Anybody who hasn’t seen an economic catastrophe coming for the last 30 years is delusional. Increasing debt and a decreasing labor participation rate guarantee that the per capita production (and, thus, consumption) of goods and services can only go down. The vast amounts that we’re squandering on the military, security and old people will only add to the pain. If only there was some way to make the old people useful, like recycling them into food for poor people. Don’t worry. WWIII will save us all. Time for universal minimum income. I think we’ve all seen enough of supply side economics. Adding millions of unskilled workers into our labor pool will help! After the first week in my Econ 101 class, I asked my professor, “So if companies will naturally try to decrease their costs over time, what happens when they can’t cut costs any further? Lay people off? Then what happens when people can’t buy stuff?” He tried very hard to get me to switch my major. Maybe I should have. *shrug* Doesn’t matter if the poorest 50% of the population can’t buy stuff, so long as that in aggregate the consumption in the country keeps rising. Those who can’t afford to live will just have to sell themselves and their children to the richer folk as unpaid indentured servants, in return for food and shelter. Except that you can’t have a sovereign debt crisis in every major economy at once. It’s just not economically possible. As one region’s currency tumbles, investors from that region move their assets into the currencies of more stable nations. This in turn drives up the value of that currency, which then protects it against the kind of pressures that leads to a sovereign debt crisis. The only kind of situation that can precipitate a major sovereign debt crisis in all the major markets is the kind of situation where sovereign debt is the least of our problems. *Seeking Alpha “authors” are paid by click. Any moran can post anything.