One of the great ironies of the Obama presidency is that it has been a disaster for the young people who form the core of his political coalition. High unemployment is paired with exploding debt that they will have to finance whenever they eventually find jobs, and as Stan Druckenmiller explains in his WSJ interview, the rat through the python theory, (that fiscal disaster will only be temporary while the baby-boom generation moves through the benefit pipeline and then entitlement costs will become bearable) is simply wrong; since, by then Druck exclaims, you have so much debt on the books that its too late. Unfortunately for taxpayers, the debt accumulates while the rats going through the python. The hedge fund billionaire adds that he did not think it would be nutty to tie entitlements to the debt ceiling because theres a massive long-term problem. And this president, despite what he says, has shown time and time again that he needs a gun at his head to negotiate in good faith. The interview goes much, much further... On The Thieving Generation... While many seniors believe they are simply drawing out the savings they were forced to deposit into Social Security and Medicare, they are actually drawing out much more, especially relative to later generations. Thats because politicians have voted to award the seniors ever more generous benefits. As a result, while todays 65-year-olds will receive on average net lifetime benefits of $327,400, children born now will suffer net lifetime losses of $420,600 as they struggle to pay the bills of aging Americans. Oh, so youve paid 18.5% for your 40 years and now you want the next generation of workers to pay 30% to finance your largess? He added that if 18.5% was so immoral, why dont you give back some of your ill-gotten gains of the last 40 years?
Posted on: Mon, 21 Oct 2013 03:03:39 +0000
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