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Stanley Druckenmiller: How Washington Really Redistributes Income
WSJ ^ | 10-21-13 | James Freeman

Posted on 10/27/2013 10:56:52 AM PDT by TurboZamboni

Stan Druckenmiller makes an unlikely class warrior. He's a member of the 1%—make that the 0.001%—one of the most successful money managers of all time, and 60 years old to boot. But lately he has been touring college campuses promoting a message of income redistribution you don't hear out of Washington. It's how federal entitlements like Medicare and Social Security are letting Mr. Druckenmiller's generation rip off all those doting Barack Obama voters in Generation X, Y and Z. "I have been shocked at the reception. I had planned to only visit Bowdoin, " his alma mater in Maine, he says. But he has since been invited to multiple campuses, and even the kids at Stanford and Berkeley have welcomed his theme of generational theft. Harlem Children's Zone President Geoffrey Canada and former Federal Reserve Governor Kevin Warsh have joined him at stops along the tour. Mr. Druckenmiller describes the reaction of students: "The biggest question I got was, 'How do we start a movement?' And my answer was 'I'm a 60-year-old washed-up money manager. I don't know how to start a movement. That's your job. But we did it in Vietnam without Twitter and without Facebook and without any social media. That's your job.' But the enthusiasm—they get it."

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Constitution/Conservatism; Crime/Corruption; Government
KEYWORDS: bankrupt; change; college; debt; hope; income; socialsecurity; soshsecurity; spending

1 posted on 10/27/2013 10:56:52 AM PDT by TurboZamboni
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To: TurboZamboni

Late to the party as usual, but still welcome.


2 posted on 10/27/2013 10:59:34 AM PDT by Vince Ferrer
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To: TurboZamboni

They steal it.


3 posted on 10/27/2013 11:08:20 AM PDT by onedoug
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To: TurboZamboni

So Druckenmiller argues that using the debt limit for Obamacare was “nutty”, but that it is smart to use it as a wedge for Entitlement reform? How is eliminating Obamacare not also entitlement reform?

Also, taking the corporate tax to zero will never happen.


4 posted on 10/27/2013 11:12:32 AM PDT by rbg81
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To: TurboZamboni

Did he mention that Social Security is the only federal program in the black despite the fact that the feds have stolen from it over the years to build their bloated bureaucracy dumping every welfare recipient they can into it while pumping $85 billion/month into Wall Street???

I didn’t think so —


5 posted on 10/27/2013 11:14:35 AM PDT by Uncle Chip
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To: TurboZamboni
The problem isn't old people getting Social Security for 10 years before they die ( they paid into a system that was as big a scam as the ObamaCare scam is today...)

The problem is the millions of folks who have decided Social Security Disability is their lottery ticket to allow them to retire in their 20’s and collect checks for 60 to 70 years... WHILE collecting food stamps, housing, and getting forgiveness on student loans.

That's the scam... the one that's breaking the bank.

6 posted on 10/27/2013 11:17:22 AM PDT by GOPJ ( We've grown to trust MSM hatred. When the MSM hates one of us it's an endorsement.)
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To: TurboZamboni
Big government is how they do it.
The government has squandered the wealth of the nation on the war on poverty, massive government mismanagement, and just general thievery, they have used up the country's good credit.
Finally, they are resorting to printing paper money ad infinitum.
7 posted on 10/27/2013 11:22:29 AM PDT by oldbrowser (The debt limit is the emergency brake on government spending)
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To: TurboZamboni

Well yeah, SURE, visit a college campus and tell a house full of young mushheads that the elderly are stealing their money. Hey, what a great audience to make yourself some publicity.

Try talking to the retired people who paid S.S. all their working lives and see how popular you are, you liberal dirtbag.

Try talking to the retired people who made the magnificent sum of $10,000 or twenty thousand a year for much of their lives and tell them they don’t need Medicare to meet the greatly increased cost of medical care.


8 posted on 10/27/2013 11:23:56 AM PDT by kitkat (STORM THE HEAVENS WITH PRAYERS FOR OUR COUNTRY.)
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To: Uncle Chip
Not even Social Security is "in the black". While it currently takes in more per month than it disburses, the excess is spent in the general fund.

When taken as a whole Social Security is at least 2.2 Trillion in the red.

