The US Budget Is Managed Worst Than A Madoff Hedge Fund!
Bill Lussenheide- Candidate US Congress CA-49
http://www.FaithFamilyFreedoms.blogspot.com
Perhaps the top nominee for scoundrel of 2008 is Bernie Madoff. This supposedly honorable, and esteemed former chairman of the NASDAQ exchange, stole over 50 Billion dollars using a ponzi pyramid scheme where early investors were paid from new investors. Madoff skimmed off Billions in the process.
But here is a worst story! The esteemed and supposedly well managed federal government takes in huge sums of money each year into programs like Social Security and Medicare. Most people innocently believe these are giant trust funds. The fact that both of these programs contain unfunded future liabilities creates a major problem for these programs.
Both the Government and Madoff use the same game. New investors pay off old investors until there is no money for anyone.
If you are under any illusions that when you see all those deductions on your payroll receipt that you are putting money into your own personal Social Security "Lock Box", dismiss them now. All you really have is an electronic entry for your name, with the hope that this money will be paid to you someday.
The recent $700 Billion bailout plan is huge by any measure. However, according to the Heritage Foundation, the unfunded liabilities for both Medicare and Social Security are more than $46 TRILLION ! This is a figure that is greater than the entire GDP for the United States, for more than 3 years straight! Sometime over our lifetimes, we must come up with this 3 years worth of total economic output to pay what is owed, above and beyond all other government obligations.
While the folks who invested with Madoff have lost their money, there is still hope for us. We must start immediately to fund these programs correctly, with general accounting principles. We will have to make systemic changes to the program, while still maintaining our obligation to those depending on these programs right now today.
However, here is one thing that the country CANNOT afford at present, under any circumstances…the creation of new entitlements and programs. We cannot even afford what we have committed to already. Do not listen to reckless politicians who propose any more big government spending. The results will be a financial train wreck just like the Madoff Hedge Fund. Madoff will end up in prison. What should be the fate of those advocating this same tomfoolery with our hard earned taxes using the same techniques as he did?
