'The taxpayer: That's someone who works for the federal government but doesn't
have to take the civil service examination.' ~ Ronald Reagan
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Instead of investing the money
Madoff spends it on nice homes in the Hamptons, yachts, political favors,
etc.
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Instead of depositing money in a
Trust Fund the politicians transfer it to the General Revenue Fund and use it
for general spending and vote buying.
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When the time comes to pay the
investors back Madoff simply uses some of the new funds from newer investors to
pay back the older investors.
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When benefits for older investors
become due the politicians pay them with money taken from younger and newer wage
earners.
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When Madoff's scheme is discovered
all hell breaks loose. New investors won't give him any more cash. He goes to
jail.
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When Social Security runs out of
money the politicians try to force the taxpayers to send them some more; or they
cancel S/S to all those who paid into it claiming that it is an
"entitlement".
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Bernie Madoff is in jail.
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Politicians remain in Washington .. with
fat medical and retirement benefits.
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