9 posted on 10/27/2013 11:34:00 AM PDT by SecondAmendment (Restoring our Republic at 9.8357x10^8 FPS)
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To: kitkat

I certainly don’t know what the practical answer is to what to do, but I did have this conversation with my mother -

Mom - Social Security is not an entitlement. I have paid into it since I was 14 and at 78, I should get a return on that investment.

Me - I agree Mom, if it were an actual investment. Unfortunately, you were lied to and scammed. Just like Bernie Madoff, you were ripped off. They lied, they forced you to give them your money and then they stole it. You are a victim of theft.

So, if it were actually Bernie that you voluntarily gave retirement money to and he stole it, would you then be entitled to, in turn, steal money from your next door neighbor’s grandchildren, to make up for it?

It is the same thing. We were lied to and our money was stolen. The answer is not to steal from others, because apparently, it is now acceptable to take from others, if I have a good reason.


10 posted on 10/27/2013 11:41:52 AM PDT by rbbeachkid (Get out of its way and small business can fix the economy.)
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To: SecondAmendment
When taken as a whole Social Security is at least 2.2 Trillion in the red.

If by in the red you mean 2.2 Trillion invested in the bonds of a government that is 17 Trillion dollars in debt and can't stop spending -- yes.

11 posted on 10/27/2013 11:59:45 AM PDT by Uncle Chip
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To: kitkat
Try talking to the retired people who paid S.S. all their working lives and see how popular you are . . . .

I would ask those retired people why they kept voting for their politicians, but I'm not looking to be popular.

12 posted on 10/27/2013 12:05:21 PM PDT by 1rudeboy
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To: Uncle Chip

Yep, just think about how criminally insane this is:
Social Security sells it monthly surplus via special treasury only bonds to the treasury (ie itself) who cannot possibly redeem the bonds once mature.


13 posted on 10/27/2013 12:05:37 PM PDT by SecondAmendment (Restoring our Republic at 9.8357x10^8 FPS)
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To: Uncle Chip

Social Security has been running a deficit since 2010.
http://www.ssa.gov/oact/trsum/

Social Security is an income re-distribution in the same vein as Obamacare.


14 posted on 10/27/2013 12:17:19 PM PDT by wfu_deacons
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To: 1rudeboy

“I would ask those retired people why they kept voting for their politicians, but I’m not looking to be popular. “

I asked an old friend of my mother’s who has since passed why she always voted Dem. She said it was cause her dad told her what an evil man Herbert Hoover was. A lifetime of never giving any thoughts to politics.I just shook my head. This woman was actually conservative the way she lived but when she got to the voting booth all thought processes stopped.


15 posted on 10/27/2013 12:18:02 PM PDT by Lurkina.n.Learnin (If global warming exists I hope it is strong enough to reverse the Big Government snowball)
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To: Lurkina.n.Learnin
My point is that there is enough blame to go around. Some octogenarian complaining to me that they "paid" into SS is meaningless, when I'm paying into SS right now and probably won't see a dime of it.
16 posted on 10/27/2013 12:24:53 PM PDT by 1rudeboy
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To: GOPJ

The ‘Death Panels’ of Obamacare will address that particular issue.
Dr. Zeke Emanuel says a nation’s valuable resources should be used on those who have potential to produce rather than the really young (less than 8) or old and disabled.


17 posted on 10/27/2013 12:39:45 PM PDT by griswold3 (Post-Christian America is living on borrowed moral heritage)
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To: griswold3

Social Security and Medicare were to be paid for with the related taxes we all paid. They are NOT an “entitlement”.

The fact that Congress undercharged (in order to buy votes) and squandered the money we paid in is NOT OUR FAULT!

Blame Congress - the “criminal class in America” according to Mark Twain.


18 posted on 10/27/2013 1:09:02 PM PDT by gartrell bibberts ( 50% + of Americans are of below average intelligence today, and have no sense of honesty.)
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To: TurboZamboni

Sorry, Kids, you’re f*cked.


19 posted on 10/27/2013 1:20:42 PM PDT by Jack Hammer (American)
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To: gartrell bibberts

Social Security is an income re-distribution program as well as a ponzi scheme.
http://www.ssa.gov/policy/docs/issuepapers/ip2009-01.html


20 posted on 10/27/2013 1:29:51 PM PDT by wfu_deacons
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To: griswold3

Will we get to wear stars before they kill us?


