Posts Tagged fiscal cliff

An Open Letter To Our Youth

By Karl Denninger debt slave

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.


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:


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 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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A “Targeted” Distraction…

“All tyranny needs to gain a foothold is for people of good conscience to remain silent.”   ~ Thomas Jefferson

Do you really get it America?
Do you really understand what you are about to invite into your lives? 
It is absolutely incomprehensible the level of stupidity that we are facing.  Do you realize that your silence and inaction is running us toward “The Event“!
Yes… today I am going to tackle the “Gun Control” debate. But to show you this isn’t the really problem.
I have been watching and waiting and trying to bide my time to be sensitive to the families of Sandy Hook.  
But that time has passed, and though I loath what happened to those innocents… we cannot remain quiet any more.
The gun debate has often been touted as one of the most emotional and political of our time.  But the gun control debate must end, because… it is a distraction!  We know that our Government will use false flags to get what they want.  We know that they will kill innocent people and government officials to further their agenda of fear and control.
You see when we as Americans choose to give up our freedoms we are inviting Tyranny into our lives, and right now … our Government is choosing to use fear to take steps to completely control you and I.
Thomas Jefferson said…”My reading of history convinces me that most bad government results from too much government.”

This is so true…

This is not the first time in history that a government has become too big and chosen to take away guns and freedom from its public.
When Hitler sized control of the German government in 1933 he worked to implement multiple socialist changes among them was a gun program that was highly regulated and then eventually took the guns under the premise of “guns hurt people, so we must take the guns away”. 
Hitler Youth salute during review by their feuhrer
Obviously Hitler wanted one thing and one thing alone… to commit mass genocide.
He and his kind disgust me.
Now… would our own government do that to us?  It’s looking that way, but when you eliminate the peoples only real way of protecting themselves from others with guns… well that opens the door to allow them to do anything they want because there will be no-one to stop them.
But here is a bigger problem… the “gun control” debate is an excellent ruse to cover what is really going to be the problem in the few days…
The debt ceiling….
This is very, very bad. 
Do you understand what this means?  It means that the credit card has run out… reached it limit…! 
Now, they are going to try and make some moves that will free up about 200 billion in monies… but that will last at a minimum of 2 months.
This is just a patch in a dam that is cracked and ready to burst!  It’s like putting a tiny band aid over a gushing wound!
The debit ceiling hasn’t even been talked about yet…they are focusing on the “Fiscal Cliff” and the “Gun Control” debate… these are just ways of getting you to look the other way while the money quietly runs out and they have to find “extraordinary” ways of funding the Government.
I have warned you about this.  I have told you that this time is coming and that it isn’t going to be pretty.  So the question is… whose money will they cut first?  What group will the knuckle heads on capitol hill decide to sacrifice first?  Remember what I said earlier this year…?  What people groups this would affect?…
The poor, the military and everybody else… but again… remember what I have been telling you? 

They cannot print any more money because it will cause inflation, severely devalue the dollar and cause the economy to collapse and cause mass civil unrest.  People would then begin to return to bartering again or even go back to Gold and Silver coin, leading to a possible Governmental collapse, and civil war.They cannot force the Government to cut all social entitlement programs because then people would riot, starve and would lead to mass civil unrest and a collapse of the Government structure as well as possible civil war.They cannot cut military funding and pull all the troops home because there are not any jobs for them to come home to, So former military families would starve, riot which would then lead to mass civil unrest. Not only that, it would open the door for our enemies to come in and take over the US with our defenses down.They cannot “infuse” more money through a “quantitative” style easing because that would devalue the debt we owe to other countries and show that we will just print more money and they will never be able to be paid back.  If other countries stop buying the debt, the money fountain turns off and once again we are faced with riots, civil unrest or civil war.”
The money has officially run out…. but the question remains… how will this tip us into “The Event“?  I told you earlier this year that if SSI and Social Security checks run out… people will gather at the offices where they are printed… they will descend on those offices and demand their money ….
You cannot ignore this any longer… you cannot allow yourself to be “dazzled” by the other things that they dangle in front of you.  You must prepare and prepare those around you to be ready for “The Event” and what is about to occur. 
Now… will they temporarily raise the debt ceiling… maybe.  But because they cannot permanently fix this problem… the damage will only be worse down the road!  
This has to take place… this is historic… great societies all go through collapse… I’ve told you about this before… but if you need more evidence… read this.
Our time is limited… “The Event” is coming our way faster than we can possibly think… Please make sure that your family is ready… and that they are all right with God….

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