The Baby Boom Tsunami That May Drown The Economy

Tyler Durden's picture

Submitted by Stock Board Asset Management

In our most recent article Millennials: A Menacing Metamorphosis To The Status Quo breaks down an interview hosted by Gordon T. Long and Charles Hugh Smith. The interview discusses the massive generational shift occurring in the United States as the Millennial generation sets to stitch their beliefs and ideas in the American fabric. But there is an issue. The status quo i.e. the baby boomers are not ready to give up the reigns forcing a generational clash, and as described by Gordon T. Long and Charles Hugh Smith will continue for the next eight years. Such a clash will lead to economic and social consequences. In terms of crisis, Strauss–Howe generational theory provides an excellent blue print of this generational clash called the ‘Fourth Turning’, where the old older is dismantled giving way to the new order.

To continue the theme of generational shifts, we have come across an interesting presentation hosted by Mike Maloney of goldsilver.com called ‘The Baby Boom Tsunami That Is Set To Drown The Economy’. His analysis rhymes with Gordon T. Long and Charles Hugh Smith of a colossal change in demographics that is currently underway in the United States. Maloney outlines how the baby boomer generation is becoming a ‘max social burden’ on an economic basis and in his own language “mandates a stock market crash”. His thesis is simple and it’s all about the structural issues of an aging population becoming less productive and demanding more withdraws from the system.

Like a Tsunami, Maloney outlines in a series of graphs, the rise of the baby boomer generation in the 1950’s, 1960’s, and 1970’s. As the baby boomer generation morphs into the working and max spending period of life this has contributed to the massive stock market and real estate bubbles of the 1990’s and 2000’s. But times are changing as the baby boomers are now transitioning into max savers and ultimately max social burdens in the years of 2020-2030. During this time period, the working age and max spenders in society will have difficulties in supporting the aging population.

In 7 slides, Maloney highlights an actual wave of the baby boomers vibrating throughout time from ‘child’ to ‘max social burden’.

Bonus: Japan seems to be ahead of the curve when it comes to an aging demographics. If Maloney is right about the US could we be turning Japanese? Most importantly, will the SPX500 mimic an early 1990’s Nikkei225 stock index?

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SallySnyd's picture

Here is an article that explains how the baby bust will have an impact on the economy:

 

http://viableopposition.blogspot.ca/2016/08/the-baby-bust-and-its-impact...

 

We are at the dawn of a new economic era.

Takeaction2's picture

Should be no problem...if Gold passes $1300 and on to the moon.  LOL  (For myself....)

Raffie's picture

Gold $10k+

Silver $500+

Bitcoin $5k+

= I'm good to go.

Lanka's picture

Baby boomers are continuing to work, provided there exists a company that will pay them.  Maximum monthly social security payment is about $2600, for someone retiring today, which will provide for a low standard of living in the rural South; otherwise SOL.  

fx's picture

The S&P will never mimic the Nikkei. The central banksters have learned their lessons and will not allow it to collapse. next question, please.

Stuck on Zero's picture

Max social burden??  You ever visit downtown LA or Chicago?  Millions of young people on drugs, in jail, having illegitimate kids, alcoholics, robberies, thefts, shootings ... and you call aging baby boomers a burden?  What does it cost to imprison a million inmates? What does it cost for special education classes for millions of kids?

Oldwood's picture

We don't talk about that shit. Just keep repeating....it's the old people, its the old people.

In all seriousness, we have more than a few decades for abortion to become fully acceptable, with the elimination of life for convenience or financial reasons, SO, how hard will it be for society to rationalize the disposal of the elderly, especially in a financial shit storm of government default on its promises? 

Sanity Bear's picture

Ironically those worthless pieces of scum manage to be less net negative to the rest of society as your average Boomer, who can be summed up as basically a thief with a lifelong genital fixation.

DaveA's picture

Yeah, we shouldn't have locked up Kermit Gosnell, he was an American hero. Each of the crying fetal niglets he flushed down the toilet would have cost taxpayers several million dollars over its lifetime if allowed to live.

Mr Blue's picture

I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... http://bit.ly/2jdTzrM

ElTerco's picture

Good luck with that. As the shit hits the fan, people will have to liquidate assets to meet obligations. Remember that picture from the Depression of that guy selling his car for $100 (See link below)? Gold and Silver will temporarily flood the market, reducing their dollar price. You don't want to own now... you want to buy shortly after the shit hits the fan.

https://meltdown2011.files.wordpress.com/2008/12/depression-car-sale.jpg

Arnold's picture

Catching the wave, dude.

