Future generations will come to hate you.
Inflation: How China May Be Forced To Use The Nuclear Option
The US government is currently indebted to the tune of approximately $11 trillion. Amazingly, that doesn’t account for the $49 trillion of Medicare and Social Security entitlement liabilities which will need to be paid off in the future.
The United States Treasury Department doesn’t use these entitlements when calculating their debt to GDP ratio, but if they did it would be 680%!
This partly explains why entitlements are not included in the calculations; if they were it would become painfully obvious that the country is basically insolvent.
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36 comments:
so basically we bought up most of the world's resources, and had billions of people work to make things for us, all in exchange for pieces of paper.
that sounds like a pretty good deal for U.S.
I'm sure the Saudi and Chinese kids are going to be real happy that their parents and grand parents left them with a bunch of worthless I.O.U.'s from a nation with absolutely no intention of paying it back.
The true HPers are already prepared for what is to come.
Obama did not appreciate the gravity of the situation.
I'm a baby boomer.
I pay taxes to provide health care for old smokers on Medicare even though I don't smoke.
I pay taxes to provide health care to fat people on Medicare even though I'm not fat.
I pay for Medicare for kidney-failure patients even though I don't drink.
I pay for roads and highways and bridges even though I have a 4 minute commute and hardly ever drive.
I pay for schools even though I don't expect to ever have kids.
I didn't get any of the rebate checks of the last ten years--income too high.
I didn't get any but the tiniest portion of the tax breaks of the last ten years--income too low.
I paid as much as anyone, in absolute dollar terms AND as a percentage of my salary, into social security--income too low to get the end of year tax break for the rich due to the cap. I'm in the first birth year that has to wait until age 67 for full benefits, and since SS is targeted to go bankrupt in '29, I will be one of the first to be told "there's no money left".
I didn't receive any housing bailout, mortgage adjustment, forgiveness, forebearance, or non-payment patience. Mostly not eligible. The house I sold in 2007 is about to go back on the market for more than I sold it for.
I don't own a car, but even if I did I'm not sure if I'd have been eligible for cash-for-clunkers.
I don't work for the federal government, the military, a state or city government or any of the other welfare programs for the stupid, lazy and incompetent.
I won't ever receive a puffed up pension, or any pension of any kind.
The estate tax cuts for the middle class will sunset in 2010 and I will be lucky if I don't lose hundreds of thousands of potential estate wealth transfer.
I'm a saver, not a debtor, and if I died today no one would have to absorb unpaid debts left behind. However--
Hyper-inflation during the last 20 years of my career, due to the endless wars-for-profit and republican corporate welfare and due to the american addiction to oil, cars and asian toys and junk will soon destroy the dollar and steal all the rest of my wealth.
Republicans will do everything they can to make sure life-sustaining health care and elder care is STRICTLY A FOR-PROFIT enterprise, and despite an all-consuming 6-figure career I'll be lucky if I can afford to stay alive without a McJob I might be too old to be able to do.
GEE, I'M SUCH A THIEF.
My parents were prosperous on one income in the household. My generation, including siblings, are only MAYBE prosperous if there are two incomes. My neice has THREE incomes in her household, and money is tight. This is the future--triple income households to pay for wars, oil and rich health care CEOs.
Blogger born to lose said...
so basically we bought up most of the world's resources, and had billions of people work to make things for us, all in exchange for pieces of paper.
that sounds like a pretty good deal for U.S.
I'm sure the Saudi and Chinese kids are going to be real happy that their parents and grand parents left them with a bunch of worthless I.O.U.'s from a nation with absolutely no intention of paying it back.
September 1, 2009 5:12 PM
You forgot though that no one ever forced the Chinese, Japanese, Saudis, Dutch, Germans and the Brits to buy our bonds. They did it voluntary.
I think it was foolish for anyone to buy our bonds because America is broke. Yet, all of the parties I mentioned above bought our bonds. Now, if they don't get paid back or get paid 10 cents on the dollar, then too bad.
It is amazeing that forigners are still buying treasuries according to the govt.The federal reserve is buying up treasuries bigtime.Price up treasuries up, yiled down.They are keeping rates artificially low so the people can buy a house,basically rent from the bank, or refinance.It is funny how the fed can buy treasuries by printing money.For those of you who dont know it we are broke.
