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"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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Thu, 05/14/2015 - 16:36 | 6094457 venturen
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...

Thu, 05/14/2015 - 16:36 | 6094464 Pinto Currency
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.

Thu, 05/14/2015 - 16:51 | 6094527 Supernova Born
Supernova Born's picture

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

Thu, 05/14/2015 - 17:02 | 6094577 Haus-Targaryen
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.  

Thu, 05/14/2015 - 17:07 | 6094600 exi1ed0ne
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.

Thu, 05/14/2015 - 17:48 | 6094801 greenskeeper carl
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

Thu, 05/14/2015 - 18:13 | 6094924 SafelyGraze
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.

hugs,
japan 

also good for society: cesium

Thu, 05/14/2015 - 19:35 | 6095202 espirit
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?

Thu, 05/14/2015 - 21:31 | 6095610 sgorem
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!!!

Thu, 05/14/2015 - 21:28 | 6095608 Raging Debate
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%.

Thu, 05/14/2015 - 17:30 | 6094707 TeethVillage88s
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.

Thu, 05/14/2015 - 17:34 | 6094733 JimBowie1958
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.

Thu, 05/14/2015 - 16:49 | 6094529 Stackers
Stackers's picture

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

https://www.youtube.com/watch?v=661pi6K-8WQ

Thu, 05/14/2015 - 16:50 | 6094532 Bastiat
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.

Thu, 05/14/2015 - 16:58 | 6094563 new game
new game's picture

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

lol

Thu, 05/14/2015 - 17:07 | 6094598 wisefool
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!

Thu, 05/14/2015 - 18:53 | 6095078 Mike in GA
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.

Thu, 05/14/2015 - 19:37 | 6095210 wisefool
wisefool's picture

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

Thu, 05/14/2015 - 16:52 | 6094537 ajax
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...

Thu, 05/14/2015 - 17:49 | 6094803 Ham-bone
Ham-bone's picture

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

http://econimica.blogspot.com/2015/05/the-fed-encouraged-packing-tnt-round.html

Thu, 05/14/2015 - 18:06 | 6094884 Totentänzerlied
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.

Thu, 05/14/2015 - 19:29 | 6095187 saveUSsavers
saveUSsavers's picture

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

Thu, 05/14/2015 - 22:59 | 6095850 daveO
daveO's picture

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

Thu, 05/14/2015 - 16:54 | 6094548 wisefool
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?

Thu, 05/14/2015 - 17:01 | 6094574 new game
new game's picture

smart old farts juice...

Thu, 05/14/2015 - 21:33 | 6095612 IRC162
IRC162's picture

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

Thu, 05/14/2015 - 17:33 | 6094716 AmCockerSpaniel
AmCockerSpaniel's picture

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

Thu, 05/14/2015 - 17:50 | 6094809 wisefool
wisefool's picture

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

Thu, 05/14/2015 - 16:36 | 6094460 Pinto Currency
Pinto Currency's picture

-

Thu, 05/14/2015 - 16:44 | 6094463 Supernova Born
Supernova Born's picture

FSA starts at birth.

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

Thu, 05/14/2015 - 18:10 | 6094912 Totentänzerlied
Totentänzerlied's picture

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

Thu, 05/14/2015 - 16:36 | 6094465 kaiserhoff
kaiserhoff's picture

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

Thu, 05/14/2015 - 16:36 | 6094467 pods
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.

pods 

Thu, 05/14/2015 - 16:44 | 6094504 LawsofPhysics
LawsofPhysics's picture

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

same as it ever was...

Thu, 05/14/2015 - 16:37 | 6094471 venturen
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!

Thu, 05/14/2015 - 16:40 | 6094485 Toolshed
Toolshed's picture

The coming war will solve this problem quite handily.

Thu, 05/14/2015 - 16:44 | 6094505 ncdirtdigger
ncdirtdigger's picture

Plan on raising the draft age to 55+ ?

Thu, 05/14/2015 - 16:40 | 6094486 TrustbutVerify
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.  

Thu, 05/14/2015 - 16:46 | 6094512 LawsofPhysics
LawsofPhysics's picture

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

Thu, 05/14/2015 - 17:43 | 6094778 mrdenis
mrdenis's picture

which one? 

Thu, 05/14/2015 - 16:56 | 6094550 you enjoy myself
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.

