An Open Letter To Our Youth
The Market Ticker ® - Commentary on The Capital Markets
Posted 2013-01-02 12:16
by Karl Denninger
in Editorial
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An Open Letter To Our Youth
 

This week you are no doubt off school and enjoying your friends and freedom from studies.  In a few short days, however, you will return to your classrooms and once again engage in what is your job -- learning enough to hopefully be able to become independent on or near your 18th birthday.

Last night Congress engaged in its latest version of fraud upon the public.  Congress lied to America with flowery speeches about how our government has an obligation to come to the aid of those people in need, how unemployment must be extended and how the rich should "pay their fair share."  Our President then got on television in the middle of the night and pontificated about how we had once again been saved from economic calamity but that he would not "debate" whether Congress would pay the bills that it had already contracted for, referring to the debt ceiling which, incidentally, we exceeded two days prior.

If you have a checking account you know that if you overdraw it you will be fined by your bank by $30 or so for each offense, which can make that $5 Latte at Starbucks a $35 Latte in an instant.

What President Obama is doing right now to avoid that is literally stealing the money in federal government employee retirement funds and replacing those funds with an IOU.  It is exactly identical to your parents going into your piggy bank and taking all the money, replacing it with an IOU for the cash with which they then go to the bar and spend on hookers and booze, hoping you don't notice that the money is gone and that they can replace it before you decide you'd like to use it on something else like a movie, a dress, an iTunes card or some shoes.

America's "formal" federal debt is over $16 trillion.  That sounds like an impossible amount of money, but it in fact it amounts to $52,131 per person in this country, including you.  Those of you who are not yet 18 have voted for exactly zero of this debt, yet our government asserts that you are obligated to pay it for various things that the government has already spent it on.  Some of those things include ships, combat aircraft, guns and other elements of protection that one can argue have made you safer. 

But the fact of the matter is that America has not faced an actual threat of invasion -- or war we did not start ourselves -- since 1941.  All of you were born after that date; as such every bit of this warfare was undertaken in your name and with a promise to pay by you attached yet you neither consented or benefited from it.

Likewise, older geezers (that would include me) have been promised government benefits such as Social Security and Medicare.  We paid into these programs for years.  But at the same time we also voted for people who already spent the money we paid in on other things, much as you might spend the money from your piggy bank.  Having done that, and gotten the benefit from it, we now are demanding that we also get to spend the money again when we retire or get older. 

But you can't spend money that's already been spent.  So what we've done is told you, our youth, that you must pay back that which we stole.  In this case, when we add in those promises, your personal debt is not $52,131 (climbing by the minute) it's $184,298 -- and climbing every minute.

Again, you have received no benefit from any of these funds that were "spent forward" nor will you ever receive any benefit from them now or in the future.  You also never consented, since you cannot vote.  What's worse is that your children -- the next generation and beyond, who will come if and when you find a suitable partner and choose to have children -- will be saddled with an ever-increasing amount of this debt.

To explain to you how crazy this is ten years ago, in 2000, your personal share of the Federal debt was $20,503.  In the last ten years while you were going to school I, your mother, your grandparents and everyone around you who were 18 or older blew over $32,000 of your money that you do not yet have and yet we propose to force you to pay that money, plus interest, to the government in the future.  Worse, we've far more than doubled the political promises that led to the $184,298 up above -- your total including those promises ten years ago was closer to $50,000.

More than ten years ago while you were crawling around on your parents' floor over the holidays I had a conversation with my father as my daughter was doing likewise.  He was prattling on about how he was owed Medicare, Social Security and all of these other benefits because he had paid into those programs and "deserved" them.  I explained patiently to him that he had already voted to spend the money that he had paid in on other things, and it was gone. 

What he was now insisting on was that the little girl crawling on his floor, his grand daughter, be literally enslaved to pay for that which he believed he was entitled to have despite his own personal support of and votes for spending those monies on other things.

That conversation did not end well.

