The Happy Story of Boomers Retiring on Their Generational Wealth Is Wrong

This happy story is wrong on multiple counts.

The conventional view of the Baby Boomers’ retirement is a happy story: since we’re living longer and remaining productive longer, Boomers will not be as much of a burden on Gen-X and Gen-Y as doom-and-gloomers assume.

Not only are Boomers staying productive longer, they will draw upon their vast generational wealth as they age, limiting the financial burden on younger generations.

This happy story is nicely summarized in this lengthy piece The Fear Factor: Long-held predictions of economic chaos as baby boomers grow old are based on formulas that are just plain wrong.

In this view, the only thing needed to prop up Social Security for the rest of the 21st century is a higher tax on high-income earners, in effect moving the limit on earned income exposed to Social Security taxes from about $114,000 to $217,000.

This happy story is wrong on multiple counts. Let’s start with the most egregious errors:

1. It ignores the End of Work and the decline of full-time jobs

2. It ignores the Elephants in the Room, Medicare and Medicaid

3. It ignores the inconvenient reality that there is nobody to buy the Boomers’ overpriced stocks, bonds and homes when they start to unload them

Put another way: the happy story ignores the changing nature of work and jobs, the unsustainable cost trajectory of Sickcare (a.k.a. healthcare) and the inability of Gen-X and Gen-Y to buy Boomer assets at bubble valuations. Take these factors into minimal consideration and the claim that 76 million people (out of 316 million) can retire with no negative repercussions falls completely apart.

1. The end of work and changing nature of jobs: I have covered this for many years, most recently in a program with Gordon Long: The New Nature of Work: Jobs, Occupations & Careers (25 minutes, YouTube).

Insert end of work in the custom search box on this site and you’ll get 10 pages of articles published here on that topic. For example:

Global Reality: Surplus of Labor, Scarcity of Paid Work (May 7, 2012)

The reality is sobering: 57 million people draw Social Security benefits, tens of millions more draw Medicaid, Section 8 housing credits, etc., and full-time jobs number 118 million:

The Good And The Not- So-Good News About US Jobs In One Chart (Zero Hedge)

That’s a ratio of roughly two workers for every retiree and considerably less than that for workers to the total number of government dependents. As the Baby Boom retires en masse, if full-time jobs don’t rise as dramatically as the number of retirees, the system fails.

The happy story repeats the usual falsehood that Social Security has a Trust Fund it can draw down. This is a falsehood because the Trust Fund is fiction: when Social Security runs a deficit, the Treasury funds it by selling Treasury bonds, the same way it funds any other deficit spending. If the Treasury can’t sell bonds, the phantom nature of the Trust Fund will be revealed.

2. Everyone who looks at numbers rather than fictional claims knows the intractable problem is Medicare and Medicaid. In Sickcare, there are no real limits on cost, and so every attempt to impose cost discipline fails or triggers blowback.

Here is Medicare’s twin for under-age-65 care for low-income households, Medicaid:

As I have observed for years, Obamacare and Medicare/Medicaid do not tackle the underlying problems of Sickcare costs in America. If you haven’t read these analyses, please have a look:

Why “Healthcare Reform” Is Not Reform, Part I (December 28, 2009)

Why “Healthcare Reform” Is Not Reform, Part II (December 29, 2009)

That Which is Unsustainable Will Go Away: Medicare (May 16, 2012)

Obamacare is a Catastrophe That Cannot Be Fixed (December 6, 2013)

3. As I explained in The Generational Short Part 2: Who Will Boomers Sell Their Stocks To?, the Boomers’ vast generational wealth will shrivel once they start selling assets en masse. The reality is neither Gen-X nor Gen-Y have the savings, income or desire to buy bubble-level assets from their elders.

This reality has been papered over for the past 5 years of super-low interest rates, which have enabled unqualified buyers to buy overpriced assets with modest income. Once the defaults start pouring in (and/or interest rates rise), the reality will become visible: you can’t cash in your wealth if there are no buyers.

There are numerous other fatal flaws with the happy story that 76 million Boomers can retire on full pensions and live off their home equity and stock portfolios. Here are a few of many:

4. Pension funds based on annual returns of 7.5% will be unable to fund the promised pensions when annual returns decline to negative 5%. As John Hussman has explained, every asset bubble in effect siphons off all the future return: when the bubble finally pops, average annual returns are subpar or negative for years.