Thu, 05/14/2015 - 16:41 | 6094493 Achilles Heel
Achilles Heel's picture

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

Thu, 05/14/2015 - 16:41 | 6094494 LawsofPhysics
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.

Thu, 05/14/2015 - 16:42 | 6094497 heisenberg991
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.

Thu, 05/14/2015 - 16:44 | 6094507 kowalli
kowalli's picture

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

Thu, 05/14/2015 - 23:21 | 6095904 daveO
daveO's picture

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

Thu, 05/14/2015 - 16:51 | 6094514 Chuck Knoblauch
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???

Thu, 05/14/2015 - 17:02 | 6094578 divedivedive
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.

Thu, 05/14/2015 - 17:31 | 6094664 Chuck Knoblauch
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.

Thu, 05/14/2015 - 17:47 | 6094794 F0ster
F0ster's picture

$100 million barely affords you half a decent painting.

Thu, 05/14/2015 - 19:29 | 6095188 Chuck Knoblauch
Chuck Knoblauch's picture

Keep it safe.

Thu, 05/14/2015 - 17:53 | 6094828 McMolotov
McMolotov's picture

There is no point after $100 million unless one is a greedy bastard. And it's not jealousy that makes me say that, it's a simple observation. The fat ass who eats an entire box of donuts is a gluttonous pig. The guy who thinks $100 million isn't enough is a greedy bastard.

What's funny is that there are also greedy bastards who have much less than $100 million, and they still think $100 million isn't enough. They're just less skilled at being greedy bastards.

Thu, 05/14/2015 - 16:56 | 6094516 Kirk2NCC1701
Kirk2NCC1701's picture

Clearly, "How you see the problem is the problem" applies to him.  Solution: Soylent Green.

Seriously though... If Education or Health Care doesn't bankrupt you, Elder Care will.  Long Reverse Mortgages. 

Thu, 05/14/2015 - 16:47 | 6094520 A Lunatic
A Lunatic's picture

I thought the Republicans had already thrown all of the old people under the bus during the Obamacare debates......

Thu, 05/14/2015 - 16:48 | 6094521 ncdirtdigger
ncdirtdigger's picture

Lock the doors to the Country Kitchen Buffett, problem solved!

Thu, 05/14/2015 - 16:51 | 6094535 ersatz007
ersatz007's picture

so...let me get thist straight, the reason why at tax on the rich doesn't make sense is because i paid into a system that won't have enough money to pay me back namely because we haven't collected enough taxes from workers...and that as i get older the number of workers becomes fewer.  and the rich are job creators?  and to tax the job creators means less jobs.  so, i thought all this money we're blowing into the economy, and all the tax cuts were supposed to help the job creators create more jobs.  is this guy saying that they're not going to create those jobs?  then maybe we shouldn't give the job creators all this money and tax cuts since they're not doing a very good job of creating jobs.  

 

fucking nerve. 

Thu, 05/14/2015 - 16:53 | 6094544 kowalli
kowalli's picture

this guy is saying that they are not giving shit about you.

HE said - don't tax me, let's kill elders.

Thu, 05/14/2015 - 16:56 | 6094557 JR
JR's picture

Instead of elder abuse, it's now elder homicide.

Thu, 05/14/2015 - 17:00 | 6094572 Supernova Born
Supernova Born's picture

Youth in Asia will solve our demographic dilemma.

Thu, 05/14/2015 - 17:02 | 6094581 kowalli
kowalli's picture

They can't make money from elders - they stole pensions money, elders can't afford obamacare, they can't work- they are useless people for capitalism

Thu, 05/14/2015 - 18:17 | 6094958 Totentänzerlied
Totentänzerlied's picture

Show me this army of geriatric people Medicare has somehow been unable to contact. The US has more private wealth than the combined GDPs of about 50 other nations.

Retired people are by definition economically useless in any economic system that is not able to capture the value of unpaid labor such as family childcare, cleaning, cooking, errands - things the majority of retired people are quite capable of doing. Now show me all the elderly lining up volunteering to help raise their grandkids rather than planning their next cruise or tour of europe or visit to the country club or spa - it doesn't exist.

Thu, 05/14/2015 - 18:19 | 6094965 kowalli
kowalli's picture

racist twat

Thu, 05/14/2015 - 18:20 | 6094976 crisrose
crisrose's picture

My hand is up!!

