"Classically, increased wealth and value gaps lead to increased populism of the right and populism of the left and irreconcilable differences between them that can't be resolved through the democratic process. So democracies weaken and more autocratic leadership increases as a large percentage of the population wants government leaders to get control of the system to make things work well for them."
"Concerns about a significant rise in borrowing by the US government were well founded, said Dalio, who has long predicted a reckoning for economies that allow debts to rise. In his books, Principles for Dealing with the Changing World Order and How Countries Go Broke: the Big Cycle, he has described how large annual spending deficits and unsustainable debt growth had brought the US economy to the brink of a debt crisis a situation that had worsened over many years."
Rising wealth inequality and collapsing trust are driving voters toward autocratic leaders, mirroring political shifts seen in the 1930–40 period. Increased wealth and value gaps fuel both right- and left-wing populism and create irreconcilable divisions that weaken democratic processes. Large annual spending deficits and unsustainable debt growth have pushed the US toward a potential debt crisis, with projections warning of a debt-induced 'heart attack' within roughly three years. Political interference in central bank decisions and government purchases of corporate shares to support industrial programs further undermine institutional independence and market functioning.
Read at www.theguardian.com
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