I, and a few other adults in this nation, have steadfastly refused to support any political entity that believes it can spend someone else's money.  I will vote for those programs that I wish to have funded but I insist that they be funded out today's tax revenues.  That is, whatever I want government to do for me I must be willing to pay for.

The truth is that as long as the government runs a deficit it is adding to the amount of money it believes it can force you, those who are too young to resist, to pay -- without your consent.

I am in the minority; most of your parents and virtually all of your grandparents have demanded for years that they be able to obtain things from the government they are unwilling to pay for.  They do this by insisting that more and more debt be taken on, which is exactly identical to taxing the money but not collecting it.

Who gets to pay, if the taxed money is not collected? 

Why you do, you see, which is why that number up there keeps going up.

My message to you today as the youth of this country is simple:

You have no obligation to pay one penny of that money.

Ever.

Not now, not today, not tomorrow, not ever.

Nor do your not-yet-conceived and born children.

There is one exception to this -- if you reach the age of 18 and you, through your political actions, including those so simple as voting, choose to support politicians who promise you benefits that they cannot fund with today's taxes -- that is, they promise to spend based on debt.

If you take such an action, even once, then you will have retroactively consented to every single dime of that $180,000+ that they claim you owe today, plus however much more is accumulated, because you will have joined the group of Americans who of their own free will have subjected themselves to servitude.  You will have consented, because you will have joined your parents and grandparents who believe they can have things they won't pay for.  In that case every single dime of that debt will be confirmed from a moral and ethical standpoint as yours.

The Constitution of the United States prohibits slavery; Abraham Lincoln signed the Emancipation Proclamation and on December 6th, 1865 the 13th Amendment became law.  It reads:

Section 1. Neither slavery nor involuntary servitude, except as a punishment for crime whereof the party shall have been duly convicted, shall exist within the United States, or any place subject to their jurisdiction.

Section 2. Congress shall have power to enforce this article by appropriate legislation.

You have committed no crime.  You thus cannot be compelled to either slavery or involuntary servitude.  And until your 18th birthday, you cannot lawfully consent to servitude.  It is only upon your 18th birthday that you can consent.

So I say to you today, that it is your right to stand as American Citizens, irrespective of your age who have not yet consented, and say in a loud, clear voice:

I WILL NOT PAY

You should and indeed must say it to your parents.  You should and indeed must say it in your schools.  You should and indeed must pass this letter around to your friends and others in your class and those who you associate and hang out with.  And you must say this every day, in a louder and more-cohesive voice -- today, tomorrow, the next day and every day thereafter, until we the "old geezers", realize that you're serious.

We, the "old geezers", never had the right to try to force you to pay $180,000 of your money that you would earn tomorrow, an amount that has almost tripled in the last ten years and will triple again if you don't put your foot down and demand it stop.

There is only one way to make sure it stops, and that is to make very clear to everyone the following:

YOU WILL NOT PAY

You must say it, and you must mean it.  You must convince all those around you, especially the adults around you, that you mean it.  

You must do it now, because if you don't, or worse you take any act that confirms that you're ok with that $180,000 in debt that was forced upon you then you will be forced to pay not only that but the hundreds of thousands more that will be added over the next decades. 

If you do convince our leaders and we the "old geezers" that you won't pay then the banks and other institutions that make possible this accumulation of debt will stop doing so, as they will stop believing they can force you to pay.  This will in turn force a national conversation on what we want from our government and what we're willing to pay in taxes, aligning one with the other.

The fact is that neither I or the government can force you to pay.  They can try to convince you to pay, they can try to guilt you into paying for "Dear old Dad" or "Dear old Grandma", and they can attempt to obtain your retroactive consent by bribing you with shiny gifts like iPhones and fancy cars, but Dear Old Dad and Granny already spent the money and we all know we we did so.

So today I implore you to pass around this letter to your friends.  Talk about it among you.  Post it up on Facebook, Twitter and elsewhere. Discuss the fact that our government and your parents think you're going to pay over $180,000 and rising rapidly, more than doubling over the last ten years, so that us older folks can have our cake and eat it too.  So we can spend money twice, three, four times, and then force you, the children of this nation, to cover our selfishness and outrageous conduct.

