When is a Ponzi scheme “not” a Ponzi scheme? When the government runs it.

The first wave of baby boomers turned 65 on 1/1/11, making them eligible for Medicare, joining their parents, aunts and uncles and other relatives in one of the greatest Ponzi schemes created by any government.  Instead of acknowledging that it is running a Ponzi scheme that is trillions of dollars in the hole, the federal government’s propaganda continues to extol the virtues of a government health insurance program that kicks in for its citizens when they turn 65 years old.

The U.S. Constitution does not authorize the federal government to be involved in medical care or any health issues.  The constitution is silent on the matter, which means it is up to the states or individuals to deal with health care issues.  But in our post-constitutional country, the federal government can create virtually any program it wants even though the Supreme Court is supposed to strike down laws that are inconsistent with the constitution.  In short, the SCOTUS has failed to protect the American people’s liberties.

According to news reports, new members of Congress will read the U.S. Constitution on the floor of the House of Representatives the day they are sworn in or soon thereafter.   After the reading, members of Congress should debate the role of the federal government, and point out that the financial time bomb that is ticking is called Medicare and Social Security, other entitlements and the military-industrial complex.

The honorable thing for the new Congress to do is not to “tweak” Medicare or any other program, but to begin to make America a nation where financial independence is the dominant philosophy.  That means politicians are “out of the picture,” because the federal government will have to shrink substantially.  No more earmarks, no more pork barrel projects, no more multi-trillion dollar federal budgets to perpetuate the welfare-warfare state.

Getting the likes of Senator Chuck Schumer and his ilk in the Senate or his colleague in the House Anthony Weiner away from a television camera pontificating about the need for big government will be no mean feat.  It also means that free people will organize their lives around the freedom principle.  People must save for their needs at various stages of life.  This is a fundamental personal finance principle.  And the less fortunate among us will have to rely on their communities–efficient and well run nonprofit organizations–to lend them a helping hand.

We must end once-and-for- all the Marxist idea, “From each according to his abilities to each according to his needs.”  That is the issue we face as we enter 2011, when baby boomers accelerate the financial downfall of Medicare.

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