Jump to content
House Price Crash Forum
Sign in to follow this  
lowrentyieldmakessense(honest!)

To Our Children

Recommended Posts

how have they got away with this

http://market-ticker.denninger.net/archive...olchildren.html

My Fellow Americans.

Today you heard from our President, Barack Obama. Some of your parents voted for him, and most of the rest of the country voted for his opponent, John McCain.

What you heard from President Obama today was a plea for you to pay attention in school and finish your education.

What you did not hear from President Obama today was that your government, together with your school, has refused to provide you with the knowledge necessary for you to understand what has happened to this nation and its economy over the last 30 years.

This is not an accident.

Per_CapitaDebt.png

In math class you are taught "the power function", which you think of as squares, cubes, and similar. It is written as 4^2, or, expanded, as 4 x 4.

But what you're not taught is how this applies to finance, even though every household and every American has their own financial challenges, and every person in America should understand how finance works.

Neither Republicans or Democrats want you to see this graph. This is how much each American, from 1970 to today, is in debt because of our government's policies:

2009's "fiscal year" (that is, the year for accounting purposes) doesn't close until the end of this month. But as of today, this graph is correct (and will only get worse in the next three weeks.)

Let me be clear: In the last two years your mother, father, school teacher, grandma and grandpa have stuck each and every American with $10,000 in personal debt, and since 2000 the amount of debt you have had forced upon you has doubled.

This debt was forced upon you not because of the need to defend this country from a foreign invader such as occurred on December 7th 1941 or because of the War on Terrorism, but rather because a bunch of greedy men and women on Wall Street and Washington DC, both Democrat and Republican, lied, cheated and stole money from ordinary Americans for more than a decade.

You have undoubtedly been taught that stealing is wrong, and indeed, that if you steal you can go to jail. But you need to understand that the law applies only to "little people" like you. If you work on Wall Street, own a fancy suit and private airplane, and steal millions and millions of dollars from people worldwide, instead of going to jail you will be rewarded with a huge bonus and be able to buy a really big boat, while the cost of your stealing will be forced on the children - and unborn - throughout America.

That's you, by the way.

You need to understand that this is not a "Democrat" or "Republican" thing. Indeed, both Democrats and Republicans in Washington DC know about this and both are equally responsible for letting it happen. Both Democrats and Republicans voted for a law called "TARP" and allowed The Federal Reserve to take actions over the last two years that were responsible for you having to pay that extra $10,000. They voted for this law even though ordinary Americans just like you told them not to vote for it - in fact, for every person who called their offices or sent an email to tell them to vote "yes", 100 people called, faxed or emailed and told them to vote "no".

They voted "Yes" anyway and as a result you must pay that $10,000 in the future, whether you want to or not, so that those who robbed, cheated and stole can have their yacht and your parents can lose their house to foreclosure.

President Bush signed that law and President Obama refused to step in and stop it when he became President. President Bush is a Republican and President Obama is a Democrat. Do not be deceived - both major political parties are equally responsible for this outrage - and for forcing you to pay.

The worst part of the graph above is that this is not all of the debt you must pay. In fact your "share" of the debt is five times what's shown on that graph.

That's right my fellow Americans - you are in debt for more than $200,000 - each and every one of you, including every school child in America.

Why?

Because our government is lying about how much everyone owes. See, our government has promised everyone free medical care and free retirement money. But our government doesn't have the money to pay for that, since every penny that the government has must come from either borrowing or taxing, and the government isn't forced to follow the law when it comes to honest accounting - that is, honest math.

When you cheat on your math test in school you get an "F".

But when the government cheats on its math they get re-elected, because our schools refuse to teach students just like you how math applies to finance, and as a result 95% of Americans don't understand that they're being screwed to the tune of $200,000 each.

That's because the schools are run by the government, and for that reason the government controls what you learn - and what you don't.

Our debt is supposedly $11 trillion dollars. But the money the government must have in the future to pay for those free benefits, Social Security and Medicare, doesn't exist. The former Comptroller of the Currency of America (that's a fancy word for the chief guy who keeps track of the books), David Walker, has said that the real debt is more than $53 trillion dollars, or almost five times what you see in the graph above.

Why was this allowed to happen?

It really is quite simple:

They're big, and you're small. They're right, and you're wrong.

Just because they said so.

