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Guest Post: A Former Marine's Outlook On Inflation, Life Expectancy, And Future Returns
Submitted by Hedgeless Horseman
A Former Marine's Outlook On Inflation, Life Expectancy, And Future Returns
The details of the federal employees' pension system are not something that interests me, nor do I understand exactly how the US Treasury is borrowing money from it, and with little or no mention of it in the press. Thanks to Zero Hedge, at least I do understand why the US government is forced to borrow money from its own employees, as both the monetary and political reasons have been covered on this site extensively.
Recently, I have been thinking about a former marine I know that recently "retired" from the federal government after a couple of decades as an US postal inspector. During his entire career in government service, he carried a weapon, and spent most of his time conducting narcotics investigations. He has photos of himself beside giant mountains of cash and drugs that he had seized on raids.
Several months ago, before he retired, he shared a little bit about his financial situation; specifically that he has several hundred thousand dollars in a federal retirement account invested in U.S. treasuries. He said it was essentially all that he and his wife had saved, and that he knew it was not going to be enough for him to truly retire, especially because they still have kids to put through college. However, he said that if he went to Afghanistan for one year as a security contractor, then he could make enough money so that he would not have to work doing landscaping for the rest of his life, which is what he saw as his second option.
Being a bit of an instigator, I asked this ex-marine/postal worker what his assumptions were regarding inflation, his life expectancy, and future returns. He stared at me silently for an uncomfortably long time. Please understand me when I say that this is not the type of man anyone would ever really want to piss off. Think more R. Lee "Gunny" Ermey and less Cliff Claven. I then realized that I should be more careful what I say, or risk being the messenger that is shot delivering bad news.
His response, when it finally came, surprised me. He said, "I don't trust the government." He then went on to explain that although he and his buddies were just a bunch of government hacks that had put in their time, they did risk their lives on a regular basis. For that, the primary reward they were all promised, and did expect, was a federal pension. We talked a little about the idea of his pension being denominated in US dollars, and the history of the US dollar's purchasing power, but it was an uncomfortable conversation for both of us, so we moved on to other topics.
A couple of months later I learned from the man's family that he had in fact deployed to Afghanistan. I do not know what he is doing there, but I expect it is dangerous. What I wonder is this. Does this man know that the government is paying him (albeit indirectly through Xe or the like) combat pay by borrowing from his own retirement...the very same retirement fund with a NPV sufficiently small to cause this man to leave his own kids to fight other men's' kids half way around the world? Does he realize that because it enables the Federal Reserve's QE and ZIRP policies, the government is responsible for the inflation and low treasury yields that will likely make it so that even with a year's worth of combat pay this man will very likely still end up mowing bankers' lawns for the rest of his life? If he does not know this, now, I most certainly do not want to be the one to tell him.
He said, "I don't trust the government."
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Towards the end of the Roman Empire, the military essentially controlled who would be emperor. The title usually went to whomever promised them the most money. Of coarse there wasn't as much money to go around, so the emperors resorted to inflating the currency. It was a cycle that lasted for quite awhile before the empire just imploded. I agree with Armstrong that the coming conflicts will be between the public sector, looking to get everything they have been promised, and the dwindling productive private sector that is no longer willing or able to keep the ponzi going. It's really already happening. Take a look at Wisconsin as a perfect example of what happens when attempts are made to reign in the public sector. There is little political will to do the things that need to be done to curtail public sector excesses, so here we are trapped in a Marxist death spiral.
I know quite a few military, as customers. It is a bit surprising how willing they are to talk about things like government out of control, constitution not being followed. They don't like Obama, they hate him.
Yeah, they talk the talk ! They are of the "Government Caste" ! The gold in the Rocky Mts. is for them first ! Well, our gold is for them first ! There are generational clans of governments workers spread throughout the land, in touch electronically, getting more of their kids and in-laws in on the suck ! Just like members of the Communist Party in the Soviet era ! When a citizen wants to know just how much they make and benefits and privileges they receive, the Freedom of Information Act doesn't exist !They get THEIR privacy protected ! You are just a whistle blowing terrorist like Sonny Bono and Mark Haines ! Maybe when the fiat bubble bursts some of the honest ones will start writing some books on just how pervasive and insidious the "Government Caste" system is ! Yes, many of these double dippers are lining their nests with golden feathers you paid for ! There is your greed ! Entrenched, self serving, nepotistic greed of the "Government Caste" ! Monedas 2011
The government knows he does not trust them via wiretapping, spying, etc.
He's a paid killer and a thief or confiscator proudly posing for heaps of stolen property. He believed all the lies his bosses told him about the value of his work for society so far, why would he stop believing now? He is a believer in things for which there is no evidence (killing for money is bad, unless you do it in uniform for what you boss calls 'the common good'. Stealing is bad unless you do it in uniform). Now we are many body bags further, the drug wars show no end like prohibition with tens of thousands of deaths. They can no longer stop because they need the money. Wars are raging all over the planet, but they need the fear in people to sell their weapon systems.
And now they steal his retirement money for the common good. Why would he stop believing?
No mystery here, he's a psychopath. Of course he knows -- he explained the self-destruction to you and then made the case that he was compelled to be the tapeworm.
Having done some professional lawn-mowing as a youth and a bit of shooting over the years I think lawn-mowing is a bit quieter as an occupation and therefor preferable. However when one adds to shooting the possibility of being shot at I reckon the lawn-mowing wins hands-down (I've never been shot at, but have had a rifle and a light machine gun pointed in my direction on separate occasions and the feeling is quite uncomfortable, so I figure that being shot at would be more uncomfortable).
If the gentleman is handy with a pistol and mows a few banksters lawns it is quite possible he could also do a bit of well paid security work in the Land of the (not so) Free - he might even find a kind bankster who pays in gold.
In fact, the USA military spending is very small historically right now, even with 2-3 wars.
http://www.americanthinker.com/2011/05/the_budget_how_we_got_here.html
So that can not be in the military the savings should be searched for, but in government and entitlements.
Yeah, when it's time for confiscation, let the members of the "Government Caste Clan" open their homes and cellars first to set a good example of civic responsibility ! Geraldo Rivera will MC the searches ! Hahahaha ! Monedas 2011 http://trololololololololololo.com/
...just had the same conversation inside the Beltway, rattled off some numbers and was told by the government employee, that was going to stay at their post longer because of the pension, they did not want to talk with me anymore because ''that's not what NPR said''.
Providing labor is evil at this point, this dipshit reconfirmed that reality. It's amazing, ''we had to destroy the village, in order to save it'' really does make perfect sense now, and it's real easy to do, just stand fast and do no harm.
http://www.youtube.com/watch?v=2VcS1Gky2Kw
Before the insane juggernaut goes over the cliff, maybe the military will stage a benign coup, oust the banksters, restore constitutional rights, re-set the imperial agenda to republic, and...
Can a frog become a tadpole, a pickle a cucumber? Well, it could happen. A kid can dream...