When noted English financial firm Tullett Prebon releases a report titled "Thinking the Unthinkable", which just happens to be the last part of its Project Armageddon series, you know it will be good. While the report is UK-centric, and focuses primarily on the particulars of the English economy (thus making it required reading for our British-Isle based readers), the overarching observations are more than applicable in any place that has too much debt, too little cash flows, and not enough growth. So basically every "developed world" country. From the executive summary:"Project Armageddon was established to examine the possibility that both sides’ warnings are correct but that neither side’s prescriptions will work. We conclude that Britain’s debts are unsupportable without sustained economic growth, and that the economy, as currently configured, is aligned against growth. Radical solutions are required if a debt disaster is to be averted. All macroeconomic options have been tried, and have failed. The only remaining options lie in the field of supply-side reform. Unfortunately, public opinion may be inimical to the scale of reform that is required." Bingo: this is precisely the same big picture summary of what ails the US right about now. We eagerly await for someone to undertake the creation of Project Armageddon for the US: we are confident it will not be that much different.
Project Armageddon - The Final Report