5. The ultimate buyer of all Boomer assets is presumed to be the Federal Reserve.I explain why this isn’t going to happen in The Fed’s Hobson’s Choice: End QE and Zero-Interest Rates or Destabilize the Dollar and the Treasury Market (June 24, 2014).

6. It’s presumed the Federal government can borrow as many trillions of dollars as it needs to fund retirement and social benefits as far as the eye can see. Please see the article linked above to understand why limits on the Fed’s money printing and buying of governemnt bonds imposes limits on Federal borrowing.

To quote Jackson Browne: Don’t think it won’t happen just because it hasn’t happened yet.

7. Boomers are staying productive longer and keeping their jobs longer. The reasons for this are many, but one consequence is a dearth of opportunities for Gen-Y job seekers. As full-time employment stagnates or even declines, it’s a zero-sum game for the generations: every job a Boomer holds onto is one a Gen-Y applicant can’t get.

A 12-hour a week low-pay part-time job will not support a wage earner or fund a retiree.

8. A Boomer who bought his home for $50,000 decades ago can live very well on $75,000 a year; it’s a different story for Gen-Y. The Boomer has a low mortgage payment (presuming he didn’t extract all the equity in the go-go years) and low property taxes in states with Prop-13-type limits. The Boomer who hits 65 has relatively modest medical expenses as Medicare does all the heavy lifting.

Low housing and medical expenses leave Boomers with relatively ample discretionary income. The Gen-Y wage earner who takes the same $75,000 a year job is not so fortunate. The Gen-Y wage earner is offered the Boomer’s $50,000 home for $550,000, and crushing property taxes to go with the gargantuan mortgage.

The Gen-Y wage earner typically still has often-monumental student loan debt to pay off, and much higher healthcare expenses as companies offload rising Sickcare costs onto employees. Higher Social Security and Medicare taxes hit Gen-Y square in the financial solar plexus, while retiring Baby Boomers escape these taxes altogether unless they’re still working.

The point is an income that offers a Boomer a middle class lifestyle does not offer a corresponding discretionary income to Gen-Yers. The entire pyramid of well-funded retirement is based on a generational continuation of massive borrowing and discretionary spending.

If that doesn’t happen for structural reasons, the pyramid of well-funded retirement collapses under its own weight. 

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  • not authorized

    Your own greed stole all your generational wealth boomers. Enjoy the whirlwind you have created.

    As you worshiped at the alter of money, you should come to the realization of certain facts. It will be hard for the people you’ve abused, and crushed salary wise, to purchase that overpriced house so you can retire off it. We didn’t even get into the financial instruments you plan to sell to someone else.

    Fools. What a waste of a generation.

    • Dee

      LOL , I fully plan on enjoying my earned wealth, thank you.
      PS: you are out of the will
      Which is actually sort of the flaw in all of this .. Boomers actually don’t need somebody to buy their “overpriced” assets. They will probably just leave them to unappreciative kids in the will.
      Turns out many investments actually provide an income stream without actually having to sell them.. so they never need to sell , and neither do their heirs ..
      The $550,000 house can be rented out while the old folks downsize to a $200,000 bungalow , or reverse mortgaged , Bonds yield interest, stocks yield dividends.. and all that is probably in a trust anyway to reduce taxes . Kids, the old folks are probably heavy into estate planning, probably more so since all this young folk’s talk of selling of the family’s intergenerational wealth instead of growing for the future generations. Probably why the uberrich are just giving the kids a token chunk of change and the rest to charity.
      This whole assumption that one generation has to buy their parents wealth is exceedingly odd.. I feel like I am in ones of those save 15% in 15 minutes commercials …that’s not how it is done.. don’t make me unfriend you.
      Sort of a moot point anyway.. The families with money, that know how money works , have kids or at least one kid that knows how money works, and I mean that literally.. you send money out to work to make an income for you. The Families that don’t know how money works usually haven’t really built any wealth anyway, and if they did , and have kids that don’t know how money works usually burn thru any family wealth pretty fast and then this terrible problem disappears for most folks.

      • not authorized

        Dear Dee,

        The financial system you laid out for us in your thoughtful post is based entirely off of a thing called “Confidence”. There is nothing I agreed to, or signed, that states I must accept “your” system of monetary measurement. What if I have no confidence in your system through my own study?

