Our first session today was presented by Economics Professor Kevin Waspi of the University of Illinois. He presented a discussion on the Economic and Financial Outlook and some highlights are:
- Our economic policy is based on the the policy we used in the late 1990's to help get Japan out of their lost decade. Everybody knows how that worked out since Japan is now in the lost decades.
- The Baby Boomer bulge is causing a weakness in our demographic base. Instead of almost 16 workers for every social security recipient. It is now less than 2 workers.
- Europe's demographics are even worse.
- Most European countries are running more than 100% of gross government debt to annual GDP.
- Some European countries unemployment for people 25 years or younger is approaching 50%.
- Now may not be the time to buy 30 year treasury bond at a 2.5% rate
- Do not believe in soft landings (especially China right now)
- Investigate other production options
- Expect higher taxes
- There is now a greater fear of your return of your money instead of a return on your money. That is why German Government Tbills are generating negative yields.
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FFSC - Day 2 Session 2