Guest Post: Playing Financial Chicken In Your Golden Years

Tyler Durden's picture




 

Via Monty Pelerin's World blog,

My generation, born during or near post World War II, has been quite fortunate. Those of us lucky to have been born in the US during this period hit a sweet spot of both place and history. The economy thrived, standards of living soared and many avoided the numerous wars that dominated the Twentieth Century.

Today, the future does not look so bright. Economies are stagnant, standards of living are declining and the threats of war increase. Younger generations will have more difficult lives than my generation.

Life has its own ways of ensuring that TANSTAAFL (“There ain’t no such thing as a free lunch”) is enforced. My twilight years now present major challenges. The rise of big government has changed  retirement prospects in ways that few imagined. Many are still oblivious to what is coming and its implications on lifestyles, wealth and security. Those who believed they were financially secure are correctly revisiting this assumption.

The underlying premise of Trading To Armageddon  is that an economic and market debacle is unavoidable and likely to occur within the next several years. The timing of this event is impossible to predict. There are numerous potential triggers, some outside our borders. The crisis could happen as soon as this week, or it could take years to appear.

What Happened?

john_maynard_keynes

Intervention, stimulus and liquidity propped up the US economy and markets beyond levels that are sustainable. Like policies have been used in other developed economies.

For the last half-century government has pretended that it can manage an economy. Any slowdown brings the same reflex-action – expand liquidity and increase government spending. This response, according to Austrian Economics, is the source of the boom-bust cycle that now characterizes modern economies.

Decades of Keynesian interventions to prevent the business cycle have succeeded in weakening economies around the world. Each intervention was an attempt to prevent distortions to prices and asset allocations from correcting. In the attempt to prevent the corrections, government action added more imbalances. Today, most developed economies are filled with distortions and unable to operate efficiently, grow or create wealth.

The political interventions have reached their limits, at least in terms of covering up economic weakness. Trillions of dollars have been thrown at the current economic downturn over the last five years. There has been no recovery, nor will there be until economies purge themselves of the distortions. Cosmetics no longer work. The world does not have enough lipstick to cover this economic pig.

What Will Happen?

Governments of the world will continue to try to hide the damage. While this action may buy more time for the political class, it will do so at the cost of making the economic correction worse. The tipping point that ensures another Great Depression has been passed. Continued interventions will only make matters worse. Economies, governments and perhaps societies are likely to fail if political meddling continues.

Our “Wizard of Oz” government has no intention of admitting their mistakes.They will continue to pretend that they are “fixing” matters as they pour more poison into the veins of economic activity. Whether they stop willingly or they are stopped by a market collapse, a Great Depression will ensue.

What About Investing?

Investing, at least as we knew it, is dead! It died when markets became dominated by political rather than economic events. Investing principles that worked for most of the last 150 years are irrelevant in today’s politicized world. Who, for example, still believes that a “buy and hold” strategy is viable? It is still sold by hucksters. The surest way to make a million dollars in this stock market is to invest $3 million using a “buy and hold” strategy.

Traditional investors should not be in these markets. If they must, they should not behave as traditional investors.

Change Your Outlook on Investing

Most of what we learned about investing should be forgotten, at least until governments, society and markets return to honesty. If that occurs, it will be a multi generational process, As a result, no one alive today should consider himself an investor.

Don’t confuse Warren Buffet and his ilk with investors. They may have been at one time, but are no longer. They are political operators who utilize politics and connections to their personal advantage. Unless you are very big, well-connected and willing to pay to play, you cannot play in their league. If you fit the aforementioned categories, you already have forgotten about investing and are playing a more sordid but profitable game.

So what is the little guy to do? Either get out of markets or trade in a way that you protect yourself against the coming debacle.

Why Not Just Get Out Of Markets?

Getting out of markets is an option, although probably not a very good one. Government dishonesty, particularly with respect to currency, is an important reason why. As governments continue to throw liquidity into the system, two effects occur:

  • The money must go somewhere and will drive up prices.
  • The value of the currency declines.

Recently, money has been going into financial assets. Government is driving up the price of bonds keeping interest rates down. That forces yield-starved investors further out the risk curve and into stocks. Financial assets have been affected more than consumer prices at this point (particularly if you believe government CPI statistics).