Dsarango's picture

And here is an article that explains why it won't affect it.

https://www.ofwealth.com/investing-never-mind-baby-boomers/

The analysis is broad and takes into account the percentages of the population. 

So sallySnyd, sorry no new economic era. 

Gorgeous's picture

The Millenials won't support shit.

nmewn's picture

Ain't it funny how socialism always grinds to a halt with the least little bit of sand in the gears? ;-)

mkkby's picture

Gov has printed how many trillions since the Viet Nam war and gold standard fail?  No generation in 50 years has been able to pay for the socialism.  Not even close.

Yet no hyperinflation and the dollar is still the world's safe haven.

Nothing to see here.  The millenials won't pay for shit and the retiring boomers will do as well as any previous generation.

China, Europe/UK and Japan are all basket cases.  A few of them will "go Greece" over the next 3 decades.  If they can crash and recover, then the dollar may have a viable replacement.  But the boomers will be safely gone by then.

MEFOBILLS's picture

 No generation in 50 years has been able to pay for the socialism.

 

National Socialism in Nazi Germany exploded with productivity.  They built homes on an industrial scale.  Workers became the most efficient in the world.  Women stayed home to bear and raise children.  They built highways, bridges, armaments, cars, etc.  Farmers were given land that was to be generational; this to improve land husbandry and productivity.  In 1938 Hitler was Time Magazine "man of the year" for the dramatic economic improvements.

If  economy is efficient, and most  homes are paid for, then seniors are an easy burden - especially if they live with their children.

The ((international)) capitalist did not like what was happening in Germany... not at all.

Ace Ventura's picture

I'm not sure why you're getting downvotes. Clearly the nazi system was primed for abuse and corruption, as any system typically is when you factor in humans. The valid point you made regarding how it served to transform Germany from the wreck of the Weimar system into a growing national success....seems lost on some folks.

Raymond K Hessel's picture

MEFO is a dummy

The same thing could be said about slavery in the antebellum South

Fascism is slavery
Socialism is slavery
Income taxation is slavery
Sensible common sense legislation, all slavery

This glorification of productivity by any means is insanity.

finametrics's picture

wait a sec. didnt germany's economic miracle happen because western joo banks juiced the hell out them? they provided loans, capital, tech, etc. did that not happen?

Raffie's picture

We'll march and protest them that we deserve EVRYTHING they earn.

Not sure what I will do with my $100, but as long as it is not in their hands I'm good.

XqWretch's picture

Why should they? Saddled by 20T by irresponsible idiots, god knows how much debt in total, theyve been handed a shit economy with minimal upside... yeah, who wouldnt want to support that shitsandwhich

American Snipper's picture

I really think so...

wisehiney's picture

Musta got lost somewhere down the line.
J. Geils found dead a while ago.

 https://www.youtube.com/watch?v=gW0hxbrmFhM

umdesch4's picture

Thanks for letting us know. Listening to my HDTracks purchase of Freeze Frame at 24-bit 192 kHz now, and feeling it. Flamethrower hitting me hard right now.

Felix da Kat's picture

This is a simple one. The Baby-boomer's Government entitlements are the mother of "Too big to fail". They ARE America and congress knows it. All entitlements will be paid. But Gen-X and those subsequent ? Not so much. 

Anteater's picture

The Baby Boomers PAID INTO the SS and MC TRUST FUND with dollars worth FOUR TIMES what they are today.

That SS and MC TRUST FUND is what's sustaining the MASSIVE LOOTING  by Mil.Gov to BRIDGE THE DEFICITS.

Deficits spending, I should add, that the Millenials seem to think they are entitled to, having yet paid in very little.

I was just downtown today and saw a Viet Nam vet standing beside his wheel chair. I saluted him, and he saluted

back by pulling out his knob and pissing a spray, facing the street.  F'ck you and your Ballard Suede Chukkahs!

Talk to me about 'entitlements' when you've pulled your weight for the Man for 50 years!

Sanity Bear's picture

Boomers never pulled their weight for one single year, forget about 50.

