Replies to post #326676 on CMKM Diamonds Inc. (fka CMKX)

[fung_derf]

I would beg to differ. What would you term a chain letter? Ponzi scheme or pyramid scheme?
Social security is short (or may be short) because money was being moved from there, to pay off other benefits. Not because there aren't enough new investors. The population of baby boomers is vast, and all are paying into social security. It will survive by raising the age before people can qualify for it. The problem is also that people are living too long today. (which probably has the easiest fix of all).
I think, based on your definition, all insurance companies run Ponzi schemes as well.

[SoxFan]

Actually SS has a 2.5 Trillion dollar surplus and has been running a surplus every year in it's existence. Ponzi schemes don't by their very nature. Also SS can pay out 100% of their benefits until 2037 if nothing is done and then 80% of benefits thereafter. When Raygun and O'Neil fixed SS they set the end of deductions at 90% of payroll and now it's at 106K. If we set it at 90% it would be at 180K and SS would have to do nothing forever. Or SS could increase by $.40 per week to every member (of which 1/2 would be employer paid) and it would also solve it.

This year because Republicans preferred to have tax breaks for the rich Obama decided to reduce the SS contributions and this will be the first time SS will be in the red. Even their interest payments will not cover the payouts. Of course by reducing payments in he then reduces payouts down the line.