Don’t fall for the biggest Ponzi scheme – Chico Enterprise-Record
A Ponzi scheme is a form of fraud that lures investors and pays profits or benefits to early investors with funds from more recent investors. The scheme can maintain the illusion of sustainable returns as long as new investors contribute new funds — and as long as most of the investors do not demand full repayment. (abridged wiki).
The biggest Ponzi scheme in the U.S. has been operating with impunity for decades. It is run by the Federal Government and is known as Medicare.
U.S. income earners “invest” in this scheme through taxes collectively known as FICA. The earliest “investors” benefited the most. They received a return and died before having their mandatory “investment” payments increase.
As noted above, Ponzi schemes require new investors to pay returns to the earlier suckers. The problem with Medicare arises when there are fewer folks buying into the portfolios while more are demanding returns on their…