Posted by: Debby Durkee | September 28, 2010

Boomergeddon.

Debby's Web Finds
Boomergeddon.

Pay attention, baby boomers. The politicians have put off the tough work for so long that there are no answers to what appears to be an explosion of debt once the boomer generation retires. If you aren’t putting away gold or food or both, you should start now. If the next Congress doesn’t address entitlement spending, it won’t just be our children who will be in a world of hurt later; it will be all of us earlier. The Tea Party has been yelling this since February of 2009. It’s time we all take it seriously. This is from Barbara Hollingsworth at the Washington Examiner.

…along comes Jim Bacon, author of “Boomergeddon,” who not only rains on the slowly moving parade, but demonstrates — using President Obama’s own budget data — that national bankruptcy is “a near inevitability, given the myopic, corrupt and gridlocked political culture of Washington, D.C.”

Bacon, who lives in Richmond and blogs at Bacon’s Rebellion, asked Richmond-based Chmura Economics & Analytics to crunch the numbers to see what would happen if growth remained just one percentage point shy of the 3 to 4 percent assumed in Obama’s 2011 budget. He also asked them to look at mild recessions occurring within the next 10 years.

Given the economy’s recent history, both are perfectly plausible — even likely — scenarios. In the event that one or both of these things happened, Chmura analysts reported, the federal deficit would grow twice as fast.

That’s scary, because annual payments on the national debt are already expected to hit nearly $1 trillion for the next 10 years. At the end of 2020, Congressional Budget Office director Douglas Elmendorf warns, the public debt — 48 percent of which is held by foreign creditors — will balloon to $20.3 trillion, or 90 percent of GDP, just as 78 million aging baby boomers begin making unprecedented demands on the government’s fraying safety net.

“It will be 15 years before all the wheels fall off the bus,” Bacon, the former editor in chief and publisher of Virginia Business magazine, told The Examiner. The “point of no return” will be triggered by rising global interest rates, which “will climb faster than the government’s ability to cut things.”

Panicked investors who no longer trust in the “full faith and credit of the United States” will stop lending, and the bottom will fall out — triggering a worldwide depression.

Middle-class baby boomers who worked hard, saved money and played by the rules will get “totally hosed,” Bacon says, as the permanently entrenched Washington elite takes any money promised to them and redistributes it to growing numbers of government dependents.

“If you’re looking for ‘smiley face’ advice on a blissful retirement, this isn’t it,” Bacon admits. “There’s a good chance you’ll spend your golden years eating dog food and recycling beer bottles.” Snip —

Boomers’ retirement benefits are a balloon payment that the hocked-up-to-its-eyeballs federal government won’t be able to cover.

Make sure you not only vote for responsible legislators, but make sure you stay responsible and hold their feet to the fire. The country cannot continue on this spending spree and survive. The government needs to be drastically cut. Enron accounting in government should be just as illegal as Enron accounting in the private sector. Government’s ability to steal from some to give to others must be made illegal or Greece is inevitable in our lifetimes. Read it all here: http://www.washingtonexaminer.com/opinion/columns/Slow-growth-or-no-growth_-boomers-face-doom-951595-103478284.html

//

Bookmark and Share

Advertisements

Responses

  1. This is an interesting article of warning. Your statement at the end is the key to making all this tea party stuff worth anything in the long run. Unless we are able to change the actions of politicians and create an expectation of sound financial principles on government spending, we will never have achieved anything. This is not a one trick pony election, it must be a new era for principled government and this needs to be the beginning of achieving that reality.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Categories

%d bloggers like this: