We're Relying on Phantom Wealth to Fund Our Retirement

Of Two Minds ^ | 13 August 2014 | Charles Hugh Smith

[Lorianne]

Phantom wealth cannot possibly fund unprecedented retirement and healthcare promises. The narrative that Social Security, Medicare and pension funds invested in stocks and bonds can fund the retirement of 65 million people is a misleading fantasy. The sad reality is we can't fund the enormous expense of retirement/healthcare for 20% of the populace out of our national earned income, and the savings that have been set aside are either fictitious (the Social Security Trust Fund) or based on phantom wealth created by speculative asset bubbles in stocks, bonds and real estate.

I explain the fraud of the Social Security Trust Fund in detail in The Fraud at the Heart of Social Security (January 17, 2011).

[Lorianne]

I personally doubt that we will ever see cheap energy again.

You might be right, but even if you are I wouldn’t advocate counting chickens before they hatch as sound economic planning.

We’ll see how your 2-3 year prediction holds up.

[Jedidah]

Absolutely.

And what we’re seeing in Ferguson, Missouri are not race riots or class riots, any more than the Occupy Wall Street demonstrations were.

They are both culture clashes. Morality, character, standards on one side, and entitlement, thievery, violence on the other.

It’s stark, and it’s ugly.

[Toddsterpatriot]

Bring. Back. American. Production.

How?

Why not post a few constructive suggestions for changes in government policy?

Unless your screen name is really Concern Troll Trolling?

[ROCKLOBSTER]

US citizens receiving government assistance who will not work or can’t keep a job because of attitude or poor work ethic.

There you have it. All they need to be receiving is public humiliation, and weight loss.

[kabar]

NOBODY is doing one little thing to stop it.

So what should be done to stop it?

[RFEngineer]

“I personally doubt that we will ever see cheap energy again.”

You may be correct, at least in terms of US dollars.

[kabar]

Your table is interesting, but percentages don’t tell the tale. 38.7% of native born is a heck of a lot more people than 56.6% of immigrants, and the big difference is that immigrants work their way off welfare.

We choose to allow these people to come here. Why are we importing poverty?

speak from close experience. I work closely with this demographic. What really chaps me are the native borns who pass the entitlement mentality down for generations. I see it often.

Anecdotal information doesn't replace facts. Here are a few factoids for you.

Immigrants in the United States, 2010: A Profile of America's Foreign-Born Population

In 2010, 23 percent of immigrants and their U.S.-born children (under 18) lived in poverty, compared to 13.5 percent of natives and their children. Immigrants and their children accounted for one-fourth of all persons in poverty. The children of immigrants account for one-third of all children in poverty.

Among the top sending countries, poverty is highest for immigrants and their young children from Mexico (35 percent), Honduras (34 percent), and Guatemala (31 percent); and lowest for those from Germany (7 percent), India (6 percent), and the Philippines (6 percent).

In 2010, 36 percent of immigrant-headed households used at least one major welfare program (primarily food assistance and Medicaid) compared to 23 percent of native households. Among the top sending countries, welfare use is highest for households headed by immigrants from Mexico (57 percent), Guatemala (55 percent), and the Dominican Republic (54 percent); and lowest for those from Canada (13 percent), Germany (10 percent), and the United Kingdom (6 percent).

In 2010, 29 percent of immigrants and their U.S.-born children (under 18) lacked health insurance, compared to 13.8 percent of natives and their children. New immigrants and their U.S.-born children account for two-thirds of the increase in the uninsured since 2000.

Many immigrants make significant progress the longer they live in the country. However, on average even immigrants who have lived in the United States for 20 years have not come close to closing the gap with natives.

The poverty rate of adult immigrants who have lived in the United States for 20 years is 50 percent higher than that of adult natives.

The share of adult immigrants who have lived in the United States for 20 years who lack health insurance is twice that of adult natives.

The share of households headed by an immigrant who has lived in the United States for 20 years using one or more welfare programs is nearly twice that of native-headed households.

The share of households headed by an immigrant who has lived in the United States for 20 years that are owner occupied is 22 percent lower than that of native households.

