PONZI SCHEME. n.p. 1. Looting the Social Security Trust fund and then telling the people who paid into the fund that there is no money to pay them, and that drawing on the next generation to cover the funds which were stolen by Republican Presidents since Ronald Reagan makes it a PONZI SCHEME. 2. Archaic: Investment fraud in which returns are paid to early investors by later investors without a profit ever being made. See also: THE PAUL-RYAN-BUSH BUDGETS which turn the whole United States into a PONZI SCHEME.