Thu, 05/14/2015 - 23:34 | 6095924 daveO
daveO's picture

Private wealth that's denominated in debt. As the indebted die, their loans go bad.

Thu, 05/14/2015 - 23:31 | 6095910 daveO
daveO's picture

They lived their whole lives brainwashed by that new invention called the TeeVee. Surely, when TPTB tell them to jump, they will.

http://www.youtube.com/watch?v=yOV8mBjHHYg

Fri, 05/15/2015 - 08:52 | 6095283 all-priced-in
all-priced-in's picture

You need to understand that high income earners pay most of the income taxes now -

 

I think the top 10% already pay 30% of total income taxes - top 30% pay 90%

 

I am going off memory - so my % may not be spot on - but you get the idea.

 

Bottom 50% pay almost nothing.

 

Rich already not only pay a larger amount in taxes - but also at a higher rate.

Where do people get the notion that if someone makes $10 million they don't pay any taxes? Is it some "fairness" BS - lets see Mr Rich already pays almost $4 million in income tax - which is 38% - Mr Lazy Slob pays $450 which is 2%.

 

Go a head and down arrow me - then explain why that isn't already more than fair?

 

Then also explain which person has more greed -

The guy that works his butt off to make a lot of $ - pays 30 something % in income taxes

Or the guy that lives off of welfare - and demands more taxes be paid by someone else so they can get more fee shit?

 

 

 

 

 

Thu, 05/14/2015 - 16:54 | 6094553 JR
JR's picture

The population profile in the United States is a massive, massive problem. But Social Security enemy Druckenmiller has his facts wrong. It’s not the aging population that is the problem; it is the massive increase in Third World Millennials (43% of all Millennials) and the brown baby boom (more than half of all births).

Already, this Third World tsunami elected Barack Obama, perhaps the least qualified, most radical and most dangerous president in US history. And Druckenmiller is worried about Social Security? And attacks on his profits?

Already, 65% of children in America are receiving welfare assistance.

And so if Druckenmiller really is concerned about an entitlement program that Americans have already paid into,  where is his concern for the massive welfare programs that Americans did not request and that are not on budget?

Just who is this guy?

From more quarters now the Third World immigration wave has been attributed to the 1965 (Third World) Immigration Act which was heavily promoted by US Jewish interests. Druckenmiller is Jewish.*

*NYC Jewish billionaires – http://gawker.com/011424/nyc-jewish-billionaires

Thu, 05/14/2015 - 17:17 | 6094644 TeethVillage88s
TeethVillage88s's picture

From 2012 Census, over 150 Million on welfare or a social program in USA which is larger than the population of most countries in the world. Figure we spend $1 Trillion on SS, $1 Trillion on MEDICARE/MEDICAID, $1 Trillion on Defense, $1 Trillion on Education (Each Year).

"The Giant Welfare State: 48.5% of “Americans” Now on Some Form of Welfare

America—supposedly the “bastion of capitalism”—is now the world’s largest welfare basket case, with more than 150 million people claiming benefits, of whom 60 percent are nonwhite, official figures have revealed.

According to data just released by the Census Bureau, 109,631,000 “Americans” received benefits from one or more federally funded “means-tested programs” as of the fourth quarter of 2012.

This amounts to 35.4 percent of all 309,467,000 people living in the United States at that time, the Census Bureau said (of course, the actual figure is much higher when illegals are added in).

However, when those people receiving benefits from non-means-tested federal programs—such as Social Security, Medicare, and unemployment benefits—are added to those taking welfare benefits, it turns out that 150,026,000 people were getting federal benefits of some type at the end of 2012."...

..."To put these figures in perspective: there are 242 independent countries in the world. Of that number, 233 have populations less than 150,000,000.

This means that there are more welfare claimants in America (150,026,000) than there are people in most other countries in the world, including the Russian Federation (population 146,068,400).

The total welfare spend now amounts to over 35 percent of America’s GDP. It is simply a matter of economic inevitability that the US welfare system is unsustainable and is destined for collapse—along with that nation’s economy.

Furthermore, it is equally obvious that the Third Worldization of America is directly linked to this impossible financial burden, and that as North America becomes increasingly colonized by non-Europeans, so it will increasingly resemble those peoples’ origin nations."

