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The Coming Global Generational Adjustment

Tyler Durden's picture




 

Submitted by Charles Hugh-Smith of OfTwoMinds blog,

All sorts of promises, explicit and implicit, were issued to win votes. All the promises are now empty, and we might as deal with this reality head-on.

Here's what often happens when people start discussing Baby Boomers, Gen-X and Gen-Y online: rash generalizations are freely flung, everyone gets offended and nothing remotely productive results from the generational melee.

These sorts of angry, accusatory generalizations reflect what I call the Generational Monster Id (GMI), the urge to list faults in generations other than our own.

I think the source of generational angst and anger is the threat that the entitlements promised by the developed-world governments will not be delivered as promised.

These entitlements range from healthcare to education to old-age pensions to "a good paying job now that I have a college degree."

The bottom line is that the promises cannot and will not be kept. The promises were issued in an era of cheap, abundant fossil fuels and favorable demographics: the next generation was considerably larger and more productive (due to more education, longer working lives, etc.) than the previous generation it would support through old age with taxes.

In that bygone era, there were as many as 16 workers for every retiree. Even 4 workers for every retiree is a sustainable level if energy remains cheap and full-time jobs remain plentiful.

But the global reality is the Baby Boom generation is so large that it dwarfs the younger generations. Regardless of any other conditions, this reality negates all the promises issued to retirees: as the ratio of workers paying substantial taxes on their full-time earnings to retirees slips below two workers to one retiree, there is no way the workers can support the lavish costs of healthcare and old age pensions without becoming impoverished themselves.

This is already a reality. As I have noted in this week's series, there are 118 million full-time jobs in the U.S. and 57 million people drawing benefits from Social Security, and a similar number drawing Medicare and Medicaid benefits. As Boomers retire en masse in the decade ahead and full-time employment stagnates or declines, the ratio will slip to 1.5-to-1 or even lower.

Many low-birth-rate European nations are facing worker-retiree ratios of 1-to-1. This is simply not sustainable.

The prospects of the younger generations are much poorer than those enjoyed by their elders.

Adding to the unsustainability of the promises blithely issued to gain political approval, energy is no longer cheap.That means income that 30 years ago was available for taxes or discretionary consumer spending now goes to pay for energy. In effect, higher energy costs are a tax that does not support retirees or the government. The workers paying the energy tax are poorer, but the retiring generation is not wealthier as a result.

The Status Quo has compensated for this higher cost basis by lowering interest rates. The basic idea is that if wage-earners and companies pay less interest, then that leaves more for them to spend on taxes and consumption.

But lowering interest rates and making credit freely available--the basic strategies of central banks around the globe--have triggered structurally destructive consequences. These policies inflated credit bubbles that jacked up the value of assets such as houses, rendering them unaffordable to younger people, and they distorted the mechanics of the real economy, widening wealth and income disparity and creating systemic mal-investments that have led to a destabilizing dependence on zero-interest rates and credit/asset bubbles.

One way to understand this is: you can't fool Mother Nature. You can print enough money and issue enough credit to create the illusion of solvency and sound collateral, but these claims come crashing down once you try to sell the overpriced assets en masse.

The unlimited printing of money and issuance of credit also has global unintended consequences, as these monetary manipulations destabilize the bond and currency markets.

I addressed these basic themes in detail in this week's series:

The Happy Story of Boomers Retiring on Their Generational Wealth Is Wrong
The Fed's Hobson's Choice: End QE and Zero-Interest Rates or Destabilize the Dollar and the Treasury Market
The Generational Short Part 2: Who Will Boomers Sell Their Stocks To?
The Next 20 Years Will Not Be Like the Last 20 Years--Here's Why

There are four Grand Narratives at work: demographics, resource extraction, geopolitical conflict and the changing nature of the economy and paid work. The last two are heavily influenced by the first two; some studies suggest that large cohorts of unmarried, under-employed males are precursors to war, as political leaders channel that restless and potentially disruptive force against external enemies.

Economies based on endless resource extraction founder when the resources are found to be less than endless.

The Grand Narrative of the U.S. economy is a global petro-dollar empire that has substituted financialization for authentic, sustainable economic expansion. In shorthand, those people with access to the Federal Reserve's "free money" credit have taken advantage of the asset bubbles financialization inflates. They have a chance to do very well for themselves, if they have the presence of mind to exit the asset bubbles in stocks, bonds and real estate before they deflate.

Those people who do not have access to cheap credit and rentier assets become poorer. That is the harsh reality of neofeudal, neocolonial financialization: Neofeudalism and the Neocolonial-Financialization Model (May 24, 2012)

Large cohorts generate their own self-referential feedback loops. A large cohort of home buyers drives up real estate as demand exceeds supply, and those who get in early are handsomely rewarded. Those seeking similar returns provide the fuel for further advances. This is the basic story of housing from 1974 to 2006 and the stock market from 1981-2014, as the Baby Boom cohort bought houses and saved for retirement via stock and bond mutual funds.

As the Boomer cohort sells its homes, bonds and stocks, supply will exceed demand and prices will decline, especially if household capital and access to credit are also declining. This selling cycle will also be self-reinforcing.

Central banks have masked this generational selling by becoming buyers of last resort. The Fed has purchased trillions of dollars of Treasury bonds and home mortgages, to push interest rates to zero and prop up a generationally unsustainable housing bubble. But central bank buying of assets to prop up valuations also generates unanticipated blowback: To quote songwriter Jackson Browne: Don't think it won't happen just because it hasn't happened yet.

Mainstream financial pundits were crowing that household assets recently topped $80 trillion in the U.S. Inflate bubbles in real estate, bonds and stocks, and it's not surprising that nominal net worth goes through the roof.

As a back-of-the-envelope calculation, I reckon $40 trillion or half of this sum is phantom, meaning that it will vanish into thin air when these enormous asset bubbles deflate.

These bubbles are all based on one-off conditions that cannot be repeated: the global boom fueled by a now-maturing China, the central banks pushing interest rates to zero and "solving" a credit crisis of phantom collateral by issuing an unprecedented flood of new credit and buying trillions of dollars of assets at bubble valuations, and a surge of new fossil fuels from Africa and North America.

The reality is that promises made two generations ago were made in circumstances that were not as sustainable as those making the promises believed. Extending linear projections in a non-linear world inevitably generates wrong conclusions. Promises made in one set of rosy circumstances are no longer valid in an entirely different and much less rosy set of circumstances. The citizenry will have to adjust to these systemic realities, and demanding we wuz promised is guaranteed to lead directly to failure.

All sorts of promises, explicit and implicit, were issued to win votes. All the promises are now empty, and we might as deal with this reality head-on--if we can muster up the almost-lost ability to deal with reality rather than rely on fantasy/wishful thinking.

 

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Thu, 06/26/2014 - 12:59 | 4898364 NOTaREALmerican
NOTaREALmerican's picture

Get a job you goddamn hippies; and git yer goddamn socalists hand off my medicare,  I'm entitled to that!!

