I don't know why people think the current levels of accumulation of debt are sustainable but there is a limit to what even the US can roll in term of debt. All developped nations are at around 100% debt to GDP, more than 200% if you include private debt, and growing at 3-5% per annum.
Now does anyone really think that sometime soon any developped country will start making public surplus and deleverage for 30 years? That's never going to happen.
I think one or both of two things will happen: 1. massive defaults of states and therefore of banks and insurance companies. 2. Long period of high inflation.
Either way savings from people now in their 30s will be wiped out. A little gift from the departing generation (baby boomers)...
I don't know why people think the current levels of accumulation of debt are sustainable but there is a limit to what even the US can roll in term of debt. All developped nations are at around 100% debt to GDP, more than 200% if you include private debt, and growing at 3-5% per annum.
Now does anyone really think that sometime soon any developped country will start making public surplus and deleverage for 30 years? That's never going to happen.
I think one or both of two things will happen: 1. massive defaults of states and therefore of banks and insurance companies. 2. Long period of high inflation.
Either way savings from people now in their 30s will be wiped out. A little gift from the departing generation (baby boomers)...