why?  It makes no sense to me in any rational sense. The ” sons of bitches ” he refers to apparently are all of us.  I am very confused.

My obvious sarcasm notwithstanding, it is clear to me who the enemy is and who the friendlies are based  on his words. He is clearly implying that all of us who work are not judged equally. Only those who have  joined a union merit his defense.  He claimed he wanted to ” take America back “.  Doesn’t sound very patriotic to me to plan an internal conflict against the same people you claim to represent.  It is therefore obvious that his army are only those he represents and the rest of us don’t count. Hypocritical if you ask me but lets get on with the cannibalization this fellow seeks I suppose.

I am waiting to hear the cry from those who claim to want to bring civil discourse back to our issues.  I can only speculate, but my guess is I will be waiting a long time and hear nary a peep. In fact several “leaders” have begun to dignify his let us say, less than terse comments even as I address you.

Worse still was this call to arms was a prelude to an address by our President.  Most undignified in my eyes.

I don’t know about you but I have simply had it with this petulant, childish chest thumping.  We really have descended this deep into the sewer.  How sad for us all.  A great nation deserves better than this. Where is the dashing leader on his white horse to bring us back from the brink?  Who can turn this around and so we may once again see a more civil society.

It is all of us my friends.  Never forget it begins and ends with us. They work for us and they must listen to us.  I hear these same words that I write  daily from many people and most nearly sigh for a nostalgic and better time and kinship.

It is incumbent upon us to let our voices be heard.  It is equally important to not be fooled by charismatic types who only serve their own interests.  We must beat back the influential lobbyist who purchase your Congresspersons.  We must break through to both party leadership groups who are hell bent on my way or the highway attitudes.  We must break the media and their obsession with horserace and their love of conflict. The fight is on.  The blame game proceeds apace.  The back and forth and blah blah blah me to death already.

All of this must stop and be set right. It is my wish for you all.  If anyone has a white horse I would love to borrow it and give it my best shot.  Barring that, let us keep up the good fight for freedom and liberty for all, not  just some well connected and smug elitist. Let us try to remember we are ” one nation under God”. Not fiefdoms for the few.  Happy Labor Day to you all.