The developed world’s Ponzi scheme is caused by record-high levels of public and private debt. As Boston Consulting Group notes, it 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. To make matters even worse, however, BCG points out that they come at a moment when the developed world’s traditional model of economic growth appears to be broken. This is partly a consequence of the Ponzi scheme itself. The underlying issues cannot be ignored any longer. The developed world faces a day of reckoning. It is time to act. In this excellent layman's guide to the the real world, not only does BCG explain the Ponzi, but they lay out ten critical steps that developed economies must take to definitively end the era of Ponzi finance. Some are sacrifices required of various stakeholders. Others are new social investments, both public and private, that are needed in order to return to a sustainable growth path.
The paper starts with the Origins of the Ponzi Scheme we call modern economies...
goes on to discuss the Broken Growth Formula...
Then lays out ten steps to any solution for developed economies...(more)
With Europe stumbling into the end of the year, the new Prime Minister,
Abe, in Japan calling for more money printing, and the US heading
towards the fiscal cliff, Michael Pento writes exclusively for King
World News and strongly believes investors should be acquiring gold and
gold equities because of the extraordinarily-dangerous macroeconomic
environment facing the world today.
Here is Pento’s piece: “It should now be clear to all Americans that
our government is completely incapable of voluntarily reducing our
fundamental problem of excess debt. The inability of Washington D.C. to
address spending, even under the duress of a legal obligation to do so,
is flagrantly obvious.”
“The sequestration, which is supposed to reduce our debt by $2.4
trillion over the next 10 years, is not the result of a curse brought to
earth by an asteroid. It is a self-imposed act of congress to finally
address our nation’s habit of raising the debt ceiling with as much
concern as a thief cares about getting a credit line increase on a
stolen Visa Card. Isn’t it ironic, then, that those same individuals
who agreed on the sequestration a year ago are now doing back-flips in
order to undo their insufficient and feeble attempt at austerity….
Michael Pento continues @ KingWorldNews.com