Simple Math Shows USA Is Headed for an Economic Disaster

[Asiantravel]

Stanley Druckenmiller has a net worth of $4.4 Billion

For 25 years as a hedge fund manager, Druckenmiller compounded money at an annualized rate of return of 30%. Incredibly, he did it without a single down year.

Druckenmiller has a dire warning for all of us. One that requires action.

The disaster that Druckenmiller sees coming for the United States is all about changing demographics and entitlement spending. They don’t add up to a sustainable situation.

In 1940, entitlement payments, which include everything from disability payments to Social Security to Medicare, amounted to just over 20% of annual government spending in the United States.

Today, entitlement spending has swelled to nearly 70% of the annual federal budget.

http://dailyreckoning.com/simple-math-shows-america-is-headed-for-an-economic-disaster/

Edited April 3, 2016 by Asiantravel

[TheSiemReaper]

Really? Another rich person advocating for screwing poor people over and we're supposed to take that seriously? The pending economic crisis is not about benefits to the poor but the insane concentration of wealth in the hands of a tiny, tiny fraction of humanity. A fraction that doesn't spend money. A fraction that doesn't create jobs. (The lower and middle classes do that). Want to stave off an economic crisis? Tax the rich. Want to stave off a social revolution? Tax the rich.

[AlexRRR]

The trouble is normal people will believe that rubbish, about 25 years ago in Australia when the Labour party, the party of the worker, was reforming the work sector one of the things that came out was "we earn to much" or words to that effect, it wasn't to long before ordinary people started mimicking that line.

The real reason the world is in the shits and economies have stagnated is the fact that the middle classes all over who drive the economy have reached a point where the gap between what they earn and what they need to live on is at its lowest point in 40 years, this also happened around the time of the Wall st crash as well.

There is a very good movie circulating on this subject by a former Clinton staffer a professor in i assume this field.

Business (some) at least here in AU are starting to get the idea, for years wages have been pegged to productivity by workers we have reached a point years ago where they couldn't bleed the worker any further, yet management have been able to keep on taking bonus's year after year, while middle to low income workers have stagnated, the cost of housing keeps rising while morgages to pay for them now has reached crazy highs, normal workers are borrowing $300 to $400,000 to buy these normal average suburban houses.

The last time we got the world going again was after a world war, think about it.

[sirineou]

Yes it is the benefits I am entitled to after working and paying for them for nearly 40 years, that would wreck the US economy, not the one present who have accumulated most of the wealth , invested it abroad, and pay little or no tax.

It is not entitlements, it is their continuing behavior if allowed. Entitlements are becoming a larger percentage of the economy because the economy is not growing at the necessary rate.Bring back manufacturing, put people back to work so that the consume less government resources and pay more taxes.

If you want to take a factory to mexico, sure , go ahead it is a free country, but if you want to sell your products in the US, pay a tariff to offset what you would had being paying in to the system if you had stayed here.

[Langsuan Man]

Somebody has been listening to The Donald

[maewang99]

the USA can borrow at 1.8 percent. no problem. the rich cannot get enough US Treasury debt, the amazing thing is that Thailand is no longer going to be in that queue finally. showhow thay are managing (Bank of Thailand) to be allowed to hold other things in their resereves, the last I read. there are some things that Thailand does get right. not many, but some.

[shirtless]

We no longer have a mass market , to much money is concentrated in too few people. all thanks to a corrupt system full of corrupt greedy people.

[bruce06]

how would one profit from the US having an economic disaster? what markets would go up?

[thaihome]

how would one profit from the US having an economic disaster? what markets would go up?

Weapons

TH

[beechguy]

Somebody has been listening to The Donald

Obviuosly, too many have been listening to Bernie.