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Guest Post: A Future View Of Post-Bubbledemic America

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Submitted by Ben Tanosborn

A future view of post-bubbledemic America

Balancing the budget in 2032 is going to be a rather easy, mechanical task for future American politicians.  A constitutional amendment requiring balanced budgets will be enacted by then, and Congress will only need to tackle projected deficits by adjusting variable pension and Medicare rates – for those retired – which will have replaced the current models for Social Security and Medicare.  And if worst comes to worst, there will be room for additional cuts from the budget of an already octomated military which by then will lack any hegemonic designs as other major world powers claim their legitimate stakes and defend their grounds. 

That’s my prognostication as we close 2011, a year of much turmoil around the world, and one with a hopeful spark for change in the United States of America, as Wall Street’s macabre face slowly becomes unveiled.

It will be the younger generations’ payback to the current generations for leaving them with an inherited debt approaching then twice the gross national product; a debt they will only be able to amortize on the backs of the retired population… the people who thought nothing of creating this burden for them, their children and their grandchildren.  Such prediction does assume capitalism, in whatever form, remains in our midst; a likely occurrence, as “owners” of the current system will enforce it from the top down via the capitalists’ police force: the nation’s military. But that remains a questionable, not a sure thing.

As I see it, we are still in for a decade of social and economic turmoil in a nation of proud yet disposed people, with much economic juggling continuing to be performed by never-learn politicians as we march to do battle with a few more economic bubbles.  Our capitalist and prolific economic motherland will birth a few more bubbles before bubble-hysterectomy is finally forced on her; a little too late, I am afraid, with only symbolic significance and little else.  The housing bubble, only partially deflated during the past four years, will continue to lose air and new bubble-twins will make their entrance in the form of state and municipal debt which cannot be repaid; not to forget the ugliest sibling of all yet to be birthed: government guarantees on student loans which, as they become uncollectible, will sooner or later become part of America’s national debt.

This projected educational debt through guarantees, legislatively imposed on the taxpayers by a deranged, lobby-connected, pseudo-democratic system, has bestowed incredible wealth on both for-profit and non-profit businesses and institutions, at a cost to taxpayers likely to add yet another trillion dollars to an already unmanageable debt.  They will become cashable-guarantees from the federal government which have had a double negative effect: first, by hiding the true unemployment and underemployment rate, as it allowed millions of unemployed and “professional” students, to attend both traditional and for-profit sham schools, where skills/knowledge acquired – if such took place – will be in most instances irrelevant to society since there won’t be any jobs or positions for them as they attain their certificates, diplomas or designations.

Could it be that the United States is entering a brand new era when the discussion switches from “illegal immigration” to “brain-drain and American migration”?  Will our best and brightest people find hope and refuge in other shores… those of Brazil, parts of Asia and new Liberia’s in Africa?  Will future American ex-pats be sending money to feed and care for their impoverished old back in the States?  That picture may not be so unreal, certainly not outrageous; by the time Americans come to de-celebrate the centennial of the Great Depression… just a score from now.

Whether it takes a decade or a score, the term “economic stimulus” will finally disappear from the lexicon of fully developed, mature economies such as the United States; and the people in those nations will be forced to live within their current productive means.  And that productive citizenry will not consider it amoral to have their elders pay for the debt they inherited from them.  When you think of it… it does seem equitable and fair.

A sad but realistic outlook as 2011 comes to an end in an America of many past accomplishments… now confronting an uncertain and gloomy future.

 


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Sat, 12/31/2011 - 15:01 | Link to Comment Hohum
Hohum's picture

Not to worry.  This guy's a pretty good candidate, but he's out to lunch on energy.  He should increase the federal gas tax and use the proceeds to build liquid fluoride thorium reactors (LFTR).

 

http://www.ronpaul2012.com/the-issues/energy/

Sat, 12/31/2011 - 15:35 | Link to Comment Marco
Marco's picture

Except commercial designs are two decades out and there's decent odds it would be money wasted by then.

Sat, 12/31/2011 - 18:53 | Link to Comment earleflorida
earleflorida's picture

Wake Up!!!!

China's has a lock on the world's 'rare-earth-elements', and is literally eating the world's high tech lunch. 

http://www.thoriumenergyalliance.com

scroll down to James Kennedy and listen-up,... before it's to late

T.E.A.Conference May 3, 2011

Ps. I ain't got no skin in the game other than having my children's future at stake

Sat, 12/31/2011 - 19:57 | Link to Comment Rynak
Rynak's picture

What? Thorium reactors are like 1960's! They are about as old, as the current reactor designs. The only reason they were not built en-masse, is that one cannot create nuclear bombs from them. The absence of thorium reactors has nothing to do with technology - not even with economic considerations (there are a few other quite cool modern reactor designs, but making them commercially viable requires some one-time costs.... not so with thorium reactors, which are as old, as the "normal" reactors in use now).... but rather purely is based on military and political considerations.

Sat, 12/31/2011 - 23:46 | Link to Comment Buck Johnson
Buck Johnson's picture

I totally agree, also we should build these type also.

http://www.hyperionpowergeneration.com/

 

I totally believe that article, whene the babyboomers and Generation X are close or in retirement they will tax us more and take away more.  I'm also waiting (it's being hidden big time) for the implosion of the municipal debt and it has already happened in some counties.  In one what they did was to just stop paying pensions pure and simple.  The student loans is helping to increase the costs of College.  But to be honest with you if the govt. would finance it's peoples education we wouldn't have so many people with tens of thousands in debt and without jobs.

Sun, 01/01/2012 - 12:55 | Link to Comment GMadScientist
GMadScientist's picture

Sure, and we'll let the free market decide where they dump the resulting actinides.

"Brilliant"

Lulz.

Sat, 12/31/2011 - 15:08 | Link to Comment Hugh G Rection
Hugh G Rection's picture

2032? Let's make it through 2012 first.

Sat, 12/31/2011 - 16:17 | Link to Comment HardlyZero
HardlyZero's picture

Ah yes...between here and there.  Or, there and back again.