Did you guys see the artticle from barrons saying that AIG looks overvalued?Well no shit, was at 50 now at 35.Does it take a wall street analyst to figure that out?Good stock to short.
Welcome back to the Fall Meltdown. . . 10%, 20%. . .maybe start a contest as to how far the market falls. . .2% today.
Then of course Bernake and CO. might just keep injecting more $ into the market, and prop it up again. . . talk about a Ponzi scheme. . .
GenX?
We are the ones that will be getting the deviant sexual intercourse.
Keith, this was posted on Mish's blog and it is entertaining, well thought out, and very funny:
http://globaleconomicanalysis.blogspot.com/2009/08/yes-government-can.html
"I pay for schools even though I don't expect to ever have kids.
I paid as much as anyone, in absolute dollar terms AND as a percentage of my salary."
Perhaps. But without kids, you stop paying into SS the minute you stop working, whereas a person who raised a child potentially pays forever.
So...your contribution is NOT EVEN CLOSE to what it will cost to support a childless generation in retirement.
Also, if you aren't paying to raise any children, I really don't see why you are complaining about the cost of anything. Try paying all those bills AND raising the next generation.
I'm a baby boomer and my children will have to pay the retirements of other people who never bothered to have children and therefore didn't pull their fair share of "paying" into the system.
And people think this outrage at the townhall meetings actually has something to do with healthcare. This is that "I've been had feeling" that every American has in the back of their mind but they just can't put all the pieces together yet. It should be painfully obvious to the majority of Americans by the end of next year, how screwed we really are. I hope the "let them eat cake" message from our leaders and congressman leads to the guillotine setup on the capital steps. I do not condone violence but let's face it, sometimes its the only way they will ever understand that they are not entitled to a better lifestyle than the people they serve just because they were elected. Again I do not want this outcome, but how many billions in bailouts and bonuses can the average guy take when his 3rd round of unemployment benefits runs out and he is forced to move out from under the highway overpass that was his tent city roof.
Anon 5:16 - good post.
It's good to see someone, like me, who's paid far more into the system then they've gotten out, but who still gives a shit about other people, and doesn't adopt the "me-first fuck you I got mine" attitude of the modern republican party.
Having empathy -- I no! I said it!! -- is actually something to be proud of. Imagine that. Not everything needs to be for-profit. In fact not everything should be.
Capitalism isn't the path to enlightenment.
"...this outrage at the townhall meetings...that "I've been had feeling" that every American has in the back of their mind but they just can't put all the pieces together yet..."
Bravo, Sir. That is EXACTLY what is going on.
Things have gotten much worse under Obama, but the GOP fucks leveraging that are telling the biggest of all possible lies:
Things were just fine January 19th.
You REALLY BELIEVE THAT, Rube?
Keith,
Good insight, but I think we are getting a little over excited when we put the blame for this on a generation. It is probably the fault of about 200 people with wayyy too much power. These 200 people could not do this by themselves, they had probably 10,000 go-alongs who either said nothing or were paid in some way to look the other way. All the while, the rest of us were waking up early and going to work nearly everyday and living within our means. Just saying: this is not the fault of generations, merely a paid for president and government that was bought and sold years ago.
The Wiz
.
"Republicans will do everything they can to make sure life-sustaining health care and elder care is STRICTLY A FOR-PROFIT enterprise"
And the Dems will F**K up everything else!
Of course we all know how opposed to wealth of any kind the Democrats are...unless your a Kennedy or a Boxer etc. etc.
This endless war is Obama's baby Now...and he wants more troops!
How's that Hope and Change werkin out for ya??
.
Anon Sept 1 5:16 PM
You got it so absolutely right! Thank you!
Denial of health care should not generate profits for insurance companies. How much do they pay out? How much do they take in? Also hospitals. Schedule as many procedures as you can and then you don't even have to feed the patients. They are always waiting for a procedure. What a money maker. And keep them overmedicated so that they can't defend themselves. They can't even talk!
Got nothing against doctors making a good living, but the rest of it - oh boy. Don't take me to the hospital.
