CalPERS and Social Security Both Bankrupting

The Baby Boomers have a problem. They have several, but this specific problem is huge. Most of them know about it. Social Security is a Ponzi Scheme, and its managers don't have enough money to pay for all those retiring onto it. They were counting on my generation being bigger and better employed, so we could pay for those wages, but my generation is less than half the numbers of the Baby Boomers, so the 2:1 ratio of retirees supported by workers is going to 16:1 and later higher numbers. The high Obama-Poverty rate also meant that far fewer workers were paying into the Social Security scam for the whole duration of his tyranny. Most of my generation knows, since 1990, that we'll never see a dime of the Social Security we paid in without a choice. We've been robbed, and the Baby Boomers are bankrupting it. The only good news is that the Baby Boomers aren't going to see all they paid into it. and when they get older they won't see any either, no matter what they vote. I figure 10 years and we'll be unable to bail it out by voting.

The second problem, which is more of a California problem, is all public service workers (teachers, librarians, clerks at the bureaucracy) are screwed. CalPers, which is the single biggest chunk of money in the world was heavily invested in Housing Derivatives. They lost half the fund when it collapsed in 2007. The money remaining is no longer enough to pay the pensions on all those state and county employees because the original fund was based on paying 12 years of pension, at which point they would die at 75. Now people live into their 90's and even 100 years, getting pension all that time. The fund isn't large enough. And the amounts adjust with inflation against minimum wage. Remember that minimum wage is going up to $15/hr by 2022? That's a 50% increase over 4 years ago. That also means the pension payouts have to rise 50% by 2022. That makes them collapse even quicker. The Ponzi Scheme is doomed. The Governor, never one for admitting his own failure when he can party with Hollywood Communists and Billionaires in Silicon Valley, keeps raising taxes to "fix CalPers" but then the money goes to the Bullet Train To Nowhere. This is not good news for all those public employees. Their unions are bought and paid for, so do nothing. Most estimates predict 6 cents on the dollar invested. 6% return on their investment is terrible failure. That's 94% loss. All those public employees, much like the Bonus Army in 1932, may choose to protest, and they'll get maced, tased, and arrested for "unlawful assembly", the current crime for using the First Amendment. Socialists don't like being mocked for failure. All these old guys are going to be looking at terrible poverty in their final years of life. They served, possibly not well, but served California, and they're about to get screwed.

Realistically, we are looking at a future where the things we enjoy now we won't be able to afford for much longer. We're going to learn to get by with library books instead of TV shows, with walks and bicycle trips instead of vacations by air. We're all going to be eating government cheese and getting a lot thinner. And we'll pretend its okay, but it really won't be. Part of the reason that older people don't transfer power to my generation running the businesses they founded is they can't believe that the economy sucks, or that the methods they used 40 years ago don't work anymore. So when we manage them under the modern laws and taxes, they complain we're doing it wrong. Then they retake control, FAIL HARD, and the business collapses. They give up, sell off, and we're out those dozen or hundred jobs because Boomer Senility is responsible. Its very hard to make new jobs and businesses thanks to all the regulations created by Boomers to limit competition. They are the Worst Generation, after all.

Work till you die. About the only good news here is when you move on to another town, you can escape a lot of taxes that enable the survival of those who caused this apocalypse. We don't have teepees. We have Winnebagos and Airstreams, but the movement of Natives isn't just the immigrants from 10,000 years ago. Its those from the last two centuries, too.