Thu, 06/26/2014 - 13:04 | 4898386 Winston Churchill
Winston Churchill's picture

Nobody is getting anything much longer.

Thats why the looting is so in your face now.
Enjoy your pipedream of SS and medicare until you try and get it.

Thu, 06/26/2014 - 13:06 | 4898397 SheepDog-One
SheepDog-One's picture

Yep, they don't even give a shit at this point they all know they game is over soon.

Thu, 06/26/2014 - 13:07 | 4898404 Top Gear
Top Gear's picture

Haters have been raging against the "evils" of SS and medicare, hoping they go under, since they started.

But, like Jesus' Second Coming, the financial apocalypse never happens. LOL

Thu, 06/26/2014 - 13:14 | 4898432 linniepar
linniepar's picture

Just let us opt out. I'll forget about my last 20 years of paying into this point scheme.

Thu, 06/26/2014 - 13:17 | 4898442 BandGap
BandGap's picture

Honestly, I'd swap out what they owe me for a chunck of federal alnd OR exemption from taxes for the rest of my years.

Thu, 06/26/2014 - 13:44 | 4898593 0b1knob
0b1knob's picture

Reality is too abstract a concept for Choomboy to understand.

Moar hope and change!!!!!!!!!

Thu, 06/26/2014 - 14:34 | 4898930 Panafrican Funk...
Panafrican Funktron Robot's picture

"some studies suggest that large cohorts of unmarried, under-employed males are precursors to war, as political leaders channel that restless and potentially disruptive force against external enemies."

 

Thought this was pretty funny.  Give them easy access to porn, junk food, and virtualized war (Call of Duty), and they're about as restless as my fatass 10 year old dog.

Thu, 06/26/2014 - 13:21 | 4898458 Top Gear
Top Gear's picture

Opt out all you want. Libertarian paradise awaits.  In fact, I'll pay for your ticket, one way, if you promise never to come back.

• Stateless in Somalia, and Loving It | Mises Daily (2006)
• The Anarchy Advantage in Somalia | Reason (2006)

Remember, the "love it or leave it" argument is of libertarian origin.  If somebody asks a libertarian about an abusive workplace, the libertarian says that a person can either love their boss, or leave that work. "Nobody is holding a gun to your head to stay with your employer!"

Same libertarian logic: "Nobody is holding a gun to your head to stay in America!"

Bye.

Thu, 06/26/2014 - 13:28 | 4898491 linniepar
linniepar's picture

Fuck you. You are completely ignoring our foundation of liberty. Fuck you.

Thu, 06/26/2014 - 13:37 | 4898548 Top Gear
Top Gear's picture

I'm a United Statist citizen. A most precious one at that.

• "The small landholders are the most precious part of a state." ~Thomas Jefferson, to James Madison, 1785

I bet you're one of those fucking morons who think Jefferson was sort of an "anarchist."

Not in the least.

• "Our falling into anarchy would decide forever the destinies of mankind, and seal the political heresy that man is incapable of self-government." ~Thomas Jefferson, to John Hollins, 1811

• "The voluntary support of laws, formed by persons of their own choice, distinguishes peculiarly the minds capable of self-government. The contrary spirit is anarchy, which of necessity produces despotism." ~Thomas Jefferson to Philadelphia Citizens, 1809

• "...repairs to the standard of the laws. Do this, and you need never fear anarchy or tyranny. Your government will be? perpetual." ~Thomas Jefferson, Manuscript, c. 1801

Thu, 06/26/2014 - 14:07 | 4898737 Citxmech
Citxmech's picture

"I'm a United Statist citizen. A most precious one at that."

Apparently, you also think you're one of those animals that is "more equal" than the others.

Thu, 06/26/2014 - 14:10 | 4898759 linniepar
linniepar's picture

If we used sound money and not fractional reserve debt banking, it might work. You are delusional and an asshole.

Thu, 06/26/2014 - 14:27 | 4898880 Top Gear
Top Gear's picture

Got a problem with the Treasury Department being privatized in 1913?

I thought libertarians liked privatization.

Thu, 06/26/2014 - 14:50 | 4899015 gcjohns1971
gcjohns1971's picture

FIrstly, the TREASURY wasn't privatized.  It was the department of weights and measures along with a poriton of the bureau of engraving that changed in 1913.

Secondly, it wasn't privatized.  It was MONOPOLIZED by a CARTEL.  These are terms you should look up to ensure we have a common understanding, as both monopoly and cartel require a government enforcer.

So, this would be a privitization of monetary authority:  "In the United States henceforth $1 shall be defined as 1/20th troy oz of .999 refined PURE GOLD, regardless of form, printing, or engraving."

Then you'd have many competing organizations trying to provide those dollars in a way that ensured the purity, authenticability, and other qualities.  Some of the m might be digital currencies that did nothing more than maintain an independently audited vault, with transaction system like BitCoin's blockchain.

People could choose for themselves what to use.  You wouldn't even have to use Gold.  Some peole might decide to use platinum or silver, and convert only when needed.

Thu, 06/26/2014 - 15:05 | 4899111 Top Gear
Top Gear's picture

<< ...MONOPOLIZED by a CARTEL.  These are terms you should look up... >>

Great advice! I will look'em up.

"Likewise, a monopoly should be distinguished from a cartel..." ~/wiki/Monopoly

Capital letters won't dig you out of your misunderstanding of economics.

 

Thu, 06/26/2014 - 15:00 | 4899086 LibertyBear
LibertyBear's picture

I, as a Libertarian, like free-market competition better.

Thu, 06/26/2014 - 14:41 | 4898959 gcjohns1971
gcjohns1971's picture

Anarchy is not the lack of voluntarily accepted governance, but the abscence of mandatory gun-in-your-face statism.

With that in mind your quotes would seem to indicate Jefferson's position to be the OPPOSITE of what you claim.

Thu, 06/26/2014 - 13:37 | 4898545 The Most Intere...
The Most Interesting Frog in the World's picture

You are a stupid fucking moron and a waste of vital organs.  You think your brain is the size of your mouth, but in reality it's the size of your dick.  

Thu, 06/26/2014 - 13:40 | 4898567 Top Gear
Top Gear's picture

What is your final solution to people you deem "a waste of vital organs?"

 

Thu, 06/26/2014 - 13:49 | 4898629 Grande Tetons
Grande Tetons's picture

Time.

Thu, 06/26/2014 - 13:55 | 4898661 The Most Intere...
The Most Interesting Frog in the World's picture

Thanks for asking.  The best thing you can do for your country is make sure you are an organ donor, walk in to a hospital and blow your brains out.  Your brain is obviously useless but if the rest of your organs are not too damaged from alcohol, they can be saved and used by someone else.  Feel free to get started on this plan ASAP!