Not being in the stock market today subjects you to a potential double-whammy — the opportunity cost of missing a run-up in financial assets and the loss of purchasing power from holding cash or near-cash. If you believe that inflation will become a major issue (and it is hard not to when the Federal Reserve has quadrupled its balance sheet and continues its expansion), then holding cash is the equivalent to deciding to become poorer.

A Gigantic Game of Financial Chicken

Investors, whether they know it or not, have been forced into a gigantic game of financial chicken. For those unfamiliar with this terminology, Wikipedia offers this explanation: :

The name “chicken” has its origins in a game in which two drivers drive towards each other on a collision course: one must swerve, or both may die in the crash, but if one driver swerves and the other does not, the one who swerved will be called a “chicken,” meaning a coward; this terminology is most prevalent in political science and economics. The name “Hawk-Dove” refers to a situation in which there is a competition for a shared resource and the contestants can choose either conciliation or conflict; this terminology is most commonly used in biology andevolutionary game theory. From a game-theoretic point of view, “chicken” and “hawk-dove” are identical; the different names stem from parallel development of the basic principles in different research areas.The game has also been used to describe the mutual assured destruction ofnuclear warfare, especially the sort of brinkmanship involved in the Cuban Missile Crisis.

The analogy is imperfect in the sense that the opponent (the market) is not an acting being whose well-being is jeopardized by its actions or inactions.

We are all forced to play this game whether we consider ourselves investors or not. Staying in markets is taking risk, but so too is leaving markets. If a person believes that liquidity will continue to drive up financial assets (until it no longer does) and drive down the purchasing power of money, then his biggest payoff is to remain in markets up to the point of collapse. Leaving too early is costly, and leaving too late could be even costlier.

No one should be forced to play this game. Retirees and near-retirees especially should be living off the income from a life of savings, not playing chicken to survive. Unfortunately, the government policy of financial repression (low interest rates) forces them into such a situation. The further policy of counterfeiting money makes the situation even more difficult.

Whether individuals abandon markets or stay in them, they are playing with fire whether they realize it or not. 

Which Position is Riskier?

Assessing risk is always subjective. Expectations regarding inflation, market upside, market downside and adjustment speed(s) should guide your course of action. The following comments provide an idea of how these considerations affect decisions:

  • If you believe that future inflation will not be serious, then you should only be concerned about the opportunity cost of missing a rise in financial assets. If you could be assured that your funds would hold their purchasing power, you might be inclined to leave markets early, preserving your purchasing power rather than trying to grow it and risk major loss.
  • If you believe that inflation will be severe, you should be inclined to stay in markets longer than otherwise.
  • If you believe that markets have much further to rise as a result of liquidity, then the opportunity cost of getting out is greater and you should stay in longer.
  • If you believe the market collapse will not be that severe (say 25 – 30%), you will stay in longer than if you expect a drop of 50+%.
  • If you believe the market drop will be gradual rather than rapid, then you likely will stay in longer and truncate your positions when the pain becomes too great.

In an honest world (where currency had integrity), I would be out of markets. But that is not the world we must deal with. As the great economist Frank Knight once observed:

We have to adapt and overcome, that’s all we can do. 

In Knight’s sense, we are mere pawns in some greater game. We must play the hand we are dealt.

The fact that currency is being depreciated around the world has implications that should not be ignored. The risk of high inflation, perhaps hyperinflation, can destroy anyone on fixed income or who stands pat believing his savings is enough.

At the same time, the potential for an economic apocalypse has never seemed greater. There have already been two 50% drops in stock market averages in the first decade of this century.

Because I believe that high inflation and a market collapse are real possibilities, I (and millions of others who believe similarly) am forced into playing the wildly dangerous game of financial chicken. When we should be enjoying our retirement and grandchildren, government has forced us to take risks that even wild teenagers likely would avoid.

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Sun, 03/03/2013 - 19:28 | 3296154 I think I need ...
I think I need to buy a gun's picture

everyone gets one total and complete wipeout, ours is here very soon you don't get a perfect 80 years in any one lifetime,,,,,,,,

Sun, 03/03/2013 - 20:30 | 3296306 Thomas
Thomas's picture

It's like careening down a curvy mountain road with no brakes. Every curve gives way to yet another, more treacherous, curve. Eventually, you mess up and meet your maker. This is very similar to running a business in a hyperinflationary environment, in which decisions accelerate like a life and death game of whack-a-mole. Eventually, you make a bad call and, again, meet your maker. One more metaphor? Investing is like playing Tetris.