You must put your foot down.  You must say I WILL NOT PAY in a loud, clear, singular voice. 

You must do so because to make clear that you will not pay, and to cause those who think you will to realize you will not, is the least-painful option -- and the path we are on today, if you do not act, leads to some very dark places for you and your children to come. 

If you fail to do this now then in the future you will face an even-more awful set of choices -- the choice to be a slave or to revolt using violence.  When you are unable to support yourself and your family as the debt that has been put upon you cannot be paid down while leaving you with enough to keep a roof over your head and food on your table, your options will dwindle to living in squalor or choosing to take up arms and engage in violence. 

Please understand that as things are today your "debt" will grow from $184,298 today to about $1.8 million per person within the next 30 years.  This is a mathematical fact; it is what an 8% growth in debt, which is roughly the historical average over the last few decades, leads to 30 years from now.

You have no hope of paying $1.8 million per person and neither do the children you may bring into the world in the future.

This is a set of choices that nobody wants to see come, and yet it is coming.  It will come in your lifetime.  If you do not stop what is going on today by saying I WILL NOT PAY in a loud, clear, singular voice it is mathematically certain to come before your children reach adulthood.

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User Info An Open Letter To Our Youth in forum [Market-Ticker]
Rickysa
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Quote:
Again, you have received no benefit from any of these funds that were "spent forward"



I wonder what percentage of today's youth do not meet that criteria, and how that demographic group will change over time as we go forward?

eta: I agree with the premise of the Ticker, btw

Mayorquimby
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People don't get a clue until they are around 30 when it comes to $$$. By then, they are in debt and just acquiesce to the 'system'.

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They who wish to hurt you, work within the law.
- Morrissey

Gold is theft.
Mrbill
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It doesn't matter if you received a benefit or not.

The (lame) argument you'll hear is "well, there are roads, schools, buildings, etc".

The problem is that it wasn't an agreement.

No one would buy anything if they didn't know the price, why would children willingly adopt a debt where the payment wasn't known and could be changed at any time?

Insanity.
Enapa
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Great article as always karl. The problem is 90% of the youth wouldnt even finish your first paragraph. They dont care to spend any of their precious time to anything other than entertainment. I see it every day on various forums im a member of. No one will read someones post if it is more than 150-200 words tops. And these are people on forums that probably read more than the average youth. Its over. I applaud your determination and wish i had as much as you do regarding this issue.
Noodleman
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You have a special way of integrating math with the written word to drive home a point, boss.

I would love to say that the young folks will heed your advice in time to save themselves. But the chances of that happening are slim. Young folks have an affinity for ignoring wisdom and experience coming from their elders. I remember how I thought back at that time. I never listened to my parent's generation when I should have. But then again there were a few times when I'm glad I didn't.

As long as the credit card still works and the student loan money is ripe for the taking I opine that nothing changes. For that is the bait the younger folks have swallowed hook, line and sinker. And when they see mom and dad sucking on the gov's tit it makes it even less likely that they will defend themselves against the gov or understand the pending calamity until it's too late.

We expect college kids to be the core of push for change. Mine was during the Vietnam war. 10,000 of us marching on the damn freeways. But you won't see that over the financial crisis because most are sucking on the tit in one way or another.

So there ya go..........

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"Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935

Trades50
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There used to shame in accepting food stamps and living off the government. Not anymore. Everyone wants their piece of the pie now.

I see so many young people on public assistance. They just want to find out how they can collect more. Same people that voted to propagate even more people that promise give-aways and welfare.

Those that work will say their tired of working and paying most of their money for the FSA and join the FSA.

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When the people fear the government, there is tyranny. When the government fears the people, there is liberty. - Thomas Jefferson

Lostinspace
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I posted to facebook and twitter but agree with Enapa. Most youth will not read this and do not care.

