Baby Boomers Could Force Economic Catastrophe

Discussion in 'Off-topic Political' started by bdee, Jan 12, 2011.

  1. bdee

    bdee انا باتمان

    Baby Boomers Could Force Economic Catastrophe

    http://politics.blogs.foxnews.com/2011/ ... atastrophe

    I think the only way to save the country is to raise the retirement age to 80. If you are under the age of 60, your new retirement age is 80. It would save us billions.
     
  2. Teeter

    Teeter Active Member

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    No surprises here. Years ago I read a great book on this subject, "The Coming Generational Storm" by Scott Burns and Laurence Kotlikoff. The title says it all - the kids are going to get fed up with being tax slaves so grandma and grandpa can live a life of ease and comfort with their money. And do something about it.

    It also forecast (in 2004) the subprime crash, Freddie/Fannie bailout, and loss of several of the 'too big to fail' financial entities, as well as massive government intervention leading to fruitless Keynesian efforts to reflate the housing bubble with printed money, ultimately failing and creating raging inflation. Lots more unpleasant consequences of an aging population and entitlement mentality (and this was written before Medicare D and Obamacare) await us as well (they are also forecasting the same scenario for western Europe and Japan as well).

    Reading this book was my wake-up call about the financial future of the U.S. What surprised me is if you can add and subtract, you can realize the predicament we have placed ourselves in - and it's been out there to see (and avoid) for a long, long time. It's just that basically no politician (except for Ron Paul, anyway) has had the guts to tell the voters that the party is over, the country is bankrupt, the government lied to them, and now they're on their own. It's going to be really, really ugly when people finally figure that out.
     

  3. CoffeeMate

    CoffeeMate Junior Butt Warmer

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    Let's make sure I have this straight...

    The govt mandates participation in a financially unsound retirement scheme, the kind of plan which is an illegal swindle if done privately. The populace contributes to the scheme because we have no choice. The funds collected are later placed into the govt's general revenue fund, which is not how the scheme was originally established, (using pension plan payments as general revenue would also be illegal for a private company, I believe). Again later, the terms of the retirement scheme are arbitrarily changed, specifically the age for retirement eligibility is raised despite the fact that there was effectively a contract in place for those already participating. Still later, all these people participating are now looking for the govt to uphold at least the most fundamental end of its obligation and start paying out on the retirement scheme it established and has been raiding and changing along the way.

    The scheme has failed and somehow it's the fault of the people who were forced to pay into it all those years?
     
  4. CoffeeMate

    CoffeeMate Junior Butt Warmer

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    How are the baby boomers "forcing" anything? That's like saying your employees are forcing your company into bankruptcy because they expect you to make your payroll and pay them.
     
  5. bdee

    bdee انا باتمان

    I don't think it's a matter of blame. But the growing reality is that we can't afford to pay these people what we promised them. And now that the surge of retirements has begun, that reality is going to be more telling.

    That is why I would propose to raise the retirement age to 80. If you make people eligible for SSI and medicare then, we might save ourselves from bankruptcy.
     
  6. NTA

    NTA Well-Known Member

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    Everyone will be paid on schedule. No default or lack of full-faith-and-credit.
    The money will not be worth much.
     
  7. Teeter

    Teeter Active Member

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    I agree that that's the plan . . . the Treasury and the Fed will "inflate the problem away". Of course, the USD will lose reserve currency status, (1) forcing U.S. sovereign debt to be denominated in something other than U.S. dollars (gold, for example), (2) dramatically increasing the bond yield required to sell these issues, and (3) revaluing the international price of critical commodities (e.g.; oil) in something other than USD (gold, for example. Or Yuan).

    This is a case where both our government and our electorate have been/are being willfully ignorant to an almost criminal degree. Everybody's seen this train coming down the tracks for a loonngg time, but the AARP screamed or somebody needed to buy an election with the votes (and money) of those too young to vote . . . so they did.

    Bernie Madoff is in jail for the exact-same-thing the Social Security Administration has been doing for years. I once heard it proposed, only half-jokingly, that there ought to be a giant bronze statue of Charles Ponzi in the foyer of SSA headquarters.

    At some point - soon -, the voters of this nation are going to have to deal with the bitter reality that they have been willfully misled, because that's what they wanted and that's who they voted for.
     
  8. CoffeeMate

    CoffeeMate Junior Butt Warmer

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    You mean for people newly entering the forced payment system, right? ... Right? ('Cause otherwise you'd be encouraging our govt to reneg on already established terms rather than fulfill its obligations)

    What do you mean, "almost"?


    I'll admit it -- I find it insulting for my govt to take yet another mandatory tax, tell me it's a "retirement plan", tell me I'm forced to accept it, and then insist that I don't notice the difference. I find it especially insulting when this "financial agreement" can be willy-nilly changed at any time for any reason and in any manner by the very party which forces me to participate in it.

    Gee, wish I could write a contract like that -- "you give me money, I'll tell you how much, and later I'll tell you what if any I'll give back and when... maybe" -- "you're no longer eligible because, well, I'm having financial troubles... just keep giving me more money and ask again in ten years, we'll see where things are then" -- "oh you don't want to give me money? well here's a nice cold prison cell for you then" -- "it doesn't matter what I said back then because this is now, so just keep giving me more money or I will destroy your life because I care so much about your well-being".