Sun, 03/03/2013 - 21:16 | 3296393 Town Crier
Town Crier's picture

I had not realized that the criminal elite has succeeded in getting its victims to fight among ourselves (young people vs. boomers).

Sun, 03/03/2013 - 23:19 | 3296740 Notarocketscientist
Notarocketscientist's picture

As I have pointed out on NUMEROUS OCCASIONS to the DONKEYS who think owning GUNS AND AMMOS is going to somehow protect them when the shit hits the fan, they will NOT.

Why?

Because the stupid donkeys will be herded by the elites who will dive them up into the really dumb donkeys (the vast majority) who will then identify those who are not donkeys and who are fighting for what is right - and the donkeys will set upon them and waste them with their GUNS and AMMO.

If you think this time will be different then you are ignoring history.  The elites generally win

Sun, 03/03/2013 - 21:25 | 3296431 OutLookingIn
OutLookingIn's picture

Similee: Using 'like' or 'as' in discriptive form.

Metaphor: Not using 'like' or 'as' in discriptive form.

Sun, 03/03/2013 - 22:44 | 3296653 Richard Head
Richard Head's picture

Only one "e" in simile, cocksucker.

Sun, 03/03/2013 - 23:09 | 3296712 philipat
philipat's picture

When all Fiat currencies play the "Race to Debase", they don't actually devalue against eachother. All the major CB's have learned the game. So if they are not devaluing against other Fiat, you say, well against commodities and prescious metals? No, the CB's have that covered also. In the face of QEInfinity, PM's are declining.

Instead, IMHO default and/or a systemic collapse of some sort is inevitable. Perhaps you should factor that in also...

Sun, 03/03/2013 - 23:39 | 3296794 Thomas
Thomas's picture

Actually, that was a good catch on simile vs metaphor. When I reread it I caught it but it was too late to edit. It's like I am simile challenged.

Sun, 03/03/2013 - 23:06 | 3296706 Notarocketscientist
Notarocketscientist's picture

Sounds exciting!!!

Could this involve a sexy 18 yr old nymph somehow? 

Sun, 03/03/2013 - 20:45 | 3296332 A Lunatic
A Lunatic's picture

I've had three. I think I'll try to sit this one out.......

Sun, 03/03/2013 - 21:20 | 3296413 OutLookingIn
OutLookingIn's picture

T.. T.. Talkin bout my guh... guh... generation.

Sun, 03/03/2013 - 22:38 | 3296636 Never One Roach
Never One Roach's picture

Unhappy with your 0.01% "high yield returns?"

 

What ungrateful wretches!

Sun, 03/03/2013 - 19:29 | 3296156 suckerfishzilla
suckerfishzilla's picture

I'm clucking on the sidelines of the markets with PM's. 

Sun, 03/03/2013 - 23:05 | 3296702 Notarocketscientist
Notarocketscientist's picture

I have lots of PM in the bank vault as well but let's get real - if it comes to that (it will) - you'll want to wipe that smug look off your face.   Doesn't matter how much PM you have because the world around you will be chaos.   And all PM will give you is something to eat while the rest are eating dog food.

Not much solace in that

Mon, 03/04/2013 - 02:44 | 3297059 Vlad Tepid
Vlad Tepid's picture

A bank vault??  Bwahahahaha!!

Tue, 03/05/2013 - 16:54 | 3302090 suckerfishzilla
suckerfishzilla's picture

You should buy some pecans, dehydrated mangos and cherries to go along with that dog food. 

Sun, 03/03/2013 - 19:33 | 3296159 Race Car Driver
Race Car Driver's picture

> When we should be enjoying our retirement and grandchildren, government has forced us to take risks that even wild teenagers likely would avoid.

 

Yeah - gee... that's too fucking bad. Mbbe you old fucks should have done something about the problem, oh, you know, way the fuck back then.

GFY.

Sun, 03/03/2013 - 19:39 | 3296176 Race Car Driver
Race Car Driver's picture

Heh - anonymous downrates. Chicken-hearted scumbags.