        For the purpose of this post, lets just accept fact. Our currency system is ran by a for-profit Central Bank. Trying to color all the ways it defrauds me, and steals my own wealth, as “good for me”, is not going to win my heart. That included all the financialization you speak of. Sorry, I recognize the system for what it was designed to be. I reject your whole argument.

        Lets clarify my position further with things you may not know. The Fed is not the first central bank in the United States. This particular one, is our 3rd. Nor is it an official government entity. The Federal Reserve “system”, was designed by international bankers to defraud you, and everyone else, with every transaction on a daily basis, for their benefit. The shareholders of said private bank system, scim at least 6% off the entire nations economy yearly as “payment”. Even the names that were selected to call the bank itself, made to sound official, and “governmental”.

        Read what elected officials said about the Federal Reserve Act. Read what the “forefathers” of said banking system told you what they were planning to do. Read what our own forefathers, or other presidents like Jackson, said about private banking. What did Wilson say about the system? Non-recognition of these facts on your part, demonstratively prove to me that you do not have an accurate, or fully formed opinion of the system and are in error.

        Now, lets get specific. This “wealth” you speak that I should “earn”… What lawful money can I redeem it to that is spoken of in Title 12, Section 411? Question: why the terminology lawful money on demand used? Does this mean FRN’s were unlawful money? What are FRN’s again? Why the need in 1933 to change them to a different classification known as legal tender? Were they legal tender? If not, then changes making it legal tender were an Ex Post Facto law. Why the change? How did unlawful money ever make its way into our political and currency system to begin with? Did that legal change have something to do with what else happened geopolitically in 1933 in terms of events that shook up international banking? What happened in 1933 that shook up the international banking world that NO ONE wants to speak of? Also, what happened to the United States in 1933 in regards to it’s gold and bankruptcy?

        I can lead you to water, but I cannot make you drink.

        See, I don’t need your concept of “money”. It’s not “money” to me at all. You offer my generation a bloated, broken, and fraudulent debt-based “currency” system. Money is something with value, like, for example, your time. “Currency” is not money, it holds no value other than what is assigned to it by others. Debt is debt. Not wealth. You believe your paper holds value. It holds nothing but ink and numbers of debt owed by someone else (you). If all the “debt” was paid off, you would not have any currency in the system. Hint: You should recognize this as a “problem” to ever get out of “debt”. It is literally impossible with this currency, to ever leave austerity on a governmental level.

        And thus, that is the whole problem with your argument. For your system to continue to work, you need my generation, and all subsequent ones, to “believe” in that currency system all your wealth resides in, is the best way to conduct business. You also have to convince us, every penny was earned legitimately, so it retains its “value”. Fraudulent earnings are fraudulent, and can be clawed back. Did you hedge? Because I have questions that require answering before I will budge from my position.

        I will admit, you meant well trying to stay in the confines of the existing system, but here is how I read your entire post: It is ok to defraud me to benefit others, in order to financialize property and make more “money” using my “work”, because my “money can work against you for my benefit”.

        That was one of the warnings stated AGAINST passing the federal reserve act. That is exactly what the elite do with anything “financial”, amplified by a billion.

        E.g., renting it out, keeping prices artificially high, so bondholders, stocks, venture capitalists, and other “new” financializations invented in the future, and linked to home prices can indefinitely perpetuate the fraud, wealth transfer, and theft. That way, everyone included in the “financial process” gets a bite of my “earnings” from me just wanting to do a simple thing, like own a home. Is this is morally correct? Who pays for it? Me. You just unknowingly admitted that that is how “money works for you”, by stealing my wealth in interest, usury, and fees. I do not agree with this at all. I think this is evil. If not already, ultimately it will lead to further entrenchment of the existing neo-fuedalism.

        Personally, I think usury should be made not only a criminal offense again, but a capital offence. It should be treated as a crime against humanity.

        Why is your generation is advocating stealing all of my generations wealth via financialization, outsourcing, excessive taxation, salary depreciation, union rejection, undefaultable and unrealistic student loan debt, new “Fees”, taxes “insurances” etc etc etc? It is dangerous to let us assume you allow all of this to happen, so your retirement accounts will not be in jeopardy. This is what it appears to me. I view this as all theft.

        So, if you honestly think people from my generation are going to let the warm yellow liquid continue to trickle down all of our backs without a word, you are wrong. Especially when the worlds entire knowledge base is at our fingertips within seconds. And, we, are no longer “kids”. We are getting “older” and wiser in the world.

