The debate last night showed who is the true frontrunner, Romney and his opponent from this point on will be Perry….all the others are just for color for the media…….

The media is all  fired up over a statement that Mr. Personality made in his debate premier…….and by now everyone knows that perry thinks Social Security is a Ponzi Scheme…..that it is illegal……..but the frontrunner may have crapped in his chili by sticking to this tag line he has been using since his book was published…..first of all most Americans think of Madoff when they hear the term and that is what Perry wants……voters to be afraid….yes, Irene that is the fear card we are always hearing about……

But what is a Ponzi Scheme….beyond good old Bernie?

A Ponzi scheme is a type of investment fraud that promises investors exorbitant interest if they loan their money.  As more investors participate, the money contributed by later investors is paid to the initial investors, purportedly as the promised interest on their loans.   A Ponzi scheme works in its initial stages but inevitably collapses as more investors participate.

A Ponzi scheme is a variation of illegal pyramid sales schemes. In a pyramid sales plan, a person pays a fee to become a distributor.   Once the person becomes a distributor, he receives commissions not only for the products he sells but also for products sold by individuals that he brings into the business.   These new distributors are beneath the person who brought them into the pyramid scheme, so they are “under the pyramid.”   In illegal pyramid schemes, only the people at the top of the pyramid make substantial money because they get a commission from the products sold by everyone below them.   As more people become distributors, the persons lower in the pyramid have less chance to make money.

I can see why Perry could think this….but then I would be assuming that he is capable of rational thought…..this is NOT an original thought by Perry….he got the idea from a Reagan adviser adviser Laurence Kotlikoff, who back about 2 years ago was pushing the absurd idea that SS was a Ponzi Scheme….so all Perry is doing is mimicking the words of someone else, kinda like a parrot…..it fits well in his gruff style…..

The crapping part is his idea to do away with the illegal scheme….now how will that play in Florida or Arizona, or where ever there is a large retired population?  His statement will come back and bite him continuously in the butt…..his opponents have a weapon, a powerful weapon and they will use it!

Now I will wait to see if he wimps out and tries to walk his statement back….if he is a true believer then he will stick by it….but if he is just a politician he will try and wiggle out of his faux pas…….what do you think?