These Are The Top Risks 'We, Average Americans' Face In 2018
A decade ago, Ian Bremmer, president of Eurasia Group, launched one of the geopolitical world’s greatest marketing coups: an annual list of key global risks.
The 2018 version is finely balanced to generate maximum interest among the consultancy’s global banking, defence and government sector clients. China, Russia, North Korea and Iran all figure highly, as do terrorism, Islamic- and cyber- threats.
Naturally, it has made Bremmer a favorite among the plutocracy and Bilderberg set. But what would the list look like if it targeted the needs of ordinary Americans?
Following are our suggestions:
1. The Krugman con
The biggestthreatto America (and the rest of the world) is the coming implosion of the Krugman Con . This “con” gets its name from the Nobel Prize-winning economist and New York Times columnist who (like most of the economics profession) has spent decades advocating the continuous growth of government spending, taxation, borrowing and money-printing at a pace that is faster than economic growth.
The policies—camouflaged in terms like “fiscal stimulus,” “multiplier effect” and “Phillips curve”—are worse than a Ponzi scheme. They are a Ponzi scheme any grade 10 student can understand.
2. Governments, businesses and ordinary Americans powerless to act.
A couple of years back, McKinsey group published a study which showed that global government, business and private sector debts had reached 289% of GDP. However, few public sector officials have grasped the implications of this key statistic: if everyone is strapped, there is no one left to bail anyone out. That means even the slightest tremor could bring down the entire system.
A couple of examples suffice. First, economists say that things could never get as bad as in Japan, now capping two “lost decades” of economic growth. In fact, things could get much worse, because Japan’s “lost” two decades were cushioned by massive exports to still-growing US and European economies.
In a similar fashion, China helped prop up the rest of the global economy following the 2008 global financial crisis by borrowing and printing tens of trillions of dollars and importing a lot of stuff—a move that created jobs both in China and elsewhere. But if the entire global economy goes down together, there won’t be any Martians who will boost their imports to bail us out.