While you were out playing in the back yards and playgrounds of America both Democrats and Republicans were making promises they could not keep. Instead of raising taxes right now for whatever they wanted to promise they instead decided to send you the bill, and your parents went along with it.

So when you come home from school this afternoon say "Thanks" to your Mom, Dad, Grandpa and Grandma for selling you into slavery.

For obligating you to pay for the stealing that has gone on for nearly ten years on Wall Street and in Washington DC.

For allowing those very same lies to cost your family (or that of someone you know and love) their house, their job, and their future.

And finally, make sure you thank your Teachers and Principal for not teaching you the math you need to be able to understand what is really going on with your government, so you don't get mad enough to put a stop to it - or demand that your parents do so.

After all, they're right and you're wrong.

They're big and you're small.

They, including your school teachers, principals and school boards, won't teach you about how math applies to all of this, because if they did, they couldn't lie to you any more and you might revolt (quite literally) - either now or later.

So sit back and enjoy your childhood; your time to become a slave, when you leave school and start having to pay that $200,000 by having it taken from you in the form of taxes will be here soon enough.

Wall Street and the politicians, both Democrats and Republicans, thank you for quietly accepting your role as a slave to pay for their yachts, along with the lies, cheating and stealing that have been going on literally every day for more than ten years.

Now sit down at your desk, shut up and behave while your teachers show you only what the government wants you to know.

Wall Street and Washington DC are relying on you, our nation's youth, refusing to demand the truth.

They're sure you won't disappoint them.

post-2696-1252520676_thumb.png

Edited by lowrentyieldmakessense(honest!)

Share this post


Link to post
Share on other sites

And so we, and our younger generations, shall toil in factories and dull grey buildings for 10-12 hours a day, 6 days a week, until we die - for a takehome pay just about enough to live on.

The quality of life probably hit it's peak (for the vast majority of us) in the 1970's, and has been declining ever since.

Share this post


Link to post
Share on other sites

Suffer the little children.

He's right of course. The greedy and gullible grown ups have shown their love.

I hate that kids are indoctrinated in matters economic, environmental, political... aren't they supposed to be inquisitive and questioning by nature? We lose that we lose the future.

Share this post


Link to post
Share on other sites
I hate that kids are indoctrinated in matters economic, environmental, political... aren't they supposed to be inquisitive and questioning by nature? We lose that we lose the future.

It is a shame. It is also annoying, as the teens nowadays are generally mouthy, little sh!ts who regurgitate the tripe they have been force fed with unbeleivable arrogance and conviction.

Hopefully, with so much information now available on the internet, the next generation may be more enlightened.

Share this post


Link to post
Share on other sites

"since 2000 the amount of debt you have had forced upon you has doubled"

Just as it has for every previous decade.

The thing about y=x^2 is that it looks exactly the same whether 0<x<10 or 0<x<10,000,000,000.

And so this whole article is spin.

Share this post


Link to post
Share on other sites
"since 2000 the amount of debt you have had forced upon you has doubled"

Just as it has for every previous decade.

The thing about y=x^2 is that it looks exactly the same whether 0<x<10 or 0<x<10,000,000,000.

And so this whole article is spin.

thats ok then

i'll keep spending and incurring debt and let future generations pick up the tab

Share this post


Link to post
Share on other sites
"since 2000 the amount of debt you have had forced upon you has doubled"

Just as it has for every previous decade.

Every previous decade?

The thing about y=x^2 is that it looks exactly the same whether 0<x<10 or 0<x<10,000,000,000.

And so this whole article is spin.

Not really. The doubling is over.

The state will fail.

And the vast majority of the parasite class will have to get real jobs. Maybe selling bananas?

Share this post


Link to post
Share on other sites
Every previous decade?

And the vast majority of the parasite class will have to get real jobs. Maybe selling bananas?

They'll just steal ours. After driving up the price.

Share this post


Link to post
Share on other sites
"since 2000 the amount of debt you have had forced upon you has doubled"

Just as it has for every previous decade.

The thing about y=x^2 is that it looks exactly the same whether 0<x<10 or 0<x<10,000,000,000.

And so this whole article is spin.

Consumer debt in the 70's only looks about $2000-3000. How much did an average American earn then? £2-3k p/a seem reasonable. Looks as though personal consumer debt has stayed at about a years salary (perhaps a bit more).

Scary chart but its not adjusted for inflation.

