The global economy faces a stagnation period in which safe haven protection can only work until western governments get a true grip on their public finances, says Better Capital Chairman Jon Moulton.

“… [T]he United States spends $1.40 for every dollar of income. The U.K. spends … GBP1.25 for every pound it gets in,” Moulton says. “Most of Europe’s in a similar sort of state. And it’s not a permanently sustainable model. And most people have worked that out, but they don’t really know what to do about it.”

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