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Chart Of The Day: This Is What "Generational Theft" Looks Like
Much has been said about the key aspect of the Ponzi scheme behind America's welfare state (if not enough where it matters as the three living Fed Chairmen currently joke around during the Fed's shindig on the central bank's 100th anniversary), namely that all those who have paid in money to entitlements, are entitled to benefit from entitlement distributions in the future. On paper this is absolutely correct, and in an efficient market, without capital allocation distortions this would work (ignoring that a Ponzi scheme, is, by definition, a Ponzi scheme and is reliant on ever greater inflows of money and participants or, as some may call them, suckers). More importantly, this is also fair. Sadly, as recent experiments within the Obama administration and elsewhere, most notably France, when the entire developed world has hit "peak debt" levels, the fairness doctrine no longer works, especially if and when it is enforced upon a destitute population.
Since we don't live in a paper world, one should be able to quantify the disparity between the "haves" and the "have nots" when it comes to entitlements. This is precisely what Larry Kotlikoff did in August 2013 in "How the millennial generation will pay the price of Washington's paralysis." The results, charted, show what JPM's Michael Cembalest has dubbed, accurately, "generational theft", or the difference between how much excess some Americans will have received in government benefits (the older ones), compared to how great the funding deficit is for others - mostly young Americans, those who are about to graduated from college with record amounts of student loans (on average) and those yet unborn.
Cembalest's summary:
After you graduate, the US will be in the thick of the “generational theft” issue; here’s a heads-up on what this is all about. Generational accounting is an estimate of who benefits from and who pays for government programs. As shown in the first chart, the average person in the generation that turned 65 this year received $327 thousand dollars more in lifetime government benefits than they paid in Federal taxes. On the other hand, children born in the future (e.g., yours) will have a lifetime deficit on this basis of -$421 thousand dollars. If it sounds unfair, it is.
It seems that these days few things are fair. Which is perhaps why the rulers are desperate to do everything in their power to "enforce" their idea of fairness on everyone.
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http://research.stlouisfed.org/fred2/series/BASE?cid=124
Problem, meet solution. Inflation only running at 465% for the period March 2009 to current! Just wait until QE really starts!
Problem is, as they try to inflate the mess away, they make the mess that needs to be inflated away even bigger.
Yeah, it seems like they are counting on an awful lot of coincidences to all line up and happen for QEfinity to work. Good luck with that.
Sorry, CD- they can't manipulate inflation enough to cross the T on this one. The lines are too far apart. Incomes are falling, bennies are rising (even if at an under-reported CPI rate) and the demographics are going in the wrong direction. (How many times have I said 'never underestimate demographics' on ZH!!)
Not that they don't have plenty of other reasons to under-report inflation, but it won't fix this problem. It'll be a part of the fix, no doubt. But other parts of this will need to be dealt with out in the open and it will not be pretty.
You might very well be correct......but that doesn't mean they won't try.
<If all else fails devalue the currency over the weekend.>
We just need to find the right balance of abenomics and detroit.
Not a generational issue, a societal one.
Federal Reserve, debt spending, buying votes, off-shoring manufacturing, world police - you name it.
To pit the generations against one another is just another way to avoid ending the FED, hanging the bankers, and restoring the Constitution and sanity.
Amen brother. It is all about obfuscation now. If you turned 65 this year you are likely quite screwed. The last five years your conservative investments have lost ground against inflation and the system will collapse long before you can even begin to get back what you have already paid in. I just turned 57 and will get to retire right after I stop breathing. Red vs Blue, conservative vs liberal, black vs white, christian vs muslim, etc, etc, etc. When the sheeple finally begin to suspect that their dear leaders are a bunch of self serving deceitful scum, the afore mentioned scum will point at a foreign "villian" (China for example) and loudly proclaim "it's all their fault.....they took your jobs, they took your money, they raped you dog, they called you bad names!!! Kill them!!" and the sheeple will dutifully obey. WWIII on deck.
This is the greatest crisis our nation has ever faced.
We MUST not divide, but Unite, ALL Generations.
It will take us all to make it because of the scope of the problem.
Yep, they are falling for the oldest trick in the playbook...
community organize anyone?
Not so fast ! Those turning 65 haven't collected a penny. . . yet. Unless they retired early.
Are we counting our chickens here ? Or, are you guaranteeing how much is going to be collected ?
How presumptous of you ! ---assuming this store-front of a government is going to be around to pay out
anything, once they've fleeced us all.
Grandma always said "you can't get blood out of a turnip".
Oh! but them grandparents are going to try to squeeze blood out of the jobless millienials' turnip!
I haven't seen a penny of that money.
Being 59, I must be in for a huge windfall these next few years.
Or maybe the 'gov benefits received' includes all those wars we've been fighting the last 40 years.
I'ma check the mailbox right now!
How much you wanna bet that your "reward" will be (a) pushed further out and (b) debased?
Assume the worst, hope for the best. It's what a serious financial professional or Prepper would do.
