"Obama's Tax-The-Rich Plan Is Futile" Druckenmiller Warns, America's Aging Population Is A "Massive, Massive Problem"

Tyler Durden's picture

"Young people are not going to be talking about cutting back," exclaims billionaire hedge fund manager Stanley Druckenmiller, ominously concluding "there will be nothing to cut back." The reason he is so doom-full about the future - an aging population will present a "massive, massive problem" for the U.S. in 15 years - as Bloomberg reports, because of demographics, "we're just using more and more of society’s resources to fend for the old people," warning that Obama's plans to tax the rich to pay for more social services for the poor would be futile.

“We’re going to go from five workers of working age supporting every elderly person to two and a half because of demographics,” said Druckenmiller.


“We’re just using more and more of society’s resources to fend for the old people.”

As Bloomberg reports, Druckenmiller, 61, has argued for several years that the mushrooming costs of Social Security, Medicare and Medicaid will bankrupt the nation’s youth and eventually result in a crisis worse than the financial meltdown of 2008. The government will have to reduce payments to the elderly, he said at the event.

...an aging population will present a “massive, massive problem” for the U.S. in 15 years.


“The young people are not going to be talking about cutting back,” Druckenmiller said Wednesday night in New York at an event hosted by Addepar, a technology company that provides software to financial advisers, fund managers and family offices. “There will be nothing to cut back.”

*  *  *

Druckenmiller also had some comments on the share buyback debacle in US equity markets...

Druckenmiller criticized companies for borrowing money to pursue corporate buybacks.


“I think it’s nuts,” he said. “If you’re running a business for the long term, the last thing you should be doing is borrowing money to buy back stock.”

Finally, Druckenmiller concludes,

President Barack Obama’s proposals to tax the rich to pay for more social services for the poor would be futile.


“That’s not where the money is,” he said, instead pointing to spending on entitlements.

But then again - when did futility stop the governmenmt?

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venturen's picture

how about we have a stock trading tax...for useless people like this guy. How about yearly payment on CAPITAL GAINS at the same rate as income.... Let start there so rich crooks like this guy start to feel the pinch like us! Obama think the rich are anyone that hasn't donated $100k to him...

Pinto Currency's picture



The Fed blows a $60 trillion debt bubble in the US and Druck is complaining about old people as a problem.

Supernova Born's picture

There were never old folks' homes for slaves in the antebellum South either, added Mr Druckenmiller.

Haus-Targaryen's picture

The IRS will take in approximately $3.1 Trillion in 2015.  

The GDP is $17 Trillion. 

Basic math tells me thats about 18% of GDP is collected in taxes.  

We are sceduled to spend $3.9 Trillion in 2015.

The GDP is $17 Trillion.

Basic math tells me that about 23.5% of GDP stems from the government.  

More basic math tells me we are going to have to borrow $800 billion or so.

We don't have a tax problem, we have a spending problem.  We can try to raise another $800 billion, but I guaran-damn-tee you if the .gov tried to suck another $800 billion out of the 10%-99.999% of income earners (so upper middle class and wealthy non-oligarchs) you'll see the populations of Auzzie Land, the UK, New Zealand and maybe even Ireland explode in all directions.  

We cannot cut spending meaningfully.  

The US is fucked.  Anyone who tells you otherwise is either ignorant or lying to you.  We are a economic weapon of mass destruction.  

exi1ed0ne's picture

GDP is vastly inflated and spending is way north of 3.9T. You are looking at a gap of 1-2T at least. Good luck finding that in the couch cushions.

I use to be worried about the debt passing to my kids until I realized that they wouldn't be using the current US currency in any event. None of it will be paid back. It never could.

greenskeeper carl's picture

ya a GDP of 17-18T is a joke. Take away all the bullshit that didnt count towards it a few decades ago, you could knock at least 15% of that if not more. And Im tired of hearing people say we should tax capital gains as income, since its not fair high earners who get their money from income pay such a high rate compared to people who collect it off capital gains, interest, etc pay a much lower rate. Instead of demanding some people pay more, DEMAND that you pay less. I say that as a middle income earner who takes in very little from capital gains.


Seriously, this guy at the top gets all these upvotes for wanting the govt to raise taxes on people, when nearly everyone on this site bitches about nearly everything the govt does all the time?! All of you upvoters want to give the very government you complain about non stop MOAR money? SO they can do what with it, exactly, give it to you? fat chance. They will spend it on moar warfare(most of it against US) or moar welfare. Those are the only possibilities. I, for one, am against any increase in revenue.

