Why did the Texas governor risk scaring all retirees in Wednesday’s GOP debate? To impress Wall Street, of course.
We are in the Money Primary stage of presidential politics. Rick Perry calling Social Security a “Ponzi scheme” and a “monstrous lie” is an obvious bid to show Wall Street that he would do what George W. Bush tried and couldn’t do: Privatize Social Security.
There’s just no calculating how much money Perry could raise from those who would reap billions from a new system that funneled retirement funds into the stock market instead of the federal treasury.
What seems politically disastrous right now could lead the Perry campaign laughing all the way to the bank.
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45 Responses to Perry’s Ponzi Scheme
Now on The Trail
Woo Hoo?
I think that is my first official “Woo Hoo” in several years!
So, since insurance is based on paying out money that is collected via premiums plus investment income, is that not also a Ponzi scheme?
Craig, what good will all that money do if he can’t win a state like Florida? Those of us of a certain age are never going to vote for a candidate that calls Medicare a ponzi scheme and a “lie.”
OK, I’m now prepared to ask something I’ve never-ever asked before: What’s so bad about a Ponzi Scheme? It’s all about risk, entrepreneurship — the American Way. Indeed, it kinda gladdens me to know that Social Security is part of the scam.
Bob,
Need to ask. Do you know how a real Ponzi scheme works and why it is illegal?
For those needing a brush up, here are the write ups on Pyramid Schemes http://en.wikipedia.org/wiki/Pyramid_scheme
and the Ponzi Scheme variation
http://en.wikipedia.org/wiki/Ponzi_scheme
Craig,
Can he rake in enough funds to create a war chest that will keep him in a power player in Republican politics (Not to mention future lucrative employment) even after losing in the run for President and any future loss as governor?
Jamie 10:45AM Thanks for posting def of Ponzi Scheme; I am one of the financially uneducated ones. However, even without knowing the exact meaning of Ponzi Scheme, I am tired of hearing Perry using it. Please will he get off that train and ride another?
Jamie, first let me remove tongue from cheek, and then say: If Social Security will benefit from a Ponzi Scheme then I want me some of that…
For a little variation -- an article on Climate Change written with humor. If you must watch the world collapse around you, at least find moments of humor
http://thinkprogress.org/romm/issue/
I do have to admit “Arctic death spiral continues” a little disconcerting.
I never thought Treasury Bonds were a Ponzi scheme. They are backed by the faith and credit of the United States and draw interest.
The leadership of the Democratic Party has done a terrible job of explaining the health of Social Security and the modest reforms that would make it secure for many, many decades.
Since Hillary is busy, Bill Clinton needs to hit the speaking trail defending Social Security and educating the public about it.
We need a President of the United States who has a little bit of Hubert Humphrey, a bit of Harry Truman, and a lot of Franklin Roosevelt.
If politicians were honest then “Full faith and credit” would mean something, but they just couldn’t leave all that excess money alone. Instead of investing it in infrastructure, education, and research -- things that would return funds to the system in the long run, they squandered it on every penny ante project they could find to pay off campaign contributors and voting blocks and then spent more besides long after the red flag warnings went up.
Now they are looking at all those boomer retirements and saying, “oops you guys didn’t give us enough money”.
Well we elected Shrub so I suppose Perry is a possibility but it will be on the media for lying about Perry’s record and for pimping him out to the public….
ie rightwing newser Dian Sawyer called him many flattering nicknames and failed miserably to discuss any of the real problems his type of governance has caused
This morning on Democracy Now, a real journalist pointed out the hypocrisy of small federal govt advocate Perry talking a bout the poor response time of the federal govt to HIS state’s disaster --failing to point out that Perry had cut funds to support local volunteer firefighting units.
What a jerk ..him and her
OD, a little LBJ would be nice, too.
Will a Perry nomination head off a T-Party 3rd party challenge? Romney seems unacceptable to them and a 3rd candidate would all but guarantee the reelection of the president with a plurality as happened with Clinton when Perot was the insurgent. To me, this is what it’s all about. Maybe this is why we keep on hearing rumors of additional Republican candidates entering the competition.
