America’s Ponzi Economy

[“‘A Corporate Goldmine’: Joe Biden's Medicare Privatization Scheme.”]

By Eahilf
Tuesday, February 22, 2022 at 7:28:00 P.M. EST

I’m sure they are very busy in Wash DC trying to find ways to save the USD – because the rest of the world is no doubt fed up with America abusing its political and military hegemony to create and spend as much money as desired, without a shred of fiscal discipline – China and interested partners could deal the US a death blow financially by coming up with an accepted international instrument to replace the USD.

Budget analysts were already projecting grave problems financing Social Security and Medicare for retiring boomers before the era of massive deficits started after the 2008/9 financial crisis – COVID spending has only exacerbated the deficit and debt problem.

I think the first thing that soured me on the federal government was the realization that the so-called Social Security “Trust Fund” was a total fraud – during the decades when they collected more FICA tax than was paid out in SS and Medicare benefits, they simply spent the excess contributions and replaced that money with treasury debt, as if the Social Security Administration had loaned the money to the federal government – of course, any interest on those bonds comes from taxpayers (or via issuing more debt), so all SS and Medicare benefit payments must be 100% covered by current revenue (taxes) or issuance of yet more debt – there is no “fund” to draw on – it’s an accounting fraud.

Financing of the entire federal government is a gigantic Ponzi scheme driven by fiat money, made possible by US political and military hegemony.