And for those of you who think they will somehow lower your taxes if they raise the cap gains taxes, sorry, thats not the way it works either. Yours will either stay the same or go up in tandem

SafelyGraze's picture

“We’re just using more and more of society’s resources to fend for the old people.”

stanley. stanley. stanley.

you couldn't have it more wrong.

the "old people", as you call them, are *not* a drain on society's resources.

they are a national treasure. to be honored and revered.

the more of them you have, the better off you are as a society.


also good for society: cesium

espirit's picture

Better to build high walls to protect themselves so we can through diseased bodies over and into their camp.

Do they really think they're immune?

sgorem's picture

nice post S/Graze.....stanley, stanley, stanley. your subliminal desire as a Jew to start building the brick ovens for us "old people", is so 40ish. Heil Drunkenmiller!!!

Raging Debate's picture

Exiled One - Your correct. It won't be paid back. That does have its own set of consequences. We'll likely see America 2.0 in the next several years. Look ma, no more debt but the bad news is your benefits and pensions are now cut by 50%.

TeethVillage88s's picture

Cecil Rhodes had a plan which he funded and organized a few groups to support which would Anglocize much of the world including USA. One is the Round Table Groups also called Olympians and Committee of 300. Also mentions is the Institute of Advanced Studies (IAS) and the All Souls College at Oxford University. Maybe we should mention the Rhodes Scholarship also. But even the best intentions can fund a group taken over by Evil People later on.

It makes sense to me that Greed is the cause of the many, many, bad ideas that have been implemented and funded in the USA.

- But the Persistence of Large Organizations and Large Budgets is always Ripe for both Plunder and "Capture" by Evil Actors

Anglophiles, NWO people, or Greedy bastards could be behind all of our Foundations and Perverted Lobby Activities.

JimBowie1958's picture

Speaking as an old fart, no one is turning me into Soylent Green. The people that come for me will eat a lot of led and IED before they put me down.

I and millions of others like me have absolutely no intention of going quietly into the mother fucking night.

Stackers's picture

Bill Whittle did a great "Eat the Rich" thought experiment


Bastiat's picture

What is it, 50M on foodstamps?  How many of the "no longer unemployed" are on disability?  How many of those are disabled?

How much pissed away on crimes against humanity -- ie. extended wars of aggression?

What ever happened to that $2T that Cheney admitted (on 9/10/01) went missing?  Oh yeah that was being audited in the wing of the Pentagon that got hit with a cruise missle.

new game's picture

department of defense alone would turn it around. cut budget by 50 percent...


wisefool's picture

Jack Lew put in the sequester 2 years ago.  They still complain about it on the MSM daily. It was the most draconian cut to government spending in the history of the USA. A recent report said that exactly one (1) .gov person lost his job. Retired early with pension. true story!

Mike in GA's picture

Lew had nothing to do with "putting in the sequester".  That was a congressional vote, accompanied by much wailing and gnashing of teeth from the likes of Jack Lew and his peers and boss in the administration.

wisefool's picture

I dont have any secret intel, but according to the MSM Jack Lew designed it.

ajax's picture



billionaire hedge fund manager Stanley Druckenmiller

"we're just using more and more of society’s resources to fend for the old people,"

Seems to me that more and more of society's resources will end up with Stanley Druckenmiller...

Ham-bone's picture

The Fed Encouraged Packing TNT round the Blazing Ponzi Fire-Pit - The Impending Explosion is no Accident


Totentänzerlied's picture

This is you: "debt = problem; aging demographic structure = problem; does not compute."

Explain why they are mutually exclusive.

I'll ignore your intentional strawmanning in the form of referring to a massive demographic shift completely at odds with the ideal and intended structure of all current welfare systems and labor markets and economies and societies in general as mere "complaining about old people".

If we had a society where all people were told, on the occasion their 65th birthday, tough shit, go live in a self-sustaining/privately-funded geriatric colony, concerns about the inversion of the optimal industrial-age demographic structure would be misplaced, but last I checked we have no such society.

saveUSsavers's picture

This fUCKING ARSEWHOLE would be first to call for Soc Sec put in stock market !

daveO's picture

He's just trying to make the case for the death panels and euthanasia. Hyperinflation will accomplish the same thing.

wisefool's picture

I am not a tax LLM, but they would say trading stocks is very different than ordinary income. Capitol gains require you to spend time researching. Then you must risk your money on an investment that may or may not get a government bailout if it fails. Nerve racking.  Especially if you have to put on pants and actually drive-in to your broker once a month instead of using the E-trade app for your smartphone, in your PJs. That is why cap gains should never be more than 20%.