Thu, 06/26/2014 - 14:18 | 4898819 Top Gear
Top Gear's picture

No wonder the marketplace of ideas keeps rejecting you.

Libertarian presidential candidate election performance: 1972—0.01% 1976—0.21%? 1980—0.06% 1984—0.25% 1988?—0.47% 1992—0.28% 1996—0.50% 2000—0.36% 2004—0.32% 2008—0.50% 2012—0.99%

The marketplace of ideas chooses the "status quo" year after year, simply because your alternative is so malevolent and sociopathic as to make the "status quo" shine by comparision.

Thu, 06/26/2014 - 14:30 | 4898907 Grande Tetons
Grande Tetons's picture

No wonder the marketplace of ideas keeps rejecting you.

The world is flat until it is not. 

You can learn a lot from a marble. 

Thu, 06/26/2014 - 15:08 | 4899053 The Most Intere...
The Most Interesting Frog in the World's picture

I have never met anyone so utterly stupid and naive in my entire life.  No one, absolutely no one, I have ever met that has worked themselves up from the bottom to a successful perch talks the way you do.

You are not a "winner".  You were born with a silver spoon in your mouth, a spoiled child who went to over-priced schools because your parents could afford it.

And this is what comes of it?  You are a COMPLETE LOSER!  A complete waste of a human being who could have used his unearned position in life to better himself and mankind.  But no, you had (and still have) nothing better to do than read useless statistics and vegitate in front of a TV where they read government propoganda to you.

Moron, the "status quo" picks the "status quo"!   The fucking "marketplace" doesn't select it.  Do you fucking think that establishment would risk their position in the "marketplace"?  LOL, if you are not going to turn your life around right now, PLEASE, take my suggestion!

Thu, 06/26/2014 - 15:13 | 4899155 Top Gear
Top Gear's picture

<< "You were born with a silver spoon in your mouth..." >>

So was Francisco d'Anconia. Are you envious?

 

 

Thu, 06/26/2014 - 15:02 | 4899093 Citxmech
Citxmech's picture

Market place? - in US elections?

At best we've got a company store with one flavor packaged in two different color boxes.  

Enjoy your illusion of chioce.  The empty calories sure taste great along with the giant dick up your ass.

Thu, 06/26/2014 - 14:15 | 4898798 CH1
CH1's picture

Opt out all you want.

LOL... Would have done that a LONG time ago... but the system is kept in place BY FORCE!

I don't really care about your stupid opinions, what I care about is that you impose them upon me BY FORCE.

Government is a violent gang. All else is confusion.

Thu, 06/26/2014 - 14:22 | 4898857 Top Gear
Top Gear's picture

Like any employer, the US does have the right to use force within the territory it controls.  Yet nobody is keeping you in the US by force.

So if you can leave, then you are here voluntarily.

(Libertarians say that every day about employment. It works just as well for residence.)

Thu, 06/26/2014 - 14:37 | 4898938 gcjohns1971
gcjohns1971's picture

"The US" is an imaginary entity that masks the less than 10 million faces that control it.

This is the problem with assigning prerogatives and privileges to your imaginary friend, when you take away all the puppeteer's hands there is nothing there but an empty shell.

Thu, 06/26/2014 - 15:16 | 4899173 Top Gear
Top Gear's picture

Weird how libertarians have such problems with hierarchy, such as a corporation being congtrolled by only a few people. They sound just like Marxists.

"This is no surprise, as libertarianism is basically the Marxism of the Right...Like Marxism, libertarianism offers the fraudulent intellectual security of a complete a priori account of the political good without the effort of empirical investigation. Like Marxism, it aspires, overtly or covertly, to reduce social life to economics." ~Robert Locke, Marxism of the Right, The American Conservative, March 14, 2005

Thu, 06/26/2014 - 15:39 | 4899295 Citxmech
Citxmech's picture

Weird how Libertarians have problems with corporations?  Seriously?  What's weird is how you don't.

The Libertarians I know have problems with the corporate form because it was designed to be a vehicle for temporary liability mitigation facilitating the financing of public works projects, like the building of bridges, that were too costly for other means of financing.  Regardless about how you feel about that mission, the corporate form has since been corrupted into a den of pathology where serial fraud and criminality against the people is protected if not encouraged under the guise of a fiduciary duty to shareholders.

What's not to love, eh? 

Thu, 06/26/2014 - 14:39 | 4898943 Dick Gazinia
Dick Gazinia's picture

Member for one week and four days.  Fuck off schill.

Thu, 06/26/2014 - 16:42 | 4899618 Top Gear
Top Gear's picture

Weird how libertarians hate people, simply because they're being paid to do things better than libertarians can do.  Isn't your writing up to being valuable to the market, Gazinia?

LOL

(P.S. I'm not a paid "schill," but it's just funny that libertarians get their panties in a wad over money whenever free market transactions don't suit them.)

Thu, 06/26/2014 - 15:06 | 4899118 Citxmech
Citxmech's picture

Weren't you just talking shit about the "love it or leave it" meme?  

BTW - the government's authority to use force on We The People is supposed to be checked by the Constitution.  When the government overreaches its authority, the citizenry's only option is not to abandon ship.

 

Thu, 06/26/2014 - 16:45 | 4899634 Top Gear
Top Gear's picture

You're correct, our social contract, the Constitution, puts limits on force. But it also authorizes force.

Force is like fire. Some is good. It runs engines. Too much is bad. Society finds a balance.

Libertarians aren't into balance, they just keep whining that force is completely bad.

Thu, 06/26/2014 - 18:44 | 4900084 Citxmech
Citxmech's picture

Society doesn't passively "find" anything when those entrusted with the authority to use police power put their fingers on the scale ensuring greater and greater control.  

Thu, 06/26/2014 - 14:33 | 4898925 gcjohns1971
gcjohns1971's picture

"Nobody is holding a gun to your head to stay in America!"

Perhaps you would like to review the IRS' foreign earnings tax law, and the State Department's procedures for revoking citizenship and then rephrase?

Thu, 06/26/2014 - 15:34 | 4899267 Top Gear
Top Gear's picture

I suppose you're one of those thievin' Marxist/Anarchists who thinks they can just walk out the door of a corporation with business property, because you helped produce it.

Sorry, your voluntarily staying within what a government/corporation controls gives your implied consent to the rules governing therein. Pay up and don't steal, and nobody has a problem. The US isn't Cuba or North Korea.

Thu, 06/26/2014 - 16:07 | 4899444 OnErrorResumeNext
OnErrorResumeNext's picture

Give us time!

Thu, 06/26/2014 - 16:33 | 4899582 Enceladus
Enceladus's picture

Sound exactly like the crap the British were saying in 1775. Pay up and shut up

Thu, 06/26/2014 - 16:30 | 4899531 Enceladus
Enceladus's picture

One week 4 days...

 

!!Ad homium attack!!

 

I think I smell Linda Green. Linda you have a new job?

