Titanic sinking by Willy Stöwer

The future of the global economy

The implications of peaking working-age populations

What does all this mean for the global financial system?

The big question is what all this means for the future of the economy. My best *guess* is that the world will desperately and erratically seek safe havens and growth while implementing financial repression.

The system needs USD to survive—the reluctant safe havens

The global financial system is built on the United States dollar. 80 percent of global trade is estimated to involve U.S. dollars. The system needs USD to survive, at least in short to mid-term time horizons.

The system needs financial repression to survive

The denomination of the majority of the world’s debt is in U.S. dollars. Debt drives production, which is taxed, and debt requires interest payments.

“Real” interest rates are over -4% in the U.S. https://www.longtermtrends.net/real-interest-rate/

The system needs growth to survive

Economic growth is required for the global financial system to survive in the 21st century and the world will need to invent new ways to increase productivity with diminishing workforces.

Building @nextuxdesign (YC S19) • Formerly @Flexport @Google @Intuit • Interested in platforms