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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BCG – Ending the Era of Ponzi Finance Economist American Debt | Consultant’s Mind
Sort by Relevance Newest Oldest. Efforts to reduce energy consumption and carbon-dioxide emissions in order to protect the environment will lead to higher costs as well. It is time to act. Government will have to get smaller and more efficient. Tge, 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.
Uneven Progress on the Path 1.
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. This can be called the productivity of investment and capital.
The biggest, however, is still ongoing: But instead of investing the money to buy the coupons and exchange them for stamps, he simply used the money of later investors to pay high returns to earlier investors, extracting huge profits along the way. 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. The average asset age increased to As he puts it, the invention of indoor plumbing was orders of magnitude more important than the invention of the iPad, Twitter, and Facebook.
The wealthy will have to pay more taxes. From a structural perspective, the US economy will remain fundamentally weak until the debt issue is addressed in a meaningful way.
Endnig the past several years, we have spent a great deal of time focusing on the problem of excessive debt. Fed Gooses Gold, Miners – 22nd Dec Economists financ the term “Ponzi scheme” to describe a disastrous mechanism in which a financial operator assigns debt and pays off old debt by constantly taking on new debt. Inequality increases the risk of social unrest and declining support for capitalism and a free society.
But the broken growth model is also due to long-term demographic trends and other changes. Education has to play a significant role in the future growth potential of the developed economies.
Ending the Era of Ponzi Finance
When to Start Buying Stocks Again? He attracted investors by promising extraordinarily high returns—50 percent within 45 days.
The likelihood that the banks are able, let alone willing to repay recent loans, certainly those sinceat some unspecified date in the future often placed at “about “, is absurdly low. Develop smart immigration policy.
The BCG report details why the biggest threat of all has nothing to do with the world’s balance sheet, but thr income statement.
BCG report: Ending the Era of Ponzi Finance | Consultant’s Mind
China and Russia will also see their workforce shrink by This is partly a consequence of the Ponzi scheme itself. This will have a negative impact ega well, because capital investment is a key determinant of future productivity and income generation. Although not explicitly mentioned in the BCG report, rising interest rates pose a huge risk.