This article is one big piece of crap. Read the actual article as noted and you quickly find out one, it is written by a "non-partisan group of millenials". Really?
Two, the figures are for a 65 year old retiring today (meaning non of this money has been paid out and is dependent on full payments into the future) and the cost is for taxes that have yet to be paid in the future by the millenials.
Three, the report acts as if students paying back debt is the problem of the boomers, as if they were forced to take out student loans.
Please leave the divide and conquer rhetoric for yahoo or marketwatch.
The analysis, on which the linked pdf report is based, was written by Larry Koltikoff: hardly a millennial.
Source: Callegari, G., & Kotlikoff, L. J. (2013). Estimating the U.S. 2013 Fiscal Gap. The Can Kicks Back; http://www.thecankicksback.
org/2013_fiscal_gap
To wit:
Of course, when unhappy with the message, it is always easiest to attack the messenger.
This report, spearheaded by a non-partisan and Millennial-led organization, aims to be
a wake-up call to the country and our generation.
What's the matter Tyler, lose your reading glasses? Fail to understand the meaning of projected?
This article is rap, with a headline to create division. Your place in MSM is safe.
Right you are. I am pushing 60 years old and have been nothing but fleeced by governments my whole life. I have received nothing from goverment. Just promises like the so called milleneals who always pop up on these threads to blame me for everything governemnt has done. As far as I can see we are both in the same boat except I have paid a whole lot more. This article is another devide and conquer tactic and in my case and most others I know absolutely wrong. Who at zerohedge thought it belonged here?
"...blame me for everything governemnt has done..."
You committed them to these obligation before they were born. They never got a 'vote'. And you will never begin to 'pay-in', anywhere NEAR as much as you'll take out.
SS was started 20 years before I was born. I never got a vote either but I get your blame. And I don't think I will receive anything close to what I paid into government.
More than just millenials, try Gen-X and on down the line. Don't try that bullshit of dimissing opinions because they come from 20 year olds. 20 years ago I was being dismissed by you same fucks. Eventually this argument will be settled, WITH MATHEMATICS. At least the 20 somethings will have a chance to build a decent life when it all crashes 10 years from now and they are 35 and YOU ARE 70.
feckin' crybaby....
You and your children, your generation, will not live another 10 years. You wil have no chance to build a decent life. Enjoy your slow suffocation and starvation.
This article is rather moot.
Fleecing can take many forms.
Including Sec.8 tenants, who are enjoying state benefits while still young (in their 30s and 40s). And, interestingly enough, they still can't pay what is often a mere 10% of their portion of rent. But, I guess the 'consolation' for the rest of us is that it is cheaper than having them in jails (not stealing our flat screen TVs) or out rioting. ;-)
And, by the same token, we have the Top 2% being 'rewarded' in their own way. Thanks to CBs.
It totally reminds me of a scene I saw as a child, when a farmer was whipping the harder-working work horse than the weaker/lazy one (while hauling the loaded cart uphill). Moral: You make the most productive work the hardest.
I think that the significance of the student loan issue is this: if you are a young person, freshly out of college earning $50K, with $100K in student loan debt, the tax system treats you as much wealthier than an elderly person with $25K in income, and a million dollars worth of assets. This isn't really just student loans - my Mom thinks i'm rich, because when she was my age, my salary would have been a lot of money. She's kind of out of touch, but so are most of the elderly. And you may have noticed, that our legislators in Capitol City are mostly quite elderly, and quite out of touch.
Well, luckily soda pop still only costs a nickel, and a dime for milk...
When you took out the student loan, did you think you wouldn't have to pay it back? I could have taken out loans when I went to college, but i didn't, I didn't want the debt.
Of course 50k is treated different than 25k, that has nothing to do with your debtload, it has to due with tax tables.
The real problem is simple: you want to blame someone, well blame the real culprits, the ones that run the government: the zionist, Illuminati, masonic clusterfuk. They are celebraing there greatest tool today, the central bank. Boomers didn't create SS, FDR did, under the control of the zionists.
However, if they can contiue to get us to blame each other, we will never look at the real criminals. They run the mafia, the vatican bank, education, medicine, pharmaceutcals, media, Hollywood, chemicals and the drug trade. They create taxation to steal our labor. They militarize everthing to create debt and fear and danger. They crash airplanes in skyscrapers, assasinate with impunity and pollute our land, water and air.
Yet, you're angry over SS or student loans? Wake up!
Did we have any fucking choice? Look at the job market. Look at the price of a degree.
The significance of your example is easy to interpret, if you use the (Chris Martensen) definition of money: "the promise to do work".
In the case of the indebted/poor young, they clearly hold much more 'promise' than the old.
The debt is nothing. The control is absolutely chilling.
Everyone over the age of 40 should be rendered into oil and used to lubricate my car for what they did to us. You think those born in the 80s and 90s are the most self-absorbed generation? Puh-leeze. You all bought into Saint Raygun's outlandish MIC programs and "deficits don't matter" borrow and spend liberalism. You idiots keep Fox News in business, where they continue to relate insane hagiographies of the Reagan years. You hate gays, you follow the fake Romanized Jesus non-messiah, and have the gall to act like the problem was or could have been created in the time we made it to adulthood.
