The Year The World Falls Apart

Prediction 1: The End of Retirement

The average American can forget about retirement. We’ve all heard these stories about how the average American couldn’t lay his hands on $1,000 to save his life. His expenses aren’t going away, however, even if his income does.

It seems like things have reached a critical mass. And if the economy slows down there are going to be a lot of people losing their homes again. They’ll be unable to pay their credit card bills, their car payments, their student loans, or anything else. They aren’t going to be able to buy anything. They wound up in breadlines in the ’30s. But today 40 million Americans have SNAP cards to take away the hunger pains and embarrassment of being penniless. There could be 100 million in a few years.

I know this sounds outrageous because right now everything is running fairly smoothly. The standard of living of the average middle-class American has degraded slowly over decades but hasn’t yet totally collapsed. But that’s the way it is a day before a volcano explodes, or a day before an earthquake, or minutes before an avalanche starts coming down.

This isn’t a theoretical discussion. Most retirement plans are in serious jeopardy. Many pension funds are already seriously underwater, even after a very long boom.

The situation is likely to deteriorate. The stock market is in a bubble. The bond market is in a hyper bubble. A lot of value could disappear very quickly. By the time this depression bottoms, in today’s dollars – I don’t know what the dollars are going to be worth – the Dow could trade at 5,000, or less. We’re going to see interest rates exceed what we saw in the early 1980s, when the U.S. government was paying 15%.

From a retiree’s point of view, things are not going to improve. It’s going to get worse, not better. His savings, if he has any, are going to be attacked from several angles. I don’t see any way out of this. Unless friendly aliens land on the roof of the White House and present Trump with some kind of magic technology.

Prediction 2: A White Male Privilege Tax, and Other Radical Tax Hikes

You’ve got to remember that the prime directive of any organism, whether it’s an amoeba, a person, a corporation, or a government, is to survive. Bankrupt governments – and they’re all bankrupt because of welfare state policies – are going to fight to survive. The only way that they can survive is to tax more and print more money. And that’s exactly what they’re going to do. Of course, don’t discount a war; these fools actually believe that would stimulate the economy – the way only turning lots of cities into smoking ruins can.

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