21 posted on 10/27/2013 1:31:39 PM PDT by GOPJ ( We've grown to trust MSM hatred. When the MSM hates one of us it's an endorsement.)
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To: gartrell bibberts

And Medicare is a worse income re-distribution mechanism, you pay in based on your income (no cap) and take out based on your medical bills. Obamacare also imposed expands the Medicare tax on individuals making over $200K and married couples amking over $250K.


22 posted on 10/27/2013 1:34:35 PM PDT by wfu_deacons
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To: TurboZamboni

How am I ripping off the Obama generation after paying into the MediCare and Social Security system for 45 years? Not even in the same dictionary as the word entitlement!


23 posted on 10/27/2013 2:23:43 PM PDT by Cyman
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To: wfu_deacons

” IS SOCIAL SECURITY A PONZI SCHEME ? “

On CNBC TV’s “Squawk Box” Rick Santelli asked guest host Thomas L. Friedman, New York Times foreign Affairs Columnist, and author of his new book “ That Used to be Us, “ the following question: “ Is Social Security a Ponzi Scheme ? “ Tom replied, “ Your question is idiotic ! “ Rick then replied: “ Your answer is idiotic! “


From Wikipedia:

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors, not from any actual profit earned by the organization, but from their own money or money paid by subsequent investors. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

That might as well have been an entry for “Social Security System,” except for the short term part. But returns, at least for older Americans, have been far in excess of what they put IN to the system.

Recall some people sued Carter when he raised the retirement age in the 1970’s. Plaintiff argued that the gubmint had a contract with the people. Another myth. The Supremes ruled SS is a legislated entitlement and Congress is granted wide latitude to change it. In other words, Congress can spend all of SS money on a one month orgy on the DC mall and the only thing the American people can do is vote the bastards out of office. That is why SS is the worst “contract” to accept. At least a 401k is your money and the provider has contractual obligations to the original terms of the agreement and one can sue them if they violate the contractual terms. SS does not have this feature.

And a Ponzi Scheme is voluntary.
If you are smart and cautious, you can avoid them completely. Sosh security is enforced by the law, so no amount of planning can allow you to avoid getting scammed.
Sosh security is worse.


24 posted on 10/27/2013 2:38:39 PM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: TurboZamboni
And a Ponzi Scheme is voluntary...

Sosh security is worse.

Precisely. Somebody who holds a gun to your head to get you to invest in a Ponzi scheme isn't a con man, he's a robber.

I fell much better now that we have 0bamacare, though. I'll be living a long and happy life after I retire. Well, whatever organs they can harvest will, anyway. I'm teaching my kidneys Spanish.

25 posted on 10/27/2013 2:46:21 PM PDT by Billthedrill
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To: wfu_deacons

Social Secuirty Trustee admits it’s a Ponzi Scheme

http://www.youtube.com/watch?v=ITMEZImvNio

the SS Trustee also says that payroll taxes alone will have to be 30% in order to keep paying the current level of benefits.

“Writing yourself a check for $1,000,000 does not make you a millioniare”


26 posted on 10/27/2013 2:48:51 PM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: wfu_deacons

What you pay for Medicare won’t cover your costs

WASHINGTON — You paid your Medicare taxes all those years and think you deserve your money’s worth: full benefits after you retire.
Nearly three out of five people say in a recent Associated Press-GfK poll that they paid into the system so their benefits shouldn’t be cut.

http://www.rep-am.com/articles/2010/12/31/business/530229.txt

most everyone’s addicted to their entitlement.


27 posted on 10/27/2013 2:51:46 PM PDT by TurboZamboni (Marx smelled bad & lived with his parents most his life.)
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To: gartrell bibberts

SS and Medicare are a Ponzi scheme and nothing else. As long as we had more workers than retirees, we were o.k. Now we have more retirees than workers and it’s not o.k.
If people only took the actual amount they paid in, that, too, would have created solvency.
P.S. - FICA is a tax, noting more, nothing less. It is not Insurance!!! It is YOUR Fault for being so gullible and failing to do the math.


28 posted on 10/27/2013 5:28:42 PM PDT by griswold3 (Post-Christian America is living on borrowed moral heritage)
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To: Lurkina.n.Learnin
This woman was actually conservative the way she lived but when she got to the voting booth all thought processes stopped.

I have know hundreds just like her over the years. Trying to change their minds is mission impossible.

29 posted on 10/27/2013 7:48:32 PM PDT by Ditto
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