Thu, 06/26/2014 - 13:14 | 4898433 Winston Churchill
Winston Churchill's picture

And you would have to be the three brass monkeys to not recognize this time its true.

I don't want my comfortable life turned upside down either.

The US is broke,bankrupt,skint, and the hyena's are circling.

Thu, 06/26/2014 - 13:34 | 4898531 The Most Intere...
The Most Interesting Frog in the World's picture

SS and Medicare went under a long time ago you fucking moron.  Bernie Madoff did way better for his investors than the dumbfucks running SS and Mcare are doing for the mules that have to fund these dumbass programs.

Thu, 06/26/2014 - 13:42 | 4898577 Top Gear
Top Gear's picture

<< SS and Medicare went under a long time ago... >>

Strangely, here in reality-based land, my granddad just cashed his SS check, and Medicare paid his hospital bill.

Who's the "fucking moron?" LOL!

Thu, 06/26/2014 - 13:50 | 4898613 The Most Intere...
The Most Interesting Frog in the World's picture

Your dad and mom are probably as stupid and ugly as you, so none of this is surprising.  70% of the current deficit is printed money dumbass - that means the money ran out moron.

Thu, 06/26/2014 - 14:27 | 4898883 Oldwood
Oldwood's picture

I'm the fucking moron. I'm 61 with no hopes of retirement. I have paid in about $250k in SS and cannot afford to retire on the offered benefits. So, I'm the fucking idiot paying for your grandparents benefits. I will likely die while at work and not cost the entitlement system a dime.

Thu, 06/26/2014 - 14:39 | 4898944 The Most Intere...
The Most Interesting Frog in the World's picture

Sorry to hear that.  Your employer paid in the same amount you did, so the total paid in is actually $500,000.  We rail on the brokers and bankers so much, but my guess is you would have done better with a savings account that averaged 3%.  The Communists that fill our halls of government truely are satan's children.

Thu, 06/26/2014 - 15:21 | 4899203 FredFlintstone
FredFlintstone's picture

Oldwood is SE'd.

Thu, 06/26/2014 - 15:59 | 4899401 Ghostbusters
Ghostbusters's picture

It would almost be entertaining to witness the mass denial of basic maths in the justification of the well-overblown yet 'exceptional' 'democracy' in the west, if it were not so supernaturally lethal and totalitarian.  Endless wars, endless exploitation, and endless money are endless until they ain't.

http://www.marketoracle.co.uk/Article41292.html

http://www.forbes.com/sites/lawrencehunter/2011/07/03/tax-spend-print-ou...

http://www.minyanville.com/businessmarkets/articles/gold-price-of-gold-p...

Alas, there is a reason why the moneyed interests have taken near complete control of information and promoted the commune while documenting it all in the written works of their masters....

Thu, 06/26/2014 - 13:12 | 4898420 NOTaREALmerican
NOTaREALmerican's picture

Not so sure,  Sacramento just started building their new $530 mil sports stadium - of which the city "contributed" $250 mil - for the heroic Sacramento Kings (and their billionaire owners) ensuring that well have lots of high paying jobs, and a vital downtown.    

Thu, 06/26/2014 - 13:17 | 4898440 Top Gear
Top Gear's picture

Yep. Real life keeps going on, while the prophets keep getting the apocalypse wrong.  Year after year after year.

Austrian economists are pretty much like Harold Camping.

"The End is Near!" LOL! Yeah, yeah.

Thu, 06/26/2014 - 13:18 | 4898450 Eirik Magnus Larssen
Eirik Magnus Larssen's picture

Heheh.

Thu, 06/26/2014 - 13:20 | 4898455 Winston Churchill
Winston Churchill's picture

Which part of 'no collateral' don't you understand ?

It was a good game while it lasted.Its all over bar the shouting and screaming.

Thu, 06/26/2014 - 16:27 | 4899555 LuckoftheIrish
LuckoftheIrish's picture

This douche might be more entertaining than Million Dollar Bonus and Fone Star rolled into one douchey package....

Thu, 06/26/2014 - 13:22 | 4898460 Eeyores Enigma
Eeyores Enigma's picture

Yeah and if we follow you brilliant logic you haven't died yet so you proably never will right? Dick!

 

Thu, 06/26/2014 - 13:30 | 4898504 Top Gear
Top Gear's picture

Winners like me do seem like dicks. It's better than being dickless like you.

Republican Losers Have Lower Testosterone
http://scienceblogs.com/primatediaries/2009/10/26/republican-losers-have...

Self-employed men have higher levels of testosterone, study finds
http://www.healthcanal.com/male-reproductive/low-testosterone/48178-self...

Get with the program and be a winner, not a pussy.

 

Thu, 06/26/2014 - 14:11 | 4898773 Citxmech
Citxmech's picture

You do a lot more than "seem" to be a dick.  

Keep applying your "Low-T" hormone lube and saving up for that rat bike - not that any of that will make you feel any more adiquate. 

Thu, 06/26/2014 - 14:33 | 4898921 Oldwood
Oldwood's picture

I must admire your anonymous bravado and swagger here. You probably don't get much chance to interact with others in person for fear of having your head crushed.

If you want to be a dick, try it for a while in real life and see how it works out for you before providing its gifts to us.

Thu, 06/26/2014 - 17:07 | 4899719 Erus Unius
Erus Unius's picture

Big difference between a troll and a winner. Sounds more like you're trying to protect something. Perhaps status quo bs?

 

Last I heard Charlie Sheen was also a winner. I guess birds of a feather flock together.

 

 

Sorry Sheen.

Thu, 06/26/2014 - 13:31 | 4898509 p00k1e
p00k1e's picture

Detroit is bankrupt and getting a new stadium. 

Thu, 06/26/2014 - 13:36 | 4898539 Grande Tetons
Grande Tetons's picture

I heard about that awhile ago. Unbelievable....scratch that...believable. 

Thu, 06/26/2014 - 13:39 | 4898557 NOTaREALmerican
NOTaREALmerican's picture

I'm 100% SURE it's being paid for by the owners of the teams using it, because they would surely LOVE free-enterprise and would NEVER accept socialist handouts.

Thu, 06/26/2014 - 13:44 | 4898594 Grande Tetons
Grande Tetons's picture

These new stadiums are to be equipped wiith an extra large scoreboard displaying an extra large slow-mo waving flag.

Thu, 06/26/2014 - 13:49 | 4898627 Cathartes Aura
Cathartes Aura's picture

coliseums.

every dying State

requires their entertainments.

Thu, 06/26/2014 - 13:57 | 4898679 TruthHunter
TruthHunter's picture

Because the TPTB don't seem worried, babyboomers should be.

 

Doctors ask whether you are employed and how you are insured before deciding which meds to prescribe.

 

Thu, 06/26/2014 - 13:30 | 4898498 The Most Intere...
The Most Interesting Frog in the World's picture

The boomers built themselves a wonderful Communist state and their mother fucking children's and grandchildren's generations are going to fucking pay for it whether they like it or not!!!