My original statement stands. Mexicans work their tails off at minimum wage jobs. In most cases, any assistance is just that — assistance when the paycheck doesn’t stretch. Assistance, not support.

The out of wedlock birthrates for Hispanics is 53%. They want Big Government and all the services that can be provided to them. Use of welfare services are only exceeded by blacks.

[1010RD]

Cringing Negativism Network is a well known concern troll and possibly a DNC/Union operative.

You can look up its (it may be more than one person) posting history by searching for User:

CringingNegativismNe FR cannot search the entire name, but has a 20 character limit.

Look here: http://www.freerepublic.com/tag/by:cringingnegativismne/index?brevity=full;tab=comments

Once you see the posting history you’ll see that its a Concern Troll. For instance, CNN will post about both Democrats and Republicans hurting American jobs.

Democrats are sheer garbage and CNN knows it, especially here on conservative Free Republic. Republicans, even the worst RINO are always better than the Democrat as measured by Heritage, ACU, etc. So the result of attacking both groups is to appear fair, while undermining the only party that aligns with most of our conservative values.

The entity posting as Cringing Negativism Network has resisted all efforts to learn about and support free market economics. The only alternative to free markets is central planning think - North Korea, Soviet Union, Cook County/Chicago Illinois - and that is what the entity known as Cringing Negativism Network is really calling for as he trolls comments on FR.

This entity, Cringing Negativism Network, is a long term troll. It will not respond to this post or any direct questioning. It is consistently evasive and repetitive, just as though it were being worked by several people cutting and pasting predetermined responses so as to appear to be a single individual poster. Watch.

1. Cringing Negativism Network do you support free markets and free people?

2. Cringing Negativism Network do you support Right-to-Work movements in the United States?

3. Cringing Negativism Network would you support reducing taxes on capital gains, labor and corporations?

4. Cringing Negativism Network would you support reducing regulations on capital, labor and corporations to the levels of say Eisenhower’s Administration?

5. Cringing Negativism Network which President was better for America: Calvin Coolidge or Franklin D. Roosevelt? How about Jimmy Carter versus Ronald Reagan?

[Cringing Negativism Network]

“Once you see the posting history you’ll see that its a Concern Troll. For instance, CNN will post about both Democrats and Republicans hurting American jobs.”

“Democrats are sheer garbage and CNN knows it, especially here on conservative Free Republic. Republicans, even the worst RINO are always better than the Democrat as measured by Heritage, ACU, etc. So the result of attacking both groups is to appear fair, while undermining the only party that aligns with most of our conservative values.”

-

Both democrats, and Republicans (both) appear to be exactly and completely, on the opposite side from American workers on this very important issue.

Nobody is supporting American workers. Nobody.

You are involved in trolling here, not me. You claim to support conservative trade positions, but your trade positions would appear to me, to support only foreigners and communists.

I am for American jobs.

Jobs.

Jobs held by Americans. Jobs controlled by American companies, but just as importantly held by American WORKERS. Jobs right here in the USA.

Now don’t go offtrack and allege I am supporting unions, or any other distractions. But I am (very) firmly supporting the hiring of American workers.

I am for American jobs. What are you supporting?

What?

(America first).

[Toddsterpatriot]

You called it!

[Toddsterpatriot]

Who will rid FR of this troublesome troll?

[Lorianne]

We’re going to get American jobs here soon enough.

More and more people are becoming free agents (most not by choice) and will have to create their own job.

I’m not talking (relatively) high paying cubicle jobs shuffling paper, but real jobs making real things, growing real things, or extracting real things.

We can’t any longer depend on corporations (or the US government to provide jobs). And perhaps we never should have in the first place. But that is water under the bridge now. The trend is toward people creating their own work and marketing their own work.

Corporations have no allegiance to the USA or its workers and really, why should we expect them to? Self sufficiency is the new game plan. Create your own job and if you can, a few extra jobs for other people.

Meanwhile, boycott stuff made/sourced elsewhere as much as possible. By local, sell local trade local.

[Cringing Negativism Network]

I’m just saying:

In 2013 America imported 440 billion dollars worth of goods from China.

During the same 2013, China only imported 122 billion dollars worth of goods from America.

China is not offering a balance in this “free trade” world. To heck with sending manufacturing to a massive global competitor.

