The Three Horsemen of the Apocalypse

Jason Hsu, a partner at Research Affiliates, has an article on the current Western economic conundrum called The 3-D Hurricane and the New Normal. It describes how Debt, Deficit and Demographics are working to the disadvantage of the developed nations and to the advantage of the emerging ones. The West has become top-heavy with older citizens. There are less workers to work and produce and to subsidize the older ones. Deficit spending is acceptable as a short term adjustment to a downturn but, when used long term, it becomes debt which steals from productivity and buying power. Inflation and a decrease in living standards is the eventual outcome.

This conflict seems so clear and civilized. Both sides of this coin are so plainly etched. One wonders what progress could be made if we faced these problems squarely.

On the other hand we could confront the problems squarely and have a nice St. John's Dance.