Media in America = political Bernie Madoffs
LBJ..yes
The Social Security system is essentially sound. The bonds will be honored. Congress and the President simply need to realize that they must be responsible and can’t keep enriching the wealthiest Americans and corporations at the expense of the public.
Honor the bonds…
Make minor changes such as increasing the income limit for Social Security withholding and perhaps even raise the full retirement age for people long down the road while maintaing the 62 early option with adjustments made for longevity changes.
It is not complicated at all the situation is not dire at all.
Unfortunately, the leadership of the Democratic Party is incapable of explaining this to the public.
“A Venn Diagram for Rick Perry: Social Security Is Not a Ponzi Scheme”
http://motherjones.com/mojo/2011/08/social-security-not-ponzi-scheme-venn-diagram
It’s bad enough that our 401(k)s leak money like an old canoe. The torch and pitchfork brigade would come out in force if Perry had a chance to do what W could not with Social Security.
I liked Ron Paul’s line about 10 cent gasoline last night. If the dime is silver, it works. No, we can’t go back to the good, old days, but glad someone is at least bringing up the subject.
Craig… you may have a point…. but that depends if the monied powers think that Perry can win the general election while making such proclamations.
If… as some believe… that the monied powers will make sure whom they want gets elected (think voter machine tampering) and “we the little people” actually can’t do a thing about it. Then this whole process is a sham.
I’d like to believe that we’re not quite there yet… and that whom “we the voters” will pull the level and/or mark our X for still counts.
Welcome Mortonie -- Ron Paul is the one with cash and established party (Libertarian) to get on ballots and make a difference, but doesn’t go there. But he seems to dislike Perry so much that I wonder if he would do it. Otherwise, you’re right, Perry keeps the t-party in the tent.
Theresa43…. you mentioned on the other thread that you’ve never been called by a pollster. I live in New Hampshire. My phone has already started to ring daily with various pollsters. It’s at the point where I (and my hubby) won’t answer the phone unless we recognize the caller’s ID as we know it’s either a pollster or someone asking for a campaign donation or someone telling us that such and such candidate is speaking somewhere around here.
mortonie… good point about how we keep hearing about numerous Republican candidates who might jump into the presidential fray down the road. One would think there’s enough candidates involved already for them to make a choice. BTW… welcome to the blog.
Everyone wants to handicap the Republican horse race. Here’s how The Racing Form might have listed the Ronald Reagan Derby outcome:
1 Romney — hung on
2 Perry — faltered on the backstretch
3 Huntsman — surprising speed
4 Paul — gamely
5 Bachmann — slow start, blocked
6 Gingrich — can’t go the distance
7 Santorum — ran to form
8 Cain — outside trip
I’m in S.C. for a few weeks, and it is T-party scary here. Jim Demented is enjoying his role of kingmaker way too much. Perry’s playing to him, but I have to wonder if Jim’s not waiting on Palin decision before he tells his crew who to donate to
I wanna know more about Al Gore’s Lock Box.
Greetings, Mortonie!
Good to see WACPAC back on thread. Agree Hunstman was strong. With indies able to vote in NH primary he could give Mitt trouble there?
As of August 31, 2011 the Social Security trust fund has $2,492,617.566 million which is an increase of $63,103.6 million since December 31, 2010.
I will be interested to see what position the DOJ supports when this goes to the Supreme Court. Of course the 5-4 opinion will be in favor of the bank.
Florida Appellate Decision May Be a Major Obstacle to Foreclosure
By Yves Smith, Naked Capitalism, September 8, 2011
blue, here again for tmrs is the roemer/stewart interview
http://www.thedailyshow.com/watch/tue-september-6-2011/buddy-roemer
if flatus keeps giving to encourage the anti-fat cat candidate and i keep reposting this link, maybe we’ll start a trend.
mortonie, welcome aboard… you mentioned a 3rd candidate. could buddy roemer fill that slot? throw in huntsman as his veep for good measure.
wacpac, add #9 roemer on your racing form as a long shot with a track record
Greetings and welcome to new and returning. This party runs round the clock, so pick your shift and enjoy.
jamie, how big is that longshoremen riot in wash.? and could it fall under “dirty tricks” category to wipeout any pro-union afterglow from labor day?
