I think it can get much worse than that.<p>I don&#x27;t know why people think the current levels of accumulation of debt are sustainable but there is a limit to what even the US can roll in term of debt. All developped nations are at around 100% debt to GDP, more than 200% if you include private debt, and growing at 3-5% per annum.<p>Now does anyone really think that sometime soon any developped country will start making public surplus and deleverage for 30 years? That&#x27;s never going to happen.<p>I think one or both of two things will happen: 1. massive defaults of states and therefore of banks and insurance companies. 2. Long period of high inflation.<p>Either way savings from people now in their 30s will be wiped out. A little gift from the departing generation (baby boomers)...