gandalf says buy gold because defaults and devaluation inevitable. druckenmiller says entitlement spending at 70% of govt budget and by 2030 the wheelbarrow tips
http://www.zerohedge.com/news/2016-04-28/why-jpms-quant-guru-suddenly-worried-about-endgame?
http://www.zerohedge.com/news/2016-04-03/stanley-druckenmiller-most-unsustainable-situation-i-have-seen-ever-my-career
In 1940, entitlement payments, which include everything from disability payments to Social Security to Medicare, amounted to just over 20% of annual government spending in the United States.
Today, entitlement spending has swelled to nearly 70% of the annual federal budget.
Things are about to get a whole lot more complicated. The 20-year baby boom that took place after World War II is now beginning to result in a retiree boom.
For context, Druckenmiller points out that in 2030, the average age of an American citizen will be older than the average age of a resident of Florida today.
This demographic trend is going to create an entitlement spending catastrophe.
The way the system works, the current workforce provides the tax revenue to support the current senior population. A huge rise in the retiree population relative to the number of people working results in a funding dilemma.
Since 1980, the number of working-age people the country has had has outnumbered those age 65 and over by a count of 5-to 1.
The country has had enough workers generating tax revenue to support the number of retirees.
By 2030, that ratio is going to drop to 2.5-to-1.
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