According to the European chief executive of Goldman Sachs Asset Management, the world -- including the U.S. -- is in big trouble.
The Telegraph reports:
The world is sinking under too much debt and an ageing global population means countries' debt piles are in danger of growing out of control, the European chief executive of Goldman Sachs Asset Management has warned.
Andrew Wilson, head of Europe, Middle East and Africa (EMEA), said growing debt piles around the world posed one of the biggest threats to the global economy.
"There is too much debt and this represents a risk to economies. Consequently, there is a clear need to generate growth to work that debt off but, as demographics change, new ways of thinking at a policy level are required to do this," he said.
"The demographics in most major economies – including the US, in Europe and Japan - are a major issue – and present us with the question of how we are going to pay down the huge debt burden. With life expectancy increasing rapidly, we no longer have the young, working populations required to sustain a debt-driven economic model in the same way as we've managed to do in the past."
The picture certainly seems bleak, but -- at least in the U.S. -- there is hope. A Convention of States, called under Article V of the U.S. Constitution, can propose constitutional amendments that mandate shrinking the federal debt.
As this report clearly demonstrates, we've spent away our children's futures. It's our responsibility to do everything we can to lower the debt and ensure their financial security.