The developed world’s Ponzi scheme is caused by record-high levels of public and private debt. As Boston Consulting Group notes, it is. “The developed world’s Ponzi scheme is caused by record-high levels of public and private debt. And it is exacerbated BCG: Ending the Era of Ponzi Finance. Ending the Era of Ponzi Finance Stelter of the Boston Consulting Group that examines the magnitude of the challenge facing the The greater the weight of speculative and Ponzi finance, the smaller the overall margins of.

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Doing so will require a series of initiatives to reduce the decline of the workforce. In other words, every retiree will need to be supported by fewer than two fully employed people. Creditors will have to accept losses.

What this Means for Stocks – pponzi Dec Inequality increases the risk of social unrest and declining support for capitalism and a free society. Higher costs will lead to more global disputes over resources and fewer financial resources to pay down debt. It now has literally no choice but change.

It has also reduced the potential for future economic growth, making it more difficult for the next generation to deal with ponzii legacy. The title says it all: So far, only Italy, Japan, and the U. It will require a combination of several measures to bring these unfunded liabilities under control. Increase the efficiency of government. It may seem harsh or exaggerated to liken the current troubles of the developed economies to a Ponzi scheme. There is, of course, nothing wrong with taking on debt, as long as that debt is invested to create additional economic growth.

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Can you image if your personal debt was 4x what your gross income was? Any good financial planner would be screaming at you to reduce your debt and increase your income.

Nevertheless, his view needs to be taken seriously.

Europe, the US, and Japan have borrowed so much money that they are headed towards ruin. Federal Reserve — Conspiracy Or Not? Our only hope is that the asset used to try paying down the ever-growing debt bubble – this “asset” is the entire economic system – can grow and will grow faster than the total debt financing cost.

BCG report: Ending the Era of Ponzi Finance

Longer lifespan and healthcare costs: Other highly indebted economies such as the U. Fortunately, there is still time to act.

The eraa for sustainable government debt is a debt-to-GDP ratio of roughly 60 percent. But it has also contributed to tougher international competition and the creation of new inequalities of wealth and income in the developed world.

They are not simple solutions. Have developed countries become too complacent? We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any finnce.

McKinsey report Debt and De-leveraging: This is a huge problem that is getting worse. Therefore, these countries also need to become far more open and attractive to immigrants. How was this possible? Real change has to come, not Ponzi-style loose change.

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Although not explicitly mentioned in the BCG report, rising interest rates pose a huge risk. Private companies that provide fixed-benefit pensions are also confronting significant underfunding of their pension promises. President Trump’s Trade Rubbish – 23rd Dec Gold – 30th Dec As long as it does, however, economic bfg will remain high. Tye trend is not limited to the developed world. A critical problem in the decades to come will be labor scarcity.

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Ponzi Finance – Ponzi Wealth :: The Market Oracle ::

This is partly a consequence of the Finqnce scheme itself. It may seem harsh or exaggerated to liken the current troubles of the developed economies to a Ponzi scheme.

Another way of looking at this estimate is to take those amounts as debt that endiny never, ever be repaid and should be “forgotten”. Individuals should consult with their personal financial advisor. The BCG report details why the biggest threat of all has nothing to do with the world’s balance sheet, but its income statement.

Only Germany and Italy would be able to stabilize their debt levels in such a scenario. All countries will try to increase their exports; all will try to attract the best-educated immigrants; and all will try to secure scarce resources, from water to oil to commodities.

It is now crushingly evident that we, in the debtor countries of the formerly wealthy world, do not have enough cash flow to cover either the principal or the interest.