Sun, 03/03/2013 - 19:47 | 3296194 nmewn
nmewn's picture

You don't like anonymous voting? ;-)

Sun, 03/03/2013 - 19:48 | 3296197 GMadScientist
GMadScientist's picture

Maybe if they knew someone was watching, they'd take the act more seriously?

Sun, 03/03/2013 - 20:14 | 3296255 nmewn
nmewn's picture

The act of voting or why didn't "the old fucks" do something about it? Which brings the corresponding question...what are the young fucks doing about it today?

We both know very few of the "old fucks" who went through college econ came out versed in "alternative economics", Hazlitt, Hayek, Mises. It was Keynes all day, everyday, with a sprinkling of distorted Friedman for "corroboration" of Keynes. With that, full faith & credit that the money labored for, would always be sound for future generations to come.

Some very bright people were sucked in by the not so bright teachers but its somehow, the "sucked in's fault".

Sun, 03/03/2013 - 21:50 | 3296495 Diogenes
Diogenes's picture

Do something? Do what? Some of us boomers saw this coming years ago. We tried to warn you. We tried voting for cutting spending, balancing the budget. Nothing worked. Governments do whatever the hell they like and sell the public a load of bullshit.

By the way, most of us so called boomers bear NO resemblance to the media's representation and never did. We did not go to Ivy League schools, we weren't Yuppies, we never owned a BMW or a pair of Berkenstocks. We worked, paid our bills, saved what we could, believed the big banks and government, invested our savings conventionally, and look what it got us.

Now the same crooks who hosed us are working on you. They want us at each others throats. Divide and conquer. If they can get you to throw us under the bus, guess what they have in mind for you.

Sun, 03/03/2013 - 22:05 | 3296543 nufio
nufio's picture

its not really a point of anyone doing anything. if everyone maintained the lifestyle in the 30s there would have been no problem. the problem is expecting to maintain the lifestyle of excess of today. To do that americans have to be 30 times as productive as someone in a developing nation with a poorer exchange rate to buy the same goods/resources from the global market. The declining standard of living in the west is just the rest of the world catching up and there being a fairer distribution of resources for labour hour. There is no escaping the declining standard of living in the future of the west. I dont see it as good or bad, just thats the way it is. The excess was possible not really because of American exceptionalism as a lot of americans like to believe but just a side effect of the reserve status of the dollar and the natural resources around the world controlled by the US.

Sun, 03/03/2013 - 23:02 | 3296695 Notarocketscientist
Notarocketscientist's picture

I call BULLSHIT.  Ya a few people lived responsible lives.  But the rest of you took the bit of the PR machine and tried to live large.

Don't agree?

When did the term Keeping up with the Jones get it's start?

Sun, 03/03/2013 - 23:53 | 3296831 GMadScientist
GMadScientist's picture

I believe the "young fucks" are intent on occupation or something or other (but not so much on obtaining an occupation).

Mon, 03/04/2013 - 06:12 | 3297191 rich_wicks
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what are the young fucks doing about it today?

Golly.  I'm from generation X.

Well, we did basically create the internet as you know it today.  We've exposed the media for what it is, a bunch of lying scumbags to anybody that wants to bother to spend 5 MINUTES to find out.  Julian Assange is one of us oh but he's a TERROWIST, right?  Exposing the endemic corruption of our government is apparently a terrorist act.

I highly doubt that the person running this site is a boomer.  If it is a boomer, that's a big surprise to me.  More likely Generation X or Y.

The first poster is right.  Fuck the boomers.  This is a generation that railed against the government in the earluy 1970s and then TOTALLY sold out, and now run the government.

We have a government that spies on it's citizens, that sends the nation into insolvency, that entirely runs the media.  Who runs the government today?  Boomers.  Who runs the "establishment" media today?  Boomers.  Who wants that "National Health Care" now that they need it but passed up on it in the 1970s when NIXON was proposing it?  Boomers.

They are, by far, the most hypocritical cowardly generation this nation has ever seen, and I have absolutely no sympathy for any of them.  Nixon was thrown out of office for lying about a buglary.  Obama is murdering people with drones, signs kill lists, is in court RIGHT NOW trying get the authorization to kill anybody without charge or trial, and is handing over trillions of dollars to insolvent financial institutions that should be bankrupt and using our tax money to do all of this.

