Solutions for debt crisis go far beyond tinkering

[Steelangel]

By Dennis Cauchon and John Waggoner, USA TODAY
What if you didn't qualify for Social Security and Medicare until you were 73 years old?

What if the affluent got limited government retirement benefits — and "affluent" was $50,000 a year?

What if the government said it wouldn't pay for your $100,000 life-saving operation?

Americans may soon have to start thinking the unthinkable to solve the severe financial problems that the retirement of baby boomers will bring the Social Security and Medicare systems. These two beloved programs are on a collision course with financial reality that threatens the nation's prosperity and the well-being of the next generation of elderly.

USA TODAY reported Monday that taxpayers have a hidden debt of at least $53 trillion in government obligations, mostly from Medicare, Social Security and the federal debt. This debt equals $473,456 per household, dwarfing the $84,454 in personal debt per household owed for mortgages, car loans and other borrowing. (Related graphic: Crunch the numbers, see what your share adds up to)

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Source: http://www.usatoday.com/news/nation/2004-10-04-debtsolutions-cover_x.htm


That is quite scary.. how many elders from 'baby boomers' generation will have to be suffer when it comes up?

[flaminbats]

1. how high will interest rates go as baby boomer lenders start retiring?

Many of the boomers who invest in America's financial institutions for retirement, and provide the capital to make such lending possible, will begin pulling this money out of the private sector in massive quantities.

Not only will these baby boomers lose most investments as they begin retiring, the companies providing low wage jobs for the younger generations will go under, and inflation will skyrocket as demand for medicine, transportation, and credit far out-paces the supply.

Normally the government could step in and provide relief during such a depression. However record interest rates, a worthless dollar, and an exploding National Debt might make this rather difficult. I love how neocons argue that buying stocks and bonds with taxes is our only hope of saving America from generational destruction. :crazy: