Simon Black (Sovereign Man) published a piece that should tell you why we will crash and burn. It references Senate Bill 2826: the Strengthening Forgiveness for Public Servants Act, which promises to forgive a portion of student loan debt … if you become a public SERVANT (it only takes 10 years of servitude to get 30% of your debt forgiven, which insures you will stay a debt servant).
The Bill’s title alone should have told you to bend over. This devious bs is truly Orwellian. First, they promote loans for anyone with a pulse to hopefully obtain a degree that likely will not meet the repayment requirements, due to tuition prices being driven too high by too many loan dollars chasing too little education (literally). If the govt cared about students and prudent lending, student loan debt would still be expungeable through bankruptcy and govt would stop sucking the life’s blood (capital) out of the jobs market.
As exhibited by the protesters in HK, govt is never able to connect the dots (because it’s not in their interest). Govt’s all over the world “conveniently” do not understand what’s behind the protests, which is the divide between generations CREATED BY GOVT. The youth simply want freedom, jobs, and for the govt to keep their hands out of their pocket. The older generation wants to collect their unrealistic pensions that they expect the youth to pay for with no questions asked – just shut up and obey your elders! Good luck with that one. It’s not working in Scotland, Spain, Switzerland, and the rest of Europe, nor in Iran and Asia. Guess what? It’s not going to work in the US either, for China is not the only one that has lost the youth.
However, it doesn’t mean the govt will ever stop digging in their heels and doing whatever is necessary to take from others to sustain their own jobs, perks, and power – including confiscating your Social Security check and tax refund if anyone in your family owes any back taxes or penalties (and I thought it was bad when the University withheld my diploma until I paid the parking fines). Why the youth and tax paying citizens are not already in the streets is a mystery, but when someone takes away their iPhones and they wake up, look out!
For those on a public pensions or hoping to receive one, it may be a good time to start that vegetable garden and building a cistern. Beyond the obvious mathematical impossibility of paying retirees a pension and simultaneously paying for their replacement, one should also consider the impact of artificially suppressed interest rates on pension fund returns (which will drive pension funds into riskier stocks), and the fraud of your colleagues around the country (i.e. LA cops and firemen are exploiting a loophole that has resulted in expenses increasing 30% over the last 4 years).
If you add in the coming asset stripping tactics by the banks to confiscate everything that’s not nailed down in our countries’ cities (i.e. Detroit, Stockton) by excluding municipal bonds from the collateral posted by the big banks, which will dramatically increase borrowing cost, it should be obvious that the pension wars will take center stage as we head into 2016. Don’t expect much sympathy from the youth.