        You should start to take caution. Your attitude is what writers like Karl Denniger have warned against repeatedly for years. My generation, and the ones after me, did NOT AGREE to pay any of your bills. We did not agree with your financializations. We did not agree to Social Security. We did not agree to the currency system. And, most importantly, critical mass is being reached in which the world, has begun to recognize where all your “wealth” resides, is simply a ponzi scheme, ie, a fraud.

        So lets be brutally honest from my view. My generation has to agree to the Federal Reserve System. Just “earn it”, pay my bills via your income tax, and let ME enjoy “MY” retirement, no longer works for me. You need to explain it, in detail. You have no idea how badly my generation is being screwed, for what is perceived by us to be your generations continued benefit. When we read postings like this, it greatly irritates me. I just want to own a home with what I can earn. Why do you, and others, encourage people to leach off it?

        Who is really doing all the work at this point? Me, or just your money? It requires someone to work somewhere. That would be me, for your benefit. You are scimming off my earnings. IE, go back to work, slave. We can’t even get more than 1 week vacation here.

        So, now it is your turn. Convince me your way is right. Give me the Federal Reserves Resume, on how since it’s inception, with absolute provable truth, how it learned from all of humanities past mistakes with other currency systems. When did it usher in an unparallelled time of economic stability, prosperity for our nation, currency fairness, abolition of war? How it has promoted peace, liberty and freedom. I will not hold my breath.

        I can only come to the conclusion, when viewed in it’s entirety, that the system as it is, is worthless for humanity as a whole, and indefensible.

        Enjoy your debt, er, “wealth”. It is just paper backed by.. um.. nothing but laws already being violated by the issuer. I’d rather simply convert existing “wealth”, and, move into a system that benefits everyone, including yourself and your family without much fanfare. The world (and our solar system), and the abundance you would experience with all your other fellow human beings, would be something beyond what you could come up with in your wildest imaginations. But hey, if you want to learn that the hard way, without discussion to the benefits of coming together to create a new, beneficial for humanity currency system? Be my guest. Your loss.

        Recommendation: Beatles Song – “We Can Work it Out” on repeat until you see my view.


        • Dee

          I don’t disagree with anything you said, well almost. My wealth is in physical assets.. precious metals, collectables, real estate. I bought another house just recently for cash.. FRN’s as you call them.. fixed it up and moved my aging M-I-L in so we could take care of her. I cover my kids student loans when they graduated.. never told them in advance I was going to, and if they hadn’t graduated , I wouldn’t have never mentioned it. Didn’t actually cost that much since the kids mostly worker their way thru school. Covered grad work as well after that.

          It you want to work you way thru life on a cash basis , I’m all for it, it takes a lot of sacrifice up front.. two jobs, long hours, modest car, infrequent modest vacations. And you have to save to buy the house, car too really.. it can be done.

