Investor Beware! European Apocalypse on the Horizon

15.12.2016 • The Economy

Chris Lowe – Inner Circle (United States) –

It’s a frightening prospect…

And it’s why one of our top themes at Inner Circle is to avoid European stocks.

But it’s not the only reason to be wary of the prospects for Europe. What most folks still haven’t realized is that the bonfire of the elites across the U.S. and Europe is a symptom of a deeper malaise – a looming war between generations.

It’s a theme Bill Bonner put on his readers’ radars in the February 2015 issue of The Bill Bonner Letter, “Saving the World from Old People.” (Paid-up Bill Bonner Letter subscribers can catch up in full here.) Bill:

Why does the federal government need to borrow so much? Before the invention of the welfare state, almost all large borrowing was done for war. Since the end of World War II, however, most developed countries – with the exception of the U.S. – have borrowed heavily only to pay for social programs.

Today, these governments, including the U.S., are victims of demography. Older people get more money from the government. And they pay less in taxes.

Old people also slow the rate of GDP, for obvious reasons: They are not adding to output; they are living on it.

The problem for Europe is that it has more old people… and more promises to pay them in retirement… than almost anywhere else on the planet. (The obvious exception being Japan.)

And as our chief Asia strategist, and outspoken bear on Europe, Dr. Jim Walker warns below, it’s the real reason so many parts of the developed world are turning to populist political leaders.

Anti-status quo political movements… such as Trump’s in the U.S., Brexit in Britain, and Grillo’s insurgency in Italy… are symptoms of the underlying demographic disease.

And as Jim explains in this week’s Q&A, that disease is going to be one of the major big-picture trends shaping markets for years to come.


  • First Brexit… then Trump… now Italy?
  • The real reason elites are on the run
  • Dr. Jim Walker: A generational “war” is coming
  • Follow the growth… to emerging Asia

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