NEW LEADERS - OLD PROBLEMS
Herbert Hoover, Source: The White House The UK has a new prime minister and the US will soon have a new president. Will they be met with a historic financial crisis like Hoover soon after his election? Both will lead nations that are in dire financial shape. Neither leader will meaningfully address the twin problems of massive government debt and huge budget deficits. Both will face relentless pressure from the legions of government benefit recipients to expand spending yet further. Their problem is that taxes can only be raised so far before workers storm Washington and London with pitchforks and torches. Therefore, their likely "solution" will be to further debase their currencies. Of course, doing so will devastate wage earners, savers and pensioners liv...