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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For this to be effective, they would need to restructure all debt, probably at around a maximum combined level of percent per country. 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 mesopoamia enough to absorb losses Financial repression holding interest rates below nominal GDP bback for many years would be difficult to implement in a low-growth and low-inflation environment Inflation mesopotamix 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.

And they abuse their bargaining position with governments see aboveemployees see chart belowand clients apple store compulsory use is a good example. Sometimes we go past the-beggar-thy neighbour policies and engage in outright swindle-thy-neighbour acts.

And so on and so forth. The day after will not look pretty. Notify me of new comments via email. You are commenting using your WordPress.

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

Or else accept that their companies pay for the use of external aggregate demand. You may consider this bizarre thinking, but it is not. About 11 million US households suffer from negative equity their mortgage outstanding is higher than the value of their home.


Periodically, upon the ascendancy of a new monarch, debts would be forgiven: Additional bwck 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. We have argued for mesopotamai long time that the US economy needs to address some fundamental issues in order to become globally competitive again.

It is the only way to efficiently tax the rich. Beggar-thy neighbour policies have to be cracked down on. Capital gains on paper must also be taxed. In point of fact, they are the front-runner for something that will spread faster than Ebola.

By continuing to use this website, you agree to their use. If it mesopota,ia not, it has to constrict inequality and pay labour and capital adequately. Printing does not solve anything, it just delays the inevitable. Take action to reduce dependency on imported oil by investing in new technologies and modernizing existing infrastructure.

This mesopotaamia we have found out that Cyprus is on the route to Mesopotamia.

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

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: Fiscal paradises have to be outlawed. We have to allow for some leeway, but total credit as a percentage of GDP has to fluctuate around constant levels.


One thing is certain: Other outcomes should be treated as a criminal conduct by public servants. 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.

Such a course of action would not be new. ZEPP zero poverty policy should be bqck new macro target.

With towering Chinese walls, made of concrete, between them. Sort by Relevance Newest Oldest. No substantial deleveraging has taken place, and numbers are big enough for a ot scenario. It is also about minimizing corruption. And Cyprus may be just the first little example of what may soon be happening across many other countries and jurisdictions.

When you generate wealth you pay for it regardless of the fact you sold or notwith some flexibility to protect individual from overestimating the generation of paper wealth. Same thing for Ebay and Pay pal. No fresh debt to pay for garden variety subsidies, or run of the mill expenses. We have to allow for some flexibility, but we need on average balanced budgets. To follow this path, they would need to convince themselves that the overall benefit of an economic restart outweighed the risk of mesopogamia hazard in some areas.

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