Expect High Interest Rates for next, ohhh, 45 years or so

Interesting article....

As for your comment about immigration, it depend on what the immigrants do with their money. Most US immigrants send money home and do not rack up big debts. The key issue is healthcare, which is one of two major Social Billsalongside Pensions that the someone has to pay for.

I believe that the cost of healthcare rather than pensions is going to be determining factor for western and emerging economies. This especially true in democracies, if healthcare is not provided at an acceptable cost it affects all voters. If pension provision is not provide by the state/employers/indivvidauls it only affects those who are retired.

Helthcare inflation in the US is running at about 6-8% well above inflation and this is hurting both private and public sectors. See the big car makers or US Armed Forces who are struggling to balance the books.
The thing about healthcare is that there are always new drugs and procedures emerging, which of course people are desperate to have, plus we're living longer. As you say, this is causing problems for employers, notably GM and Ford. It should be noted, though, that for the US and other countries with a mostly private healthcare sector that this is a net benefit for treasuries (i.e. they can tax the healthcare companies) rather than a net loss as in the case of a nationalised healthcare system. Of course there's a moral dimension to healthcare too...

Not sure about what 'most US immigrants' do with their money either - clearly many of the third world migrant worker types behave as you suggest (as they also do here), but many immigrants actually settle in the US, particularly e.g. people who go there to university.

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