You do not have to pay attention to politics and economics to be aware that Europe has been requiring financial assistance for quite some time. First it was Greece which then has led to others requiring funds. Although I believe the worst is still to come in this saga, the next generation of Europeans will benefit from all of this fiscal responsibility which is finally being forced upon nations which have relied on credit far too long to fund their lifestyles.
I have always been one to try and find that which is silent as not making waves in order to determine future trends. In the financial arena, there is one nation which has me greatly concerned and has not really caught the world’s attention. That nation is Japan.
Japan is the world’s third largest economy, has an aging population with a public debt at 200% of GDP. I do not see how this is sustainable long term because one cannot continue to spend more than one makes (even for a nation) indefinitely. The day of reckoning will come for Japan as it is coming for Europe.
Although it will not happen in 2012, I believe the United States will also go down this route and sometime later Canada will have to take responsibility for their financial books. Ontario’s situation is a sneak preview of what is coming for other provinces. Fortunately, in Alberta we have the strongest economy in the country and are much better prepared to weather the coming years.
Christine Lagaard was quite accurate when she saw the world economy as lost for the next 10 years. The only questionAlbertamust ask itself is how to cope and even prosper while the world struggles to find itself.