How to do it while surviving the collapses.

Military may play a role if unrest occurs.

Its hard to predict how we make it to 2020 without major issues arising.

Sat, 12/31/2011 - 16:45 | Link to Comment YBNguy
YBNguy's picture

Terrible article. Thanks guys above for pointing out the time inbetween which for most will be hell on earth. I was speaking to my grandpa over Christmas and he was talking about how he made it during the depression: a family member owned a farm which he learned to work. I then read a statistic that back then chances were out of every 5 people you closely knew one owned a farm/farmland, I wonder what the number is today...

Sat, 12/31/2011 - 19:06 | Link to Comment r00t61
r00t61's picture

And I thought some of these articles that tried to project out to 2015-ish were already an exercise in pointless mental self-gratification.

But 20-effin-32?

This post should have started with the subheading: "Completely unfounded and ridiculous speculation.  For entertainment purposes only."

 

Sun, 01/01/2012 - 10:03 | Link to Comment Sudden Debt
Sudden Debt's picture

By 2032, America will be renamed "the conquered states of new mexico"
A mexicn president
With spanish as the first language
The eagle will still be the national symbol but it will br holding a snake and no more arrows.

Sun, 01/01/2012 - 10:12 | Link to Comment ISEEIT
ISEEIT's picture

I doubt that but I am inclined to believe that America in it's present form will not exist 20 years from now.

Sun, 01/01/2012 - 16:22 | Link to Comment CPL
CPL's picture

In 20 years I'll either be flying around with my jetpack

or

I'll be riding a horse as my primary mode of transportation.

 

In 20 years, I'll say I'm riding a horse.

Sat, 12/31/2011 - 19:19 | Link to Comment Errol
Errol's picture

I concurr; I think it's VERY unlikely the USA will survive in anything close to its present form by 2032.  I'm thinking either a severly authoritarian state, or (more likely) a weak to non-existant central government, depending on how steep the backside of the oil production curve is.

Sun, 01/01/2012 - 00:42 | Link to Comment my puppy for prez
my puppy for prez's picture

I would prefer the latter, but I really think the authoritarian state is much more likely.  They have invested too much in its infrastructure, and, after all, we have a never ending "war on terror" to fight!

Sun, 01/01/2012 - 01:33 | Link to Comment pine_marten
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A nuclear armed state never goes quietly into the night.

Sat, 12/31/2011 - 21:12 | Link to Comment ultimate warrior
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Fuck.  None of us Zerohedgers will be alive by 2032.  The gestapo will have rounded most of you up well before then and for the few stragglers left they will be near death starving, picking government issued corn out of their feces only to consume it once again.  Oh the good times to come :)

Sat, 12/31/2011 - 15:10 | Link to Comment Irish66
Irish66's picture

Wall Street’s macabre face slowly becomes unveiled.

WAITING!!

Sat, 12/31/2011 - 16:46 | Link to Comment Manthong
Manthong's picture

I don’t know if I want to be disposed of an octomated military or dispossessed of an automated one.

And there is no such thing as not-for-profit in “public” education.. education is just another bureaucratic government indoctrination and pilfering scam.

Sat, 12/31/2011 - 19:01 | Link to Comment gangland
gangland's picture

 

"a nation of proud yet disposed people"

 

proud yet disposed to WHATTTT exactly? freedumb? demockracy? icrap? drones? nukes? derivatives? financial innovation? NASCAR? the fed? institutionally sanctioned terrorism? technology death kill? crocs? mario battali? douche bags on ice? kardashians? jersey shore? groupon? linkedin? facebook? GM? GE? monsanto? pets.com? s&p zero change over ten years? Obama? Bush? clinton? CONgress? jaime dimon? vikram? Lloyd? the military? the edumacation system? YAWN. the shitty on the hill. 

I'm sorry but you just cannot decouple the politicians and wall street from the lay people you CANNOT do that.

ows is a joke, more worried about a live feed and their icrap and 'the whole world is watching' what a fucking cop out. the whole world is watching ows be little spoiled bitches.

a nation of proud yet disposed people ignoring the shit smell while waiting in line on black friday.

 

 

Sat, 12/31/2011 - 19:16 | Link to Comment gangland
gangland's picture

the existence of fundamental similarities between the Soviet Union and the United States was for me a vague intuition, but I was unable to draw up a detailed list as Dmitry has done.

One must have lived in two crumbling empires in order to be able to do that.

I must say that my enthusiasm was not shared by those around me, with whom I have shared my translations.

It's only natural: who wants to hear how our world of material comfort, opportunity and unstoppable individual progress is about to collapse under the weight of its own expansion?

Certainly not the post-war generation weaned on the exuberant growth of the postwar boom (1945-1973), well established in their lives of average consumers since the 1980s, and willing to enjoy a hedonistic age while remaining convinced that despite the economic tragedies ravaging society around them, their grandchildren will benefit from more or less the same well-padded, industrialized lifestyle.

The generation of their children is more receptive to the notion of economic decline—though to varying degrees, depending on the decrease of their purchasing power and how lethally bored they feel at work (if they can find any) .

 

http://cluborlov.blogspot.com/2011/12/conversation-about-europe.html

 

Probably the largest difference, and the one most promising for fruitful discussion, is in the area of local politics.

European political life may be damaged by money politics and free market liberalism, but unlike in the United States, it does not seem completely brain-dead.

At least I hope that it isn't completely dead; the warm air coming out of Brussels is often indistinguishable from the vapor vented by Washington, but better things might happen on the local level.

In Europe there is something of a political spectrum left, dissent is not entirely futile, and revolt is not entirely suicidal.

In all, the European political landscape may offer many more possibilities for relocalization, for demonetization of human relationships, for devolution to more local institutions and support systems, than the United States.

Europe is ahead of the United States in all the key Collapse Gap categories, such as housing, transportation, food, medicine, education and security.

In all these areas, there is at least some system of public support and some elements of local resilience.

How the subjective experience of collapse will compare to what happened in the Soviet Union is something we will all have to think about after the fact.