Ha ha sonny, I use YOUR money to pay for my condo in Clearwater, FL where I lounge by the pool recovering from the medical treatments that YOU paid for to keep me alive longer so I can keep living large on MORE OF YOUR MONEY!!! Ha ha!! Thanks punk ass! Give me your address and I will send you a post card. Idiot.
/sarc off
Let us know when you reach that lofty peak. You will so be whining for help when you start to drool (again)...
Punks like you are why old farts pack heat.
mispost
Get back in line, turd-factory, and pay your fair share. My viagra 'scrip ain't gonna pay for itself, now is it?
That shits free from the government now, isn't it? Along with birth control pills and rubbers?
Only for the management of pulmonary hypertension. (Cheaper than Bosentan, but seemingly not quite so effective).
Transplant might be better (but new lungs are hardly an off the shelf commodity), then there's the cost of transplant rejection management . . . .
I've been reading ZH for weeks without logging on. After laughing my ass off at the turn them into oil, I logged on. Oh and I am 40.
By the way your stereotyping solves nothing. It was stated earlier, if the system can pit generations against each other, it is quite effective and nothing will change; when you buy into us vs them you are going to lose and are feeding right into it. You are no different than grandma.
Since your gay, you can always sling your ass to banker grandpa.
No arrows from me.
I'm not gay, but I live in Santa Cruz, so I have many friends and coworkers who are. The way they get treated (cheated) by necklace-clutching middle age fundies is deplorable.
Santa Cruz?
Lotta self-absorbed types, but not many Christians or Conservatives
Take 152 over the pass into Los Banos and beyond and you might find some of them ilk in the Valley....
Founded by spanish missionaries. Populated by self-absorbed gays, go figure.
So to sum it all up...
"We think were so superior, we spit on all the rules, we wear ours scars like jewels,........ but every knows its just like a traveling show..."
Holy crap! you are a fucking nutter. You're lumping together all sorts of non-sequiturs. What kind of math are they teaching nowadays? I'm 40. I was 7 when Reagan was elected president. We couldn't vote for another 11 years. Also, last time I checked, Reagan was hated by the Liberals. you should probably look up what "Liberal" is.
Get on your prescriptions, whackadoodle, before you get a gun and terrorize some innocent people.
If you're gay, people probably don't hate you. They just think your odd, different, peculiar, abnormal, etc... that is, your behavior is aberrant, and as you are not "normal" they'll treat you with wariness. That won't change, no matter how loudly you promote your agenda.
"They" probably aren't Romanized, Jesus non-messiah followers. I assume you're implying that Jesus wasn't the messiah, and today's Christians don't know the "Truth" b/c the Romans fucked up the history? You can argue that the Romans messed it up. You can argue that he isn't the messiah. But that's moot. "They" probably worship the almighty dollar. Either way, I don't know what Christianity has to do with the gall you refer to. The article by and large attacks the current boomers. But, from your rant, you must be younger than 40. Perhaps it's something to do with your sexuality and the fact that people don't accept you screaming "gay is normal" in their face. I dunno. i'm guessing you have issues you need to resolve.
Well if your Grand Plan comes to fruition, you better be hoping that you never require any significant (i.e. non-trivial) Medical care, 'cause you've just wiped out every single one of our Consultants, Staff Specialists, Advanced Trainees, and almost all of our Senior Registrars - you know, the ones who have the knowledge based on that little thing called "experience"!
Along with all those in all the other Professions (Nursing, Pharmacy, Physiotherapy, Pathology, Diagnostic Imaging, etc., etc.) that actually know what they are doing (as against regurgitate the "recently Graduated so I know it all" dogmatism).
Just at the time when our existing pharmacotherapy strategies for infection mangement are teetering on the brink!
We're all sure you will have a great time!!
I can't help but laugh every time I hear someone from an older generation (usually a boomer) weaning off the SS/Medicare Ponzi schemes and blaming millennials for not working and being lazy/entitiled/selfish/insert something here. You know, I don't blame my fellow millennials for not wanting to work. What's the point of working when at least 50% of your wages go to funding the MIC and all the retirement Ponzis that older generations absolutely refuse to cut? It's also not taking into consideration inflation, which takes away all other money that isn't taxed. It ALSO does not take into consideration that saving actually makes you lose money thanks to ZIRP and all the money printing. I'm actually having that problem right now. I make fairly good money for my job so I have a good chunk of money to set aside for saving after rent/food/bills are paid. But there is just no incentive to save as long as ZIRP is on.
This is what happens when you constantly steal prosperity from the future to fuel "phantom" prosperity in the here and now.
That makes you laugh? AND you voted for it, twice?!?
I feel better already.
I see what you are insinuating. Your comment implies that if we all just voted for Team Red instead of Team Blue, things would be perfectly fine.
