By Aaron Clarey
I do not care for the millennials.
I'm fully aware their generation was the most lied to.
I'm fully aware they were trained and indoctrinated to be complete tools of socialism.
I am also fully aware they were essentially trained to be obedient hosts to other parasitic generations.
These handicaps aside, it's the arrogance and cockiness of this smug generation that gets me. Never has such a generation been so completely brainwashed and easily duped, yet been so completely convinced of their faux intellectual superiority. And so I watch them with great amusement as this generation suffers all while assuring me they know exactly what they're doing.
There is no more justified punishment for them than their own existence.
But there is more punishment on the way. And while there is a chance millennials might listen and avoid this punishment, I'm going to have faith in their arrogance and assume they're too ignorant and close-minded to heed this warning.
The millennials have transferred roughly $10 trillion in their wealth through the higher education scam. Yes, some of those trillions were indeed spent on quality degrees. Yes, some millennials (1 or 2 of them, perhaps even 3) are gainfully employed, working real jobs and contributing to GDP. But the majority of them wasted said $10 trillion on worthless pieces of paper, enriching baby boomer deans and Gen X professors. What's worse is there was no said "wealth" to transfer. Nearly all of them had no wealth to give and thus had to mortgage their futures to borrow the money to pay their Baby Boomer and Gen X socialist indoctrinators.
But if this wasn't enough they're about to fork over (by my estimations) twice that amount. And this ever-so-roughly $20 trillion in wealth will come from the devil that is known as "luxury apartments." Aka "rent."
Understand that rent unto itself is not a scam like worthless college degrees. Rent is a real service that provides real value and people should be happy to pay for it. The real issue is whether that rent is worth it or not. And here several clouds are forming to create the perfect storm of wealth-transfer from the smartest generation ever to its predecessors.
First, you had Obama (owned completely by the millennials) triple the money supply and expand upon (admittedly) GW's quantitative easing. This has flooded the global asset markets, driving prices of stocks, bonds, mutual funds AND real estate up to pre-bubble levels. While the artificially low interest rates and "free money" was meant to get the economy booming again, all it really managed to do was inflate asset prices. And since housing prices are at all time highs against, this only drives up rents since low interest rates on high mortgages balances result in high rental rates.
Second, we have replaced genuine economic growth and investment with bubble spending. Be it government spending, quantitative easing, welfare or education spending, there is not any real investment occurring. This may mean low unemployment, but don't expect wages to come up anytime soon. And certainly don't expect company pensions and 30 years working at the same place. In other words, millennials can expect to rent because they don't have the employment stability of those evil nasty racist and sexist 50's.
Third, and this is the key one, "where all the action is"
"Where all the action is" is a big lie that older generations have told younger generations for generations. In the 80's baby boomer land lords in LA told my generation California and Los Angeles was where all the cool hip kids went. In the 90's is was the Sex and the City gals that convinced thousands of Gen X women New York was the place to be. But wherever it was, it was a major metropolitan area, with over priced rent and over priced drinks that all 20 somethings were convinced to move. The only difference is in 1998 I was paying $300 for a studio apartment in downtown Minneapolis. Today, it goes for $1,200. But!!!!
"That's where all the action is kids!"
And this is how more wealth will be transferred from naive Millennials to Gen X and dwindling Baby Boomer land lords. With housing prices so high, taxes so high, and all self-inflicted by the socialist voting millennials, nearly every major US town is unliveable. You need $100,000 just to survive in San Francisco, $80,000 to make a go of it in Seattle, and New York is still the preserve of privileged white grad students or white women who have rich husbands as they finance their faux journalism career at XOJane. But the millennials will line up in equal droves as they did for worthless college degrees in the 00's because "that's where all the action is." The cool night clubs are there. The completely-conformist-but-not-conformist hipster brew pubs are there. Hot chicks that you're not supposed to like, but like anyway even though you fakely claim to like your tatted up nose-ringed roller derby millennial girlfriend, are also there. And didn't you see the TV shows and listen to what your professors all said? The cities are the most open-minded and progressive places on Earth! That's where all the action is!
And so to capitalize off of this migration of sheep land lords and land owners are rushing to provide millennials the luxury and over-priced apartments they so desperately want. Some so pricey they don't even list the price...because if you have to ask...you can't afford it...(but it's where the action is!!!).
The question is whether the millennials, who are now thoroughly ensconced in their 30's, are going to wise up and start becoming adults. Are they going to buy property at reasonable rates? Starter homes in blue collar neighborhoods? Are they going to move to states where standards of living are higher, but not as exciting as Seattle or Portland? Are they going to learn to fix their own properties and actually invest in something long term and more valuable than their Creative Writing degrees?
Or are the going to keep on keeping on like they have?
I know many of you millennials who tune in to the ole Capmeister are already well down the path of investment and adulthood. I know you guys are well ahead of your peers when it comes to exercising true independent thought. But for the rest of your generation, they are going to borrow $30,000 to buy Chevy Cruzes, add it to their $45,000 in student loans, and shell out $2,500 per month for a luxury apartment in the "cool, hip uptown area" because (say it with me now) "that's where all the action is." Oh, and they'll be stuck in traffic-jammed shitholes like Portland and LA because they won't want to live in fly-over country with the loser "hicks" and their $150,000 ramblers.
I just don't want to hear these same millennial brats when they're 63 making the same complaints my baby boomer clients do today about "not having enough saved up for retirement." But something tells me they will and they'll blame it on "patriarchy" or demand the government bail them out of their life-long track record of horrendously stupid decisions and mistakes.
Oh well, enjoy the decline.
Editor's note: This article was originally published at Captain Capitalism and has been rerun with permission.