Thu, 05/14/2015 - 18:08 | 6094891 JR
JR's picture

Good stuff, TeethVillage, as usual. But since when did the Federal government have any money of its own? Social Security is not a federal “benefit”; if you pay for something how can you be “added to those taking welfare benefits”? Only those receiving SS or disability insurance who didn’t contribute are on welfare. Same with Medicare.

Social Security (Old-Age, Survivors, and Disability Insurance Trust Funds) total receipts (in millions) for 2014 were $884,276; total expenditures $859,230.

Of the $884,276 in receipts, $755,969 came in net payroll tax contributions, $29,637 from taxation of benefits, another $465 from general fund reimbursements and net interest income of $98,204.

http://www.ssa.gov/oact/STATS/table4a3.html

How best to turn a younger generation against the generation receiving SS than to label SS a give-away program, welfare for the older people. And who can afford to pay this?  The chief enemy of SS is Bob Rubin and his followers.

Fri, 05/15/2015 - 01:28 | 6096098 Kprime
Kprime's picture

From 2012 Census, over 150 Million on welfare or a social program in USA

Populations of other countries

Bangladesh-164,425,000

Russia--------141,927,297

Japan---------127,380,000

Mexico--------108,396,211

Phillipines----94,013,200

Vietnam------85,789,573

Germany------81,757,600

Ethiopia--------79,221,000

Egypt-----------78,848,000

Iran-------------75,078,000

Turkey---------72,561,312

Congo ---------67,827,000

France---------65,447,374

Thailand-------63,525,062

 (UK)------------62,041,708

Italy-------------60,340,328

Myanmar------50,496,000

South Africa--49,991,300

Korea (South)------49,773,145

Spain----------------46,951,532

Ukraine-------------45,871,738

Colombia-----------45,569,000

Tanzania------------45,040,000

Kenya---------------40,863,000

Argentina-----------40,518,951

Poland--------------38,167,329

Algeria--------------35,423,000

Canada-------------34,207,000

Uganda-------------33,796,000

Sudan--------------31,894,000

Morocco-----------31,892,000

Iraq-----------------31,467,000

Nepal---------------29,853,000

Peru----------------29,461,933

Afghanistan--------29,117,000

Venezuela---------28,888,000

Malaysia-----------28,306,700

Uzbekistan--------27,794,000

Saudi Arabia-----26,246,000

Ghana--------------24,333,000

Yemen--------------24,256,000

Korea (North)-----23,991,000

Australia-----------23,480,970

 

 

Fri, 05/15/2015 - 01:17 | 6096091 Kprime
Kprime's picture

Already, 65% of children in America are receiving welfare assistance.

oh to be young and free in america, if I had it to do over again I would have waited 60 years so I could live free.

 

Born free and life is worth living
But only worth living
'Cause money is free

Read more: Andy Williams - Born Free Lyrics | MetroLyrics
Thu, 05/14/2015 - 16:58 | 6094555 Chuck Knoblauch
Chuck Knoblauch's picture

Do you know what protects a Russian Bolshevik billionaire?

A few Mossad agents, and yes, they bleed too.

Thu, 05/14/2015 - 16:56 | 6094558 Bobbo
Bobbo's picture

We need to be clear about this word, "Entitlement":

  • the amount to which a person has a right.


    "annual leave entitlement"

    synonyms: right, prerogative, claim; More
    permission, dispensation, privilege
    "their entitlement to benefits"

  • the belief that one is inherently deserving of privileges or special treatment.


    "no wonder your kids have a sense of entitlement"

Being among those who earned and contributted to this old people's pot, I tend toward the "has a right" camp. 

And, ... In this context, it is the thief who stole from the pot who demands the "special treatment" pejorative.

It's all in the tone of voice: you can hear the difference between thief and producer in the way the word is pronounced.

Thu, 05/14/2015 - 16:57 | 6094560 czarangelus
czarangelus's picture

That's why we're importing so many Mexicans, whose religion and culture predisposes them to create larger families, DUH

Thu, 05/14/2015 - 17:46 | 6094790 LetsGetPhysical
LetsGetPhysical's picture

DING DING DING. We have a winner. 

Thu, 05/14/2015 - 16:57 | 6094561 tuttisaluti
tuttisaluti's picture

Just stop going to war with every idiot and produce something useful instead of weapons, then everyone would have enough. 

