The enduring mystery about President George W. Bush's old plan to privatize Social Security by moving contributions into individual savings accounts is how it survived two market crashes and decades of underperformance by workers' 401(k) accounts.
As has been explained by lots of luminaries, banks are not well-leveraged. For every $1000 loan they only require $100 in actual reserve.
The global Ponzi scheme started out without a track record. For all the false claims made about its viability and how it would spur financial growth in most sectors (so similar to the way that Monsanto disseminates its dangerous faux food products across the natural world while deceiving that its super-high-tech “food” will feed the hungry multitudes), the truth is now coming into clarity. With such enormous sums circulated–much of it the mother-load of hot-off-the-Q.E. presses new paper wealth–it was EASY to bribe lawmakers to look the other way or purchase enough senators and congress persons to grant an imprimatur of legality to transactions that are now past 100 trillion with the ACTUAL global economy much less than that.
In other words, not only were banks too big to fail… the entire RACKET in derivatives and swaps (and other phony financial “products”) was treated in the same way. That meant protecting MASSIVE FRAUD! And now the architects behind this financial crime against humanity are doing the great organized shakedown on Greece and Puerto Rico… and who will be next? U.S. elders?
In order for any Ponzi scheme to hold up it must constantly attract new hustled-in investors. THAT is why the Conservative sociopaths who could care less about the lives that they wreck (along with so many ecosystems) push the LIE that “private investment,” or “choice” or block grants will do more for the program than what it’s currently producing.
It’s all lies! But what matters is less the absence of truth or honest analyses and more who controls the media since through it, lies can be repeated often until they are treated as the undisputed cognitive currency of the land; and woe to any heretics who dare to speak up loudly enough to challenge these Official Narratives.
I expressed this same sentiment to my wife this past weekend. I was somewhat sorry that I had a letter in last week’s paper (only allowed one a month,) because this is just so timely. Thought it would be very effective to remind everyone - at this particular moment - just how badly those retiring or cashing in their 401k’s right now are taking it on the chin.
Yeah, let’s put all our money on the roulette wheel of the market. We know who always wins that game.
I really dislike the false puzzlement of writers like Hiltzik.
He knows very well that the predators continue to push for SS pension Enclosure because, while it would be a disaster for us, it would be WONDERFUL for them, an endless payday mandated by law!
But he embeds that simple truth in 1000 words of flapdoodle and handwaving. He might even support their succeeding, since he’d then have an endless reason to churn out more flapdoodle about Ain’t It Awful.