It would be interesting to see if China will take a page from Japanese history.
http://en.wikipedia.org
/wiki/Meiji_era
There were at least two reasons for the speed of Japan's modernization: the employment of over 3,000 foreign experts (called o-yatoi gaikokujin or 'hired foreigners') in a variety of specialist fields such as teaching English, science, engineering, the army and navy etc.; and the dispatch of many Japanese students overseas to Europe and America, based on the fifth and last article of the Charter Oath of 1868: 'Knowledge shall be sought throughout the world so as to strengthen the foundations of Imperial rule.' This process of modernization was closely monitored and heavily subsidized by the Meiji government, enhancing the power of the great zaibatsu firms such as Mitsui and Mitsubishi.
Hand in hand, the zaibatsu and government guided the nation, borrowing technology from the West. Japan gradually took control of much of Asia's market for manufactured goods, beginning with textiles. The economic structure became very mercantilistic, importing raw materials and exporting finished products — a reflection of Japan's relative poverty in raw materials.
Japan emerged from the Tokugawa-Meiji transition as the first Asian industrialized nation.
We've already got million dollar mass produced tract housing here in Irvine. What more do you need to show you how worthless all the debt will become once the government finishes inflating it all away?
I put the blame squarely on the Baby Boom generation, who voted themselves benefits at the expense of future generations.
One word: Shameful.
But I'm now adding my generation, GenX, to this blame game, as we've had enough time to seek change, and still nothing. No change.
Gen's Y and Z are f*cked. And their kids and their kids too.
Unless some radical change happens soon. Real soon.
Start with retirement age 70 and go up from there. And, of course, radical Medicare/Medicaid overhaul.
And to really fix it - massive and historic LEGAL immigration.
Someone's gotta pay the tab.
So here I am , finally in Argentina - and this is what the US will be like in 10-15 years - but wih all the pent up rage.
Dilapidated pot-holed streets, visibly 2 tiered society (not yet quite apparent in the US as everybody still has a car, TV, etc.) - amd wait till you see the state of public schools.
Amerika - you 'aint seen nothin yet of what's comin your way.
The weathy Argentinians are those who keep their wealth in foreign currency and gold - and wealthy Americans are going to do the same.
Get Silver, Gold, Euros, Yen, Sing. dollars, Reals etc.
Oh yeah - buy oil too.
And Keith - again you said SELL just at the right time. How the f*ck do you do it !?
ps. Did you see the class action suit against SRS?
http://finance.yahoo.com/news/Wolf-Haldenstein-Adler-bw-127641888.html?x=0&.v=1
I agree Keith, Baby Boomers are the worst generation ever following the greatest generation ever. Perfect example of why you can't spoil your kids. I would say Gen Xers are gonna pay more than they receive along with all the other future generations. Its not like these entitlements are going to be there in another 20 years. Some boomers may actually get screwed late in life. Maybe we should have "end of entitlement discussions."
Keith -
You already know what I think of the boomers already and when I read this thread in the begining I was fired up that you would even consider the GenXers as part of the problem. Then I read your post which I can understand what you mean but how can genxers do anything when the boomers still run this country and anything the does not benifit them will not pass because they are in every industry and our congress, everything. There extremely selfish and this selfish attitude is to only benifit them only. They don't care about anything else.
Classic Example:
Yesterday I had to inspect a condo on the intracoastal and an old fat, hearing aid boomer lives there. He was scarfing down chinese food and his place looked like a 20 year old was living there with spills all over the carpet and dirt on the walls. He starts asking me questions about the value of the place since he put a contract for $110,000. I told it sounded a little high. His reply: WHAT DO I CARE, I'M 67 AND I AM TAKING OUT A 30 YEAR MORTGAGE!
So how should genxers fix this situation? I got an idea, lets try to pass a law that no one over 55 will not be able to get a 30 year mortgage for a home since the average lifespan for america is 78. Yeah, sure this will pass right keith! Living in South Florida it is easier to see the influence the old people have in voting for what benifits them. They are not looking out for anyone but themselves. BOomers please exit this earth without racking up medical bills as soon as possible please!
Anon 5:15:
This endless war is Obama's baby Now...and he wants more troops!
How's that Hope and Change werkin out for ya??
NOPE. Not Obama's, STILL BUSH'S.