Bring back American jobs.

Bring back American factories.

We need to recapture the American spirit, and rebuild our manufacturing capacity.

Build stuff here.

[Lorianne]

I agree but it’s not going to happen just by chanting “bring back American jobs”.

A lot of jobs are not coming back,, ever. That’s just the reality. Cheaper labor will always win out in the free market, and corporations will seek the cheapest labor and cheapest materials and cheapest energy and the best tax situation. And right now that is not in the USA.

Therefore, it is up to American workers to do what is necessary for themselves. A lot of this will happen naturally out of necessity. We will become more self sufficient because we will have no other choice.

Depending on big corps and/or the government (often the same thing) for your livelihood is not a sustainable long term choice. Younger generations are already figuring this out.

[Cringing Negativism Network]

I disagree.

China is a one-party state, with over a billion in population. They are now just about a trade equal to America.

Our trade with China is (wildly) one direction.

China has closed markets wherever they can build them. China continues to glom onto ever more manufacturing, and I think it’s time we start to do the same thing.

We need to bring manufacturing back to America.

Lots, and lots, and lots of American manufacturing. Back to America.

The problem is, right now nobody in our entire country appears to be ready to stand up for American workers.

But I am. I am saying it is time, to stop off-shoring American jobs.

Bring them back.

Sending American manufacturing all around the globe has not helped America.

Bring back American manufacturing.

(currently it’s just me, apparently, on this drive to re-industrialize America)

[Lorianne]

Who is we?

Your “we need to bring American jobs back” is a nice catchphrase but it doesn’t make any logical sense.

Who needs to bring the jobs back? The government? Exactly how would they do that? Force corporations into being and make them hire Americans? How?

OK we could put up punitive trade tariffs on imports but starting a trade war right now wouldn’t really help the situation. I’m personally for it (bring it) but you’d have riots in the streets in days if prices went up on imports. Let’s do it I say, but it won’t be pretty and it won’t bring jobs back. It would however collapse the economy faster so we could start to rebuild it.

The only way this is going to happen is if people stop buying foreign made things, foreign sourced materials. And I don’t see that happening because most of the “we” you speak of do not care enough to do that. They just want the cheapest price for all items. That’s it. They don’t connect that the cheapest price = fewer American jobs.

This will all change organically soon enough. People will work for less. They will create their own work. There will be few other choices.

Why don’t you start a factory and employ Americans?
What is stopping you from doing so? It is probably what is stopping everyone else from doing it at the moment.

[1010RD]

Yep.

[1010RD]

I am for individual liberty and the America that values that. Not Obama’s America of the central planners and race baiters. Let me ask you again, take your time, but please answer these specific questions:

1. Cringing Negativism Network do you support free markets and free people?

2. Cringing Negativism Network do you support Right-to-Work movements in the United States?

3. Cringing Negativism Network would you support reducing taxes on capital gains, labor and corporations?

4. Cringing Negativism Network would you support reducing regulations on capital, labor and corporations to the levels of say Eisenhower’s Administration?

5. Cringing Negativism Network which President was better for America: Calvin Coolidge or Franklin D. Roosevelt? How about Jimmy Carter versus Ronald Reagan?

[WVKayaker]

Bring back American jobs.

Hahahahahahaaaaaa!

You keep repeating that mantra and maybe you will feel better. It isn't going to happen with the government that is now in place. Trying to change back to a retreaded manufacturing base is "pie in the sky".

Even if American made products regained a position in the marketplace, the reality is that PRICE is the dominant factor in purchases. With the unionized collectives making the business decisions, investors will never make it happen again. When you can make things so cheap offshore, and allow American borders to be invaded on a mass basis, there is little hope for the American "middle class". Obama's "hope and change" have arrived and a Socialist wet dream is being forced upon the populace.

We were defeated by "The Marshall Plan" that rebuilt the world's factories, and left ours in a third class condition. We won militarily, but lost the battle for economic dominance. Cheap labor trumps quality in this modern time! Everything has become cheap and disposable, and the policies of the Gum't drones have driven the nails in the American dream...

Fund your retirement with land and a bigggggg garden, and protect it with lead and barbed wire...