Tell me when you come to grips with the immutable historical fact that most of the standard of living enjoyed by your co-generationists was basically stolen from the mouths of their own children and grandchildren.

Boomers? Should have been called Satan's Greatest Generation.

Arnold's picture

Your sense of entitlement is not my problem.
Go kill your Grandfather or sumthin'.

canisdirus's picture

When you work the numbers, they also made about 4-6x as much as an average millennial, depending on how old they were when they started working.

You really expect a bunch of underemployed kids making an average of 35k/year with an average of 60k in college debt to pay the retirement money that you already squandered (including voting for it to be squandered)?!

Boomers are crazy. That tsunami is washing out and in the next 10-15 years they're going to learn just how badly they fucked up.

meditate_vigorously's picture

Boomers may be the most selfish generation in the western history.

land_of_the_few's picture

Bring out the anti-aircraft guns and the little chubby instructor, to show how it's done!

"Make more money from taxes of the Proles by sucking water up your ass than a hard working Millenial does,

driving themselves mad working in an office full of people who hate each other, you shall pay the price, Roundeye!

Your intolerable arrogance is now answered!" *BZZZAAAAAAPPPPP*!!

auricle's picture

The US youth is to selfish to take care of dead weight. The boomers bought into the fiat lie and they can take their piled up debt and false promises and work till they drop. Default is in the cards. Give us honest money and scrap the bankers. 

rejected's picture

Sorry, but the boomers weren't around when the Federal Reserve was enacted to steal our money,,, nor when the 16th amendment making us slaves to the Bank was enacted,,, nor when social Security was enacted....

But your last sentence is good. Keep thinking that way and here's to you if you achieve it. 

MEFOBILLS's picture

Sorry, but the boomers weren't around when the Federal Reserve was enacted to steal our money

 Good job!

The totality of Wilson's progressive era laid in all the machinery needed to takeover the U.S.  Boomers did not have internet, and did not cop to the scam.  

Millenials are NOT figuring it out either, even though we TELL THEM STRAIGHT UP.

The progressive era machinery was 16'th ammendment, which is income taxes.  These taxes are used TO bail out banks .... remember TARP?

17'th ammendment is the worst one.  It makes Senators populists so they can be bribed.  Senators are supposed to be sent by their state legislatures, and hence are beholden to their state, not bribery via lobbyists.  You should not be voting for your Senator - you don't have that right.

Then of course, the Federal Reserve Act, which made private banks a large money trust.  Then the IRS, which is the machinery to suck up federal reserve bank note money in the form of taxes and fees.  

This truly is the problem - yet no discussion about undoing the Progressive Era.  Millenials are clueless despite having more information at their fingers than any generation in history.

Try it... approach any millenial and ask them what they think about the 17'th ammendment.  Blank Stares.  CRICKETS.  Boomers were and are stupid, but so are millenials.  Point a finger and three point back at you.

 


meditate_vigorously's picture

Whenever someone here says something absolutely true in the face of Jewish lies, they get exactly 2 downvotes right off the bat from the resident Hasbara Commissars.

manfaded's picture

Not to worry this is the nuclear test generation they will all start dropping like flys soon enough.

cbxer55's picture

And we're all part of the Fukushima generation, so I hope you got your plot arranged. We'll all be pushin up daisies soone enough, thanks to that gift that never stops giving.

Lost in translation's picture

I'm sure illegal aliens, H1b's, and wealthy mainland Chinese living in the US will all prove very sensitive to the needs of aging white Boomers and want to do all that they can for them...

...right?

Archive_file's picture

I live in San Francisco, the Chinese hate White people. They're always scowling and like in China, if they attempt to board a bus, it's balls out!

Lost in translation's picture

Same down south. Parts of Irvine are becoming no-go areas for non-Chinese.

MEFOBILLS's picture

They scowl in China too.  

American's seem to be happy all the time, despite adversity.  Losing the good american character with massive immigration of unlike people is a disaster.

ebworthen's picture

I plan to do my best to drown the Ponziconomy.

gimme soma dat's picture

Jump you fuckers. 

BingoBoggins's picture

I've carried my own weight, and expect to die with my boots.

And here it was I thought I was responsible for my namesakes. Boy, was I STUPID.

lasvegaspersona's picture

As a boomer I am confident my social security money is in a lock box...pretty sure Al Gore has it.