This is entertaining stuff especially the end where Rick Santelli after clearly making his point says to Thomas Friedman, author of the World is Flat and New York Times columnist, “You’re idiotic. I’m done. I feel good.” Watch and be entertained.
However, as entertaining as that was, the simple truth is that that from my standpoint, there is no question social security is absolutely a ponzi scheme. Is there any wonder why no congressional leader wants to get within ten feet of discussing this topic…sure you will get your theatrics here and there where self serving politicians will broach the topic but no one has an answer because the only solution would lead to all hell breaking loose. Status Quo is financially unsustainable and Since the Status Quo is financially unsustainable, there WILL BE a Great Reset. The timing and nature of that Reset is up to us.
If you want to get into some real numbers, keep reading as I will present some really meaty stuff for you to digest. I would be absolutely thrilled for anyone to continue reading so if you do just click yes on the poll so i know how many non deaf ears this has gone on.
“Pay as you go” systems like Social Security and Medicare only function sustainably if the retirees drawing benefits remain about 1/10th of the number of workers paying the taxes. Alternatively, the population must pyramid up every generation to maintain that 10-to-1 ratio.
The Baby Boom is roughly 76 million people, or about 25% of the population. There are about 139 million workers and about 310 million residents. The Baby Boom has started retiring en masse; all of my relatives and friends who work for state or local government are already retired well before the age of 60, and the first Boomers qualify for Medicare this year.
Once the Boomers are in the system, the worker-retiree ratio will be less than 2-to-1. This is completely unsustainable in a “pay as you go” system. Here are facts and the charts:
For all of the existing unfunded liabilities to be covered in the end, someone must pay $99.2 trillion more or receive $99.2 trillion less than they have been currently promised. This is a cold, hard fact. None of this is new. Richard W. Fisher of the Dallas Federal Reserve laid it all out very succinctly back in May 2008, before the global financial meltdown. Now of course, the situation is much worse: Social Security is already deeply in the red, for example, a condition that wasn’t supposed to occur until 2017.The entire notion of entitlements based on age requires an ever-expanding population of working contributors and an ever-expanding economy. If either condition isn’t met, then the programs fail. Fisher’s message is clear: our entitlement programs will fail because there is no way to raise $100 trillion in additional taxes in a declining economy.
Ughhhhhhhhhhhhhhhh barf……Good fcking luck. But again this is nothing new to me and why 80% of my wealth is comfortably sitting in the only currency that will protect me when this great reset happens…and as mentioned…the timing is really up to us but its coming……
Enjoy the beginning of the NFL season tonight…its one of the best things we get to to look forward to……love me some NFL