When I discuss these politics and the issues with my almost 14 year old daughter, she tells me she hates when we have these conversations. She tells me there is nothing she can do anyway so why bother. I tell her it's better to be informed so that when she is 18, she can make the right decisions in her life and at the voting booth. We saw the movie "Lincoln" but she was bored and annoyed me so I should have left her home. A couple of days later there was a question on Jeopardy regarding the year the 13th amendment was passed. She said 1775 instead of 1865. If you've seen the movie, the year 1865 comes up several times.

The youth of today spend all their time reading fiction, watching fiction, texting, and playing video games. God help us.
Randy123
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God Bless you Karl. Pawns is all these kids are.

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China is the Enemy. Wake Up.

New Normal. Same As The Old Awful.
Mayorquimby
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Yup. And they are sadly not even close to waking up and are ready to sign their lives away in exchange for whatever little the owners are willing to give them.

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They who wish to hurt you, work within the law.
- Morrissey

Gold is theft.
Arw
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Alas, I make too much money to join the FSA but not quite enough to seek shelter from the onslaught. My ******* is the size of the government's fist.
Noodleman
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By and large in 2013 much of society can be compared to a crack ***** and the government is the dope pusher.

And yesterday the dope pushers just got finished financeering a brand new fresh load for all the crack *****s.

Happy New Years.

2013 won't be much different from 2012. Don't expect anything good. You'll only end up disappointed and depressed.

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"Ammunition beats persuasion when you are looking for freedom." Will Rogers, 4 Nov 1879 - 15 Aug 1935

Aquapura
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When I was growing up I recall a lot of "concern" over the deficit. Then in the late 90's the media was all hype about how Clinton had erased the deficit and was running a surplus. Most people my age (mid 30's) remember this so-called surplus. Depending on their politics they either think today's debt is "Bush's fault" or a matter of getting the economy going again. (Seriously, the other day someone told me that had Al Gore won in 2000 we wouldn't have a deficit.)

I hold no faith in the youth of today to get it. If anything they understand less than Gen X understood when they were youth, and my generation like sheep joined the boomers in demanding our free cheese. Honestly I feel that a revolution moment will not happen without some type of outside event. The masses aren't going to wake up and get-it anytime soon.
Captainkidd
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Unfortunately, I agree with the majority of the responses to this thread.

I have spent an indordinate amount of time teaching my kids that nothing, and I mean nothing at all, is free, and they have by and large accepted this credo. But I speak to them regarding this often, and they tell me of how their friends and co-students think, act, and respond to them, and it is astounding how much apathy and ingnorance exists at the High School / College ages regarding this.

They all just seem to think that they are entitled to these things, just like their parents feel. It has been ingrained into the culture and indoctrinated into the people who were raised by that culture.

I weep for our future.

This not only will not, but cannot end well.

******************

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A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
Jb350
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I dont know anyone under the age of 25 that even has the ability and attention span to be able to read that.
Mayorquimby
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Barry on TBP is arguing for infrastructure build out.

I'm arguing back that it is literally impossible for USA to get 'free' roads and bridges due to Fed QE and monetization.

Guess what people over there believe?

Guess what college kidz believe?

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They who wish to hurt you, work within the law.
- Morrissey

Gold is theft.
J0nx
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HAHA please. Assuming the whole thing doesn't fall apart in the next 20 years then they'll pay or they will end up in jail just like we will. The old guard always brainwashes enough of the new generation that will inherit the reigns of power to keep the rest of the proles in line. There is nothing special about this young generation and why they won't pay compared to every other generation throughout history. Trust me. They'll pay.

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The fraud and lies are only allowed to continue because the people allow it. Either through apathy or ignorance, they still allow it.
Genesis
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OK, let's assume I agree with your premise.

Now factor in the math and answer this question: HOW?

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I don't care if it makes sense -- only if it makes money. -- Me
Bank (n): See scam, fraud and theft. Eat a bankster -- they're low-carb.
What part of "shall not be infringed" was unclear?
Djloche
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You only get raped by your bank for overdrawn charges if you agree to their "overdraft protection"******plan. I explicitly don't have that. If I don't have the money in the account, then the debit card will not be accepted by the retail payment system. Oh sure I might have to make sure I actually have the money to pay for the things I need or want, but that's far better than consenting to******by the bank.