What's the boomers response to all this?  Outrage?  Indignation?  Calls for impeachment?

No, it's "gee, I hope this fucking mess we made and are running stays together for another 20 years so I can die - fuck everybody else".

This isn't the "elites" pitting one generation against another.  It's one generation that preached to no trust anybody over 30, that once preached "give peace a chance", then later preached "greed is good", that later said "nuke the Arabs" and now they are saying fuck everybody - do whatever it takes to keep this fucking mess running for just a while longer, as I'm still alive, and force everybody else to pay for my extravagant, vain, selfish, lifestyle.

They pit themselves against everybody else and did that all their lives.  Well they are getting old and frail now and they are worried about their comeuppance I would imagine.  Don't trust anybody over 30?  I have a better suggestion, don't trust a boomer.

What have they accomplished as a generation?  The generation before them sent a man to the moon.  My generation basically created the Internet.  Y is further developing it.  It was boomers that have done the least, and gotten the most reward.  It's goign to collapse the second they retire, because Y and X cannot pay for them.  Even if they wanted to they can't, and the boomers have nobody to blame but themselves.

If you graduated from college in 1971 with a basket weaving degree, you could take a year off to travel Europe and be assured to get a good job when you got back to the US.  Today, people leave college with $60,000 in debt to find all the jobs are outsourced, thanks for government programs, boomers have erected in the last 10 years.

Nobody owes them anything.

Mon, 03/04/2013 - 06:38 | 3297207 Pool Shark
Pool Shark's picture

 

 

And you put the Debt Brother back in office...

http://www.pewresearch.org/2008/11/13/young-voters-in-the-2008-election/

"66% of those under age 30 voted for Barack Obama making the disparity between young voters and other age groups larger than in any presidential election since exit polling began in 1972."

Why didn't you vote for Ron Paul?

Mon, 03/04/2013 - 06:59 | 3297221 rich_wicks
rich_wicks's picture

I gave Ron Paul the Federal Maximum in 2007 as a campaign contribution.

That was the last chance assuming 2004 wasn't.

There is no difference between Obama and Romney other than the smoke they blow up your ass.  They had all the same policies, unless gay marriage is an issue you feel REALLY passionately about.

https://www.youtube.com/watch?v=sZLqsRqKFyI

Obama continued all the policies of Bush.  Every one.  Guantanamo, warrantless wiretapping, the wars, torture, bailouts.

Mon, 03/04/2013 - 07:23 | 3297233 Pool Shark
Pool Shark's picture

 

 

I'm not blaming you for voting for Obama, I'm blaming your generation (not that Romney would have been much better).

As a group, how could Gen X'rs believe Obama was the best choice to solve our fiscal mess; especially given his track record over the last four years?

btw, Obama won the youth vote by an even bigger margin in 2012 than he did in 2008:

http://www.politico.com/news/stories/1112/83510.html

 

Mon, 03/04/2013 - 07:40 | 3297257 rich_wicks
rich_wicks's picture

Who knows who won?  Diebold is in place.

When's the last time you knew anybody that got called on a poll?  Hey, isn't it interesting that Paul got these huge crowds and still barely register in the polls?

Well, youhad Ben Swann doing some work, but he was the only one.  The rest of the media was claiming that somehow Ron Paul supporters were crashing the polling software everywhere.

And don't forget who runs the media today.  It's not generation X or Y...

http://www.politico.com/news/stories/1112/83510.html

Yeah that shitty media.

You know, the same media that said Hussein had weapons of mass destruction and was working with binLaden, then didnt think there was any story in finding out how they ended up repeating those two "minor" "errors".

 

Mon, 03/04/2013 - 07:34 | 3297249 nmewn
nmewn's picture

X's & Y's exposed the Fourth Estate (the media) for what it is?...lol.

Son let me tell you something, long before you were even a gleam in your daddy's eye, Boomers of the center & right have been railing of the duplicity of these carpet bagging SOB's. Everything on that front was started by us and will be carried on by you.

But I will give you this...

"This is a generation that railed against the government in the earluy 1970s and then TOTALLY sold out, and now run the government."

...is an absolutely true statement.

I feel nothing but shame that it was my generation who said always question authority, never trust them, who then became the authorities and continued to grow authority to the point where you do not and will not know the simple freedoms we once had.