Share this post


Link to post
Share on other sites
Consumer debt in the 70's only looks about $2000-3000. How much did an average American earn then? £2-3k p/a seem reasonable. Looks as though personal consumer debt has stayed at about a years salary (perhaps a bit more).

Scary chart but its not adjusted for inflation.

Quite a bit more; probably $10-12k.

Must Google once I get over after-dinner lethargy.

Pre-Edit update: LINK

1975 = $11,800

Ed: in 1975 $, of course.

Edited by yellerkat

Share this post


Link to post
Share on other sites
"since 2000 the amount of debt you have had forced upon you has doubled"

Just as it has for every previous decade.

The thing about y=x^2 is that it looks exactly the same whether 0<x<10 or 0<x<10,000,000,000.

And so this whole article is spin.

nah, inflation isnt rising on that graph at 45%. If it was, then there would be no issue.

Its per capita....not per earner....

The point is that every 6 months or so, the US need to ask congress to increase its debt ceiling. that is going to happen more and more.

and the other point he makes is the debt per capita is approaching what it is possible to pay back with incomes as they are.

Share this post


Link to post
Share on other sites
Consumer debt in the 70's only looks about $2000-3000. How much did an average American earn then? £2-3k p/a seem reasonable. Looks as though personal consumer debt has stayed at about a years salary (perhaps a bit more).

Scary chart but its not adjusted for inflation.

Its the last few years that he goes on about....course, thats where we are...but in real terms US wages have gone down in the last few years, yet the debt has continued to rise, and rise at a serious rate.

Share this post


Link to post
Share on other sites
nah, inflation isnt rising on that graph at 45%. If it was, then there would be no issue.

Its per capita....not per earner....

The point is that every 6 months or so, the US need to ask congress to increase its debt ceiling. that is going to happen more and more.

and the other point he makes is the debt per capita is approaching what it is possible to pay back with incomes as they are.

It's the cost of servicing the debt that's important. What is the yield on US Treasuries? What is the interest payable on the debt?

$38,000 outstanding x .092% on 2 year Treasuries (for example) is an annual liability of $350 per capita.

Hardly crushing.

Edited by ?...!

Share this post


Link to post
Share on other sites
Guest absolutezero
It's the cost of servicing the debt that's important. What is the yield on US Treasuries? What is the interest payable on the debt?

$38,000 outstanding x .092% on 2 year Treasuries (for example) is an annual liability of $350 per capita.

Hardly crushing.

Stop being reasonable.

You'll make them lose their erections.... :lol:

Share this post


Link to post
Share on other sites
*Injin spunks himself*

I keep telling you, it scares the shite out of me.

When the dole cheques buy ****** all it's going to be hell on legs.

When you whinging public sector blue pills get the first bounced cheque there is going to be some fun as well. And all that had to be done to avoid it is to accept that others can say no a time or two without the world ending.

Share this post


Link to post
Share on other sites
It's the cost of servicing the debt that's important. What is the yield on US Treasuries? What is the interest payable on the debt?

$38,000 outstanding x .092% on 2 year Treasuries (for example) is an annual liability of $350 per capita.

Hardly crushing.

few, thank god, tax for the US citizen only $350 dollars next year. thanks for working it all out.

Share this post


Link to post
Share on other sites
Guest absolutezero
I keep telling you, it scares the shite out of me.

When the dole cheques buy ****** all it's going to be hell on legs.

When you whinging public sector blue pills get the first bounced cheque there is going to be some fun as well. And all that had to be done to avoid it is to accept that others can say no a time or two without the world ending.

It may scare you but it also excites you, doesn't it?

It's not going to happen though.

You know that deep down, don't you?

Share this post


Link to post
Share on other sites
It's the cost of servicing the debt that's important. What is the yield on US Treasuries? What is the interest payable on the debt?

$38,000 outstanding x .092% on 2 year Treasuries (for example) is an annual liability of $350 per capita.

Hardly crushing.

This ignores what the debt is supposed to be providing.

if the government had actually bough tthe schools, hospitals etc that the debt is supposed to be providing, no problem.

Since they used it to deliver millions of tons of metal to Iraq gratis, it's over.

Share this post


Link to post
Share on other sites
It may scare you but it also excites you, doesn't it?

It's not going to happen though.

You know that deep down, don't you?

It's an inevitability.

Share this post


Link to post
Share on other sites
Guest absolutezero
It's an inevitability.

I note you didn't answer my question.

The thought of state failure not only scares you but it also excites you, doesn't it?

