Posted on 11/10/2012 6:31:59 AM PST by The Working Man
The question that arises in my mind now is this: When will the "Entitlements Crash" occur?
First off by "Entitlements" I mean those programs that the Government has labeled as such. Social Security in it's myriad forms, Medicare, Medicaid, ObamaCare/Health care mandates, and a all of the rest of similar programs.
Next a "Crash" is like the stock Market Crash of 1929.
As I see it we will probably see the "Entitlements Crash" in mid 2014 and at the latest by early 2016. Why then? Well I expect that the U.S. will see at least 70% to 80% of the population on "assistance" of one sort or another probably food stamps/EBT. The remaining workers/producers/taxpayers can't pay enough in taxes to fund those programs as well as the other Government programs.
I also believe that Treasury bonds will have to have exorbitant rates of return before anyone would even think of purchasing them. That will come about as our Credit rating slides down towards "A" from the "AAA" it was when Obama became president in 2008. To me that will indicate that our borrowing will be at an end. The old "I'll gladly pay you on Tuesday for a hamburger today" will be over and done and tromped into the ground.
So... With demands for services way up! And income WAY down. Something will give, Bankruptcy or simply halting those services or at the least knocking them way back. An "Entitlements Crash".
So for me it will come as early as 2014 or as late as mid 2016. What about you? What do you think?
“So for me it will come as early as 2014 or as late as mid 2016. What about you? What do you think?”
2020 if steps are not taken to correct the current fiscal trajectory of the United States. It takes a lot to drive the worlds largest economy into bankruptcy, and Obama is only a third of the way there.
WROL ?
The problem is also demographics, although not in the way you might think.
Who’s going to buy the stuff once the boomers are gone? The economy is under heavy deflationary pressure. With such a high debt level and such a weak underlying economy - this is a recipe for big trouble.
Answer:.......EDUCATION! ( K-12 is the worst offender).
Here are two suggestions that would kick-start the economy immediately and cost the taxpayer NOTHING;
1) Pay every family $5,000 for each child who does not attend their government assigned school.
2) Remove all age restrictions on the GED. Give any child who passes the GED or similar private exam an official government diploma to be issued by their local high school. ( Actually, all children should be required to pass the GED or similar private exam to graduate.)
Something will give, Bankruptcy or simply halting those services or at the least knocking them way back. An “Entitlements Crash”.
Nope, the author is ignoring all the other probable results out there:
Rioting
Military coup (Obama would call it a “coop”)
Civil War
I wasn’t ignoring your “options”, I just think that they will come after the “Entitlements Crash”. Why? For me it comes down to a couple of things. Social Inertia is the biggie. Society doesn’t change its “Mind” very quickly or easily, it takes a long time to do that. Some people call that the “Normalcy Bias”
Secondly is the “Comfort factor”, some call it “bread and circus”. As long as our woes are bearable all the people will do is bitch about it. It’s only when there are empty stomachs growling because they’ve forgotten what it was like to be full and bodies that are too hot or too cold, because their Air Conditioners don’t work anymore or they don’t have warm clothing anymore, that people look outside their misery to put the “blame” on a perceived oppressor, be it real or imagined.
Then your riots will happen, coup attempts will be made, Revolution will be inevitable.
One of the top stories on Yahoo:
Why Social Security is Running Out of Money
http://finance.yahoo.com/blogs/just-explain-it/why-social-security-running-money-just-explain-133731426.html
Thanks, will do.
That’s so true. And refusing critical health care for old people will get them off the rolls more quickly. The Death Panels will be busy saving money.
Yep - and you better be armed when they realize that the cow has been eaten and only the stinking carcass remains...
I don’t understand why the Boomers are so passive.
You bring up a good point. we(conservatives) need to
find out each liberal owner and corporation etc and not do business with them.
I don’t understand why the Boomers are so passive.
That’s a good question. The answer is a long a complicated one. I think it has to do with our early formative years. Our parents made it out of the second world war alive. Which was a big deal!
Then there was the Korean War, The Cold War with the threat of total annihilation literally over our heads at any time. Then then the Viet Nam War. War, War and add on to it a little bit more war.
What happens to a child under those sort of pressures is that they become a bit passive. What will be, will be. You see it in children of abuse today. Now write that on a large scale for an entire generation.
To revise and extend, am of the belief we have to allow the economy to crash. Want to make it clear. Am proposing a CRASH. It is going to happen sooner or later. Sooner maybe is the best option. My children and grandchildren may have a chance if it happens sooner. The crash is inevitable, or as Travis’ post shows the waterfall.
I think it’s 2020 for Medicare and then 2035 for Social Security. I can’t remember the dates exactly, but that’s roughly when it is.
I too think it’s all going to crash, economy, entitlements, government.
Why I believe that is an interesting thing, it doesn’t have to do with graphs on the economy, spending or other similar things. I believe it because I think that there is a self-destructive quality about societies. It’s not the society is a bad thing, far from it. I think that what happens is that we tinker with it trying to make it “better”. The problem is of course, better for whom?
When you get to many tinkerers in there trying to make it come out their way of “Better”, Society is pushed beyond what is optimal for all. A point comes when it has to crash and re-start as something different than what failed.
I think we are there now or at the least very soon.
Within the next year. We are simply out of financial options to keep this sucker alive any further.
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