Much has been written over the last decade or two about “Boomerang Kids”. The term, generally, means an adult in their 20s, 30s and sometimes 40s who returns home to live with their parents after an unsuccessful foray in the real world.
Often this condition is caused by the inflationary world we have been living in for the last few decades. Stealth inflation has slowly stolen from everyone leaving many younger people without the ability to afford even basic living expenses much less a home for themselves. Not to mention sometimes 6 figure student loans they’ll be paying off for much of their adult life.
But, as we write about in The Dollar Vigilante, the upcoming financial system collapse and the complete collapse of unfunded pension payments in the majority of the western world is about to leave a lot of seniors who depend on these pension payments in a very dire predicament.
So, what happens when the boomerang kids find that mom & pop not only had to mortgage their home just to make basic living expenses and may soon be looking to the working-age child to provide them with a means of subsistence?
We don’t know the answer to that but it isn’t going to be pretty.
But that is how all fiat currency based, inflationary economies always end up. The insidious nature of these systems is that they serve to hollow out an economy over decades until, at some point, the great majority of people just can’t even afford to survive with what’s left of it.
And, as if it couldn’t get any worse for seniors, the latest tax finagglings of the US Congress has essentially put a bounty on the heads of those who are nearing the end of their natural lives.
As this article in the WSJ, entitled “Too Rich to Live?” points out, those American elderly who managed to create a nice nest egg during their lifetime may now be watching their backs as 2010 is set to be the last year where the Estate Tax will not be levied upon the deceased. In 2011, however, the Estate Tax will be back in full force and take a whopping 55% of your lifetime’s work in order to feed the gaping maw in Washington DC.
As the article points out, those who see the finish line fast approaching are left with a truly bizarre set of circumstances. Some are even considering suicide in order to avoid transferring the great majority of all their assets to the US government instead of their loved ones.
And so, as we fast approach the collapse of the Dollar system, we stand in awe at how horrible and twisted things can get under such a system. In the coming years we will have countless homeless and destitute baby boomers looking for support from their unemployed and heavily indebted boomerang kids.
And for the few who made it through life with assets they are left in a situation where they might be sleeping with one eye open to make sure those in their will aren’t trying to put a pillow over their face in order to have them pass on prior to the January 1, 2011 Estate Tax coming into effect. Either that or weighing whether they wish to take their own lives in order to save their loved ones what could be millions and millions of dollars.
What a bizarre world these governments have given us.