Share this post


Link to post
Share on other sites
It may scare you but it also excites you, doesn't it?

It's not going to happen though.

You know that deep down, don't you?

it seems inevitable with socialist/centralist governments

a recent example

http://www.financialsense.com/fsu/editorials/2009/0211.html

Stimulus: Putting Hippos on the Titanic

by Paul Mladjenovic | February 11, 2009

Print

Watching the stimulus debate is quite unnerving; we are witnessing eloquent politicians and confident bureaucrats that are really clumsy and clueless about the economy ready to do major damage to it. It is like watching a team of podiatrists ready to perform brain surgery. What we are witnessing has happened a thousand times before throughout history. As a financial planner, I have to understand what is going on because my clients, students and my Prosperity Alert subscribers need to understand if they are going to survive and thrive in these historic and challenging times.

First of all, my background lends itself to more clear-eyed analysis then the swill that is getting media attention. How so?

My family and I escaped communist Yugoslavia in 1963. For the uninitiated, communism is the full, 100%, iron-handed application of socialism. In other words, heavy-handed government bureaucracy runs 100% of the economy. Actually, the more complete thought is that government bureaucracy runs 100% of the economy into the ground. Socialism is history’s more enduring and most destructive scam; it emanates from the Karl Marx School of economics. Karl Marx easily wins history’s award as the greatest and most dangerous economic crackpot (on economics, Groucho knows more than Karl). Anyway, the only things that socialism produces in abundance are poverty and oppression. We came to America and my parents were part of the “working poor” but we were vastly better off (thank God!).

Yugoslavia tried to jumpstart its woeful economy by turning to a Keynesian “solution”. In 1989, Yugoslavia enacted its “stimulus plan”; it went on a government spending binge. If the country was wallowing in economic squalor, where did the money come from? Simple….it was created out of thin air! In other words…INFLATION. It merely printed up the money and flooded the struggling economy with “spending”. That was the final nail in the coffin for my former homeland. The “stimulus plan” brought on hyperinflation and Yugoslavia collapsed amid economic and social disintegration. By 1994, Yugoslavia was no more. New sovereign nations arose from the rubble (such as Croatia where I was born). The ruling elite in the former Yugoslavia thought (wrongly) that prosperity and wealth could be created or stimulated by simply using government force and a printing press. How wrong they were! What did we learn from this?

People serious about getting to the truth about economics learn that a healthy economy is the sum total of millions of buyers and sellers working hard and engaged in voluntary exchange (money for goods and services). They save, invest, innovate and produce. A healthy economy reaches equilibrium between consumption and production. Production is spurred on by profit which in turn creates more (and cheaper) goods and services for consumers. All of these are the essential components which form an intricate tapestry and can be generally described in one word; capitalism (“the free market”). History has told us time and time again that countries which embraced free market economics flourished and had rising standards of living. Countries that embraced more and more government tended to experience more and more impoverishment. Why?

1. Government is an instrument of FORCE.

2. Government does NOT have the power to create new jobs. It can only “create” a job by first destroying one (or more) jobs from the private sector.

3. Government gains resources (again, by force) from the private economy. It does not have its own resources.

4. Government manages (mismanages?) the nation’s currency. It can print it at will.

5. Government may be able to stimulate spending but it typically HARMS production.

These points are CRUCIAL to understanding what is going on RIGHT NOW.

The public doesn’t understand that the government can’t make money and prosperity fall from the sky. All the governments in the world can use force (taxes, laws, etc.) but can’t magically bring into existence a healthy economy as a result. If it were true that government can merely use its brute force to create a successful economy than all the totalitarian countries throughout history would have been prosperous paradises! No…the opposite is true. What does this have to do with today’s economic ills and government plans? EVERYTHING.

The $1 trillion dollar stimulus plan will not stimulate growth in the economy. It will only stimulate the growth of government bureaucracy. Please understand that government doesn’t invest in the economy; it SIPHONS resources from the economy. Think of the private economy as a “runner” and the government as the “backpack”. Can you really make the runner perform better by loading more and more weight into the backpack? Of course not; you just make it worse for the runner.

In the alleged “stimulus package”, “the devil is in the details”. A good place to get the actual details of the so-called “stimulus plan” is places such as www.readthestimulus.org. You will find out that…

1. Most of the spending benefits government; not the private economy.

2. Little (none?) of the stimulus spurs on business start-up, innovation or expansion.

3. Even proponents of the plan admit that only 1 job will be “created” for each $200,000 spent (that number is an estimate since it keeps changing).