Thu, 05/14/2015 - 17:04 | 6094589 kowalli
kowalli's picture

drugs, guns and the slave trade are the most profitable business, apart from the printer

Thu, 05/14/2015 - 16:57 | 6094562 TeethVillage88s
TeethVillage88s's picture

What he doesn't want to talk about who, what, where, how the Core of the Economy, the Core Consumers, the Small Businesses,... how it it has been hollowed out so much that Corporations are AFRAID to Invest in the USA and in Capital Expenditures (Facilities and Equipment).

What a fucking talking head. The Business Culture is "kill the Golden Goose" so we can reduce costs.

"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."

Thu, 05/14/2015 - 17:03 | 6094575 Hannibal
Hannibal's picture

..."an aging population will present a "massive, massive problem"

Solution:  Soylent Green Inc  

Thu, 05/14/2015 - 17:15 | 6094625 Stormtrooper
Stormtrooper's picture

I always carry a weapon for protection, and, so that I can choose the time when I feel that it is time to check out because quality of life is in rapid decline.

Of course, it is also to make sure that someone else doesn't decide that my time has come before I'm ready.

So, be careful when choosing old guys for your Soylent Green program.

Thu, 05/14/2015 - 23:39 | 6095942 daveO
daveO's picture

Solution = Hyperinflation. When you get depressed, enough, by your grocery bill...

Thu, 05/14/2015 - 17:05 | 6094593 roadhazard
roadhazard's picture

I thought the, "death panels" were going to fix this.

Thu, 05/14/2015 - 17:13 | 6094618 Atticus Finch
Atticus Finch's picture

It's always the social services that are the problems.

No mention about the 29 trillion that the Fed gave to the TBTF, no mention about the 6 trillion to fight endless wars that offer nothing to the ordinary American, no mention about the estimated 8.3 trillion unaccounted for by the Pentagon over the last 20 years.

Consider this. For the piker amount of 320 million dollars, by giving directly a million dollars to every man, woman and child in a America, the financial crisis would be over. Instead of 29 trillion to the TBTF international banks, Social Security would be completely restored 29 times over or total coverage health care could be given directly to Americans, a direct check, no insurance companies and full coverage. The social dilemma is another myth created by the "Grand Cabal over all of us" in the words of Winston Churchill.

All the supposed social costs completely ignores the fact that the FED creates unlimited money at a key stoke and if the Fed can give 29 trillion to the TBTF and 6 trilion for useless wars it can do the same key strokes to cover ordinary Americans. But hey, I get it, the Oligarchy is not interested in that kind of equality. Currency is created in a key stroke, it's all being directed to the wrong places.

Thu, 05/14/2015 - 17:37 | 6094748 zeabow
zeabow's picture

They steal and we pay for it ... and then they blame us for it.  We should blame ourselves for putting up with it.

 

Z

Thu, 05/14/2015 - 22:47 | 6095824 venturen
venturen's picture

when you say useless....does that include 9/11? If Clinton had done some waring....maybe you won't have had the crazies driving planes

Thu, 05/14/2015 - 17:11 | 6094621 Yen Cross
Yen Cross's picture

 How about we just leave corporate tax rates alone, and quit picking on earners. The fucking .gov just took in a record amount of tax revenue last quarter.

 This isn't about being able to afford the aging population. It's about graft and misappropriation of tax payer money. "WASTE"

 If you fuckers want more revenue then force corps to start repatraiting more of their overseas profits!

  JFC, welcome to the United States of France...

Thu, 05/14/2015 - 18:23 | 6094987 kowalli
kowalli's picture

" force corps to start repatraiting more of their overseas profits!"

how it will work out?or who? or really wtf? you can't demand something from below the table

Thu, 05/14/2015 - 18:30 | 6095002 Yen Cross
Yen Cross's picture

  Jubberish much?  Make companies that are "domiciled" in the United States~start repatriating a larger part of their "capital gains" and "profits" from offshore business.

  Have a nice day. :-D

Thu, 05/14/2015 - 18:38 | 6095033 kowalli
kowalli's picture

How you will make them "start repatriating a larger part of their "capital gains" and "profits" from offshore business"

tell me, HOW???

your words are pure BS

Thu, 05/14/2015 - 17:26 | 6094676 viator
viator's picture

The population explosion turned out to be a population implosion.

