Here comes the next great Ponzi scheme... welcome Social Security and Medicare.  Current taxpayers are paying for programs that won't exist when it's their turn to start collecting.  Bernie Madoff is little league compared to this Major League Ponzi Problem.  Social Security and Medicare are both heading for insolvency in no time.

Social Security will start paying out more in benefits than it collects in taxes in 2016... yes, that's only 7 years from now and a year sooner than projected last year.  The giant trust fund will be depleted by 2037... that's before a lot of taxpayers will even be eligible for benefits.

Medicare is in an even deeper hole. The program will pay out more in benefits than it collects this year (yes 2009), just as it did for the first time in 2008. The Medicare fund will be depleted by 2017, two years earlier than the date projected last year.  That is some scary news... and the actual article below is even scarier.

Read more here.

 50 milllion retirees are receiving $250 payments from the government over the next few weeks as their share of the $787 billion package is enacted.  Let's do some quick math... 50,000,000 x $250.00 = $12,500,000,000.00.  The government is spending over $12 billion to stimulate the economy by giving retirees a lousy $250. 

Economists say the payments will help out just as the recession is showing signs of easing a little.  I'd like to know what economists are saying this... maybe Denture Cream, Model Airplanes, and Cribbage Boards see a boost, but $250 doesn't go far these days.

The $600 stimulus for the rest of America didn't work, what makes them think this will have an effect?  The checks are going to those who receive Social Security, Supplemental Security Incom, railroad retirement or veteran's disability benefits.  Maybe that $12.5 billion should just go towards Social Security!  The government know that the fund is going to run out when all the baby boomers start taking payments so why not start funding it with extra money now?

Or better yet spend it on something to actually help the economy in the long run.  We're putting a $250 band-aid on a trillion dolllar knife wound.

Read more here.

On April 27, 1937 the U.S. Social Security system made its 1st benefit payment.  This is very significant because 72 years later the system is still "working".  But watch out, the Madoff Ponzi Scheme was nothing compared to Social Security. The last payment isn't too far off... we'll just need a "bailout" to keep the largest Ponzi Scheme of all time, known as Social Security, alive.  Don't count on it.