Right?
Right?!?
For the record, I did not vote for Obama either year. 2008 I wrote-in Ron Paul and 2012 I voted for Gary Johnson. I am well aware that many millennials voted for Obama, but you also can't deny the huge support younger generations have for libertarians like Ron. But it's not like it matters who you vote for. Team Blue wants to go off the cliff at 100 miles per hour and Team Red just wants to go 60 miles per hour off the cliff (but still off the cliff). The county was done for well before Obama became president. He's simply accelerating the collapse that already was coming.
Well-said. Get yourself a passport (or two!) and open some overseas accounts in viable destinations, like New Zealand, Singapore & Switzerland. When the time is right, ex-patriate!
My GF and I might become expats. It has crossed my mind at least once or twice. The problem is that the state is making it harder and more expensive to renounce your citizenship.
Well, I'm a boomer and when I sit around and yak with my old boomer friends, nobody is blaming the yutes for not working or whatever, it's much more a headshaking sympathy and wondering wtf went wrong and wtf happens next. We know the situation. Did "we" do it? Not me or my buddies, we're still in the workforce, after a fashion, and not at all happy with what WE are going through either.
Maybe a lot of this was just going to happen, one way or another, globalization, rich economies becoming wasteful because they can, and every now and then we're going to elect a real loser, or two in a row, or three, and nobody guaranteed this democracy thing was really going to work out long-term anyway.
'will have received'...I point out that the key word is 'will'...This assumes that those age 65, who I point out have actually already paid in, will get what they paid in for. Those who are younger and who the article correctly stated have not yet paid in, will, if things keep going as they are going...will be screwed.
I would argue that those at greatest rick of getting screwed are those who have already paid in. That is the group that will suffer the most....because the system will collapse long before they ever get their average 300k and change federal largess.
Younger folks will also loose but at least when the system goes down they will not have paid in a lifetime of taxes and they will have the chance to do thing in a different way.
It is always the elderly and those on fixed incomes who suffer. The government knows very well who it can force to bear the burden of it's greed.
Bingo. That is the article that should be on zerohedge. How everyone around retirement age will never get what they paid into government.
Master Plan of the Master Class:
We can not be blamed for deteriorating conditions. This would be deleterious to our control. Divide and keep conquered. We can't blame the Jews. Tried that, didn't work very well.
Order of blame:
1) immigrant workers
2) uppity women
3) bloodsucking Boomer generation
4) "entitled" lazy youth
If things get worse, then we should expand list.
5) the obese
Is this why "serious" people keep pushing back the retirement age? So that I can pay in even longer and get even less back out? Instead of, oh I don't know, perhaps reducing what the current lot of entitled takers are taking?
Theft, in fact generational theft, is a concept that the bankers have invented; this from JP Morgan. The idea is to take from each succeeding generation large percentages of their income; from retirees now and from the millenials when they get to retirement. This is the real Ponzi scheme: government promises are made to gain political support and when the people are herded into the box canyon the Paul Ryans are there for the harvest.
And the Bob Rubins – the benefactors of massive taxpayer bailouts – continue to design their models for stealing from the people.
The solution to all of this has been clear from the beginning: Let people keep their own money and stop with the false promises that government never intended to keep; decentralize the government, eliminate the Federal income tax and take the power away from Bob Rubin.
And get this, “Swindled” reports that “millennials are already overburdened with average student loan debts in 2011 reaching $27,000 and effective unemployment of 16.1 percent, numbers that far exceed those of previous generations..”
And just who created this burden? Hint, the banks, and now they want their money. And who has it -- the Social Security recipients.
Decentralization is such a quaint concept. It's a tragedy that this is the opposite direction from where the world is currently heading.
"Their money" ?
Lol.
Generation
Debt ...
Yeah, "their money."
As Lawrence A. Hunter wrote in January on Forbes.com, it’s time Congress paid back what it looted.
Says Hunter:
“For more than a quarter century after the 1983 amendments to Social Security, the federal government collected more in Social Security payroll taxes each year than it paid out in benefits. Those surplus revenues were supposed to be saved, but instead Congress spent every last dime of them and replaced the excess payroll tax revenue it looted from the Social Security Trust Fund with I.O.U.s written to itself. At the end of 2010 the federal government owed the Trust Fund $2.61 trillion.”
