by Karl Denninger, Market-Ticker:
Phantom wealth cannot possibly fund unprecedented retirement and healthcare promises.
The narrative that Social Security, Medicare and pension funds invested in stocks and bonds can fund the retirement of 65 million people is a misleading fantasy. The sad reality is we can’t fund the enormous expense of retirement/healthcare for 20% of the populace out of our national earned income, and the savings that have been set aside are either fictitious (the Social Security Trust Fund) or based on phantom wealth created by speculative asset bubbles in stocks, bonds and real estate.
It’s an intentionally-misleading fantasy, but a distressingly common one. Indeed, it’s one that many members of Congress will try to tell you they share, although I harbor my suspicions as to whether they really believe their own bull****.
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