Greedy bastards!!!  Pay my bills for me!!!  I didn't vote in Communists my entire lifetime to have some snot nose kid, that doesn't want 50% of their income going to government to support me and my golf buddies, change all that now!!!

Thu, 06/26/2014 - 13:46 | 4898612 Totentänzerlied
Totentänzerlied's picture

In the interest of fairness (calm down), what the Baby Boom generation did was take their parents' New Deal Progressive Socialism (already over a decade old by the time the first Baby Boomers were being born), and double down on it - again and again and again.

One often encounters objections to this history, e.g. that only a small handful of the Boomers had any part in this, or it was already too late by the time they came of age, etc. Voting records disagree. Consumption and work patterns disagree. Media records disagree. Hell, you can go out and interview any random Boomer; all doubt will be removed from your mind.

So if we're being apologetic, what's the most we can say of this generation? They turned the misfortune of being raised by the supremely ironically titled Greatest Generation into a perpetual curse. What a legacy.

Thu, 06/26/2014 - 14:40 | 4898946 Oldwood
Oldwood's picture

And we are not yet still doubling down? Debt of all types including government on on a steep incline of growth. This is not just about old people demanding stuff. There are lines of those waiting for their Obama gifts, from the ghetto to wall street. Something for nothing is what will kill us all. Young people standing around crying that they have been robbed are only robbing themselves if they use it an an excuse to stop trying. We have seen what this attitude has done for the black community and how it is infecting the Hispanics. Someone is trying to fuck each and everyone of us. Laying back and letting it happen will not change the result and demanding justice after the fact, puts little bread on the table.

Thu, 06/26/2014 - 14:17 | 4898787 playnstocks
playnstocks's picture

.

Thu, 06/26/2014 - 17:04 | 4899705 zerocash
zerocash's picture

Divide et impera...

Thu, 06/26/2014 - 13:00 | 4898366 qqqqtrader
qqqqtrader's picture

.

Thu, 06/26/2014 - 13:02 | 4898371 Headbanger
Headbanger's picture

Plumbing & Heating with a good snow plow on the truck and you're golden!

Thu, 06/26/2014 - 13:09 | 4898408 ShrNfr
ShrNfr's picture

I know. I just had my plumber over with his kid who is learning the biz from him. I will have to take out a second mortgage when his bill comes. Smart kid. Screw debt learning about useful things. Learn from Dad and get rich.

Thu, 06/26/2014 - 13:25 | 4898476 CoonT
CoonT's picture

If I had of known about sheet metal, I never would have bothered wasting my time in school. Hell, I'd be retired now at 35. No matter, tin bangin's worth well into 6 figures a year up here in Canucklehead land, eh! Won't be much longer now till I switch to part-time, for good  :)

Thu, 06/26/2014 - 13:33 | 4898522 p00k1e
p00k1e's picture

If I had known the automakers would be getting all these bailouts, I’d have been a factory rat. 

Thu, 06/26/2014 - 13:43 | 4898585 NOTaREALmerican
NOTaREALmerican's picture

If I had known about TBTF banks getting all these bailouts I'd have been in IT at a TBTF bank.  (Oh, wait a sec...) 

Thu, 06/26/2014 - 13:01 | 4898374 davidalan1
davidalan1's picture

wait, Broken promises? wtf

Thu, 06/26/2014 - 13:03 | 4898381 pods
pods's picture

The USA reminds me of the grasshopper and the ant. Only the grasshopper has the firepower of nukes.

There is not going to be a dealing with reality until it is too late.

pods

Thu, 06/26/2014 - 13:06 | 4898399 Winston Churchill
Winston Churchill's picture

Never been a peaceful transition oF GRC yet.

It will not be different this time.

Thu, 06/26/2014 - 13:25 | 4898478 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I am afraid the world is currently filled full of grasshoppers. Our's is just the most heavily militarized.

Thu, 06/26/2014 - 13:05 | 4898394 disabledvet
disabledvet's picture

"enter the real revolutionaries":
http://en.wikipedia.org/wiki/Maggie_Kuhn

Thu, 06/26/2014 - 13:07 | 4898400 Emergency Ward
Emergency Ward's picture

those darn genXYZ Greatest Gen boomer millennials...whaddya gonna do?

Thu, 06/26/2014 - 13:08 | 4898407 gcjohns1971
gcjohns1971's picture

Again wrong.

Boomers exceeded X-ers by about 10 million.

Millenials are as numerous as Boomers once were.

And the problem with declaring that the Millenials must accede to at least some of th wishes of Boomers by reason of numbers is this:

Boomers numbers are declining, and the decline will accelerate.  Sorry Peter Pan.  No eternal youth for you.

The central question is the only question.  And we all know the answer:

Should the innocent be forced to pay for the errors of the guilty?

Many will think that is hate.  But you make errors when you live.  The unborn have no volition and thus make no errors.

We can debate to what degree Boomers are responsible for the wasteland the West is becoming.

But we can't debate that the unborn are responsible for it.  They aren't.

Only those who were alive and had an opportunity to try to do the right thing can take responsibility for the errors that occured, whether they personnally were responsible or not.

Unarguably, GEN-X is not in charge, has not been in charge, likely will never be in charge, and could not have changed the outcome even if we were unanimous.  So, can we eschew all responsibility for the mess of the last 30 years?  No.  We can't.   We can say that GEN X is MOSTLY not responsible.  But the fact is that you can always do something, effective or not.

It is wrong to even ask the Millenials to take a measure of responsibility.

The GEN-Xers are already taking a measure of responsibility.  Their opportunities were the most impacted by outsourcing in the 1990s.  Their portfolios, and real wealth, were most affected since 2008.

But the Millenials are walking onto a broken stage.   They bear none of the responsibility.  They will be forced by circumstance to fix things.  Asking them to sarifice a portion of their children's birth right so that their grandparents can escape some portion of their responsibility one last time is FLAT OUT IMMORAL.

 

Thu, 06/26/2014 - 13:13 | 4898423 Top Gear
Top Gear's picture

Obviously, "Millenials" weren't spanked enough.

Thu, 06/26/2014 - 13:21 | 4898457 Grande Tetons
Grande Tetons's picture

They have been spanked o plenty. They just can not see the bruises or feel the pain.....yet. 

Thu, 06/26/2014 - 13:21 | 4898462 Totentänzerlied
Totentänzerlied's picture

By your reasoning, obviously "Boomers" weren't spanked enough, else Millennials would be a non-issue. QED.

Thu, 06/26/2014 - 13:15 | 4898438 NOTaREALmerican
NOTaREALmerican's picture

Stop complaining about the greatest country in the goddamn world you goddamn pinko,  I worked my entire life at my TBTF bank and never ask for a goddamn thing from the goddamn goverment!

And get a goddamn haircut, you look like a girl.

