From Charles Hamilton, via Zero Hedge, via Biderman’s Money blog:
Demographics – Why The Great Recession Started (And Won’t End Anytime Soon)
WWII is still reshaping our economic reality. The massive global loss of life in WWII and its birth dearth during the war created a demographic hole (unusually high death / unusually low births over a 5 to 10 year period). The subsequent baby booms in the US and globally in Japan, Europe, and so many more locations which were affected by the war created a “pig in the python” moment. This unusually large wave of population growth from ’45-’55 was “pent up demand” from the war. Those of family rearing age who waited, those who remarried, and those who fretted…they rushed to make up for lost time over the decade after the wars conclusion. But the subsequent generations were in no such rush and in fact began an ongoing process of slowing the creation of families and children.
But society and its leaders assumed this baby boom anomaly to be the new reality. They built an entire economic system on the one decade anomaly. But that wasn’t enough. They had to layer the anomaly with the unsustainable and the previously immoral levels of usury (renamed and rebranded as leverage, credit) and economic policies only effective as the passing of the pig was imminent. The baby boom group or entity spanning 10 years will in 2015 turn a collective 60-70yrs old. The “pig is passing” from the American and global workforce into retirement and now the wreckage and folly of such basic misnomers has come home to roost…and will get far worse. Central bank and government actions to create the problems and subsequent responses should be seen for what they are…entirely self-serving and ineffective.
For the rest of Mr. Hamilton’s excellent article, a tightly reasoned, well-supported, and graphically illustrated argument why demographics are economic destiny, which means a bleak prognosis for most developed countries’ economies, follow the link. The article merits and rewards a careful reading.
Pingback: Two From Straight Line Logic | Western Rifle Shooters Association
Wow! Best article I have seen that defines the fate of the nation for at least a generation. Biggest take away? — Be prepared to return to a multi-generational household. Which for me means preparing a small homestead that can be self sustaining in most of the primary food stuffs. When the social network collapses the parents `social secuirty` are the kids; just like it was two centuries ago.