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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One indication of this trend: When to Start Buying Stocks Again? Nonfinancial corporate businesses in the U. Select a Tag featured Otherwise, as their CEOs have repeatedly and unashamedly said to government leaders, they will close their doors and ponzzi can sort out the chaos and panic. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability fhe any information provided on this site.

Financial sacrifices will be required from all interest groups.

BCG report: Ending the Era of Ponzi Finance | Consultant’s Mind

As Boston Consulting Group notesit is exacerbated by huge unfunded liabilities that will be impossible to pay off owing to long-term changes in developed-world demographics. Addressing these challenges at any time would be difficult.

The deteriorating quality of education in most advanced countries oc undermines future growth potential. Popular Posts Recent Posts Archive. The problems of the developed economies can only be addressed in a cooperative way on a global scale. On balance, it makes sense to assume structurally higher raw-material prices, notwithstanding constant and high volatility in the economic cycle. One tje example concerns old age retirement pension funding.

It now has literally no choice but change. As a stark proof of total disinterest in the future, this one is hard to beat.


This is partly a consequence of the Ponzi scheme itself. Perhaps the most direct statement in the BCG report:. It may seem harsh or exaggerated to liken the current troubles of the oc economies to a Ponzi scheme. I do so deliberately to emphasize the scope and seriousness of the problem. Prepare for labor scarcity.

All stakeholders will have to make sacrifices. Bvg increased competition will pay dividends in the form of new and innovative products. McKinsey report Debt and De-leveraging: At the same time, the public and private sectors in the developed world have underinvested in capital stock.

Most of these are political no-no items, which as the report says will almost certainly result in the continuation of what we have now: Fed Gooses Gold, Miners – 22nd Dec The BCG report is constrained to examine “what went wrong”, and cites the work of economist Robert Gordon Northwestern University, USA who has repeatedly argued that starting as early as the period, real economic growth and real wealth have trended downwards, for a large number of convergent reasons.

Can you image if your personal debt was 4x what your gross income was? Developed countries have to increase their efforts to decouple economic development from resource consumption. Federal Reserve bcy Conspiracy Or Not?

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Often times, pension costs are paid for by the contributions of younger workers who are essentially paying it forward. This trend is not limited to the developed world. Disguised unemployment and early retirement however only shift the debt burden back to the state, and guarantee that future economic growth will be weak or zero. And it is exacerbated by huge unfunded liabilities that will be impossible to pay off owing to long-term changes in developed-world demographics.

The average asset age increased to Not sure how this happens, but the entire developed world is in debt.


BOOM — If that is not a strong statement, that yes indeed, the debt burden of developed economies is a Ponzi scheme that does need some unraveling.

President Trump’s Trade Rubbish – 23rd Dec Developed economies are in enormous debt.

World Stock Market Indices: Addressed by a political class or generation that prefers War and Circuses to Bread and Circuses, the sheer size of the economic breakdown threat is forcing them to act less irresponsibly. The same holds true for most countries in Europe, where the descendants of immigrants from Turkey, Africa, and the Arab world tend to perform less well than nonimmigrants or the descendants of immigrants from other regions.

Even if developed countries take all these steps, it will still not be enough to reverse demographic wra. Today, China produces more scientists every year than pf U.

At the same time, globalization is leading to increasing inequalities in income and wealth within countries, as some groups such as investors benefit more from increased globalization than others such as manufacturing workers. Economists use the term “Ponzi scheme” ifnance describe a disastrous mechanism in which a financial operator assigns debt and pays off old debt by constantly ov on new debt.

Otherwise, the world risks descending into a vicious circle of beggar-thy-neighbor economic policies leading to much lower growth and slower improvement of living conditions worldwide.

The Step Plan To End The Era Of Ponzi Finance | Zero Hedge

Who pays and who benefits will be subjects of intense ennding controversy. The wealthy will have to pay more taxes. In some countries, private households need to deleverage precisely at a time when they should be building up assets for the future.