One major difference is that the collapse of the USSR was followed by a wave of corrupt and even criminal privatization and economic liberalization, which was like having an earthquake followed by arson, whereas I do not see any horrible new economic system on the horizon that is ready to be imposed on Europe the moment it stumbles.

On the other hand, the remnants of socialism that were so helpful after the Soviet collapse are far more eroded in Europe thanks to the recent wave of failed experiments of market liberalization.

it bears mentioning that fossil fuels are really only useful in the context of an industrial economy that can make use of them.

An industrial economy that is in an advanced state of decay and collapse can neither produce nor make use of the vast quantities of fossil fuels that are currently burned up daily.

There is no known method of scaling industry down to boutique size, to serve just the needs of the elite, or to provide life support to social, financial and political institutions that co-evolved with industry in absence of industry.

It also bears pointing out that fossil fuel use was very tightly correlated with human population size on the way up, and is likely to remain so on the way down.

The level of alienation in developed industrial societies, in Europe, North America and elsewhere, is quite staggering.

People are only able to form lasting friendships in school, and are unable to become close with people thereafter with the possible exception of romantic involvements, which are often fleeting.

By a certain age people become set in their ways, develop manners specific to their class, and their interactions with others become scripted and limited to socially sanctioned, commercial modes.

A far-reaching, fundamental transition, such as the one we are discussing, is impossible without the ability to improvise, to be flexible—in effect, to be able to abandon who you have been and to change who you are in favor of what the moment demands.

 

 

Sat, 12/31/2011 - 20:59 | Link to Comment Manthong
Manthong's picture

I think he meant "proud but dispossessed" and I do agree with that sentiment.

I also agree with the automated military concept. It is frightful to think about what is being done with robotics, AI, miniaturization and weaponry.  It is a specter straight out of the scariest of science fiction.

Combine that with the militarization of civilian law enforcement and the developing posture on "Homeland Security" and you have a CF of the highest order.

 

Sun, 01/01/2012 - 00:38 | Link to Comment my puppy for prez
my puppy for prez's picture

Your statement about lasting friendships is NOT accurate, and is painting with WAY too big of a brush.

Mon, 01/02/2012 - 18:35 | Link to Comment rufus13
rufus13's picture

"disposessed" changes the meaning quite a bit. 

 

Having property taken is not as awful as becoming fertilizer or reformed Diesel fuel. 

 

Cheers.

Sat, 12/31/2011 - 15:16 | Link to Comment dwdollar
dwdollar's picture

"Could it be that the United States is entering a brand new era when the discussion switches from “illegal immigration” to “brain-drain and American migration”? Will our best and brightest people find hope and refuge in other shores… those of Brazil, parts of Asia and new Liberia’s in Africa? Will future American ex-pats be sending money to feed and care for their impoverished old back in the States?"

Africa? Haha... Seriously... Sounds like Simon Black ramblings. That kind of ridiculousness does nothing to convince the masses of their impending fate. There will be no place to hide. If your dumb enough to go to Africa in the middle of a depression, then good riddance to your sorry ass.

Sat, 12/31/2011 - 15:30 | Link to Comment AnAnonymous
AnAnonymous's picture

No brain drain. The smartest, the most educated, the most intelligent will stay in the US.

Now, as the conditions that enabled the rise of the US middle class are waning, a new wave of colonization is being triggered.

The poor and the rich are not the issue. The issue is that fat bulk named the US middle class, born out of the largest governmental transfer(id theft) whose requirements on aggregated demand is way too big for the Earth to sustain.

Better to reign in Hell than to serve in Paradise...

Once again, that much of people will be poured over weak nations in the citizenish dream of restarting 'America' (hint: peak theft is reached so goodluck to restart a project based on farming the poor and extorting the weak)

All these parts of the world, South America, Africa will be used to ease the growing tension in the West as retirees will face the 'choice' of living off a $1500 pension per month or liquidate everything they have in the West, buy a villa in some poor holes of the world, near the sea, have servants, sex services etc on the back of the locals.

US citizens nature being eternal, the decision is already made.

Sun, 01/01/2012 - 01:17 | Link to Comment CH1
CH1's picture

The smartest, the most educated, the most intelligent will stay in the US.

Actually, the smartest will escape onto the Internet and into black markets. Their bodies may stay in North America, but they will "live" elsewhere.

Sun, 01/01/2012 - 01:43 | Link to Comment pine_marten
pine_marten's picture

Oh, I get it.  Like"back to colonialism" or something.  Do you get to take a Delorean?

Sun, 01/01/2012 - 14:05 | Link to Comment Ag Star
Ag Star's picture

The best and the brightest did not stay in Nazi occupied Europe so why would they stay in the US under the same conditions?  They are already leaving as well as those with good sense.  Why would you stay when you know it's going to get very  ugly when the dollar dies, or gasoline at $8 per gal, or food shortages.  Look at people fighting over shoes and electronics in the last month.  This country never did anything for me except enslave my people and are now on the rampage in my (I mean everyones) homeland.  So I say "fuck it", time to get the hell out of this bitch before they make it impossible.  The US was built on rape and pillage and will go down the very same way.  See ya!

Sat, 12/31/2011 - 15:14 | Link to Comment Snakeeyes
Snakeeyes's picture

It is what the Austrians like Von Hayek have been arguing for decades. We are in a post government induced credit {housing) bubble and it will take a long time to heal.

Hence when I go on Fox Business at 11am on Janaury 3rd, I am going to be guardedly optimistic about 2012, not a cheerleader.

http://confoundedinterest.wordpress.com/2011/12/30/2011-a-year-in-review-for-bonds-and-mortgages-treasuries-big-winner-europe-big-loser-u-s-housing-flat-lined/

Sat, 12/31/2011 - 16:55 | Link to Comment YBNguy
YBNguy's picture

We are creating more bubbles to deal with and education is the next card house to fall. 'Guardedly' optimistic, wow be sure not to mince any words; ride that bull gently... How does that old saying go: between optimists and pessimists, pessimists a generally better informed.

