The mixed blessing of falling birth rates
“The only way for Millennials to pay for Boomers’ Social Security and Medicare would be for the latter to confiscate 90% of the former’s paychecks. That won’t happen, so something else has to, most likely massive benefit cuts via hidden inflation.”
USAGOLD note: Rubino says the demographic problems of the future will lead to a “purposeful inflation” and “a massive shift of capital out of financial assets like government bonds that depend for their value on the stability of the underlying currency, and into real assets like oil wells, farmland and precious metals which governments can’t create with a mouse click.” The article is worth a read especially for those who suspect demographics might be the root cause of our most intractable economic problems.
Repost from 5-17-2019