Thu, 06/26/2014 - 13:24 | 4898472 The Most Intere...
The Most Interesting Frog in the World's picture

Oh, you can't fucking read.  No complaint about the country, only the POS that ran it in to the ground.  All the boomers need to do is pay for the shit they bought (big government) over their lifetimes and we don't have a problem.

Thu, 06/26/2014 - 13:36 | 4898543 NOTaREALmerican
NOTaREALmerican's picture

Get yer goddamn libertarian socialist hand off my medicare you hippy.   I paid into medicare my entire life,  I'm entited to unlimited hip-replacement surguries if I want it.

Love-it or leave it hippy, and get a goddamn haircut!  

Thu, 06/26/2014 - 13:45 | 4898598 The Most Intere...
The Most Interesting Frog in the World's picture

You didn't pay into anything other than a ponzi scheme stupid ass.  Your parents were probably ugly, stupid and illiterate so they never taught you that nothing is free.  You knew the system would run dry, but you weren't willing to pay the proper amount in.  Right?  Right!

Thu, 06/26/2014 - 13:50 | 4898624 NOTaREALmerican
NOTaREALmerican's picture

Na na na NAAA na!!!    Phffft  (holding hands up to temples and wiggling fingers)

Thu, 06/26/2014 - 13:57 | 4898680 The Most Intere...
The Most Interesting Frog in the World's picture

LOL holding thumb to nose, pointing pinky in your direction, and wiggling fingers!

Thu, 06/26/2014 - 14:16 | 4898812 CH1
CH1's picture

Stop complaining about the greatest country in the goddamn world...

Funny, I didn't see him mention Switzerland.

Thu, 06/26/2014 - 13:41 | 4898569 p00k1e
p00k1e's picture

The Boomers aren’t necessarily at fault either.

The Boomers inherited the system from “The greatest generation”. 

The greatest generation are the people that set all of this up with the Bretton Woods system. 

It’s like the illegals.  The de-whitening of America happened in 1965.   How old were the Boomers in 1965? 

Thu, 06/26/2014 - 13:47 | 4898617 NOTaREALmerican
NOTaREALmerican's picture

Well,  like Nixon said (I think):   "We're all Keynesians now."

Socialism works great, but ONLY if you participate (why didn't Marx use that slogan?).   The trick is getting in early and finding the new scams (oh wait, opportunities).  

There's still loot to be gotten from: Big-Ag, Big-MIC, Big-Road, Big-Water, Big-Airport, Big-Energy, Big-Ed, Big-House, Big-Fin, Big-OldFart, Big-Healthcare, Big-AntiDrug, & Big-PoliceState – and (now) Big-Space.

Thu, 06/26/2014 - 13:53 | 4898649 Cathartes Aura
Cathartes Aura's picture

lol, "Big-Space".

"Vacant" sign<--------planted.

Thu, 06/26/2014 - 14:26 | 4898874 gcjohns1971
gcjohns1971's picture

The problem with socialism is that eventually you run out of other people's money.

When you do you discover that the purpose of the whole system was ACTUALLY DESIGNED to transfer money and power to those who regulated the income redistribution.

Thu, 06/26/2014 - 14:13 | 4898785 gcjohns1971
gcjohns1971's picture

The major debates of 1981 were about 'Safety Net' issues.  I remember.  Though I was young I watched them and remember what was said. 

In 1981 the Beneficiary to Worker ratio was about 1:4. 

Boomers were the biggest voting consitutency, and well along into taking over the Congress and Legislatures throughout the land.

They decided to double FICA contributions.

The issue was raised again in 1986.

What about Ross Perot in 1992?  He brought charts.  He showed convincingly that we were already at the precipice, and without radical and immediate change there would be no way to avoid it.  Go watch him on YouTube.

Dana Carvey made fun of him.  It was a great impression.

Instead we got the Clintons Dynasty.

Ross Perot has been vindicated.

And Perot came back in 1996, with all the same projections, all the same detailed charts, explaining IN DETAIL a lot of what we see today.

Go watch them.  You will see.

He was not a lone voice in the wilderness.  There were others.  But the majority of those in power were uninterested.

And now the precipice is here.  The SS trust fund has been in deficit since 2009.  Medicare even worse.

I paid for that too.  But I will never see any of it. 

I remember the votes and issues, and by what huge majorities the necessary reforms were defeated.

Why should I sympathize?

Thu, 06/26/2014 - 15:15 | 4899172 FredFlintstone
FredFlintstone's picture

OK everyone, you can blame me. As a very young man I "almost" voted for Perot. I decided not to "waste" my vote. Sorry.

Thu, 06/26/2014 - 13:46 | 4898602 GooseShtepping Moron
GooseShtepping Moron's picture

Thank you, Johns. That's a pretty good summation of the real situation, at least as far as the generational archetypes are concerned. I especially liked the paragraph about the Xers not really being in charge and being especially impacted by the saeculer swing. I'm either among the very last of the Xers or the very first of the Millennials, depending on how you read the cusp; but I've always identified with the Xers and, truth to tell, my life feels pretty much like what you described.

Thu, 06/26/2014 - 14:49 | 4899012 Oldwood
Oldwood's picture

While demanding justice is laudible, it will not feed you, unless you plan on eating the convicted. There will never be justice. Do you think African Americans would feel any less violated if their ancestors had received 40 acres and a mule? I think not. It is positive to seek answers and attribute blame, as long as it doesn't stifle solutions.

We are broke. The boomers that paid into SS will likely be shorted considerable of the promises made, and many more will never even see what they have invested. The money is gone and I don't think it wise that any boomer demand to be made whole on these promises. We voted for the liars who made them. Yes the threat of this liability exists, but it will NEVER be paid. Regardless, life will only get harder as time goes along for virtually every income class, except those at the very top. That group is not boomers, it ageless, in that it owns the system.

So stop beating on old people. You may find you need allies in the future. We are living in times where we need all the friends we can get.

Thu, 06/26/2014 - 18:06 | 4899948 zerocash
zerocash's picture

I really detest the boomers that say "I'm leaving nothing to my kids". When they never objected to the inheritance they received from their GG parents and spent it on luxuries and other assorted crap.

Thu, 06/26/2014 - 13:14 | 4898431 Bollixed
Bollixed's picture

The repeated use of the word "cohort" in this articles assumes ALL BB's lived the same life style and paints that generation with a broad brush that belies the truth.

Yes it's true BBers lived under the rules set by FDR and LBJ's Great Society to name a few, and god knows Nixon played a part in the current demise as did Reagan and GHWB. None of them were BBers, btw.

So go ahead and bitch about the BBers so you can keep the divide and conquer message alive and well with the younger generation. That sure will be easier than focusing on the real causes, as is always the case.

Thu, 06/26/2014 - 13:55 | 4898662 gcjohns1971
gcjohns1971's picture

Who started it is not the question that is relevant.

Who perpetuated and expanded it is.

Remember the debates of 1981?  Cost projections?  That workers to Benefit's Takers had already dropped to 1:4.