Sat, 12/31/2011 - 15:15 | Link to Comment fbrothers
fbrothers's picture

You first need to understand. There is only one party. And you are not in it. 

Sat, 12/31/2011 - 20:32 | Link to Comment UP Forester
UP Forester's picture

Can I still get drunk?  Do I have to make my own wine/shine/beer?  'Cuz I can, ya know.

Sun, 01/01/2012 - 14:09 | Link to Comment Ag Star
Ag Star's picture

"one party and you ain't in it" --the late--great George Carlin.

Sat, 12/31/2011 - 15:15 | Link to Comment zebrasquid
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Gen-Payback

Sat, 12/31/2011 - 15:16 | Link to Comment Misean
Misean's picture

He forgot to mention The Crisis, the military crack down, the generals taking control, and the civil wars.

Sat, 12/31/2011 - 15:24 | Link to Comment Meremortal
Meremortal's picture

The most important thing he 'forgot' is the demographic change which will be evident by 2022 and beyond. The writer is also a victim of static model fallacy. The ongoing exponential tech changes will speed the return of good times. We are in for a difficult 10 years, not a difficult 20.

Sat, 12/31/2011 - 16:25 | Link to Comment PMakoi
PMakoi's picture

and... the jackboots working for those "paper" owners of wealth which is all your stuff, whatever you have left.  Whatever it becomes, it will NOT be capitalism as depicted here, more so just the image and some jingoism that these bums should have worked harder.  I'm going with Maslow on this... famine, disease, pestilance, war...

http://rovemonteux.tk/wp-content/uploads/2011/10/capitalism1.jpg

Sat, 12/31/2011 - 18:11 | Link to Comment The Alarmist
The Alarmist's picture

The generals don't want control over the civilian populace... too big a pain in the ass. If they can't keep a moderately armed insurgency of non-English speaking people who are readily identifiable because they don't look like us suppressed, how are they going to suppress a heavily armed populace of english speakers who are related to our own troops?

Sat, 12/31/2011 - 20:34 | Link to Comment UP Forester
UP Forester's picture

The good ones that have kids want them to grow up, and those under them are waking up, quick.

Sun, 01/01/2012 - 00:10 | Link to Comment my puppy for prez
my puppy for prez's picture

RFID chips which will be read by each soldier who has a "reading machine".

Facial, iris, arterial, voice, and gait recognition machines which are cross-referenced with their accumulated historical data-base....and then there are the "home visits"....

Sun, 01/01/2012 - 00:40 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

We should do all we can to encourage TPTB to become utterly dependent upon RFID. If you understand on a physical level how it works, its Achille's Heel becomes obvious.

 

Mon, 01/02/2012 - 18:47 | Link to Comment rufus13
rufus13's picture

+1. RFID allows total morons to "do their job", until the system crashes and they have no idea how to take inventory or make change. Military supply is close enough to MAL-WART in a lot of ways. 

Sat, 12/31/2011 - 15:24 | Link to Comment whatswhat1@yahoo.com
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When you have pile of shit and a fan blowing, you can only delay the inevitable for so long.

Sat, 12/31/2011 - 15:33 | Link to Comment kevinearick
kevinearick's picture

Happy New Year / Salem Witch Trials

So, a proton is an inelastic / programmed wave/string that will perform the same way nearly every time. It seeks order. A nucleus is a compilation of protons that further reduces disorder/elasticity. Corporation is a Historical nucleus/wave/string. Ascribing individual merit to it gives it more credit than it deserves. Left to its own devices, it will implode every time, until there is no time, due to algebraic reduction. It is inherently reductive, which is why it must be ponzi viral, producing a bang.

The proprietors have reached the point where they must choose between K-12 robot replication and releasing the prisoners, and bringing home the troops. Do you really think that they do not have a martial law option ready to go?

If 90% of the prison cells and 99% of the Family Law non-persons are male, by design, in the most expansive system ever built to house non-conformers, who do you expect the system operators to offer up as sacrificial scapegoats, before and after? Why would you expend resources to attack ponzi robots when the system can replicate them faster than you can dismember them?

You have empire and non-empire input to your community enterprise system, which delivers an output, to an empire enterprise system…at the churn pool (a little more complicated than AD/DA). Remember, the ponzi robots are impulse controlled. They cannot contemplate an original future because they are overwhelmed with the addictive anxiety of recursive History, the positive feedback signals supporting their own event horizon, which sets their limits.

Relative housing prices will continue to fall until they intersect with rising returns to those willfully excluded, regardless, which is when organic growth will ignite again. Agency shifts the demand/supply curve, incrementally and then quantumly because it may only measure itself.

Sun, 01/01/2012 - 01:50 | Link to Comment pine_marten
pine_marten's picture

Ponzi Robots - I like that.  It is more elegant than Meat Based Profit Units.

Sun, 01/01/2012 - 07:22 | Link to Comment Optimusprime
Optimusprime's picture

Have you written a work of fiction along these lines?  Sounds promising.

Sat, 12/31/2011 - 15:46 | Link to Comment Mr.Kowalski
Mr.Kowalski's picture

 It's my opinion that after Sept 2008, the US Gov't has a plan in place for just such an emergency; they obviously are'nt letting me in on it, so this is my best guess. I'd wager that "The Plan" is to nationalize vital utilities and companies. I think there will be no choice but to hit the "reset" button on the financial system, which does two things.. first it wipes out any debts owed by anyone anywhere.. including home mortgages, which is a way to ensure that 100 million families don't become homeless and it'll make them kinda glad in a way for the collapse, thus ensuring political stability. I believe that states will then issue ration cards for all the unemployed, which will be at least half the adult population. I believe the state will take all foreclosed properties and give them to families; hotels will be siezed by states and used. The second part of this is that anyone with money, bonds or stock are wiped out, even if you are saving the money in your mattress. Retirement is now a pipe dream, as is a job.

http://themeanoldinvestor.blogspot.com/2010/05/after-crash.html


Sat, 12/31/2011 - 15:54 | Link to Comment Pondmaster
Pondmaster's picture

Isn't Ben Tanosborn really Wanklord in disguise .