Hunter, an economist and president of The Alliance for Retirement Prosperity began with others a campaign in the late 1980s called Stop the Raid on Social Security when he left the Reagan White House. He concludes his excellent article:
“It is time Congress paid restitution for the trillions of dollars it has looted from the Trust Fund. That means it is time Congress stopped spending on special interests to buy votes and redirected that special interest spending to redeeming Trust Fund I.O.U.s to make good on our promises to seniors. It is time for Congress to reverse the raid and restore trust to the Trust Fund by replenishing it with real dollars recovered from cutting other spending, not by borrowing from the public, cutting benefits or raising taxes.”
http://www.forbes.com/2011/01/21/social-security-trust-fund-retirement-opinions-contributors-lawrence-hunter.html
If this bull shit is true then future generations owe me a shit load because I don't see it. More crap from the whiners. KMA, wingers.
from -- Social Security Now Takes More Than it Gives : Social Security has reached another critical threshold: For the first time, a typical husband and wife retiring today can expect to collect less in benefits than it paid in payroll tax over the course of their life by Dan Kadlec @dankadlec Aug. 07, 2012, TIME Business and MoneyRead more: Social Security Benefits Less Than What Workers Put In | TIME.com http://business.time.com/2012/08/07/social-security-now-takes-more-than-it-gives/#ixzz2nhhDYZM7
Sure they received $327 thousand dollars more in lifetime government benefits than they paid in Federal taxes - but how much did they pay in and what is the inflation adjusted value of what they paid into it? I don't think all the info is presented to enable an analysis.
Enough of this unborn, next generation will pay for our sins crap. This bill will be payed by 95% of the people alive today. It is not going to sit there as status quo for another whole generation. The shit is going to hit the fan in the next 5 years. ALL americans will be paying much more for less very soon.
Already are......it's called property taxes
This is bogus.
For what it's worth, the only thing I blame on the boomers is the fact that they have supported these kleptocratic "social" "insurance" programs time and time again. Y'all had 40 years to tear this government-mandated crap up, and you refused / "failed" to do so.
So the only solution left for those of us who are trapped in the system YOU SUPPORTED is to aggressively minimize our tax profile, and work to build a better life in another less insane country.
Which I'm planning on doing, myself.
Sic em tiger, let me know how many scalps you take..
Some birth year is going to draw the short straw.
1962. 1965. 1972. 1976. 1981 ??????
It's not generational theft
Don't group me into a block of people who are getting more than they paid for besed on their socio economic status, and then blame the entire generation.
We keep falling for the same trick. We let others define the groups, so that they can pit one against the other.
We are individuals.
Demand to be treated as such.
I think people are confusing "individual" with "generational". The individual lives within the generation. As an individual they may have been absolutely responsible for themselves and their offspring. However, as a generation, the Boomers really fucked the next three generations. The government they "voted" for assumed all power, and rejected all responsibility. They gave you all their promises paid on the next three generations credit cards. Responsibility means paying one's own way. that's the real travesty here. Morality is dead. It's every man for himself, even it means screwing his children and grand children.
I'm a boomer. I have voted in every election. I have never supported the shit going on today. The first Presidential election I voted in was Reagan versus Carter.
So are you going to say I am at fault for voting Reagan INSTEAD of Carter? Bullshit.
These damn candidates are chosen before half the states even vote in their primaries. The system is rigged.
Not falling for that bullshit, buddy, so don't blame my generation. It was the generations before us that started social security, started welfare, and placed people in the courts that supported the transfer of funds. There were never enough baby boomers able to vote to stop this at any time. In fact, it has never been able the boomers, it's about the asswipes in Congress that were elected to do A and then do B instead.
Who are you going to blame that voted for Paul Ryan now that he has flipped on the budget? Those that voted for him and had no reason ever to think he would roll over?
The ball that got this shit started was in the 1910s, 1920s & 1930s, not the 1960's or 1970's. The sytem is fucked. It has been fucked. And it will be you, the indivudual that gets it in the end.
This shit would not even have a chance of happening if it was not for the Federal Reserve's Power.
Put the blame where it belongs:
Those that violated the Constitution, and those that were in a position to do something about it, and did nothing.
Not some arbitrarily defined group.
All this doesn't matter. They are doing it because they know it'll all be different when those generations come to pay. The only thing that matters now is keeping the musical chairs moving until positioned right - ofcouse only they know what right is.
It ain't all bad. At least my parents and grandparents did not have to live with me, and they received good medical care. For me, not so much.
"a Ponzi scheme, is, by definition, a Ponzi scheme and is reliant on ever greater inflows of money and ..."
And resources
No a real problem for any of us ... print, print, print will cover all the SS checks. Maybe they won't buy so much, but at least we are all in the same sinking boat
the russians are still getting their pensions. probably doesn't buy much now.
As a smal business owner of an S-Corp I have paid 10's of millions in taxes and will be lucky to collect any SS.
You know the left just wants us to 'embrace the suck'
A Ponzi has two hands; the right to rob you and the left to suck dry the dregs.
Narrow passage life; watch out for the sirens.
The historic outcome for generational debt theft has always been the collapse of the currency in which that debt was created. Unfortunately, this also means destruction of most of the assets that were accumulated in that currency. There are only two real cures for this type of economic re-set: a depression in which asset prices fall back significantly, or a currency collapse which re-values the old debt at a fraction of the 'new' currency. Given that Congress and the Fed seem reluctant to let the natural process of a depression hit the US, the only outcome that will happen is the currency collapse. We will see a Federal Reserve Note be replaced by a new 'Obama Buck' - but you will need 100 $1 bills to get one Obama Buck. This eliminates 99% of the debt without any defaults! The only people that will come out ahead are people with some type of skill that will be of use in the new society - and a skill that will require people to pay in Obama Bucks. Of course, stackers will also come out ahead, just as they have during 5 centuries of currency collapse.