Thu, 05/14/2015 - 17:28 | 6094688 falconflight
falconflight's picture

I'm not sure which age cohort is the most pathetic; mine and the retirement entitlement mentality, or the young ones and their schizod mentality of libertarian views in the abstract, but want Obamacare.  Anyone else see that recent poll?

Thu, 05/14/2015 - 23:41 | 6095954 daveO
daveO's picture

How 'bout them British polls that predicted a Conservative defeat. Oops.

Thu, 05/14/2015 - 17:53 | 6094720 zeabow
zeabow's picture

What a bunch of crap.  Another insanely rich person advising us not to raise taxes on the rich.  A man who  has very likely significantly benefitted from the Fed's robbery of savers ... often retired people .... to subsidize the stock market proffers that our nation's biggest problem is doling out benefits to senior citizens ... benefits that they've largely paid into.

Using the statistic that we will have 2.5 workers per elderly person in 15 years instead of the 5 workers per elderly persons (this article doesn't actually tell us when the 5 workers per elderly person was) to alarm us in misleading.  First of all, I'd really like to find out how they came up with this stat.  I'd imagine part of it is a reflection of the lack of jobs because our economy has been become so imblanced due to people like this jackass make BILLIONS of fucking dollars while a lot of college graduates can only find work for $10/hr. and less.  Second of all, ss funding has at least partially accounted for this ... it's not like all of a sudden the working population will have to dish out twice as much to support the elderly,  Third of all, ss is supposedly fully funded until 2033 and then from that point will pay out in benefits what it collects via payroll tax, which has been estimated to be roughly 75% of the amount it will be obligated to ... if no further funding changes are made.  Fourth of all, you don't ever hear from these rich folks any solutions along the funding lines, including the one that would be the simplest to cover it: eliminate the the ceiling on which income can be taxed for ss, which is currently $118,000 ... because of course that would take some money from insanely rich people.  That would eliminate much if not all the ss funding shortfall.  Funny, how they never add that to the conversation.  I'd also add taxes to hedge funders for their capital gains, which is really their income, because they only pay 15% on it.  Hedge funders like this dude used to be. 

Instead it's another subtle version of blame everyone else except the people that are doing the most to destroy the economy: wall street/bankers.  They're always pointing the finger at greedy granny, the unions, the teachers, the people on social programs when none of these groups blew a 10+ trillion dollar hole in our economy.

No, the money is not in the rich people's pockets, according to this jackass, it's granny you have to watch out for from picking your pocket.

Z

Fri, 05/15/2015 - 01:09 | 6096083 Kprime
Kprime's picture

they take the actual 2 employees per retiree, seasonally adjust it to 3, holistically replace the two with 3 because they are a better value (huh? 3 workers to do the job of 2? is a better value?) which brings us up to 4.  Now we simply multiply by the birth/death rate (which is higher this year due to cop killings) which brings us to 7.  Then we logarithmically smooth out the standard deviations leaving exactly 5 per. 

 

This will result in the necessary cuts to your social security check in order to further fund the MIC and bail out the banks for holding cash in case you actually want to spend your SS check.

Thu, 05/14/2015 - 17:36 | 6094743 LetsGetPhysical
LetsGetPhysical's picture

They've already got the whole "aging population" thing fiqured out..... It's called ILLEGAL IMMIGRANTS, aka more suckers for the Ponzi scheme. They breed like rabbits and they're already used to living in 3rd world country conditions. Perfect ready-made serfs. Just give them all SS#'s and problem solved. You must have missed that CFR lecture Stan. Please RSVP for this summers Bohemian Grove. 

Thu, 05/14/2015 - 17:39 | 6094754 besnook
besnook's picture

baby boomers will not be paid because they cannot be paid. the smart ones have secured their neoretirement at walmart. there is a much bigger issue with labor overcapacity. someone is supporting 93 million unemployed people. a little help from the people(not companies) who benefited most from zirp/nirp is not unfair to ask.

Fri, 05/15/2015 - 01:01 | 6096075 Kprime
Kprime's picture

how can there be 93 million unemployed?  Have you not heard, we are nearing statistical full employment. We are down to 5.4% unemployed.  You can barely find a warm body to hire.

