Ponzi Scheme

General Motors CEO Dan Akerson illustrates the gap between higher costs, such as pension obligations, and a shrinking tax base …

 

The government ponzi scheme does not save money for the pensions like an individual with a 401K does. The government needs more people to contribute to pay those at the top of the pyramid.

This is also the way Social Security and Medicare work. If an investment firm did this they would be behind bars for the rest of their lives.

One Response to “Ponzi Scheme”

  1. Lisa says:

    Chicago recently saw its credit rating downgraded because of a $19-billion unfunded pension liability that the ratings service Moody’s puts closer to $36 billion. And Los Angeles could be facing a liability of more than $30 billion, by some estimates.

    It’s no surprise — given the pressure public pensions are putting on municipal budgets — that any move to ease those liabilities, especially through a bankruptcy court order like what’s happening in Detroit, is being watched carefully nationwide by state and municipal officials, union leaders, bond traders and retirees.
    The U.S. government is in the same boat.

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