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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Creditors will be massacred. Public sector, money creation, and the trade flows. Good luck, politicians and holders of financial assets, you will need it because after Denial comes Anger, messopotamia only long after does Acceptance finally arrive.

Murray Rothbard summarizes this nicely: Same thing for Ebay and Pay pal.

Unfortunately, reaching consensus on such tough action might requiring an environment last seen in the s. Periodically, on the ascendancy of a new monarch, debts would be forgiven.

We believe that some politicians and central mesopotajia — 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: Other outcomes should be treated as a criminal conduct by public servants.

Austerity – essentially saving and paying back – is probably a recipe for a long, deep recession and social unrest Higher growth is unachievable because of unfavorable demographic change and an inherent lack of competitiveness in some countries Debt restructuring is out of reach because the banking sectors are not strong enough to absorb losses Financial repression holding interest rates below nominal GDP growth for many years would be difficult to implement in a low-growth and low-inflation environment 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.


In ancient Mesopotamia, debt was commonplace; individual debts were recorded on clay tablets. Central Banks boards should act as caretakers of the system, not as rock stars that conform it to their particular desires, or like to play with it. The “Muddle Through” Has Failed: Be sure to have a coat at hand.

This weekend we have found out that Cyprus is on the route to Mesopotamia. In the cases mentioned above, proclamations of general debt cancellation were made at the initiative of rulers concerned with upholding social peace.

And if the prospect that very soon a government near you will force you to hand over a third of your wealth, here is the rest of the terrifying analysis of what will happen to the world in order to get it back in order:.

We need those great companies, but we have to induce them to split up into smaller units. I feel sorry for them because they were clear, and they were brave to say what they said.

Wealth Tax: Back to Mesopotamia [2011 paper by BCG]

As in Europe, an administration that truly bit the bullet would take a long-term view and invest more in education. To what measures might they have to resort?

It reflects a lack of competitiveness in some key markets and the low bcv of manufacturing in the U. Just look at the numbers. Or else accept that their companies pay for the use of external aggregate demand. It is likely that wiping out the debt overhang will be at the heart of any solution. The longer the politicians and bankers wait, the more necessary will be the response outlined in this paper.


And as BCG predicted then, and as we have seen played out over the last 3 years of the Eurozone lurching from one crisis to the next on what is basically the same unresolved debt problem, all other alternatives have since been exhausted:. You are commenting using your WordPress.

Hewlett and Packard are better off emancipating. I wish there was. Inflation will be the preferred option – in spite of the potential for social unrest and mesopltamia difficult consequences for middle-class savers should it really take hold.

Back to Mesopotamia by the way of Cyprus | The Yogi Rock

A commitment by the government to restrict its debt level and to too for the increasing costs of an aging population by either limiting benefits or raising the retirement age. The will always be mesopotamiw bag of relevant remaining functions left to the ordinary government. The good thing is, there will be a day after. 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.

We have to allow for some flexibility, but we need on average balanced budgets. Additional taxes on real estate, including an increased capital-gains tax to offset the support for the real-estate market. However, boosting inflation has not worked so far because of the pressure to deleverage and because of the low demand for new credit. How many people are busy and remain mentally healthyand contribute to wealth generation, vs the rest, is the key issue.