>mfw I hear friends talking about their public pension fund
>mfw they discuss what they'll be getting when they retire
>mfw they truly believe they'll get any money back
>mfw the government officials really believe they'll be able to keep funding them by printing more and more green papers
I'm too smart to get into that argument but if you are under 40 and really believe that whole shit will still be there when you retire I have a bridge to sell to you.
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u dont give shit about ur "friends" lets be honest
This is why we need to keep bringing in immigrants. To boost the work force and have enough tax monies to keep giving to old people.
Its not like those unskilled immigrants will just drain even more welfare bux and not contribute anything...
Federal civil service and military pensions are absolutely guaranteed to be paid no matter how broke the government is.
Yeah they will get paid, in worthless green papers...
kek yeah. I was doing some research on pension funds and saving money and stuff.
Turns out that for the usa's inflation rates n shit the things you can buy with $100 in 1970s would now cost you $600
so all that saving and pension funds you deposit into are fucking useless.
in europe you even pay taxes ns hit when you take out your funds.
>in europe you even pay taxes ns hit when you take out your funds.
This is actual true (denmark here), you work get taxed 50% of your income, you buy stuff 25% VAT on everything +50% on cars..
You put your money in a pension fund, No tax.. but once you take it out, they tax it again.
I honestly don't know how the living standard can be so high.. because 80% of your earnings goes to the government.
The retirement funds are stock holders. So its not like the money sits in a bank and disappear from inflation. They are invested, and the growth outweight inflation.
Look at the largest stock holders in europe, they are all pension fonds.
>Turns out that for the usa's inflation rates n shit the things you can buy with $100 in 1970s would now cost you $600
In 1970 the SP 500 was around 90. Today the SP 500 closed at 2552. That's a lot better than inflation and it's why a sensible retirement savings plan includes stock investments. It's not "useless".
>That's a lot better than inflation
no it isnt retard
For the S&P 500 to climb from 90 in 1970 to 2550 today requires an approximately 7.5% annual return. You are saying that annual inflation has averaged greater than 7.5% for all those years. What data is that based on? Except for a few years in the 1970s and 1980s US inflation has been much lower.
>You are saying that annual inflation has averaged greater than 7.5% for all those years.
no I didnt.
Inflation data that does exist indicates much higher inflation rates when you dont allow jewish tricks like "hedonic quality adjustment" to change the measurement methodology every few years
Holy fuck this is what's coming to the west and all because of the greed of bankers and their puppet politicians...
It really is frightening whats going to happen. Can government debt seriously just keeping adding up? They don't have a clue how to handle the situation.
from memory the "new" measure of inflation (le greenspan face) doesnt include the cost of fuel, housing and food prices. not sure if that was included in your image
>>You are saying that annual inflation has averaged greater than 7.5% for all those years.
>no I didnt.
Yes you did. Your position is that inflation has outpaced the return of the SP 500 from 1970 to the present. For that to be true, annual inflation must average greater than 7.5% over that time period. There is no mainstream source of inflation data indicating a greater than 7.5% inflation rate over that period other than a few brief inflation spikes which average out to much less.
The lesson of this video is that as long as you have US dollars then everything will be okay. Seriously, I don't doubt the US has a debt problem but you can't really compare superpower USA to Zimbabwe. The US has a lot more options than Zimbabwe for dealing with a financial crisis.
Of course, lots of options, like quantitative easing and, hmm, quantitative easing?
Every crisis can be avoided by printing billions of green papers right?
... and when you die you get taxed on the money you leave to your inheritors.
Bro, we've accumulated 10 trillion dollars of debt in the past 10 years. In the past 10 years, we've accumulated more debt than we've accumulated debt from 1835 to 2007. It really is a problem. There is no means in which we can pay this off. We will continue to print money until there are billion and trillion dollar bills.
>They don't have a clue how to handle the situation
If I recall correctly, in China it's illegal now to not take care of your elderly parents, so that's a clue to start with.
i love all of the fags here with 401ks and IRAs
and prolly money market accounts who lose almost like 2/3 of their fucking "future money" in fees. Not to mention most people dont even care if its pre or post inflation. its like this generation is the most "educated" yet still the most fucking retarded financially
>MUH SHADOWSTATS
oh wow what a surprise a bunch of anally pained NEETs don't know what a real annualized return is and have a fox and grapes attitude towards tax advantaged accounts, kind of like their fox and grapes attitude towards their lack of higher education or ceaseless virginity
The public pension fund is the ultimatePonzi scheme.
this level of projection cannot be sustained