Mrcauser’s Weblog

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The geezers rule….

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One of my favorite themes. You aint seen nothing until we retire. The government is fucked. Reform now or we fogeys riot in the streets.

Hey we got guns?

Jesse’s Café Américain: Kotlikoff: The IMF Says That the US Is Bankrupt, and They’re Right

$4 Trillion Bill

How can the fiscal gap be so enormous?

Simple. We have 78 million baby boomers who, when fully retired, will collect benefits from Social Security, Medicare, and Medicaid that, on average, exceed per-capita GDP. The annual costs of these entitlements will total about $4 trillion in today’s dollars. Yes, our economy will be bigger in 20 years, but not big enough to handle this size load year after year.

This is what happens when you run a massive Ponzi scheme for six decades straight, taking ever larger resources from the young and giving them to the old while promising the young their eventual turn at passing the generational buck.

Herb Stein, chairman of the Council of Economic Advisers under U.S. President Richard Nixon, coined an oft-repeated phrase: “Something that can’t go on, will stop.” True enough. Uncle Sam’s Ponzi scheme will stop. But it will stop too late.

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Written by mrcauser

August 12, 2010 at 3:45 pm

Posted in Uncategorized

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