Life sucks, get a fucking helmet.
-D. Leary
What else would you expect from the steal, rape, and bomb mob in Washington?
Does this equation factor in the benefits received being in a currency devalued by the ravages of inflation? I'm not on the boomers side, but it would seem if the dollar's value held and market interest was paid the numbers would be much closer. Of course boomers did vote in the assholes who created the inflation in the first place...
The intergenerational theft claim is a fallacy. Those debts will not be repaid by future generations. They are paid by current savers, who in the main are older, and who are continuously ripped off by the government through inflation, interest rate repression and taxation.
The debts, whether bonds, SS contributions, etc involve someone today surrendering money that entails a legitimate command on current real goods and services which are instead consumed today by the government and its beneficiaries. Those who surrendered this command on goods and services will never receive an equivalent return from government, just ashes.
Future generations will either default or repay in such a massively devalued currency that the real repayment is at best fractions of a cent on the dollar.
Default or repay in devalued currency sounds so simple.
The side effects are complete loss of faith in government and money, huge loss of GDP, war, crime, extreme cynicism, and a complete social do-over as we meet on the other side of the event.
USA defaulting or devaluing like Greece? Along with Japan? We will be lucky if we only have a greater depression.
Fuck you for even thinking that is such a neat idea. It will happen, but it wont be easy street
How did you deduce from what I wrote that I think default and devaluation are "a neat idea"? I stated what was happening, I did not commend it and I don't.
The US has been devaluing its currency since the foundation of the Fed. The Fed has picked up the pace during the last decade (despite the bs inflation figures published by the government). During that period the Fed has engaged in massive interest rate repression. Those are simply reality and reporting on them is not an endorsement.
Incidentally, Greece is not "devaluing". It is locked into the euro, which is a substantial part of what is destroying the country (beyond the rapacity of its political class and corruption of anyone who has anything to do with government there).
Yeah, that's Bernanke's "Miracle of the Fed", a large part of the bonus is ripped off from rich old savers.
But the real problem is that so far it's all been Ponzi in the black, and starting yesterday (or so) from now on it will be Ponzi in the red, insofar as we're even dreaming of keeping the accounts separate, since it ain't coming out of Algore's lockbox or Obama's stash. From now on the Ponzi scheme is paid off out of general funds, which looks like it's going to be out of field marshall Bernanke's presses.
And even that might be more or less OK, except for ZIRP that is yet another taxation on conservative old folks, now forced to put money into equities (or gold or bitcoins hahaha) in the hope it will at least be somewhat preserved.
Until, of course, all savings are confiscated by the Hillary regime to balance the budget and bail out the IMF and bankrupt countries around the world.
Damn you to hell, old farts.
Ignorance of math and actuarially sustainable finance was never a good excuse for your crime.
He he but as a doctor I fed well in that pig trough with you.
See you in hell, selfish pigs.
2033 posting by some yet unborn blogger.
.."Damn you to hell,Carl Popper.
Ignorance of math and actuarially sustainable finance was never a good excuse for your crime.
He he but as a doctor I fed well in that pig trough with you.
See you in hell, selfish pigs".
-what's good for the goose, will be good for the Popper-
(class warfare never takes a day off)
Here's a serious question I've never gotten a straight answer on.
This debt is due over the next 40-50 years to people who will retire some day, or who are expected to claim disability, or who are out of a job, etc. If we were going to pay this we would need to put away about $7 trillion each year or $1.08 million per tax payer.
Seems like a lot, right? However, I'm not clear from the article, but it appears they're saying all of the money must be paid in equal amounts ever single year.
That is a mistake. Inflation makes payments "bigger" over time. And it's not just this article; Other articles I've seen make the same mistake.
Couples planning for retirement often make the same mistake. They do the right thing by calculating how much money they will need during retirement, based on inflation. Let's say it's two-and-a-half million dollars, which is a typical number I've heard. They do this: "I've got 30 years to retirement, to save 2.5 million dollars. Let's see... $2,500,000 divided by 30 equals... EIGHTY-THREE THOUSAND DOLLARS PER YEAR??? I can't afford to save that!!!"
Where they went wrong was they forgot to also inflate their salary every year. Right now they earn $96,000 but at retirement they'll be making $234,000. Thus in the early years they don't need to save as much.
So I'm still confused whether this is a serious problem or an optical illusion. Does anyone know the composition of the unfunded liabilities? What must be paid when? Is it 2 billion next year, 4 billion by 2020, 8 billion by 2030, etc.? It makes the difference between panic and pbbbt.
Stealing from the unborn because the living are quite happy to spend it and won't stop them.
This is taxation without representation. Pure and simple.
Why is it that we are always hearing about SS running out of money, but never hear about welfare running out of money?