I don't appreciate being blamed for the excesses of the Big banks nor the Gov't . I have had precious few good choices to vote for in the last 40 yrs since turning 18 . I have lived within my means in spite of a cosumeristic system of propaganda .  I have done all I can to make things better . I resent being blamed for this . Kids ..grow up , get a life and stop blaming.  Father and mother haters , that'll solve the US problems. Oh I see , its becuase you are ruing not getting that special 500 $ Christmas present when you were 12 , or the Dodge Stealth when you graduted in 2000 . Whining brats all !!  Again , weapon ownership is a good idea with all the generational hate being spread here . Even if disquised in soft language .  

Sat, 12/31/2011 - 17:51 | Link to Comment alex_g
alex_g's picture

Pond, you are in the minority of boomers, as am I, though I am 10 years younger than you.  Millions are facing retirement with almost no savings and debt they can't service unless they work until they die, if the have a job.

 

Consumerism has a lot to do with it, but so does the practice of voting for the people that promised them the most for the least amount of effort and austerity.  Whining brats are a product of their parents.

Sat, 12/31/2011 - 18:07 | Link to Comment Gully Foyle
Gully Foyle's picture

"Consumerism has a lot to do with it, but so does the practice of voting for the people that promised them the most for the least amount of effort and austerity."

BULLSHIT!

"Millions are facing retirement with almost no savings and debt they can't service unless they work until they die, if the have a job."

Maybe they should have developed some restraint. NO ONE FORCES ANYONE TO LIVE BEYOND THEIR MEANS! NO ONE FORCES ANYONE NOT TO SAVE FOR THE FUTURE!

I am so fucking sick of people refusing to accept responsibility for their goddamned actions!

In the end it isn't BIGOV or the Corporatocracy that should be blamed for that kind of clusterfuck, it is the fucking individual.

Once each of us accepts that we are in control of our own lives choices then there are no victims.

Sat, 12/31/2011 - 19:42 | Link to Comment alex_g
alex_g's picture

Gully, I think you missed my point, which was the individuals were responsible for both participating in consumerism AND voting for excess govt spending.

No pass was intended for "victims" of their own stupidity.  I place the blame squarely on the boomers shoulders.

Sat, 12/31/2011 - 20:08 | Link to Comment WonderDawg
WonderDawg's picture

The crisis we're dealing with now had its seeds in 1913. It's been building for 100 years. To place all blame on boomers is overly-simplistic. This is a multi-generational clusterfuck. The ones who are blaming the boomers are the same ones who cried like little bitches if they didn't get their Nike Air shoes to start the school year. Shut the fuck up, read some history, open your eyes and see that we've all had a hand in this.

Sat, 12/31/2011 - 21:32 | Link to Comment bigerny
bigerny's picture

Your right WD.Blaming a generation is like blaming a race or a religion or a sex.

Sun, 01/01/2012 - 14:40 | Link to Comment wisefool
wisefool's picture

For the boomers it was all about "upgrading" their lives. The church of two-factor theory that is the foundation for nearly every "MBA". MBAs are a uniquely Boomer person type.

As a patrol sergeant, he was a firsthand witness of the Dachau concentration camp. Herzberg believed that this experience, as well as the talks he had with other Germans living in the area, was what triggered his interest in motivation.

So the Business leaders of the boomer generation (MBAs) and our economists (Keynesian) have shaped the economy around theories from academics observing the most brutal aspects of war.

These two things created a perfect storm resulting in the housing boom, and was further bastardized by the tax code & greenspan with D.C. people like Newt "I train one and two star generals, when I am not working for Freddic Mac" Gingrich.

The reason you can blame the boomers is because they knowing created a bubble in the first of the three needs of human survival. (Shelter). And forced it on everyone by the tax code/printing press. The system can recover from other types of bubbles. Internet, tulips, swamp land, gold, etc. But as we are seeing now, housing is never going to recover. It is no longer something that people steadfastly work twords as an accomplishment for life. The greater fools (young people) have wisened up, and/or are already straddled with the education bubble to buy these McMansions at any interest rate that Big Ben sets.

This is why Krugman talks about another war. It is the thing that wrote the books of their teachers. We must fall back to that level of human depravity because the "intellectuals" of the Boomer generation failed to add anything. And whats worse, broke a seal via statist bubbles in human nessecities. Next up are food, water,  war.

Sat, 12/31/2011 - 23:40 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

I've lived well within my means and I am prepared to retire.  However Gully said: " NO ONE FORCES ANYONE TO LIVE BEYOND THEIR MEANS!"  Define ' force'.  The whole "keeping up with the Jones'" meme was cranked up to an absurd level in the 1985 - 2005 period due to easy credit.  For those of you who lived within your means, how did you like it when your neighbors or relatives lived better than you on credit?  Did people think you were a little odd?  Did you have marital strife? There was immense pressure to conform to the ultra-consumer society. 

And mistakes got made.  How did your equities do from 2001 to 2011?  Who didn't expect much better performance and consume accordingly?

It isn't just about saving.  It's about investing properly.  Keeping your 'nut' small.  And putting up with a raft of shit.  The pressure to do otherwise was immense.  After 20 years, I win.  I think.

Sun, 01/01/2012 - 01:16 | Link to Comment CH1
CH1's picture

You're right, repairman. People were manipulated - strongly - into conformity. The strongest resisted and endured, the rest caved-in.

Caving-in worked for those decades... it made the strong and principled look silly. So, the strong have a lot of anger. That is understandable, but not useful.

Sun, 01/01/2012 - 14:43 | Link to Comment wisefool
wisefool's picture

+1 wrote a longer post up above, but you guys got to it clearer. People were not just manipulated via advertizing, they were forced via the tax code and implicit tax/fear of inflation. Ron Paul 2012.

Sun, 01/01/2012 - 06:04 | Link to Comment mjk0259
mjk0259's picture

You do have to pay for a place to live and almost always a car to work to pay for it and then medical insurance or bills and food. This alone makes many people "living beyond their means" regardless of how crappy the place to live, car, med and food is.