          In fact since you are going to get paid and save and spend in terms of FRN’s , even after you have saved and have a home, hopefully with a little land that you can earn some cash flow with. you still get FRN’s. We had some pretty rough economic times in the history of the US. Really should read this if you haven’t
          Folks get rich in all the Libertarian, gold bug, off the grid back to the land ways if they can work the money system so they have FRN’s to convert to real wealth. In fact, unless you know another way.. working the FRN system to get real wealth physical assets is about the only game in town.. and yeah, as they say in Vegas the House always has the advantage.. so?
          The only way out is thru.. you want real wealth, however you define it.. you get it with FRN’s. In fact, that is how it is supposed to work. Getting into the debt cycle is pretty much voluntary, and yes they make it as easy as possible because they make money off you.. so do the colleges , so does everybody.. but that doesn’t mean you have to take the easy and offered road, unless you can make it work for you. It is a punishment reward behavioral conditioning system and you are the lab rat. If you rather get out of the cage than get fat on the cheese, good for you. But that is not your only choice, you are saying you hate the cheese because it comes with a cage. Lot’s more cheese outside the cage.. you don’t have to be a lab rat.. you can be the researcher, or just a free rat with cheese. If you know how to work the system in your favor.. working the system is as much an option as getting screwed by the system. It just takes more self discipline and some delayed gratification.. Profiting from the system is as much a part of the system and hating and resenting it and being scammed by it.
          How you deal with the system is totally up to you. But as a minimum, if you want what you say you want.. you still need to know how to profitably convert FRN’s in to your real wealth.
          there is a whole world out there , ranges from folks who make their living managing money( FRN’s), to those who trade in the real wealth assets, to those who know enough to avoid the worst pitfalls, to your average Joe, to they know you by your first name at Rent-A-Center ( or the student loan office) nobody said you couldn’t work a couple years to build a nest egg before you started school .. my kids worked their way thru high school , saved some for college and bought their own cars. Own their own homes that they paid for and are just turning 30. Modest homes, but a nice neighborhood. Real Estate is all about location .. for any given house, otherwise identical, it could cost $60,000 or $600,000 depending on location.. everything is a trade off.. commute, schools, what have you. and the most annoying thing about it is everything that really drives price is ephemeral.. neighborhoods change, school get run down, industries move away.. Knowing real estate better than the average Joe makes a difference.. knowing anything about money and assets more than the average Joe makes a difference.. and so far you have studied the downside , while you fume and warn the world retribution is coming, folks are making a profit and converting to the kind of real wealth you seem to think is better.. they think so too.. so do I .. It’s not a zero sum game.. everybody profits even more the more people who profit. I want, everybody I know wants every creative talented ambitious smart person to make it and make it big.. but you’re right, improving your skills as a sucker isn’t going to get the job done. Might consider learning how to make the system wok for you.
          the only question I have.. is do you have an alternative to how to get to where you want to be… you are so right about what real wealth is.. friends, family, tangible assets, in demand high quality skills, and creativity, and that is what is going to matter when you bring us all to our knees… so are your ducks in a row, personally? Not only are the folks who know how money really works, including the downside and the necessity of faith in the dollar and the full faith and credit of the US, which means exactly the ability to tax … but the upside.. in fact, weathering financial downturns and economic collapse is a family tradition for some folks.. big profits to be made coming out of a crash, or setting up a new system altogether. .

          • not authorized

            Dear Dee,

            Again, thank you for your well thought-out post. However, you again, misunderstood me. Please, understand. I think the entire system is fraudulent. That includes all the 0’s that any supposed asset “Valuations” you may have with your precious metals, collectables, and real estate. I believe those numbers that you look at to measure yourself, thinking it is wealth, is purely fictional.

            Our financial system is a Ponzi scheme. It is a scam. Why continue to pretend it is not? Because it is setup to easily, and perpetually screw each other? ….that is not an acceptable reason.

            As for your hard assets. It is a matter of time now, that abundance of precious materials, and metals, will be discovered and/or be synthesized en mass. Do not depend on them to carry you through anything difficult “financially”. Expect asteroids made entirely of diamond, that we will learn to mine efficiently.

            Collectables are only collectable in the investors mind. Past gain, is not to be used for expected future profit. You know valuation of this can change on peoples whims. 3D printing, ultimately, will also make forgeries impossible to detect.

            Real Estate, well, that is being gobbled up by all the “venture” capitalists. So, I have no interest in it anymore. No one in my class will ever be able to pretend to afford a home again. That game is rigged against me, so why play? So, once that monopoly is complete, if I can’t afford my rent because of all the other combined crap I’m mandated to pay the system, that’s your problem, not mine. Again, you have no one to sell it that real estate to.

            So the rest? As my wife tells me, “meh”. If I believed in said system, I would care about what you posted. I admittedly do not. In my mind, judgment has already been passed. And i have higher morals than to participate willingly in such barbarism.

            As for suggestions, hmmm.

            Start here:

            I’m sure we can modernize the labor system post Weimar-Germany developed, using a cryptocurrency as the visual and traceable backing. And, as we sell our labor to foreign nations for gold/silver, our treasury can be restored. Full transparency, inability to counterfeit, instant exchange to gold/silver (eventually), constitutionality, inflation disappears, deflation naturally occurs, and everyone becomes wealthy over time. I somehow did not think I covered it all.

            That’s just one idea. Do you have one?

            Abundance means that EVERYTHING can be valued at “zero”.

            Win-Win for everyone. We can’t have that though. We must remain in austerity, forever. Pay for that water slave! Always for profit, NEVER for humanity.



