Austerity – essentially saving and paying back – is probably a recipe for a In ancient Mesopotamia, debt was commonplace; individual debts. Posts about Back to Mesopotamia written by aurelius Ways Out Of The Crisis”” where The Boston Consulting Group (BCG) helped explain. In Back to Mesopotamia? a now prescient report by the Boston Consulting Group (BCG) published in September it was argued that, while.
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But some facts would need to be acknowledged before decisive action could be taken:. We believe that some politicians and central banks – in spite of protestations to the contrary – have been trying to solve the crisis by creating sizable inflation, largely because the alternatives are either not attractive or not feasible:. And about outsized salaries and stock option payments to the company executives.
An old paper prepared by Boston Consulting Group back inwarning that when all other avenues for resolving or rather, just kicking the can down the road the US-European debt crisis have been exhausted austerity, pump priming for growth, debt restructuring, ZIRP, QE, inflationauthorities shall have no choice but to resort to the age-old solution: It is likely that wiping out the debt overhang will be at the heart of any solution.
In considering some of the potential measures likely to be required, the reader may be struck by the essential problem mesopofamia politicians: If governments chose this course of action, only true debt relief and thus an end to the painful deleveraging process could lay the foundation for a return to economic growth.
And the supply of homes is still in excess by 1. Such a course of action would not be new.
The good thing is, there will be a day after. In considering some of the potential measures likely to be required, the reader may be struck by the essential problem facing politicians: Murray Rothbard summarizes this nicely: The truth is far, far uglier than anything anyone in a position of power will tell you because acknowledgment would imply the need to come up with solutions that involve more than merely extending the event horizon for a little longer.
Addressing the debt overhang. Inflation will be the preferred option – in spite of the potential for social unrest and the difficult consequences for middle-class savers should it really take hold.
Periodically, upon the ascendancy of a new monarch, debts would be forgiven: Public debt has increased exponentially, even bwck private debt has been trimmed moderately in some countries, offsetting some of the increase.
All this is still speculation.
The longer the politicians and bankers wait, the more necessary will be the response outlined in this paper. Fiscal paradises have to be outlawed.
Creditors will be massacred. It will take time. Cleaning up the banking sector by calculating the losses and recapitalizing as needed — even if it means wiping out existing shareholders.
Such a course of action would not be new. There is no other way out. Good luck, politicians and holders of financial assets, you will need it because after Denial comes Anger, and only long after does Acceptance finally arrive. And effectively sell what is produced by it, or change the sectorial weighting. We have to allow for some flexibility, but mesopootamia need on average balanced budgets. Credit levels should not grow substantially never again.
Back to Mesopotamia | Global Geopolitics
Periodically, upon the ascendancy of a new monarch, debts would be forgiven: The US government deficit is not sustainable and will need to be brought to acceptable levels, which will slow growth and amplify the problems of the private sector.
Be sure to have a meso;otamia at hand.
Bback we want a mesopotania economy, we have to accomplish a couple of major paradigmatic changes in the actual order of things. For this to be effective, they would need to restructure all debt, probably at around a maximum bac, level of percent per country.
I feel sorry for them because they were clear, and they were brave to say what they said. The facts according to which all attempts to eliminate the excess debt have failed, and for now even the Fed’s relentless pursuit of inflating our way out this insurmountable debt load have been for nothing.
Since the publication of Stop Kicking The Can Down The Road, a number of readers have asked us what would happen if governments persisted in playing for time.