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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Ponzi schemes, when they founder as they always will, often throw up worse-than-anticipated numbers for the losses, and have longer-term negative spillover on investor sentiment and the optimism of economic deciders. Increase the efficiency of government.

Otherwise, as their CEOs have repeatedly and unashamedly said to government leaders, they will close their doors and governments can sort out the chaos and panic. Find the full list herestarting on page In previous papers, my colleagues and I have discussed the various options for doing so. Erx, the US, and Japan have taken on monstrous levels of debt and are not really getting a good return on that money. As long as it does, however, economic uncertainty will remain high. Countries need to start now to prepare for the coming era of labor scarcity.

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Healthcare costs are rising faster than inflation. As a stark proof of total disinterest in the future, this one is hard to beat. Governments and companies have made promises to their citizens and retirees that have not adequately funded. Today, China produces more scientists every year than the Eneing. Who pays and who benefits will be subjects of intense political controversy.


As he puts it, the invention of indoor plumbing was orders of magnitude more important than the invention of the iPad, Twitter, and Facebook. He attracted investors by promising extraordinarily high returns—50 percent within 45 days.

Competition among countries will become more intense in the years to come. According to a study by the Bank for International Settlements BISthe combined debt of governments, private households, and nonfinancial companies in the 18 core countries of the OECD rose from percent of GDP in to percent in From a structural bcb, the US economy will remain fundamentally weak until the debt issue is addressed in a meaningful way.

One stark example concerns old age retirement pension funding.

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

It has also reduced the potential for future economic growth, making it more difficult for the next generation to deal with this legacy. Public spending on social welfare will have to be cut, even as spending in new areas of social investment will have to be increased. Understanding why this is the case needs us only to backtrack to the subject of “productivity”. Ending the Era of Ponzi Finance.

In Japan, the dependency ratio was only 8 percent in ; it is 35 percent today and will climb to 70 percent by One indication of this trend: Quality education will be the decisive factor in protecting and increasing GDP per capita. This is a bummer to say, but there are many reasons why the debt burden could thhe over the next 20 years. The Ponzi-Madoff fake wealth scam has however, and dramatically, been switched from private citizens to the majority of governments – not only or especially OECD governments, but most starkly in the developed nation group.


Extreme Bearish Stock Market Sentiment. Any good financial planner would be screaming at you to reduce your debt and increase your income.

BCG report: Ending the Era of Ponzi Finance

Popular Posts Recent Posts Archive. Choose your location to get a site experience tailored for you. This is partly a consequence of the Ponzi scheme itself. This in no way is the end of the story because Ponzi finance-Ponzi wealth is not finahce cancerous for banks – transforming them into organized crime syndicates – but parasitic and destructive of the real economy.

The problems of the developed economies can only be addressed in a cooperative way on a global scale. Such frauds have finxnce known as Ponzi schemes ever since.

Over the past century, however, life expectancy has doubled and fertility rates have declined by more than half in the developed world. 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 of any information provided on this site.


Nevertheless, his view needs to be taken seriously. This increased competition will pay dividends in the form of new and innovative products. Income statistics highlight this development: For more than a decade, the developed economies have reduced investments in public infrastructure and productive assets.

It will take more than just marginal improvement. Minsky distinguished three types of credit-based financing, determined by the financial strength of the debtor:.