What you need to understand...and I believe you do...is it is human nature to choose the easiest path in life and the elite class (authority) understands this well. It's much easier (from a political standpoint) to promise the masses candy instead a harsh tonic for a malady.

So when they come to you offering this babble & that...ask them what will we give up for this? When they say nothing, you will know they are lying to you.

There is no such thing as a free lunch, someone always pays with something...either time, labor or money.

Mon, 03/04/2013 - 07:43 | 3297261 rich_wicks
rich_wicks's picture

Let me sum this up real quick.

What I don't like about your generation is that your stated principles have nothing to do with your practices.

It was a generation with no principles.

There is no such thing as a free lunch,

My point is, it was free for the boomers.  The silent generation, and now X and Y are paying for them.  Your generation has done completely away with the constitution in an attempt to do this for another 20 years at which time it will be time for me to retire, but I'll probably be dead by then.

Mon, 03/04/2013 - 08:02 | 3297280 nmewn
nmewn's picture

"What I don't like about your generation is that your stated principles have nothing to do with your practices."

You're painting with a pretty broad brush there my man. Where do you find I ever asked anyone for anything? Everything I have, I worked for, saved for and built with my own two hands or paid someone else to do. I can use a hammer, a saw, a tape...I know the principles of electricity and plumbing and mechanics...you can't do any of that with your precious internet.

Your problem is with the socialism/fascism of the nanny-state, not with ALL boomers.

Now I leave you to wallow in your misery...some of us have to actually work around here ;-)

Mon, 03/04/2013 - 08:34 | 3297310 rich_wicks
rich_wicks's picture

"Where do you find I ever asked anyone for anything?"

I'm not talking about you personally, I'm talking about your generation in general.

And in general, they demand an awful lot.  They demand from other generations things they weren't willing to do themselves.

National Health Care was being pushed through under Nixon in the 1970s.  Where did that go?  Well, it didn't suit the boomers at the time, they were young.  Vietnam War?  That was wrong because of the Gulf of Tonkin Lie, that Mike Gravel read into the record to inform all of you about it in 1971.

It's a generation that spread STDs and lived on the dole their younger years.  They dismantled the infrastructure in search for higher profits through the 1970s and 1980s.  They threw both Generation X and Y into war in the Middle East over OBVIOUS lies, not once, but TWICE.

Now they "deserve" their Social Security, Socialized Health Care is essential - you don't need the Constitution anymore, so who cares about it?  Disgrunted X and Y'ers?  Put them in free speech zones.  Internet rabble causing too much trouble?  Regulate it with SOPA.

I'm no uneducated fool about your generation or mine or what is going on.  I understand how lazy your generation is and self serving.  That's not to implicate you pesonally, but your generation as a whole, is despicable and I'll be happy when they are dead.  You generation has destroyed this country and continues to do it.

When the Savings and Loan Scandal broke out, heads rolled.  Now, that can't happen, might effect the value of your homes negatively...  That's your nest egg.

I'm not saying our generation would be different given the same leverage in the political system, I'm just saying my generation IS different, and I'm glad I'm not part of the slime mold that was the hippies.  All their stated values, all their stated principles - they had none.  Everything they preached, was just bullshit.

"Everything I have, I worked for, saved for and built with my own two hands or paid someone else to do. I can use a hammer, a saw, a tape"

Good for you.  In 1960, my father built is house.  Today, he wouldn't be allowed because of regulations.  Might effect some union jobs and allowing people to do their own construction and get rid of all this onerous permitting processes, well, it might drive home prices down...

Everything I have I didn't have to pay for, I paid TWICE what you did for it.

"I know the principles of electricity and plumbing and mechanics...you can't do any of that with your precious internet."

In the 1990s, in college, I was at a party with a group of other engineers and we were discussing the very early internet.  One guy said that it was going to obliterate every culture.  I was shocked and said as much.  He then told me "you don't understand, if we all have the same culture, what would we have to fight about?"

His misundestanding was that we fight over culture, and you probably still think we do, what we really go to war over, is to steal shit.

As a graduation present I was given a gift of the Washington Report on Middle Eastern Affairs from my aunt.  It is a magazine published by a bunch of old school civil servants that worked in the Middle East telling you completely different things than our media did then and still does today.  It changed my view of the media but it established my belief that the Internet could be used to overthrow propaganda.