That was in the BBers youth.

What about 1986?  I remember.

Have you forgotten Ross Perot and his charts in 1992 explaining exactly this?

What about agian in 1996?

I like a lot of BBers personally.  But charisma has nothing to do with it.

This isn't hate.  It is justice.

If I can remember these exact issues being raised over and over when BBers were in their 20's and 30's, why can't they? 

And more pertinently, why do they ask that I should pay more for their lack of foresight than they?

Thu, 06/26/2014 - 14:33 | 4898922 Bollixed
Bollixed's picture

A lot of BBers could see the writing on the wall as far back as you mention. It only took a 4th grade math education to see what would transpire down the road. But a system built and relying on debt was a huge impediment to any reform. And an educational system that was put in place back in the '50s insured the masses would be more or less living their lives in a state of stupor.

I guess one my frustrations is the lack of understanding on the part of many as to how powerful momentum is. BBers didn't create the quagmire, and as you so rightly pointed out didn't do too much to stop the downward spiral. It's not that a lot of BBers didn't want a change, it's probably more the case of the tiny few who could do the math didn't get as much primetime stage access as the debt mongers who could afford the spotlight for their propaganda.

I mean the following with all sincerity... Good luck for your generation fighting momentum and the status quo of the FSA. I watched this country go from a major producer during my lifetime to a country that would outsource sex to a third world country if they could create a derivatives market out of it.

Thu, 06/26/2014 - 15:12 | 4899147 FredFlintstone
FredFlintstone's picture

OK, so Gen X is perpetuating this stuff the also. Voting, working, paying taxes, looking the other way, not protesting...

Thu, 06/26/2014 - 15:16 | 4899174 p00k1e
p00k1e's picture

"Who perpetuated and expanded it is."

That’s kinda dumb.  

What could I do to stop the machine?  I wrote Bush.  I told him the bailouts were wrong.  Bush said, “I've abandoned free-market principles to save the free-market system.”  

I also wrote Republican Governor Rick Snyder (MI).   I told him not to bailout Detroit.  I told him I’d actively politick against him if he passed the bailout.  That Republican passed that bailout too.  

Thu, 06/26/2014 - 13:19 | 4898451 duffelpud
duffelpud's picture

"But the Millenials are walking onto a broken stage.   They bear none of the responsibility.  They will be forced by circumstance to fix things.  Asking them to sarifice a portion of their children's birth right so that their grandparents can escape some portion of their responsibility one last time is FLAT OUT IMMORAL."

 

In other words, "Fuck you, grandpa".

Thu, 06/26/2014 - 13:26 | 4898483 Totentänzerlied
Totentänzerlied's picture

A little context:

Grandpa, on his deathbed (cost inflated thanks to anything-goes Medicare, then overbilled by the hospital provider, and finally paid for by ... you): "So long, and thanks for all the free shit, suckaaaas *cackling laughter*."

Grandkids: "Fuck you, Grandpa."

Thu, 06/26/2014 - 13:25 | 4898475 Abrick
Abrick's picture

When the implicit and explicit promises made to the bankers and wall street tycoons are being welched on, the rest of the population may have a bit more of a stomach for this drivel. 

Thu, 06/26/2014 - 13:34 | 4898532 Totentänzerlied
Totentänzerlied's picture

Here's how that works:

Politicians promise endless free shit galore to voters in exchange for absolute submission, compliance, complacency, and silence. Voters, being greedy, selfish, myopic, impatient, etc., eagerly accept this great offer, and thereby forefeit all right to complain ever again.

If you pledge your soul to the devil, then get angry when he enforces the contract, you have only yourself to blame.

Thu, 06/26/2014 - 14:11 | 4898765 Abrick
Abrick's picture

Bankers, and Wall Street aren't greedy, selfish, myopic, impatient? Seeing as they have gotten 99% of the benefit for all this debt/wealth creation, they should take 99% of the pain in rectifying the situation.

Thu, 06/26/2014 - 14:20 | 4898834 CH1
CH1's picture

Bankers, and Wall Street

Them too, but they wouldn't have their privileged positions without the state.

Thu, 06/26/2014 - 13:43 | 4898521 malek
malek's picture

 All the promises are now empty, and we might as deal with this reality head-on.

Nah, denial is so much easier! 

Many low-birth-rate European nations are facing worker-retiree ratios of 1-to-1.
Yep, like Germany
This is simply not sustainable.

Sure it is -
In Germany the Rentenkassenbeitragssatz (like US SS) is 20% of your wage income plus some indirect taxes on fuel (Oekosteuer was introduced mostly for the Rentenkasse) make it 30%. If you assume you work 40 years from age 25 to 65, and on average live 20 more years before you die, the system is entirely sustainable with monthly pension payments of 15% of the average workers wage!

 

Thu, 06/26/2014 - 14:59 | 4899082 Oldwood
Oldwood's picture

So this German 20%. Is that matched by the employer? The self employed in the US are paying 15.8% I believe, plus SS is being funded from the general revenue to boot.

Does Germany provide benefits for immigrants like we do here? If so what is the immigrant percentages compared to America?

What is the average wage in Germany compared to the US? 20% of a Mercedes Benz employee adds up a lot faster than an illegal lawn technician. regardless of rates and systems, a productive society is much more likely to be prosperous than a non productive one. Germany stands out as being productive. In America we give ribbons and juice boxes for showing up.

My point is that is is difficult to compare countries and systems without looking at the whole picture.

Thu, 06/26/2014 - 15:51 | 4899344 malek
malek's picture

Sorry, you're blabbering.

Points 1 and 3 have no influence on the effective pensions, if the cost of living is roughly matching the US.

On point 2 how many people does Mecrcedes Benz employ in Germany? Also what about the 15.8% contributed by every US Google employee - that also adds up a lot faster than the minimum wage burger flipper right?

 

 

Thu, 06/26/2014 - 19:16 | 4900177 Oldwood
Oldwood's picture

Sorry if I missed your point. I thought you were saying that Germany can afford these pensions because of higher taxes. I was simply suggesting that a government's ability to pay these benefits depends on how much they are taking in. If the population is predominately low wage yet their benefits roughly equal those of high wage earners, then those high wage earners would have to contribute more into the pool. If Germany's wage base is higher on average that Americans, (at least those paying in) it would seem much easier to balance the books than if they were relying on low wage contributions. It may be blabbering but its really not that tough. Prosperous countries can afford higher social expenditures than poorer countries. Which is Germany????Is that too hard for you?

Only a fucking idiot believes you can maintain a social entitlement system AND open borders. America has no borders which is why our entitlement system will collapse.

Thu, 06/26/2014 - 23:04 | 4900941 StychoKiller
StychoKiller's picture

There's a dirty little secret about Social Security and those open borders:  The Social Security jackwagons have a separate accounting called "other income" that gets filled by illegal immigrants paying FICA taxes, and they're relying on those illegal immigrants never collecting any benefits.  Does the open border now make sense to you?