He started it. He LIED to start it. Wanted to be a "warrior king" in his sexy flight suit, and have short-war glory like his dad. Except he was TOO STUPID to read the fine print. TOO STUPID to listen to his generals and WMD advisors. He LITERALLY threw the plan-for-peace into the trash. Even HITLER at least listened to his generals at first!
He also didn't listen to a bunch of us who asked, "where's the REAL evidence of WMD? what's the REAL reason for the war? what's the REAL plan for peace? what's the REAL cost going to be? How long will it REALLY take? How many troops?"
Oh, no, we were all just being "unpatriotic."
So, no, all you fools should stop with the "Obama's war" BULLSHIT. He and we are stuck with Bush's Folly. And Bush Inc., having reaped all the profits, is stuck having to try to revise history and opinion for the next 10 years. And you idiots are trying to help.
====I pay for Medicare for kidney-failure patients even though I don't drink.=====
You should drink. Dehydration is a very big cause of kidney failure.
regards
evildoc
I'm so glad this blog and it's comments are back. They were sorely needed.
It might be the best clash of well thought out opinions that is available on the web, maybe anywhere.
The Rage at the Town Hall meetings was definitely not just about health care, or even mainly about it. We're pissed. We're awake. We may be confused, but we're out for blood. And that goes for so called "democrats" and "republicans."
Chairman MAO is my daddy
I have thought that by owning the lions share of US Treasuries, China could either withdrawl their funds and flood the market causing massive inflation or threatening to do so which would force interest rates way up. In any case, our credibility is in their hands.
america is retarded
anon 4:04 pm
You Ignorance is showing!
Hey you 'F'ing tard!
What part of Obama wants more troops means it's still Bush's war???
Why does everyone insist on adding future liabilities to the debt figures? If so then projected collections are being subtracted I hope? If not then quoting these numbers is stupid--I am going to have to buy about $2000 worth of food every year for the rest of my adult life, should I assume then that if I live 50 years, I am carrying an additional $100000 debt load?
I love it when hot topic politics separate Americans in heated disagrement.
You see this is their purpose; to keep Americans confused and separated so that you can be manipulated into approving government fixes that you pay for with your labor and taxes.
Who gives a crap whos war it is?
Consult George Orwell 1984
"Oceania is always at war with Eurasia"
Never forget the summer of rage said
Why does everyone insist on adding future liabilities to the debt figures? If so then projected collections are being subtracted I hope? If not then quoting these numbers is stupid--I am going to have to buy about $2000 worth of food every year for the rest of my adult life, should I assume then that if I live 50 years, I am carrying an additional $100000 debt load?
___________________________________
Those numbers are after they subtract out future tax receipts. It is the gap between expected future tax income and liabilities.
We are so bankrupt.
Jymkata
A bit late to this particular party, but...
Keith, I confess -- I read the first few words of your post, and bagged it.
("Thank you Baby Boomers!!! Thank you GenX!!!")
This ain't no generational thing.
It (anything of the likes that we're talking about here) rarely, rarely, rarely has anything to do with "generation." I submit to you that that's (with all due respect) shallow thinking.
It's Human Nature to look for someone/something to "blame," but... it just doesn't work.
The baby boomers are your parents and grandparents. They had you, loved you, took care of you and worked their asses off to raise you. Are you ready to do away with them?
(I don't really know how GEN-Xs can be grouped with them....) BUT I do know- It's easy to demonize and dehummanize a group when you have a name to call them. Be careful. What name will be given to you?
And to really fix it - massive and historic LEGAL immigration.
That's the thing. Because of the choice so many self-absorbed, egocentric boomers have made not to have children of their own, we must now import our children from Mexico, Islamic countries, and the rest of the third world.
If you think your Social Security taxes are for you, you're out of your mind. Your taxes are for today's seniors, and your CHILD's taxes are for you. If you didn't have a child, you didn't pay in. You're taking from the system without contributing, because it's all based on demography.
So...YOUR child is a Mexican, and you have to pay school taxes to try to educate your child to the point where he can try to support you. Maybe you would have liked to have raised your own child and prepared him better for this role?
And...I just can't feel sorry for someone who didn't bear the expense of childrearing in terms of preparing for retirement. You should bear the cost alone, with the savings you've accumulated over the years, living only for yourself.
Are you doing Gold Carry Trade, US Dollar Carry Trade, or Yen Carry Trade.
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