          • Dee

            Personally.. I think you really need to go find a friend and have a beer.
            I can’t win because they are going to synthesize gold and I am going to get hit by a pure diamond asteroid.. and you can’t win because you can’t pay the bills and never will be able to because the powers that be have rigged to whole planet and the world economy against you.
            I hate to be argumentative.. but perhaps the truth lies somewhere in between?

          • not authorized

            Dear Dee,

            Truth is reality. Truth is all that matters. You may laugh, and giggle, that somehow, in the future, asteroids of diamonds will be found. Fact: They will be.

            We just discovered a very old white dwarf that is made of diamond. You do not think our solar system is absolutely littered with previous metals, materials, energy, and other items we need to advance and make society prosperous? I am disappointed. Do still think the universe is geocentric, separated and segregated into heaven, earth, and hell based on your “works” here?

            LOL. The internet is available to you. It is a digital library of Alexandria. Use it. Ask questions. It really will be OK when you find the answers. The world does NOT end.

            So, in my opinion, I would say within 20-40 years, we will be sending automated devices to begin mining asteroids. Probably within 20 years, the moon itself will be minded for H3 (thus, another fuel replacing fossils.). Who knows what else we will find on it.

            Accept it. We ARE going to find 2 mile wide gold nuggets in space. What will that do to your valuations when this happens? It’s inevitable. 2 years, or 50 years, it doesn’t matter. It’s that close.

            How about Energy? Cosmos and Neil Tyson just broadcast multiple ways to get to “free” energy to the entire world. What will happen to all the power/fuel monopolies as electricity costs goes down to 0? They will.

            And, you also need to realize that Roddenbury was also right with the development of replication like technology. This too, is in play already as scientists are trying to develop a proof of concept. Give it a couple decades.

            Technology exists today, to feed EVERYONE on this planet with wide scale hydroponic warehouse farming. Abundance like this will will drive costs down to 0. All we have to do is re-direct the war budget to food, instead of bombs. We’d have plenty of money left over too.

            Again, all of your valuations are ALL fictional based upon TODAY, and MY generation has to agree to them with knowledge and technology we will accept eagerly and use from TOMORROW. Quite frankly, you are being VERY VERY VERY shortsighted with the knowledge, ideas, and ability, the Information Technology generation will bring. And we, are starting to warm up our voices, and the internet and the information it allows for, is our playground.

            As for the economy rigged against me, you do not debate me, you debate others:

            “The few who understand the system, will either be so interested from it’s profits or so dependent on it’s favors, that there will be no opposition from that class.” — Rothschild Brothers of London, 1863

            Question: What Class? Sounds suspiciously like the mentality behind your post too. You agree with me, yet, do not oppose the system? Why?

            “Most Americans have no real understanding of the operation of the international money lenders. The accounts of the Federal Reserve System have never been audited. It operates outside the control of Congress and manipulates the credit of the United States” — Sen. Barry Goldwater (Rep. AR)

            Question: What is your understanding of operations conducted by international money lenders? Please inform us how this is beneficial to rights, liberty, and prosperity.

            “This [Federal Reserve Act] establishes the most gigantic trust on earth. When the President [Wilson} signs this bill, the invisible government of the monetary power will be legalized….the worst legislative crime of the ages is perpetrated by this banking and currency bill.” — Charles A. Lindbergh, Sr. , 1913

            Question: What invisible government was present in 1913? Can you please explain what Lindbergh meant by crime of the ages?

            “These 12 corporations together cover the whole country and monopolize and use for private gain every dollar of the public currency…” — Mr. Crozier of Cincinnati, before Senate Banking and Currency Committee – 1913

            Question: What corporations? Did we not have laws against this? Are they still in existence? What are their names? Are they linked to our war machine in anyway?

            “When you or I write a check there must be sufficient funds in out account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money.” — Putting it simply, Boston Federal Reserve Bank

            Question: Why can’t government itself do this, without the borrowing part? Wouldn’t that allow for us to leave austerity? I know of a nation that did in 1933. We also still occupy it, preventing it to re-establish a legitimate government. What was the name of that country? What happened?

            “We are completely dependent on the commercial banks. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money we are prosperous; if not, we starve. We are absolutely without a permanent money system…. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it becomes widely understood and the defects remedied very soon.” — Robert H. Hamphill, Atlanta Federal Reserve Bank

            Question: Are we creating the right type of “ample synthetic money” in this quote? Can you please tell us how prosperity, not austerity, is being promoted? If it’s not permanent, that means we can discuss new monetary systems. Let’s begin.