Thu, 05/14/2015 - 17:52 | 6094821 JLM
JLM's picture

Druck's a pig, no doubt about that but even pigs can talk truth.  He is right, who is going to pay for me, I am almost 60.  30 years on the dole thanks to modern medicine coming my way.  No earnings or any give back to society other than duplicate bridge fees.  Let their be no doubt that I will not elect anyone threatening to take any of it away.  Nothing left for the next generation.  Euthanaisa starting to sound pretty good right. Sad eh?

Thu, 05/14/2015 - 18:40 | 6095043 JR
JR's picture

I’ll tell you what Druck’s problem is. He wants to replace America’s decent wage earners with Third World slaves. And a nation of low income serfs cannot pay the entitlements of a former generation of well paid wage earners if a profligate Congress has appropriated that generation’s SS trust fund and replaced it with worthless IOUs.

Who are the Druckenmillers?

It is not anti-Semitic to say that many of the international bankers and America’s ruling elite are Jewish and have a worldview that differs from most Americans’ nationalist view.

It was the bankers and CEOs that orchestrated the hostile acquisitions and mergers of America’s manufacturing base and intellectual capital in the 70s and 80s that paved the way for the outsourcing of American innovation.

And, as Jeffrey Blankfort pointed out in “The Israel Lobby and the Left”:  “Jews played a central role in American finance during the 1980s, and they were the chief beneficiaries of that decade’s corporate mergers and reorganizations.”  Richard J. Hernstein and Charles Murray wrote in “The Bell Curve” in 1994, “The CEO of 1976 was still disproportionately likely to be Episcopalian but much less so than in 1900—and by 1976 he was also disproportionately likely to be Jewish…”

It was in the 80s that the current wave of offshore outsourcing got underway. And it was in 1965 that the Jewish-orchestrated 1965 Immigration Act began changing the demographics of America, upending the cohesiveness and values of America’s white, Protestant European culture.

You can't have one without the other.

These perpetrators of America’s demise call it globalization. They are depriving American innovators of the rewards of their progress and freedoms and self government and hard work in order to use the American republic as the facilitator of their Zionist socialist global empire where all men are corralled and ruled with a whip.

Thu, 05/14/2015 - 23:53 | 6095976 daveO
daveO's picture

Only 1 down arrow and you posted at 18:40(over 5 hrs ago). Make this same post earlier in the day and the those arrows would be reversed(6 downs, 1 up). They keep bankers hours, lol.

Thu, 05/14/2015 - 19:03 | 6095111 itstippy
itstippy's picture

Simply declare that Medicare and Social Security programs are vital for National Security and that their funding mechanisms are classified information.

Trillions of dollars of annual funding become available overnight with no entries on the official U.S. budget and no disruptive debate on the Senate floor.

Fri, 05/15/2015 - 00:59 | 6096072 Kprime
Kprime's picture

black ops

Thu, 05/14/2015 - 19:18 | 6095154 I Write Code
I Write Code's picture

OK, I volunteer to be 30 years younger.

Thu, 05/14/2015 - 19:26 | 6095179 JenkinsLane
JenkinsLane's picture

Good of you to take one for the team.

Thu, 05/14/2015 - 19:26 | 6095181 JenkinsLane
JenkinsLane's picture

Look on the bright side Stanley, at least in 15-20 years time the Fed won't have any shortage of Treasuries to buy.

Thu, 05/14/2015 - 19:48 | 6095248 EscondidoSurfer
EscondidoSurfer's picture

When they cut my Social Security, they better be sure to cut the other government pensions as well

Thu, 05/14/2015 - 20:14 | 6095363 Amy G. Dala
Amy G. Dala's picture

That is a reasonable proposition, but what has your democratically elected civilian leadership ever done to put this as a possibility in your mind?  You think your SS bennies trump Lois Lerner's pension?  Are you fucking crazy?

Thu, 05/14/2015 - 23:10 | 6095884 squid
squid's picture

Riddle me this batman.....

When congress setup its own pension plan in the seventies (maybe sixties???), why was that not the canarey in the coalmine mment for Americans?

 

America has SS, why does congress need its own SEPARATE pension plan if the nation has SS?

 

Now you know.

