In 2005 George Soros’ top hedge fund manager Stan Druckenmiller predicted the 2008 crash. Now he’s back to warn that a worse one is on the way: In a recent interview with Bloomberg TV, Druckenmiller sounded off about policies that enrich the old at the expense of the young and which could lead to a serious crisis down the road:
Druckenmiller, 59, said the mushrooming costs of Social Security, Medicare and Medicaid, with unfunded liabilities as high as $211 trillion, will bankrupt the nation’s youth and pose a much greater danger than the country’s $16 trillion of debt currently being debated in Congress [...]
Druckenmiller said unsustainable spending will eventually result in a crisis worse than the financial meltdown of 2008, when $29 trillion was erased from global equity markets [...]
Druckemiller’s words are an especially clear-eyed take on the ongoing campaign of the Boomers and their allies to cheat the next generation out of a promising economic future. This war against the young is very real, and is a stunning act of generational selfishness and stupidity. “Progressive” politicians and their allies would rather talk about anything else, but the federal government is turning more and more into an engine of perverse generational transfer payments, shifting wealth from younger workers to the middle aged and the retired.
It’s been crystal clear for thirty years that the Boomers weren’t having enough kids or setting enough money aside to fund everything from Social Security and Medicare to local pensions for teachers and firefighters; nevertheless they kept blindly and blandly adding new benefits to overburdened systems. As they ran around in flapping their arms in hapless, ineffective panic about everything from Y2K to global warming, they somehow neglected to look at the sustainability of the pay as you go pension systems on which they were betting the farm.
The wolf will soon be at the door; pathetically, the Boomers are hoping it will eat their grandkids and leave them alone.
[Update: This post has been edited from its original version.]