When Is A Ponzi Scheme Not A Ponzi Scheme? When It Is Sponsored By The Federal Government.

http://money.cnn.com/2010/02/02/news/economy/social_security_bailout.fortune/index.htm
Next in line for a bailout: Social Security

How does "social insecurity" work?

When you work for a living (this leaves out politicians), taxes are taken out from your paycheck. The government takes any money collected and throws it into the general fund for spending for whatever lame a$$ pork project some politician needs to shore up his popularity with the special interest groups back home. Making sure nothing is left to invest and grow for a future period when taxes may drop and benefits payouts may soar.

If you are old enough, and you don't work, the government pays you money.

What happens when the government happens to be short of money in any year? Raise taxes on those still working, and reduce benefits to those not working.

Can you see where this is heading?

We currently have skyrocketing unemployment (fewer to tax) and thus more people are looking to get benefits (larger payouts). I have a bad feeling about this.