Video: Dr. Philippa Malmgren explaining the connection between your investments and all the geopolitical wrangling taking place right now.
The exec sum:
- Leading industrialized nations carry (and continue to pile on) unsustainable levels of debt
- Most options for reducing the debt are non-starters:
- Reduce current spending- Not good for re-election in a democracy
- Reduce future spending by cutting retirement and healthcare benefits- Also politically untenable
- Repudiate debt- Advanced economies run on debt and can’t afford to be cut off from debt markets
- Restructure debt- Again advanced economies can’t afford to cut off from debt markets
- But there is one tried and true method