Because SS was long represented as a self funded insurance system. Welfare was not, it was always seen as pure looting (for the common good, of course).
As always, the "generational theft" measured in economic terms is relatively trivial compared to the "generational theft" measured in ecological terms. They share the same driving mechanisms, namely the successful application of the methods of organized crime to control the government. However, the "generational theft" measured in economic terms operates within taking for granted the established frame of reference of fundamentally fraudulent accounting systems, whereas the "generational theft" measured in ecological terms is still mostly outside of the socially established frame of reference.
To restate what should be obvious, but certainly is not to the majority of people:
“The very idea of a government that can create money for itself allowing private banks to create money that the government then borrows and pays interest on is so preposterous that it staggers the imagination.”
--- William F. Hixson, It’s Your Money
The FACT that the established system mandates that runaway triumphant fraud is the leading symbolic expression of the overall way that Neolithic Civilization is able to function as a social pyramid system, based on lies backed by violence, which requires that most people maintain an attitude of deliberate ignorance towards the FACTS. Therefore, it is not merely that making money out of nothing, as debts, by private banks, is social insanity, which is the main motor driving the accounting systems to create "generational theft." That is only the tip of the iceberg when it comes to the effects of the degradation of the natural world, which are orders of magnitude worse than the merely economic effects of various social polarizations, between the young and the old, or even more so, between the already dead, and not yet born.
TO REPEAT: The FACT that our society DOES operate a fundamentally fraudulent financial accounting system does not merely drive social polarization, it also drives destruction of the natural world. Both are on exponential growth curves, getting worse, faster. However, the destruction of the natural world is many orders of magnitude BIGGER, particularly because it is deliberately ignored by the currently established economic systems.
THAT Is What "Generational Theft" Looks Like ... Young people grow up in a world where more species have gone extinct than ever before in human history, and at a faster rate than any time before in evolution, other than when cosmic megadisasters happened. In fact, the real dimensions of the on-going "Generational Theft" are bigger now than anything else that can be compared, except cosmic megadisasters causing mass extinctions, during relatively rare episodes in the distant past.
Organizing our whole civilization through fraudulent financial accounting systems, which require people to ignore the laws of nature and common sense, in order to become "successful" operating within those systems, is not merely driving more and more extreme social polarization, but is also driving more and more extreme destruction of the natural world. The most extreme form of "Generational Theft" is to steal the future. FRAUD IS SYMBOLIC ROBBERY, AND THE MOST EXTREME FORM OF ROBBERY IS MURDER, WHICH TAKES ANOTHER'S LIFE BY FORCE. What the runaway successes of our fraudulent accounting systems are preparing are conditions which will result in the mass murder of future generations.
Really. I used to enjoy riding my bicycle on the hottest days so I could really sweat out the whiskey. I ignored a "code red ozone day warning" (or whatever they call it) 20 years ago. My throat burned like hell and then itched for a week. So I moved away from town.
I have enjoyed a good slab of tuna, now I can't, and I can't move away from that. WTF!
(sigh....)
Someone ask those dreadlock muthafokker's slouching down the skreet, treating the whole world like a trash can, if I can take a long lunch hour tomorrow.
Grow a set of balls and take your lunch anywhere you want. Aquescience is becoming a big problem in maintaining freedom.
Should I thank you for the advice........or not?
Hey kids!
Remember the karate classes, swimming classes, dance classes, recitals, play dates, gymnastic lessons, skating lessons, etc., etc., etc.?
Well, it's payback time.
We geezers will be living off your taxes for another 30 years.
pit the plebeians against themselves, i always say!
The Guy has a point, and he has a story;And let me say that the money is gone stolen if you like and we all got a piece of it. Yes people are seeking self-interest and thats the way its suppose to be. Pensions are part of the stolen merchandise, you see the govt and all that they serve (and I don't mean just the employees) but business and political interest, like political campaigns, what did Obama blow on the trail 1.5 billion. Govt was allowed to do what I can't which is not pay the pensions. The pension that I pay, for someone else was part of the bargain. They have exactly what was contracted and more. We are a nation of laws both codified and unwritten and it seems to me that you meet the contract and or we fight. The fight is not with all americans, it is rather with whom the contract was made. Don't get sucked into good guy bad guy shit or I am more productive than everyone else shit, lets face it only you know your burden, people have enough of their own without listening to yours. All contracts are fullfilled or at the very least you welched, now that is the piece of shit I want by the neck; And they are not teachers or cops. they may be different from you but they are as much of the backbone as anybody else,
You sheeple that believe this article, keep on keeping on, it's unsupported bs put out by Jorge Soros. A lot of us older generation, believing the .01% were not lying when their lips were moving, still payed our taxes, worked, and learned how to get by on pennies, learned gardening, hunting, fishing, roughing it without ac and electricity, basic waste removal and why. In other words, we will survive the reset longer than the whiny butts that haven't been learning.