The question that I wish more people in the media should ask is…

HOW WILL THE NATION FOR THE STIMULUS?

In a recent press conference, the President was asked if the stimulus plan was really a spending program. His response basically was “Of course! What do you think stimulus is?” in a tone that insinuated that the reporter asked a dumb question. I didn’t hear anyone asking him serious questions of how we will pay and where will the money come from. Let me answer that question:

THE STIMULUS PLAN WILL BE PAID FOR BY…

1. CURRENT TAXES and/or

2. BORROWING (PAID WITH FUTURE TAXES) and/or

3. INFLATION (A FORM OF HIDDEN OR “STEALTH” TAXES)

4. Footnote: Don’t forget any interest that we will be forced to pay.

In other words, the President, his economic team and the leadership in Congress will be enacting a policy based on the economic ideas of John Maynard Keynes. Now we know the name of the second greatest economic crackpot in history; Keynes.

Keynesian economics got us into this horrendous mess. Hasn’t anyone noticed that the economic teams of both Clinton and Bush were applying Keynesian economic ideas all along? Starting in 1995, these policies were the root cause of the greatest and most reckless period of consumption, borrowing and spending in our history. Today, America’s economy is saddled with TRILLIONS in debt.

Spending and debt got us into this incredible catastrophe. What do our leaders in Washington want to do to get us out of this economic mess? A “government stimulus plan”. It is a typical Keynesian “solution”. What is it? It is…MORE spending and MORE debt. How? By using government borrowing, spending and inflating. Why? Because these Keynesian policy-makers think that stimulating consumption (more spending) will jump-start the economy.

Wrong, wrong, WRONG!

History clearly tells us that Keynesian economics does not work. At best, it can be a short-term bandage but it is not a long-term solution. Even Keynes admitted that his ideas have flaws that are problematic over the longer term. When someone pointed out the flaws and how they would become realized over the long run , he famously retorted “in the long run we are all dead”. Well…he is dead and we are now in “the long run”.

The trillion-dollar question is:

If Keynesian economics is provably wrong and logically bad,

why are our government leaders hell-bent on doing it anyway?

The answer is simple. Bad economics can be “good politics”. They can spend lots of money that looks like they are doing something about the current mess (which is there because of them!). They can make speeches that sound great and make the public cheer. They can look like good guys riding in to save the day! Why not?! Look at the situation…

1. The politicians are not paying for any of this.

2. They will get the money from YOU (or someone who employs you)

3. They can spend and spend without any consequence to themselves. None!

4. No matter how frivolous they act is, they will still get their full pension and benefits.

5. In fact, if they are clever politicians they will even get monuments built to honor them (with your money, of course).

The bottom line is that this stimulus plan is nothing more than fraud, waste and pork. When you look at the litany of spending projects, they are predominantly political pay-offs to special interests and wasteful pet projects designed to enchant supporters and voters to maintain political power. This stimulus plan (and the ones that will probably come later) will do nothing more than pushing today’s economic problems into the future and making them much worse later on.

It’s as if the captain and the crew of the floundering Titanic told the passengers to stay calm because they are bringing hippos onboard to save the day. At least hippos can swim

Edited by lowrentyieldmakessense(honest!)

Share this post


Link to post
Share on other sites
few, thank god, tax for the US citizen only $350 dollars next year. thanks for working it all out.

Interest payable on debt makes up about 5% of the US budget.

The figure here in UK was about 5.45% for 08/09 see below.

_45674755_spend_tax466x243.gif

Oh no! Our civilisation will collapse under the weight of the debt, as excise duty may need to rise by a couple of percent.

There is no hope. It's inevitable!

Edited by ?...!

Share this post


Link to post
Share on other sites
I note you didn't answer my question.

The thought of state failure not only scares you but it also excites you, doesn't it?

I'd be lying if I said I was dismayed at the thought of what might be possible with a much reduced state, but mostly just scared about the fallout. (Possibly literal fallout, don't forget.)

not that my feelings change anything at all. I could die tomorrow and the state would still fall - it's inevitable. Debt which can't be paid off leads to default, hyperinflation or bankrupcy. they've obviously picked hyperinflation - which is just a slower default with worse consequences.

Edited by Injin

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   285 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.