Running on Empty, by Robert Gore
They dote on their progeny, then bury them alive.
Across the land, public pension and medical funds teeter on the brink of insolvency. You can ignore pending problems until you can’t. For those who prize clarity and realistic thinking, these impossible to ignore crises should be welcomed. They focus attention on an inescapable fact: the world lacks the unencumbered assets and productive capacity to redeem the promises that have been made against them. Somebody’s going to get stiffed.
This is an excerpt. For the complete article please click the above link.
Across the land, public pension and medical funds teeter on the brink of insolvency. You can ignore pending problems until you can’t. For those who prize clarity and realistic thinking, these impossible to ignore crises should be welcomed. They focus attention on an inescapable fact: the world lacks the unencumbered assets and productive capacity to redeem the promises that have been made against them. Somebody’s going to get stiffed.
This is an excerpt. For the complete article please click the above link.
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- 2Posted by Ben_C 6 years, 7 months agoThe US Debt Clock says it all. Its the unfunded liabilities ie social security and medicare that is most worrisome. Yes, you can't rob Peter to pay Paul. Further generations will never enjoy the quality of life and quasi freedoms we enjoy. The only options are hyper inflation, bankruptcy, or insane taxes. Thank you FDR et al for setting the wheels of collapse in motion. History does repeat itself and Tytler quoting others is correct.| Mark as read | Best of... | Permalink
- 1Posted by CircuitGuy 6 years, 7 months agoThis has been true all my life. They're all examples of leverage leading to instability. I'm 42 y/o, and I accept it as an unfortunate fact of life that's always been with me. I've watched orgs I'm involved with take out adjustable loans with moderately-high rates to avoid raiding their foundation arm. They know they're turning their museum or church partly into an investment firm, and they're okay with the resulting instability. I remind them that bank could have invested in the same things as the org's foundation, but they thought this loan was a better investment. After that I let it go. Leverage is everywhere. I don't see it changing. I see people muddling through the resulting instability and rationalizing that it's actually high efficient allocation of capital.| Mark as read | Best of... | Permalink
