Prepare for the “bad news is good news” paradigm. Investors hoping for another high from the stock market need a recession to give them a shot in the arm.
Politicians are back to spending like drunken sailors. The US, Germany, Japan, France and UK have growing deficits when bond markets are already wobbling.
What would your family finances look like if they were run as a democracy? No doubt you’d enjoy trips to Disneyland and hot air ballooning...for a while. But at some point, there would be a reckoning.
All around the world, politicians are realising that they can’t afford welfare programs. But none have the courage to cut anything. So, what happens next?
It doesn’t matter who is in government, what their ideology is or what they promise during the election. When the money runs out, it’s a matter of maths.
Socialism is running out of other people’s money at last. But what happens to a democracy that cannot throw around taxpayer’s cash? People lose faith in it.