First of all, for all those who subscribed to "Perun's Daily Cultural Reference", there is an entire people (of about 72,000 individuals) who like to call themselves 'bastards'. They live in Namibia and originated as a mix people between Boer settlers and Khoisan natives. Namibian officials register them as "Rehoboth Basters" (Rehoboth being the defining town in the region they live in). Although originally, the term "basters" or "bastards" (along with the term "coloureds") was meant as a derogatory description, they now like to describe themselves with that term and are actually registered by that name at their own request.
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Next, to the subject of children swearing, I do believe there has been an increase in that ever since I was a kid. I remember occasionally swearing to be cool, but "fucker" was the absolute maximum, and the limit of what I and my peers would dare to pronounce- actually, it was even the limit of what we knew.
Two years ago (has it really been that long already?), I was doing educational work with schoolchildren at the age of 8 to 12. I was shocked at the kind of language they used with their peers, and actually, they used words I hadn't even heard before I was about 15 or 16, and which I never use or used. To give you a vague idea (trying to translate them is pointless), they were of highly sexual and racist nature. I have no idea where they pick this sort of speech up, but it has become very widespread. This is combined with a significant lack of respect towards elders (again, saying and doing things I'd never have dared in that age).