            “The regional Federal Reserve banks are not government agencies. …but are independent, privately owned and locally controlled corporations.” — Lewis vs. United States, 680 F. 2d 1239 9th Circuit 1982

            Question: If they are not government agencies, what are they?

            “Whoever controls the volume of money in any country is absolute master of all industry and commerce.” — James A. Garfield, President of the United States

            Question: How did Garfield die again? Was James Garfield a Constitutional President? What happened to him?

            “Banks lend by creating credit. They create the means of payment out of nothing” — Ralph M. Hawtrey, Secretary of the British Treasury

            Question: Again, why can’t governments do this directly?

            Like I said Dee, I have many many many questions before I accept your valuation of.. pretty much anything. New Paradigm Old Ways.


          • Brave~New¬World

            dude…her kids are in their 30s, don’t you think you’re kicking a dead…erm…old horse? Paradigm changes happen with time, and it’s obvious she’s from a different era. Let it go, our time will come when her generation dies. Just be patient and put up with their idiotic shit.

          • not authorized

            A few days ago, I spoke with a former under sheriff regarding human rights, and how all of our institutions became massively corrupted and twisted due to that generation. His reception and replies of “how things are” gave me hope. Perhaps i was wrong.

            *Looks at his watch*. Yes, our time is coming. I recon we are almost “next in line” to walk the halls of power and perception.

          • Dee

            Yes yes YES .. by all means, wait, wait for it all to come to you in your turn. And while you are waiting, I think those that are willing to work and earn a position of power and responsibility will beat your out of what you seem to think is your preordained prize.

          • Dee

            Not Authorized, I feel it is your place to convince the reader that your fantasies are credible and probable, just as it is your place to convince people that the economic theories you subscribe to are credible. I have looked into a couple of the buzzword events and concepts you champion on various conspiracy and scam websites , and I cannot for the life of me find the explanations there persuasive or credible.. so I cannot do them full justice trying to explain stuff I feel is pure bullshit.

            However you have a forum here to do exactly that. Most of them seem to be coming from spin offs of sovereign citizen and other similar tax scams that charge folks for the revealed secret truths , that I do not find to be true and that have landed many people in jail who tried to implement them. .. there appear to be competing schools of interpretation of your buzz word events and concepts, each claiming to correct the flaws that prevented early scams from working as planned.

            If you feel they are true , you should explain them, or at least link interested people to the versions you think are the truest and most credible and to the websites where they can sign up and send their money for the full reveal of the Truth.

            As to you bountiful and zero cost food fantasies, the cost of production, processing, preservation and distribution will prevent food from being free .. about a billion people go to bed hungry and about 10,000 children die everyday from lack of food and clean water, preventable disease.

            I think you need to seriously consider the fact , that at the current price of wheat , just under $6 per 60 pound bushel and the fact a “standard” loaf of bread has 1.25 pounds of wheat in it.. a standard loaf of bread has 12.5 cents of wheat in it… the rest of the cost is processing the wheat to flour, the transporting the flour thru the various stages that have to go into the making, packaging and distribution of the loaf of bread. That alone will prevent the sales price to vary more than 12.5 cents even if the wheat itself was free. However rest assured .. if free food becomes a reality or even starts to look feasible, if these breakthrough energy tech start to show up as something possibly practical, if Meteors in the Sky with Diamonds become a game changer, I will review my investments and adjust mu portfolio accordingly.

            However… in the mean time, and since I have yet to find any persuasive or credible explanations for the economic concepts you keep alluding to .. I am open to you or anybody else to persuade and enlighten me.


          • Welcome*To¬The^New-Age

            You went for a personal attack. Means you lost already ma’am, and you subconsciously know it. They have already synthesized diamonds and yes mining asteroids is really the future, in fact; they already have missions planned. Yes, the Powers that Be HAVE rigged the game, and no the truth lies exactly right there. You’re from another age and so we forgive you but seriously, ma’am….it’s like that Bob Dylan song, the times they are a-changin.

          • Dee

            Not that it matters, but what personal attack?.. and it is okay for me to lose this argument if you say I did. The real world has it’s own mechanisms independent of my glibness.
            But still and all, what personal attack?

    • Dee

      Just wanted to mention that about 30% of all single family homes are owned free and clear and unless you refinance most mortgages are for 30 years .. there are no forever mortgages unless you try really hard.