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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In both cases these criminals were engaged in a race for growth from Day 1 of their operating schemes. Launch the next Kondratiev wave. No one knows what event may send endung developed world and the global economy as a whole back into crisis. This may seem strange given that many advanced economies are currently suffering from high unemployment.

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In Japan, it will drop by 30 percent to This fnding no way is the end of the story because Ponzi finance-Ponzi wealth is not only cancerous for banks – transforming them into organized crime syndicates – but parasitic and destructive of the real economy. Nearly five years after the financial crisis, the leaders of the developed world are far too complacent.

Over the same period, the income of the top 1 percent of households grew by an extraordinary percent and the income of the rest of the top 20 percent grew by a slightly above-average 65 percent, while the income of the remaining U. ppnzi

Ending the Era of Ponzi Finance. Over the past century, however, life expectancy dinance doubled and fertility rates have declined by more than half in the developed world.

In the current environment, it is highly unlikely that larger investment returns will automatically solve the problem. Income statistics highlight this development: Increasing differences in education within the countries of the developed world are an additional burden.


The average life expectancy then was 37 years for men and 40 years for women, while insurance was paid only from the age of endong onwards.

BCG report: Ending the Era of Ponzi Finance

For some companies, unfunded liabilities are equivalent to more than 50 percent of their market capitalization. Governments, companies, individuals — all need to take some blame. Beware the Young Stocks Bear Market! The financial operators running the scheme are the private banks.

Globalization has brought the promise of economic prosperity to billions of people around the world. 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. It is time to act. He attracted investors by promising extraordinarily high returns—50 percent within 45 days.

To be sure, equity and commodity markets kicked off Year with a traditional refusal and rejection of the real world – the financial markets need to drag in more hopefuls, more stupids and more greedies right up to the wire.

Ending the Era of Ponzi Finance : Prometheus Market Insight

The Ponzi answer is what we live, or survive every day: By continuing to use this site, or by clicking “I agree,” you consent to the use of cookies. Nonfinancial corporate businesses in the U. And it is exacerbated by huge unfunded liabilities that will be impossible to pay off owing to long-term changes in developed-world demographics.

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. Ponzzi 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.


BCG report: Ending the Era of Ponzi Finance | Consultant’s Mind

Unless these performance differences are addressed, it will be increasingly difficult for members of the next generation to compete with the rest of the world and with each other—let alone pay for the retirement of the current generation of baby boomers. Avoiding sovereign default is lengthily treated by the BCG report, which lays down 10 needed steps starting with an immediate reduction of the debt overhang by a mixture of writeoffs, restructuring, austerity, higher taxes, inflation, and raising employment.

Bismarck lived until 83, but such longevity was the exception at the time. How critical tradeoffs are managed will vary from country to country.

Even if developed countries take all these steps, it will still not be enough to reverse demographic trends. McKinsey report Debt and De-leveraging: And if the scenarios predicted by researchers are correct, the costs of dealing with the implications of climate change will only increase in the coming decades.

Europe, the US, and Japan have borrowed so much money that they are headed towards ruin. 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.

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. The incoming revenue paid off previous debt and financed short-run consumption, nothing else.

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