We either all pay or you risk something no one will want. It seems to me there is logic to all that is happening in markets, that is Guns&Gold, I like the gold part honestly, the gun part would be a weird and unpredictable shitshow, bloody too, bullets go both ways. Gold needed this bear and its history making, we could go to 1000 again, I hope not cause this is been a very long run for me, Gold will GoGo, because they need many boatfulls of fiat to not get Hung or should I say Shot. They will devalue,monitize, call it what you want, yes we will pay the pensions with devalued Fiat.
"Which is perhaps why the rulers are desperate to do everything in their power to 'enforce' their idea of fairness on everyone."
Hiding virtuous blurbs after the damage (of a disingenuous? and shallow article) is done is not the way to go.
There can come a point where click$ and honesty converge, ya know...
Most people over 65 have been paying into medicaire and social security their whole lives. The theft was by their parents and grandparents.
Just because someone stole from you, doesn't mean you have a right to steal from someone else. They claim most child abusers were abused in childhood. So I guess their crimes don't really count, right?
Oh well, the ship is going down anyway. Until then, "embrace the suck"!!
By 2023, with smart phones and smart meters, there is going to be so much cancer and so much hormonal disease that this problem will hardly see the light of day.
Plus, there won't be enough honey bees. Between cell towers and GMO pesticides, we can expect true food shortages due to the massive die off of honey bees that is ALREADY at crisis levels. The problem is not being addressed, so it marches forward like an Abram tank up against kids with sticks.
Worry about food because there won't be enough to go around. What food there is available will carry Fuk nuke taint.
The future will not need us anymore
Why the future doesn't need us
http://www.wired.com/wired/archive/8.04/joy.html
So all about the family , kids etc will be irrelavant.
Then kill 'em! Isn't that what this is leading up to?
fucking nazis.
.....the real truth is this is more proof the government dosen't belong in our lives ....taking from peter ,giving to paul and mary taxing everybody over and over again ...what a game !
http://globaleconomicanalysis.blogspot.no/2013/12/congress-base-pay-1740...
I've paid my whole life into SSI and have not received one dime out of it yet because I'm 60. Now I'm a potential leach because I expect to get something out of all that I poured in?
Yes. I don't know about your system, but what really fucking kills me about it in here is people who voluntarilty pay into the public pension system (enterpreneurs and other people who aren't automagically contributing) because they want to make sure they get their piece of the pie. People who could be investing in productive things instead of support greek levels of pension spending. These people really, really, REALLY deserve to get fucked.
You people are lost in delusion. There is a reason pretty much every "republic/democracy" begins by limiting suffrage to property-owning males (because they are the ones who are actually invested in the country). There is also a reason why the ballot used to not be "secret", that is, you couldn't exercise political power in anonimity.
The real theft is not really "generational" as much as it is "genderational". Read that again, in case you missed it. Women hold the power in democratic societies. They are the majority of voters and they pretty much control how a lot of men vote as well. They also as a group, contribute far less to that society (even less in the west, where they don't even have children). I live in a country with "free healthcare". Go to any public hospital and you will see what that really means: free healthcare for women.
And no, this has nothing to do with "evil bankers". It is pure biology. Women are wired to view men as slaves. Men are wired to view each other as competitors with the approval of women as the prize. That inevitably results in men setting up systems to enslave other men in order to gain the admiration of women. Look at Sparta. Look at any society, period. If you do not understand how gender dynamics impact on politics, you are operating under a fairy-tale version of reality. Stop describing being abused by the state as being ass raped. No, you are being cuckolded. Yea, yea, blame your grandfather. Don't blame the pretty little princess that wants you to get on your knees with an offering of precious metals and beg her to accept you as her very own private slave.
Don't expect the system to be reformed. The only "hope" is for men that have sense of libertarian principles to take over a viable country, reform the legal structure to keep women from gaining power and be really fucking hardcore about defending the new structure, allow free immigration and then watch all the men flee from the Matriarchies, at which point, watch also all the entitled-princesses turned whores flood into the country as their feminist utopias collapse.
One of the major reasons China is booming is because of Mao's baby boom, which shifted demographics massively to young men. This is also the reason China is going to start undergoing collapse. Stop treating all human beings as equals. A 30 year old female is NOT equivalent to a 30 year old male.
We are undergoing a civilizational shift on account of the changes in human sexuality. I don't mean human sexual fetishes, I mean the actual act of reproduction and how it impacts on those sexual fetishes and society in general. The availability of cheap and effective birth control AND extremelly reliable paternity testing. You see people on TV talking about how important the "right" to "gay marriage" is. Anyone defending gay marriage is an ignorant retard. Anyone opposing it on the grounds that marriage is somehow "sacred" is a retarded ignoramus. Marriage is not a "right", it is a contractual obligation that arises from the biological reality of pregnancy. Now that all pregnancies are essentially chosen and paternity is knowable, marriage is obsolete. Our culture and political systems have not yet adapted to the technological realities of human sexuality.
One should compute the disparity in "Purchasing Power of the dollars paid-in at the time of payment to the time of reception years later. There is some equivalency !!