Wednesday, December 2, 2020

Tag: Why We’re Ungovernable

Why We’re Ungovernable, Part 17: In Latin America, Soaring Population + Soaring Debt = “Brutal Justice”

by John Rubino, Dollar Collapse:

There are two ways of looking at the intersection of debt and population. One way says that if debt is rising population should also rise to allow future workers to pay for the retirement of today’s. More people thus make debt easier to manage.

The other point of view is that debt and population soaring simultaneously creates a negative feedback loop that eventually destroys a culture.

Today’s Latin America appears to validate the second thesis. Debt and population are both soaring, and big parts of the culture seem to be collapsing.

The following chart shows Latin America’s population more than tripling since 1950:

Why We’re Ungovernable, Part 16: France On Fire

by John Rubino, Dollar Collapse:

Back in 2017, when some countries were handing power to populists promising variations of “drain the swamp,” France went for continuity with Emmanuel Macron, a young, moderate-sounding technocrat from the world of finance who promised to modernize the country without threatening the elites, the welfare state or the bureaucracy.

Fast forward a couple of years and Paris is in flames, literally. From Reuters this morning:

Riot police on Saturday were overwhelmed as protesters ran amok in Paris’s wealthiest neighborhoods, torching dozens of cars, looting boutiques and smashing up luxury private homes and cafes in the worst disturbances the capital has seen since 1968.

Why We’re Ungovernable, Part 15: After Germany’s Merkel Comes Chaos

0

by John Rubino, Dollar Collapse:

After a long, initially-successful run promoting European integration and mass immigration, German Chancellor Angela Merkel saw the bottom fall out of her political fortunes this year. This morning she stepped down as leader of the formerly-dominant Christian Democrat party and promised not run again when her term as Chancellor ends in 2021.

What happens next is almost certain to be chaotic, as the following chart (courtesy of this morning’s Wall Street Journal) makes clear:

Why We’re Ungovernable, Part 15: Germany’s Merkel Demoted To Figurehead

by John Rubino, Dollar Collapse:

You don’t see “Germany” and “ungovernable” in the same headline very often. But that might be about to change, as Chancellor Angela Merkel, for the past decade the central pillar of Europe’s Establishment, loses influence both at home and abroad.

First came a wave of populist (read anti-euro, anti-austerity, anti-immigration) gains across Europe, culminating with an actual victory in Italy’s most recent election. Then came the rise of Germany’s own populist movement, Alternative for Germany, or AfD, which has become a legitimate power in some parts of the country.