Thu, 06/26/2014 - 23:42 | 4901056 malek
malek's picture

I was simply suggesting that a government's ability to pay these benefits depends on how much they are taking in and how much they can print.

There, fixed it for ya.

maintain a social entitlement system AND open borders

Rrright, because there is no way to make a system where immigrants only become entitled after full time working for many years.
Also you might want to look up how many mostly relatively poor, little educated immigrants Germany accepts every year:
http://media0.faz.net/ppmedia/aktuell/2792762168/1.2176096/default/infog...

If you believe Germany is prosperous, and implying much more prosperous than the US, you are delusional.

Thu, 06/26/2014 - 13:40 | 4898572 ILikeBoats
ILikeBoats's picture

The multiplication is off, from $80 Trillion in wealth down to $40 Trillion ... think of stocks, and how a P/E of 10, multiplies the actual profits (say $10/share) into something 10 times greater (share price $100).  I think the $80 Trilion nominal drops down to about $8-16 Trillion in real - and if there is panic selling or a liquidity problem, even less.

Thu, 06/26/2014 - 13:52 | 4898641 malek
malek's picture

Agreed - if "wealth" would only get corzined by half, we wouldn't have a serious problem.

Thu, 06/26/2014 - 13:46 | 4898599 zippy_uk
zippy_uk's picture

So does the lucky generation expect the unluckiest generation to bail them out because they could not believe their luck would ever run out ?

Thu, 06/26/2014 - 14:21 | 4898848 gcjohns1971
gcjohns1971's picture

In a word, "YES".

The attitude was to worry only about the present, "Apres moi, le deluge."

The deluge it seems has arrived early.

 

Thu, 06/26/2014 - 13:47 | 4898619 gcjohns1971
gcjohns1971's picture

The the void forming the precipice at whose threshhold we stand was formed by lack of character and the avoidance of personal responsibility.

If there is to be a bridge to the future, it must be built from what was lacking.

 

I am a GENXer.  I began work over 30 years ago, starting young, because I had to.  I have paid into the system too, because I was forced to.

There is no forecast that I or those like me will EVER GET ANYTHING from it.

Those of my elders who cry, "I deserve MORE! I PAID FOR THAT!" will get no sympathy from me. 

Your pleas for "MORE" will get no sympathy from me because I paid for it too.  And I will get nothing but debt and a share of the cleanup while I remain above ground.

For GENX to tell the BOOMERS they are cut off is not hate.  It is justice, and a gentle justice at that, for they still have what was extracted from us.

Thu, 06/26/2014 - 14:03 | 4898717 zippy_uk
zippy_uk's picture

As a GenXer my self I would not pick an emotional term like justice. I would use the word "Maths".

You tell me :

1. What you paid in

2. What it costs

3. How much extra has to go in

4. How less I get paid

5. How much more you expect me to pay in

6. How much less I am going to get (even more "less" than the "less" I have had to eat to date since joing the work force, seems

a constant tend that one).

Tell this to my face and then answer my simple question - how are you going to make me pay ? Don't worry (for me) because I already have a plan - I.WILL.NOT.

Thu, 06/26/2014 - 19:59 | 4900316 mjcOH1
mjcOH1's picture

"Tell this to my face and then answer my simple question - how are you going to make me pay ? Don't worry (for me) because I already have a plan - I.WILL.NOT."

Wild guess....

1) Vote for the party that promises the biggest handout, payment to be extracted from you.

2) Said party sets IRS policy and tax rates.

3) IRS assigns you the amount you'll pay.

4) If there's a shortfall, your income is attached (further) and your property is seized.

5) If you resist, they just shoot you, take it all, and call it good.

Or perhaps that's all just daily happenstance, rather than the answer to your question.

Thu, 06/26/2014 - 15:09 | 4899131 FredFlintstone
FredFlintstone's picture

Those older than us don't have too much to worry about IMO. It is us and our progeny that we should be concerned about.

Thu, 06/26/2014 - 14:12 | 4898778 max2205
max2205's picture

God I am sick of reading this shit

Thu, 06/26/2014 - 15:07 | 4899122 FredFlintstone
FredFlintstone's picture

Soon you will be living it. I'd rather read about it forever.

Thu, 06/26/2014 - 15:23 | 4899212 falak pema
falak pema's picture

God must have prepared it as a lesson to all of us, if you be God fearing.

God's cooking is like his looking, a thing of eternal questioning. 

For those who believe he looks like the Ultimate, for those who don't his food is like Belzebub's broth.

I wonder if ZH is Hell's kitchen like you would have us believe. 

Or just a mirror portraying whats cooking in it. 

Dorian Gray's picture. 

So...who is Dorian today? 

Thu, 06/26/2014 - 14:16 | 4898805 lasvegaspersona
lasvegaspersona's picture

I'm just worried that all the slacker generations coming up behind me won't get great jobs and support me in the luxury in which I supported their grandparents when I was working.

Blaming any generation is silly but if griping is what we are doing I want to get my gripes in too.

Thu, 06/26/2014 - 14:43 | 4898971 lasvegaspersona
lasvegaspersona's picture

I would guess that most low income earners are happy with Soc Sec. I think any intellegent high earner would have opted out if that choice was available. If you max out paying in you have to live an abnormally long time to collect in full what you paid in.

Those who elect to delay payments until they are 70 are really risking not breaking even.

It pisses me off to think that if I die I may never get a penny of that 15.2% on 60, 70 , 80,000 I paid in for 55 years (yep I started working in 1963 (and having taxes withheld) I may not have paid into Medicare then but I sure have since.

I am so irritated I plan to live to a ripe old miserable age just out of spite.

Thu, 06/26/2014 - 15:26 | 4899221 Kilobar
Kilobar's picture

This cheap fossil fuels bullshit is like a broken record. Whatever we can't pay for later will just get inflated away. No apocalypse, no end-of-the-world, just old-school 1970's style inflation.

Buy gold bitches.

Thu, 06/26/2014 - 17:32 | 4899811 fallst
fallst's picture

At least we had the Beatles to grow up with. No they can't take that away from me.

 

 

Fri, 06/27/2014 - 07:21 | 4901448 AdvancingTime
AdvancingTime's picture

The numbers simply do not work. An American born in 1945 can expect nearly $2.2m in lifetime net transfers from the "state" far more than they pay in, and far more than any previous group.

A study by the International Monetary Fund in 2011 compared the tax bills of what different age citizens pay over their lifetime with the value of the benefits that they are forecast to receive. The boomers are leaving a huge bill. Those aged 65 in 2010 may receive $333 billion more in benefits than they pay in taxes.This is a heavy burden to place upon the young. The article below delves deeper into this subject.

 http://brucewilds.blogspot.com/2013/03/the-young-will-be-burdened.html

 

Do NOT follow this link or you will be banned from the site!