My misunderstanding was how lazy your generation would be about the gift we gave you.  You don't make any use of it.

For example, undoubtedly you've heard about all the rockets the Palestinians fire into Israel.  Guess how many people have been killed by them?  I'll give you a hint, you're 4 times more likely to be killed by a lightning strike, than you would be of being killed by a rocket fired from the Palestinians which are homemade, 99% of the time have no warhead at all, and are just a pathetic show of resistance.

You can easily verify that information, but here's the rub - you won't.

 

Your generation is too useless to try to save. Your parents could teach you nothing, and your children can teach you nothing.  Your generation is still the giant screaming child wanting everything, having no sense of responsibility, and still absolutely certain you're right in everything about everything.  Your generation cannot be educated, it cannot be made to reason.

Of course, with a FEW exceptions.

Mon, 03/04/2013 - 19:42 | 3299303 nmewn
nmewn's picture

Just be careful you know in advance who those "few exceptions" are before you meet them in person...some of these "old men" don't like to be fucked with and have experienced more in their long lives (both good & bad) than you will ever know...they wouldn't think twice about it...believe me.

"You don't get to be old bein no fool." -Richard Pryor

You need to learn to manage your anger & hatred, it shows weakness of character...if you're not careful with it, it'll eat you up from the inside out long before you can make any use of it.

Good luck young man...and lighten up...

http://www.youtube.com/watch?v=xN32qNJnppQ&list=AL94UKMTqg-9BXj4jzSE6pePdXEVSwxmEB

Sun, 03/03/2013 - 19:50 | 3296200 agent default
agent default's picture

Jackass

Sun, 03/03/2013 - 20:08 | 3296241 Awakened Sheeple
Awakened Sheeple's picture

Maybe he could be a bit more tactful. But as a 30 something pissed about my future and scared for my children's, I share his bitterness toward the boomers.

Sun, 03/03/2013 - 20:19 | 3296277 Midas
Midas's picture

I'm in the same boat as you, but I try to treat each boomer as an individual.  I used to wonder how the previous generations could let things get so bad, but look at the incredible bullshit that has gone on in the last ten years.  What have I done to stop it?  What could I have done?  Voting for Ron Paul just didn't get it done.

Sun, 03/03/2013 - 21:26 | 3296432 new game
new game's picture

news flash from boomer; it aint no bowl of cherries out there.

 

Mon, 03/04/2013 - 06:52 | 3297217 Pool Shark
Pool Shark's picture

 

 

A simple timeline for those with short memories:

1913: Federal Reserve created; 16th Amendment ratified (Income Tax)

1930's: FDR's New Deal programs; Social Security (beginning of 'entitlements')

1961: Ike's "Military industrial complex" warning (Cold War spending in full swing)

1964: Johnson declares "War on Poverty"; spends accordingly

1971: Bretton Woods system ended; fiat currency now reigns

(Note: all this was done before any significant number of "boomers" were born or eligible to vote.)

"We didn't start the fire..."

 

Mon, 03/04/2013 - 09:51 | 3297444 FEDbuster
FEDbuster's picture

The medicare and social security eligibility age should have been raised about one year every 10-15 years since inception (to correspond with longevity rates).  Instead of 65 for SS and Medicare, it should be 70 right now.  That would have solved the fiscal issues.  Not only was it set up as a Ponzi vs. a savings account, it was never indexed to life expectancy rates.  Current health insurance policies have lifetime caps, so should Medicare (say $500K?) that would end all this final year of life needless spending.  If you can afford to be kept alive that extra couple of months, then spend your life savings to buy the time don't stick the next generation with the bill.

Mon, 03/04/2013 - 02:54 | 3297065 Vlad Tepid
Vlad Tepid's picture

Good point.  As a thirty something meself, I spend most of my life watching my parents (boomers in general) working their asses off to give their kids the best life possible.  Lying cheating swine hadn't bilked their parents so how were they really to know that the whole economic system was a vampiric Truman Show with them as the patsy on everything from S&L, NAFTA, DotCom, Housing Bubble, bailouts?  You just do an honest days work and put money away in the bank, right?  Now that they know, they're ruined.  Their entire life is ruined.  My dad was the hardest damn worker I've ever seen in my life, and honorable too.  Now he and my mom are literally homeless, and he's working part time in a grocery store.  Should have been the twilight years....now just a Twilight Zone.