Sun, 01/01/2012 - 14:27 | Link to Comment Ag Star
Ag Star's picture

Bankrupcy is the answer.  If you have crazy debt--quit your job or better yet make them fire you so you can collect unemployment insurance, and file bankrupcy before they put and end to that too.  Fuck all that debt, start over like GM, Donald Trump and countless other weathly people/corps.  What ever cash you then have available you can prepare for hard times and buy gold/silver.  Put yourself before your debt--it's that simple folks.

Sun, 01/01/2012 - 15:01 | Link to Comment wisefool
wisefool's picture

+1. In this Bizzaro world people who watch Fox news think Donald Trump & Romney are successful businessmen and something they should aspire to. Simply because they levered the system of laws to their whim with no regard to the counter parties. (usually taxpayers)

On the other side you got Biden on record, over and over again saying that the GS clowns like Corzine, Geithner, Paulson are the people who will save americans from economic disaster.

When you present either set of facts to the majority of the sheeple they will say "Hey they are just consuming the resources that are there to be consumed, thats chutzpah!" The system of laws is not something to consumed. It is there to prevent predators from consuming souls. I hope the sheeple realize that the NDAA authorizes beastiality for a reason ...

Sat, 12/31/2011 - 15:59 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Good luck with that melancholia.  Even the end is never a straight line.

Sat, 12/31/2011 - 16:49 | Link to Comment Gromit
Gromit's picture

Nice analysis.

Time will come, I think when we budget top down rather than bottom up. We will decide as a society how much of our income we can afford to spend on retirement pensions, health care etc.

We will then decide how to share that limited pool of money as fairly as possible.

Sun, 01/01/2012 - 01:53 | Link to Comment pine_marten
pine_marten's picture

I'd give up a lot of what was promised and payed for to remove the nazi like scene that I see coming down the pike.  We don't get to decide though.

Sun, 01/01/2012 - 12:42 | Link to Comment CH1
CH1's picture

Right, the state could keep the proceeds of their theft, if they would just go away and leave me alone.

Sat, 12/31/2011 - 16:54 | Link to Comment oldmanagain
oldmanagain's picture

The problem has been and is, neoaustrian propoganda. Robbing social security, for profit education, medical care, armies, food, etc. Ther final blow, the profiteers  now enjoy  the rights but not the responsibility of people.  We are being asked to quietly march into the Koch ovens.

Sun, 01/01/2012 - 08:47 | Link to Comment JuicedGamma
JuicedGamma's picture

Social Security was not robbed. Politicians cannot be blamed for grabbing a pot of money and borrowing it < /sarc >

The very design is flawed and can only succeed with an impossible permanently parabolic increasing population.

In the end like Madoff it will die.

Sat, 12/31/2011 - 16:59 | Link to Comment bill1102inf
bill1102inf's picture

The only thing the boomer generation wants is for the Fed Gov to keep the prices of their houses high, the payouts of SS and pensions where they are and F everyone else.

 

Had the banks NOT BEEN BAILED out to the tune of 16 TRILLION USD, they would have imploded and rightfully so.  NOTHING bad would have happened. NEW banks would have taken their place and would be charging high interest on shorter term loans with much less allowed to be borrowed. This would have crushed the housing market back 20 years immediately and right now, 3 years later prices would most likely be even lower.  This would have destroyed the boomers primary 'asset' but it would be fantastic for the nation.

 

To put things in perspective, for the young generation to make out like their boomer relatives, they would go out right now and buy a $200,000 house, and a $50,000 car. In twenty years that house would rise to $2,000,000 and the lowest priced car would sell for $100,000.00 . They would then use their $$$ that they did not earn to keep the new young generation from opening businesses or buying houses while telling the young generation that they 'worked hard' for what they have

Sat, 12/31/2011 - 20:25 | Link to Comment ebworthen
ebworthen's picture

Don't decend into agism or you will be fodder for the very mammon lusters you are angry with.

Many, many baby boomers and Gen X'ers worked hard and paid taxes out the ass for many, many, years.

The assholes who robbed us and you would be more than happy for us to believe in politics, left/right, and old versus young so they can keep screwing us over.

Hang the greedy and malfeasant traitors.

Jail the wicked schemers and profiteers.

Reward individual responsibilty.

Restore the rule of law.

 

 

Sun, 01/01/2012 - 11:47 | Link to Comment johnnynaps
johnnynaps's picture

About agism. Statistics don't lie! Congress does not have an average age of 32!

Sat, 12/31/2011 - 19:07 | Link to Comment americanspirit
americanspirit's picture

Predictions, predictions. All good fun. My personal fave is the very large asteroid, as yet undetected, on course for earth rendezvous in fall 2012. No longer any question of when it ends or how it ends. Problem solved. Lots of praying, partying and puking. (The smiling face of Jesus will, of course, be spotted on the asteroid's surface.) Much wailing and sobbing. Mass insanity. Pity though - at least some of us will finally figure out that we all should have spent more time caring about each other when we could have. Oh well.

Sat, 12/31/2011 - 23:39 | Link to Comment StychoKiller
StychoKiller's picture

Go forth, alleviate some suffering:  http://www.worldvision.org

Sat, 12/31/2011 - 20:02 | Link to Comment wkwillis
wkwillis's picture

Before we downsize social security and medicare, we will downsize the amount of money we spend on the federal debt, by inflation or direct default, which will automatically balance the budget. We can't sell bonds, we can't have a budget deficit.

Sat, 12/31/2011 - 20:05 | Link to Comment Praetor
Praetor's picture

So if the military is 'octomated' does that mean they lose 1 in 8 or lose 80%?

Sat, 12/31/2011 - 20:38 | Link to Comment UP Forester
UP Forester's picture

They only have Octomom's offspring to fight wars.

Sat, 12/31/2011 - 20:11 | Link to Comment vipmoneymachine
vipmoneymachine's picture

I am surprised that we do not have motivated Americans who can act as they are from SEC or Justice department, knock on Blankfein or Jamie Dimon's door and tell them to stop this shit and scare the shit outof them. We do that around the world, what's the problem ?