Howdy patebooks, always nice to see ya here. Jim “Demented” — good one
patd
It’s a sort of a toss up. Opposed to the union member’s actions but really hate the contractor who is only hiring non union to undercut wages. Pick you side and take your chances. On the union side: No one injured or arrested
Seattle Times
Purple is that money in the SS “trust “fund actual money or just a piece of paper with an IOU from treasury?
I don’t know just asking ”
I’m sure the checks will always go out ” the government will make sure of that by printing more money ‘inflating the dollar ” people will get their check ” but it won’t buy anything
Looking forward to the upper class white guy ticket*
*The Entitlement Ticket — those who think it is their right to decide your rights
It’s good that perry brought up the SS issue ” there needs to be an honest and open discussion about the future solvency of the program
Having said that the idea of Rick perry being commander in chief scares the hell out of me “
MQW
Why are sure the checks will go out? If the Repugs keep talking down the country’s credit rating, the Treasury may have gone into chapt 7 by the time your check is due.
Pat
I maxed out with a $100 to Mr Roemer so I can’t send him any more. There must be other presidential candidates willing to do as he has done.
I think people who say that the media want a willard-peri contest are missing the point. Who owns the media anyway ? Wall Streeters own the media, goldman it. Obviously they think that peri is an easier target for willard than either wrong pol or bachmannia.
Let’s look at facts : in the IA Straw Poll bachmann and wrong pol came in 1st & 2d.
In this Texas free for all, the 1st poll results show wrong poll way ahead of the competition with 34 %
We’ve now had two (admittedly mickey mouse) events in which neither willard nor peri have won. Therefore, if the media claim peri and willard are the frontrunners, it means the media is polling their bosses the Wall Street bankers rather than puguglican voters.
The peri invasion sucked all the air out of bachmann’s campaign. She may have to donate to her campaign. This would be like willard’s phony pac contributions -- phony cuz willard IS that PAC. I don’t think her pockets are as deep as willard’s, but he isn’t her challenge -- peri is. peri is the guy eating her lunch. At this point in bachmann’s campaign, it is imperative that she do two things.
1. Play the sexism card against the media.
2. Join willard in ambushing peri and him chopping up. This alliance could involve willard giving bachmann a small loan under the table.
Mittens uses a old gooper lie to boost his chances
And the rest of you are suckers for goodhairs and other gooper lies about social security. It is NOT an entitlement program
and it is solvent or would be if Al Gore had been allowed to used the lockbox theory…but goopers stole from average americans dependent on social security so rich asshole republicans would not have to pay their fair share
once again the media fails to correct Mittens lies and allows goopers to defame Gore with sly humor. But god forbid a dem should make a joke about a gooper!#$#!!
the media is the cause of a lot of our problems because they
make people stupid
Satire Alert
Tax breaks for dead folks is an entitlement. Dead folks don’t have standing in court. They can’t vote, except in Southern Ohio, the Florida panhandle, and west Texas. Dead folks have given up their citizenship and personhood, the quitters. Yet puguglican con men demand that dead geezers deserve a tax break.
I say, if they’re too lazy to stay alive, they don’t deserve any breaks.
End Satire Alert.
You are now free to roam around the internet.
NEW THREAD
repub-licanthropes, led by my senator dirty dave durenberger, redid Soc Sec in ’88 so it would be solvent until 2020. Despite the fact that Soc Sec was doing better than anticipated in ’88, the rippers reedid soc Sec a second time a few years ago. These rippers claimed Soc Sec would now be solvent ’til 2040. Now the goldman liars are bleating once again that Soc Sec is in a crisis, despite the fact that it is once again doing better than expected during the by the last fixer-uppers. When Soc Sec does better, I suspect that life expectancy is falling for people who earn less than $5k/mo, ie 80+% of the population.
NEW THREAD