There is an almost unanimous consensus among economists worldwide that the most worrisome disease infecting somewhat less than healthy and truly sick economies on almost all continents is low, non, or negative growth. How to correct that situation frustrates and consumes the thinking of political leaders and central bankers everywhere, regardless of which economic school provided the latters' indoctrination. Pushing on strings has failed. Nothing seems to work. Securities markets are described as boring and directionless. It is like being in jail. You may be minimally fed, clothed, and housed . . . but you're not going anywhere.
Further, widening inequality between socioeconomic strata means many more people are not participating adequately in whatever resources are available for distribution. Even the "upper crust" (a bunch of crumbs held together by a lot of dough?) are in danger of having their share of the pie eaten away by low or non-growth conditions. The nine-inch baking pan is becoming a seven-inch pan. Smaller pies may soon become tarts.
Promoters of the "New World Order" have long intended to level the economic playing field, thereby reducing the life-style of populations to the lowest common denominator. Redistribution of the wealth is their mantra. Unfortunately for those of us who have a different view of the world, the globalists' dream is becoming an ugly reality. Most sane people in advanced societies are puzzled and saddened by the conditions extant. On the other hand, giddy cheerleaders of this gloomy picture are extreme "greenies" . . . Neanderthals who would consign human beings to any cave they can find and fight for to gain possession. Foraging on foot for food and discovering fire by flint is just fine with them. They fear rising sea levels that might reduce land mass. The rest of us look for rising tides to raise all boats, and the people in them.
It is absolutely correct to assign virtually all blame for the above to politicians. You and I had nothing to do with it. We don't write the bills, sign the laws into existence, issue myriad regulations, and employ presidential directives. An excess of the forgoing foolishness is stifling the opportunity to achieve broad economic prosperity. To the extent we the people bear a trace of guilt, our collective complicity includes:
Widespread ignorance of how things work due to poor academic training in financial matters;
Careless selection of elected representatives by often choosing style over substance;
Apathy, not my job . . . someone else will fix it.
Lucky roll coming out? Doubt it.
Well, those "someone elses" won't fix it. They won't because they can't. There aren't enough pips on the dies that will add to a seven being rolled on this frayed, napless carpet. Snake eyes are predetermined. The game has long been rigged against shooters' chances to come out ahead. All that is left for threadbare players in a no-win game is to blow the whistle on the glib ignoramuses who brought us to our knees. Their willful inflation of government balance sheets has not produced economic growth. Contrarily, such activities have blown dangerous quantities of air into certain asset prices, giving a false appearance of prosperity. There must and will be consequences. Like flatulence containing gas and mercaptans, the result of such bloating can be explosive. Some South American countries and Puerto Rico are about to learn how things end. There are other places similarly situated. I am reminded of a piece of advice I received almost on my first day in the securities business: "Never invest your money in a country where they wear straw hats all year round". Today there are banana republics well north of the equator.
It is well understood by even less than supremely erudite followers of economics that the cumulative massive debt incurred by countries and political constituencies everywhere cannot be repaid. Even if nations' growth rates return to somewhere near normal, a highly unlikely event any time in the near future, the amount of debt outstanding is an unsurmountable sum. Politicians everywhere claim they can get economies growing fast enough to pay down accumulated debt. No worries they say. It is not to be believed. Servicing the ever growing monster via required payments of interest on principle saps nations' growth and chips away at funding requirements for truly worthy needs. Repair and rebuild of infrastructure would actually produce growth, but funds are not available. Pushing social agendas in welfare state economies soaks up the money, roads and bridges don't vote.
Politicians everywhere promised too much to naive, uninformed electorates and ultimately committed everyone to debtor's prison. Globally, each individual's share of that debt is more than many will earn in a lifetime of employment. Alcatraz would be easier to escape from.
Bob was born in Toronto and began his financial career as a trader on the Toronto Stock Exchange. He relocated to California and became SVP and CFO of a $multi-billion diversified financial entity. He served on the board of many companies in Canada and US. An avid yachtsman, he owns a twin diesel ocean going vessel once featured in Architectural Digest magazine. He maintains a hockey web site. “slapshotreport.com” and currently resides in Sausalito, California.
There is an almost unanimous consensus among economists worldwide that the most worrisome disease infecting somewhat less than healthy and truly sick economies on almost all continents is low, non, or negative growth. How to correct that situation frustrates and consumes the thinking of political leaders and central bankers everywhere, regardless of which economic school provided the latters' indoctrination. Pushing on strings has failed. Nothing seems to work. Securities markets are described as boring and directionless. It is like being in jail. You may be minimally fed, clothed, and housed . . . but you're not going anywhere.