Sat, 12/31/2011 - 21:27 | Link to Comment I am Jobe
I am Jobe's picture

Amercians are simply pussies. All the caht and no action. If you had some guys from Thailand they will kick some serious azzz. Lets not forget the DHS potects the crooks and jails the innocent in the USA. Welcome to the NWO.

Sun, 01/01/2012 - 06:06 | Link to Comment mjk0259
mjk0259's picture

Even the French put up a 100 times better fight against the ruling class

Mon, 01/02/2012 - 06:32 | Link to Comment falak pema
falak pema's picture

I like the "even"... its very significative. May I add my twocents..."Only" the french...if we exclude Lenin...as he was very upper class bolshevik.

Sat, 12/31/2011 - 21:58 | Link to Comment San Diego Gold Bug
San Diego Gold Bug's picture

2012 will have a "Black Swan Event" that will catch all off guard.  Be prepared. 

Thanks for a great year Tyler and all ZH friends.  Special thanks to the ZH reader who mentioned comparesilverprices.com and comparegoldprices.com.  Both saved me some good money this year.  2012 will be Big Fun!

Happy New year!!

Sat, 12/31/2011 - 21:59 | Link to Comment DaveA
DaveA's picture

In 2032, there will be no deficit and no debt. No government will be able to borrow or print anything that can be exchanged for useful goods. How governments will deal with this basic fact, when millions of starving unemployed voters are screaming for more money, is anyone's guess. But it should be pretty much resolved (and the bodies removed) by 2032.

Sun, 01/01/2012 - 01:52 | Link to Comment Yen Cross
Yen Cross's picture

 Ratts, they are all ? Ratts( ? HELP...

Sun, 01/01/2012 - 06:30 | Link to Comment UP Forester
Sun, 01/01/2012 - 03:01 | Link to Comment Yen Cross
Yen Cross's picture

 HAPPY NEW ( TRADING YEAR? 

Sun, 01/01/2012 - 07:07 | Link to Comment tony bonn
tony bonn's picture

rhetoric and literacy are not a strong point of this essay....it's almost childish...

Sun, 01/01/2012 - 11:02 | Link to Comment Snakeeyes
Snakeeyes's picture
The post Austrian credit bubble and Socialism make for a bad combination. The Federal (Un)Balance Sheet – $65 Trillion Financial Hole = $550k Per Household
Or $2.2 million per de-facto taxpayer, take your pick!

http://confoundedinterest.wordpress.com/2012/01/01/the-federal-unbalance...

Sun, 01/01/2012 - 13:00 | Link to Comment Free Bird
Free Bird's picture

Hysterectomy? I think Vasectomy is the more appropriate metaphor.

Sun, 01/01/2012 - 17:40 | Link to Comment Use of Weapons
Use of Weapons's picture

It has already begun.

 

Bus driver from Guangdong dies after testing positive for H5N1 strain, despite having had no apparent contact with poultry

 

President Obama signs NDAA on New Year's Eve

 

Russia hands over nuclear submarine to India

 

 

 

The tin-foil hats should spend a moment to peruse the 'Doctor Who' Xmas special.... a thousand points of light all singing for a saviour, all out in the open with a dash of middle-class nostalgia for the War.

 

Make your choice, adventurous Stranger
Strike the bell and bide the danger
Or wonder, till it drives you mad
What would have followed if you had

Sun, 01/01/2012 - 20:23 | Link to Comment Use of Weapons
Use of Weapons's picture

And..you know what. For once, I'm going to be really wanky and break this down for you. Crossword style, for the Chess players out there.

 

GO

 

Guardian ~ Liberal Capitalism from the RSA, the Velvet Glove, brings you: flu from the east, when we've just weaponised a strain in Holland.

Signifiers & signs: The West is the Best.

Cliff notes: Viral is Global. Planes, Internet and Word of mouth. We're all in this together ~ and Madagascar just closed its port.

 

Democratic Underground ~ the great Black hope of the democrats, brings you: death of your Constitution, and then is so weak and bought he defers it for his replacement to decide on.

Signifiers & signs: Anonymous is going to hit the 6th Epiphany with a vengance.

Cliff notes: Ron Paul being used as a rallying cry by left-leaning politos ~ the illusion of the Left / Right, Blue / Red dynamic is fucking dead, you zombies.

 

Economic Times1 ~ Russia is backing the most democratic pair of the Pak / Indi cluster fuck, now that should tell you something... about their economy.

Signifiers & signs: Cold War is long gone

Cliff notes:  India was a British Commonwealth partner, and the American chose Pakistan. Where does Russia see the most benefit being? Support for a (admittedly disfunctional) democracy over a military junta with a puppet government? Would would have thought! [Ref: 110 years in C/S America].

 

Now, you mix that all up, and add a little Senior Bush & prophecy, with some Lewis Christian myth,"Through that cupboard to fucking Narnia", and you'll get there. What you have to do is to take all the black ironic titles and mix them together, and wonder about your system. I'm thinking that there's some lessons there.

 

 

But whatever. The internet isn't a complex beast...

 

 

 

http://www.youtube.com/watch?v=FGiQsM2xmEg

  • 1. Admittedly only chosen due to the name, not the abilities of its makers. That's show business, got to get a meta-meta-link in somehow.
Sun, 01/01/2012 - 21:23 | Link to Comment tip e. canoe
tip e. canoe's picture

little boys with their Big Toys

http://youtu.be/5tvLZpxHJoc

yawn

Mon, 01/02/2012 - 01:40 | Link to Comment Heyoka Bianco
Heyoka Bianco's picture

The notion that somewhere in the future, somebody will figure out how to solve every current problem is the exact reason nobody every does shit about them RIGHT NOW. Instead, they kick the can, usually before it even hits the road (FDR set the SS retirement age at 5 because it was 8 years higher than the average life expectancy. "Let the future bastards fix it.")