Sun, 03/03/2013 - 20:38 | 3296323 lasvegaspersona
lasvegaspersona's picture

As a boomer all I can say is that I woke up about the same time as most others here. For me it was April 2010. Why the fuck would anyone pay attention to all the political crap and the economy if they believed all the shit we were being fed was true...which I guess I did.

Most of us figured that Soc Sec and Medicare 'kinda' fucked up but never guessed they were complete Ponzis. 

Really, if it weren't for the Crash would you be paying attention to the actions of the Fed? Until 2010 I did not even understand fractional reserve banking...and why should i have?...you use the bank for banking...it seems to work...why should I have questioned it deeper? IT SEEMED TO BE WORKING AND MOST OF US WERE BUSY WORKING OUR OWN JOBS!!

Now I spend 4 hours a day trying to figure out when the whole thing is coming down. NOW it all seems like the most important time and thing in history.

Sun, 03/03/2013 - 23:00 | 3296688 Notarocketscientist
Notarocketscientist's picture

Ha ha ha .... you are still deep asleep buddy if you think socialized medical care is the problem.  In fact you are evidence that there is some albeit minimal, brain activity occuring in a person in a coma

Now go git your guns and ammo and your little sack of silver coins and wait down in the cellar till it's all over.

No go - git yourself down there asap. 

Mon, 03/04/2013 - 01:38 | 3296995 Freddie
Freddie's picture

It took you until 2010?  LOL!  maybe you would have at leats got a hint in 2008. But you are sheep boomer who probably watches TV and Hollywood's shit which enables your serfdom.  Keep watching sheep.  The old people are so dfamn stupid along with the youngsters who watch this media shit and enable it with their viewership. Keep wtahcing TV and Hollywood dumb ass.

Mon, 03/04/2013 - 06:24 | 3297200 rich_wicks
rich_wicks's picture

"As a boomer all I can say is that I woke up about the same time as most others here. For me it was April 2010."

Gee, when weapons of mass destruction didn't show up in Iraq, and it turned out binLaden wasn't at all connected with Hussein, that didn't tip you off?

When Scott Ritter, the former UN weapons inspector of Iraq, the former marine, and life long Republican told you that Bush was LYING, that didn't tip you off?  He was doing that in 2001.

When the People for the New American Century published a report saying we needed another Pearl Harbor BEFORE 9/11, that didn't tip you off?

 

The problem with the boomer generation is that you've been on autopilot all your stupid lives.  Anybody with any sense knew it by 2004.  It took you an additional 6 years.

You know why we fucking made the Internet?  So this shit wouldn't happen.  We made it possible for you to know ANYTHING.  That was a waste of my carreer.  I never knew how dumb people actually are, and they are dumb because they are lazy, not because they have any sort of defect.  You were too busy watching television to bother to do any research that has been made available to you for a decade.  Easier to listen to tee-vee, isn't it?

Mon, 03/04/2013 - 05:45 | 3297178 Dugald
Dugald's picture

Maybe he could be a bit more tactful. But as a 30 something pissed about my future and scared for my children's, I share his bitterness toward the boomers.

ASK NOT FOR WHOM THE BELL TOLLS....... 
Sun, 03/03/2013 - 19:53 | 3296207 stacking12321
stacking12321's picture

sometimes stupidity isn't worth responding to.

also, it's ironic the cowardice you show, blaming other people for the world's problems, instead of taking responsibility.

especially so, given the writing of mr. pelerin, it's clear he's not the problem and sees the situation clearly.

and what have YOU done to fix the financial mess, and end the dishonesty / ponzi scheme?

Sun, 03/03/2013 - 19:54 | 3296210 Mike in GA
Mike in GA's picture

I gladly downrated you on your first asinine comment and vehemently on your second.  I only wish I could vote you off the screen - your contribution is so immature I don't even want to be in the same playground as you.

Good luck, Mr. Race Car Driver, on you and your generation's attempt to fix what ails your life.  I had no part in it any more than the spoke of a wheel can change direction of your tricycle.

Thanks for nothing, asshole.

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