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"If we wish to be free, we must fight! I repeat it, sir, we must fight! An appeal to arms and to the God of Hosts is all that is left us! Gentlemen may cry, "Peace! Peace!" -- but there is no peace. The war is actually begun! Our brethren are already in the field! Why stand we here idle?"

Lenguado
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Most of the "youth" today WANT to be on the govt dole - and will vote for more of it.

The beginning and the end of the story.

The end of the United States has already occurred. We are just awaiting the Wile E. Coyote 'realization' moment when he starts the fall to earth after hovering those few seconds after running over the edge of the cliff.

Had an interesting, realization moment myself this weekend. Was listening to the radio out in the garage while working on a project, and the song 'American Pie' (Don McLean, 1971) came on. I started listening a bit more intently, and really started paying attention to the lyrics.

It occurred to me that the song is a testament to where we are in AmeriKa today. The Lyrics took on new meaning to me, and were no longer just a seemingly meaningless string of fun but unusyal vignettes. It hit me that indeed, "Something touched me deep inside the day the music died (I came to consider this to be Tue, 6 Nov 2012, the day Obama was RE-elected, and the day the U.S. Constitution died as a govorning document)."

The entire song has new meaning to me now. I'll never be able to listen to it the same way again - Now that we know for sure that,THE MUSIC has indeed DIED....

smiley

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I just realized... they aren't saying, "Keynesian Economics"
they're saying "Kenyansian Economics". Grass Huts for everyone!
smiley
Welcome to history’s first Double Dip Depression
J0nx
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How is covered by the fact that I said "assuming the whole thing doesn't fall apart in the next 20 years". The how is unknown. How they have managed to keep it going as long as they have already is a miracle to everyone here. I see no reason why they can't continue to lie and cheat their way for another 20 years since they have pulled it off pretty well for the past 6 against the math and all odds. Just because something should crash and burn does not necessarily mean it will. If there's one thing I've learned in my past 5+ years here it's that.

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The fraud and lies are only allowed to continue because the people allow it. Either through apathy or ignorance, they still allow it.
Randy123
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Greece is our future. Ask those kids how good life is.

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China is the Enemy. Wake Up.

New Normal. Same As The Old Awful.
Ihsmta
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We're in uncharted territory, JOnx.

You can't compare the next 20 years to the last 20.

The longer they perpetuate the ponzi the more self confident they get (that they can keep doing it). The longer this goes on, the more quickly and violently things can go to hell.

While I'm not holding my breath, I am lowering my expectations.

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"Economists are no different than the prophets of ancient Pompeii who reassured that Mt Vesuvius would never blow. After all, it never had before." Baxter Black, DVM and Cowboy Poet

"You can avoid reality, but you cannot avoid the consequences of avoiding reality." Ayn Rand
Fedwatcher
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Karl,

Some of those under the age of 18 did receive some benefits, but as they were not voters and received those benefits without any direct action they took, their consent was limited.

Did their mothers receive government subsidized pre-natal services or maternity services or food stamps or welfare?

Did they attend public schools?

Did they use the Internet?

Now, granted they gained no benefit from the second Iraq war or Afghanistan. They gained nothing from the TSA. They gained little or nothing from the DEA or ATF. However they did receive some benefit from ICE and the Coast Guard.

So they do owe something at least for the deficits that occurred while they were alive.
Mpilar
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Quote:
However they did receive some benefit from ICE and the Coast Guard.

smiley
Yeah right...

Funny how you think, providing a "benefit" AGAINST somebody's will is ok though...

****, I think Karl could simply force you to pay...maybe $50/month for each month you've been registered, because you gained some 'benefit' from reading this site. Don't want to pay? Tough ****...you gained something, and regardless of whether you were asked or not, you should now be made to pay.

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Every normal man must be tempted at times to spit on his hands, hoist the black flag, and begin to slit throats. H. L. Mencken

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