Good news Comrades, our national Ponzi Scheme will increase payouts by 3.5% next year

Great news Geezers! Your governmental wealth transfer payments will go up next year by an average of 3.5 percent. It's your first increase in 3 years!

And to almost no one's surprise, the Keynesians are trumpeting the benefits of additional "stimulus."

Mark Zandi, chief economist at Moody's Analytics, said the COLA would give a boost to consumer spending next year, amounting to about $25 billion in government support, or 0.2 percent more economic growth, if beneficiaries spend it all.

Don't you dare put that money in your mattress!

Twenty five billion doesn't sound like much when we're talking about the trillions in debt racked up by President Zero. But it's $25 billion more that we have to confiscate from productive members of our society, or borrow from the Chinese. Rob Peter to pay Paul, or borrow from Peter to pay Paul. Either way it's not "new" money. So that whole stimulus thing is bogus, and you know it.

The game is rigged too.

All the reward with none of the risk! Don't you wish your 401(k) worked like that? I don't know about you but these days my 401(k) is more like a 201(k). Where's those Class Warfare dudes when you need 'em?

Now the cynic in me says President Madoff rigged the inflation numbers to buy votes. He certainly isn't counting on Pay As You Go seeing as how he's advocating yet another annual payroll tax holiday, which buys votes too.

Let's see, less income and more outgo. Yup, this Ponzi Scheme is unsustainable, but that's par for the course in an election year.

UPDATE 19 Oct 2011 12:08:
The official increase was just announced, it clocks in at 3.6%.

Posted at 08:03 by Chris Wysocki   [/economy]   Comments | Perm Link |
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