 

:)

 

Squid

Thu, 05/14/2015 - 19:50 | 6095254 GRDguy
GRDguy's picture

The real problem with the aging community is that those who are retiring want THEIR money, and those who stole it from them have no way of stealing it from somewhere else.  The life insurance, 401k, long-term care insurance, and savings programs all print statements (just like Madoff did) every month, but the real funds are gone. The financial sociopaths have lied, cheated and stole just about all the real funds that were there, and now they've got nowhere to go but the Feds, or the crowds will go nuts.  It will be ugly.

Thu, 05/14/2015 - 20:05 | 6095325 barroter
barroter's picture

Druckenmiller...we the old or about to be old hold assets...sometimes alot of them. You're going to have to kiss our ass to get our vote. You'll also have to blow us if you want the slightest access to a smidgen of our assets.

Thu, 05/14/2015 - 20:10 | 6095349 Amy G. Dala
Amy G. Dala's picture

Ha ha, going from five workers today to 2 1/2 in fifteen years.  He fails to point out that in fifteen years, those 2 1/2 workers will be EBT/Medicaid slugs.  Right now, it's only two out of five.

Hey, who fed grampa again?  He just shit his shorts.  We got an app for that?

Thu, 05/14/2015 - 20:16 | 6095374 Questan1913
Questan1913's picture
"Obama's Tax-The-Rich Plan Is Futile" Druckenmiller Warns, America's Aging Population Is A "Massive, Massive Problem"

 

YES, YES!!  Can't you see the logic in it??  WE NEED TO WIPE OUT THE AGING POPULATION......and...SAVE the RICH!

Thu, 05/14/2015 - 20:30 | 6095434 Rikky
Rikky's picture

listen to this baby boomer billionaire ratting out his own demographic, oh cause he can cause he's filthy rich and doesn't need the cash.  in 15 years i should be collecting the vast sums i've paid into the system for all my predecessors and i'm supposed to just say oh well there's no one to pay for me and take much less cause boobs like this can get on their soap box and rattle stuff they don't have to live by?

Thu, 05/14/2015 - 20:46 | 6095491 MalteseFalcon
MalteseFalcon's picture

SS isn't going anywhere.  Just more doomer porn.

Thu, 05/14/2015 - 21:39 | 6095639 August
August's picture

“That’s not where the money is...”

Sure thing, Stan.  Nice work... very convincing.

Receiving "taxable income" may not be a priority among the rich, but sure as fuck that's where the money is.

Thu, 05/14/2015 - 21:49 | 6095657 Atticus Finch
Atticus Finch's picture

It’s always the social programs that are the problem.

Never mind the 29 trillion given to the TBTF international banks, the 6 trillion spent on useless and obscene wars that are no benefit to any American and have caused suffering and anguish to millions throughout the world or the 8.3 trillion dollars unaccounted for by the Pentagon over the last 20 years. Currency creation is nothing but set of key strokes that could have been stroked in a different direction

Consider this. For the piker amount of 320million dollars the financial crisis would be over by giving every man, woman and child in America a million dollars. Social Security could be in surplus by another key stroke. Direct payment for total healthcare coverage for every American is possible by another key stroke without the involvement of insurance companies.

Oh, I get, the Oligarchy doesn’t want those key strokes and that’s not the type of equality that the “Grand Cabal over us all’, to quote Winston Churchill, has in mind.

Our world is a contrivance that could be changed by aiming the key strokes in a better direction.

Fri, 05/15/2015 - 00:45 | 6096050 Kprime
Kprime's picture

yes but i heard they could save 79 million just by making people redo the food stamp paperwork every 10 days. Or maybe it was 7.9 million.  could have been $79. hell I don't know this math thing is too hard.

Fri, 05/15/2015 - 00:57 | 6096070 Kprime
Kprime's picture

So for the last 40 years of my life they took slightly over 15% of everything I earned and now it's too much to expect to get $680 per month, or whatever ridiculous number they have in mind.  For the following example know that a person making 35K per year will have 5K+ in contributions (at the collected rate of 15%).  

hmmmmm, this chart shows that a mere 5000 per year, invested at 7%, from age 25 to 65, makes a person a millionaire at retirement(65).  So with no further interest, I could withdraw over 4K per mo, for a period exceeding 20 years.  Who's zoomin who?

http://www.businessinsider.com/compound-interest-and-retirement-savings-...

Sun, 05/17/2015 - 15:49 | 6103588 Heavy
Heavy's picture

this country needs a high speed spoofing tax

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