Ordinary income simply requires you wake up, S.S.S. gulp down the morning meal and coffee. Kiss your family goodbye and commute. There you spend time, typically 40+ hours a week. If you have a profession that required training, you may deduct the interest on those costs, unless of course you make more than $70k, like say a newly minted nursing student. In that case, you should pay the whole 25%. 35% if you are a day-one med student grad.

The future of america depends on young people making good career choices. Give these seniors a bunch of herbalife products and they will never ever need that doctor and nurse. Make sense?

new game's picture

smart old farts juice...

IRC162's picture

I really do hope I missed the sarcasm in your vernacular,  especially re the time dynamic mothafucka 

AmCockerSpaniel's picture

Am I the only one here who see's a straw man?

wisefool's picture

You mean how stanley is currently 61 years old and will be 76 after the 15 years he is talking about?

Supernova Born's picture

FSA starts at birth.

FSA doesn't need to turn 65 to qualify for shit, bitch.

Totentänzerlied's picture

You might want to look into the age breakdown of beneficiaries of transfer payment programs.

kaiserhoff's picture

Too much government is a "massive, massive problem."

pods's picture

Hey all, we're fucked and there is not a single thing anyone can do about it.
So enjoy the time you have left until that can of cat food costs $4500.

Taxes are to control the populace and keep the fractional reserve game going, nothing more.
There is a reason why they were enacted at the same time.


LawsofPhysics's picture

^^^this.  The math is what it is.  Chance always favors the prepared so adapt or die.

same as it ever was...

venturen's picture

last I recall every penny of the FED $4 Trillion went to rich cronies! It is rich Druck is complaining about a tax on the rich!

Toolshed's picture

The coming war will solve this problem quite handily.

ncdirtdigger's picture

Plan on raising the draft age to 55+ ?

TrustbutVerify's picture

We could have started, decades ago, when this problem was recognized, by raising the retirement age.  The voting population preferred the ponzi.  

LawsofPhysics's picture

"voting"...  LOL!  You're a fucking idiot.  The bread and circuses were already planned before they killed Kennedy.

you enjoy myself's picture

yep, the voters are going to get what we deserve good and hard because honest discussion on entitlements is forbidden.  remember what happened to Paul Ryan when he actually tried to introduce the most timid, modest of reforms?   he got slammed with commercials that featured him literally pushing grandmom over a cliff.  remember when even GWB, who was no budget hawk, toured the country in 2005 or so trying to generate support for entitlement reform?  he might as well have been trying to pitch cancer.

this will blow up like all ponzis do - suddenly and violently.  except that, unlike regular ponzis, everyone knows this is coming.

Achilles Heel's picture
Achilles Heel (not verified) May 14, 2015 3:41 PM

First 2 the ticket window wins? I guess time will tell.

LawsofPhysics's picture

How about we stop accepting counterfeit money and allow useless paper-pushing fucks to die already?

After that compensation should finally return to people with useful skill sets.

Shit like this should accelerate the death of fiat, so there's that.

heisenberg991's picture

Does Drunk Guy Miller know that his SS tax rate is capped. He doesn't pay jack into the system and complains that the system is going to bust lol.

kowalli's picture

they will ban pensions and social bonuses -> elder people will die -> problem solved

daveO's picture

Via hyperinflation, baked into the cake. Don't tell all the boomers, they think they're investing geniuses. 

Chuck Knoblauch's picture

Cap individual net worth at $100 million.

When you hit $100 million you win.

Retire and go away.

I'm tired of looking at old farts being interviewed on CNBC.

What is the point after $100 million???

divedivedive's picture

A while back I worked for a (very approachable) guy (with an interesting past) who with his aggresive style, luck and intelligence managed to parley several businesses. When we parted ways his net worth was something like 750 million. His goal was always to add another '0'. It is sad that he didn't wait around to see if it would work out.

Chuck Knoblauch's picture

Maybe he wanted to impress you?

Impressing other people doesn't motivate me past $100 million.

It's a pretty small club at that number.

And it gets smaller as you climb higher just before you drop into the grave.

I hope he paid enough people to visit his grave.

The most popular and loved tombstone in the cemetery.

If he had mentored a successor at $100 million, he could have retired.

I'm in favor of forced retirement at 65 with $100 million banked.

It forces old farts to consider succession and estate planning.

F0ster's picture

$100 million barely affords you half a decent painting.