Mon, 01/02/2012 - 05:01 | Link to Comment AustrianEconomist
AustrianEconomist's picture

Europe and the US are going through a deleveraging period which will most likely lead to a balance sheet recession such as Japan did during the "Lost Decades". Economic theory hybridization is needed in order to implement a stable international monetary system that is not just based on leverage but on growth of real GDP, meaning the production of real goods, rather from financial gambling with derivatives.

Check out the latest from the Capital Research Institute (CRI):

Deleveraging - A Balance Sheet Recession

Mon, 01/02/2012 - 11:22 | Link to Comment Tangurena
Tangurena's picture

Balancing the budget in 2032 is going to be a rather easy, mechanical task for future American politicians

By 2032, the US will have broken up like the former Soviet Union and Yugoslavia. I wish our break up to be as peaceful and violence-free as the Havel did in the former Czechoslovakia.

Mon, 01/02/2012 - 16:29 | Link to Comment jmc8888
jmc8888's picture

This guest post and his ideas are just as stupid, suicidal, needless, AND just as monetarist as any Keynesian viewpoint.

 

People who want balanced budgets over what needs to be done have unbalanced minds.  No that isn't a keyneisan viewpoint.  A keynesian viewpoint is about printing pay off debts.  Not needs.

 

A balanced budget ammendment would destroy this nation just like printing to pay off fraudulent debt.

 

Why does every dipshit take a monetarist view of things?  Oh we need to be Austrian, we need to be Keynesian...when all of them are based on bullshit and are all about evading reality.  Yes, even Austrian...where the real needs of society are forgotten in favor of its dogmatic sophistry.

 

A balanced budget ammendment isn't needed.  What's needed is to ditch monetarism in all its shitty flavors. Austrian = bullshit.  Keyneisan = Bullshit.  All other schools of monetary non-thought are bullshit.

 

Here's a newsflash for all the idiot monetarists.  The economy functions best when it meets the needs of the people.  All the needs, not some, not just food stamps, or having sound money.  Austrian and Keynesian don't actually do anything we need, they just throw roadblocks up and try to fool us into thinking that 'we can't do that' based on it's dogma.

A balanced budget ammendment is for fucking dipshit fucktards who shouldn't of been able to graduate 3rd grade.    Just like the Keynesians who like to print for fraudulent debt.

None of these ideologies deal with the real problems we face, none of them deal with the fraudulent crimes that were committed against us.  They are just ideologies that fool idiots into behaving a certain way (those are called followers) and do so needlessly.

Impeach Obama

Glass-Steagall

American Credit System  (notice this isn't Austrian idiot monetary system, or Keynesian fucktard monetary system)  Nope this one is ACTUALLY American.  In the truest sense of Nicolas of Cusa, Plymouth, Massachusetts, Founding fathers.

People need to quit being monetary idiots.  Monetarists have never 'gotten' American ideology, other than know it kicks their ass.  When a monetarist views history, they get it WRONG.

Monetarists don't get the great depression, the American revolution, America's first settler's, WHY they came, nor the constitution. 

 

If you want to truly understand these things, you can only do so free of monetarism, otherwise you have a whammy block obscuring the real run of things.  But hey, that's what dogma does.  Which of course, is all monetarism is. Dogmatic sophistry.   Sure the Keynesians are killing us, but jus like in life there are more than one way to die.  Austrian idiot monetary ideology is just another way to cut our own feet off.

The guest poster seems to think the only way to reconcile fraudulent debt is to have old people pay it off.  How about trashing it instead? What, you mean your monetarist idiocy doesn't allow for that? Why? Because of dogma?  Oh I see. 

You cancel fraudulent debt, you don't honor it.   Bad fraudulent debt on the books of banks? What isn't cancelled those merchant banks have to pay for themselves.  Not enough? See ya.

I'll throw the poster a bone though, at LEAST he understands that we should focus on the productive, although even that is a bad metric if you consider how productive wall street WAS on paper, and then how it WASN'T in reality.  It's the physical economy.  It's great works and science projects.  It's fresh water, It's power, it's improving logistic, space program, machine tools, etc.

None of the monetarist ideologies, or an Austrian balanced budget amendment will achieve anything.  You don't get spending in the above in an Austrian monetary ideology run economy.  You don't get it in a Keynesian one, at least not a real version of it.  You get lip service in it, but that's it.  Austrian, you get nothing.

We don't need to replace one idiot set of rules that didn't allow for the progress mankind needed, with another set of rules for idiots that not only doesn't allow for the progression of mankind, but it many cases, needlessly puts rules against it. 

No monetary school of idiot thought does what we need as a species to survive, it only does what the oligarchy needs to have done for IT to survive.

Ron Paul favors the oligarchy just like Barack Obama, because both are ideologically controlled by monetarists.  Monetarism, the tool for the oligarchy to fool the idiots.  Right now about 99 percent are fooled.  Either by wrongly believing Obama will bring them back, or that Ron Paul's Austrian oligarchical dogmatic bullshit is the right replacement of our founding fathers principles.  Or they are so fooled that they believe some other dipshit running.  

Very few people understand that if you believe ANY form of monetarism, then you are a fool.  Merely a tool in the ideological battle amongst the oligarchy at your own peril.

So once again.....

Impeach Obama

Glass-Steagall

American Credit System (NAWAPA, fusion, mag lev, machine tools, space program, so on and so forth)  There is no recovery without these things, and in FACT we've had ~43 straight years of declines only papered over by monetarists books. The last time American had real physical economic growth was around the time of the Tet offensive and the Summer of Love.  Everything else has been a mirage of prosperity through increased numbers and a whole lot of fudging (and people's ability to forget the linkages through time).  So what do you and the people at Woodstock have in common? Simple...Then, now, and every time inbetween has been a time of decrease in they physical economy in America.  One giant contraction that hasn't been stopped in that long of time. 

 

Mon, 01/02/2012 - 23:01 | Link to Comment covert
covert's picture

it's all a natural rezult of the lack of freedom of enterprize.

http://covert.mypressonline.com

 

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