dothemaths

In most of the world you have a tiny middle class sandwiched between a large underclass and the elite. The middle class in these societies is basically non-existent.

Crazy times lead to crazy theories. They might be wrong but it is up to you to prepare yourself for any eventuality. Do you ignore it because it is unpleasant? What if it turns out to be true?

Most of those households without a mortgage are boomers or older. Anybody under 35 who has paid for their house outright most probably has inherited or is very highly paid.

Actually, in those days traveling by ship was the only way to travel between continents so there usually was always a significant number of lower class passengers on any big liner. Nowadays of course, we fly and the great ocean liners have been replaced by cruise ships plying their trade in warmer climes. If you have time, watch the great BBC series, "The golden age of liners" - it might still be on iplayer.

Tell that to Kim Kardashian

I'll say it again, this will be hard to accept for the majority and I expect at least a decade of denial.

Do you own your house outright? If you do then you are exceptional. If you do not then watch out if you are not highly skilled. I would cut back on those foreign holidays and overpay on your mortgage.

It's not China, it's globalization. You can replace ambitious Chinese parents by ambitious middle income country parents. It's worse - not just 1 billion but 3 billion new competitors.

They will most probably be sold by their owners to pay for their old age so little inheritance. The most desirable will be bought by a highly skilled global elite. There might be an interim period of instability with revolutions and/or dictators until the local population accept their reduced situations. If they destroy too much then the country will just become an insignificant underdeveloped backwater but I'm not that pessimistic ....

For those who are willing to face the truth this is the real reason why you will be poorer than your boomer parents. It is a difficult reality so I am guessing many will refuse to accept it and we will see the rise of extremist parties and crazy illusions in the next decade or so. From blaming past generations for 'living beyond their means' to 'the state was too big' or even 'the economy will only recover when the unsustainable debt is paid down' . All wishful thinking, the economy will never recover to the way it was the last 50 years or so. The debt is the symptom not the cause of the relative decline of the west. The simple reality is simply that the world has become much more competitive for the average westerner and the things that past generations took for granted will simply not be available to the mediocre (i.e. the middle class) in the current one. How China is winning the school race

+ 1

Provide evidence when you make wild claims please ...

This is not new at all. Larry Elliot has been saying more or less the same thing since the crash of 2008.

Nothing you're not privy to. Simply the Vickers report.

Exactly what I'm seeing around me in BS6-9. The 'recovery' we've been seeing since 2009 seems to be over. Sellers are beginning to reduce asking prices for flats. I had a look at BS2 on rightmove and asking prices for city centre newbuilds which didn't recover are now even cheaper than they where at the beginning of 2009.

Sounds like a blast !! Can't wait.

Brits have been going to work in unpleasant places in the middle east for decades. They went for the money and worked for as few years as possible to get the cash they wanted because quality of life in those places were dreadful. They usually had solid qualifications but they were not the best of the best - they could get higher wages than back home (or USA/Canada/Aus... i.e. english speaking, hence easy migration targets) because the skill level of the local population was low by global standards. But they paid a price in their social lives. Your Portugese engineers in Angola/Mozambique seem to be similar. I'm not expecting that quality of life in downtown Luanda is that great .... Going to work in China is not news. It was clear two decades ago (simple demographics) that they were poised for massive growth and the smart cookies were already getting connected in the early 90s - I know several people who went out there to work for a few years around 10-15 years back. They made contacts, some money but came back after a while. Fast forward to today, I was in Beijing a couple of months back - interesting place, booming building site. Still a place to work for a couple of years but probably not longer .... why ? Simple, quality of life, cultural attitudes too different to what most of us are willing to tolerate. And for those who can choose, the choice is obvious.

The smartest and most capable people in the world (those who can decide where they want to live without the need for inherited wealth) vote with their feet and they don't go to the lands of the kings and dictators .....

Outside the developed world it almost certainly isn't.....

Well I believe in the existence of fairies .... .... as much as I believe that free markets have ever existed ...

Very naive, young un, it's always been like this and will never change.

Democracy requires an honest press and honest politicians who must tell the population hard truths. Now for the last 2-3 decades, there has been a rise in corruption funded mainly by big finance of the press/politicians which has got us to where we are now.

Bank lending should be controlled Lord Turner states the obvious ....

very original - every bankster I met has said more or less exactly the same ...

Mr Rastani has hired Max Clifford, so he's sorted .... Independent diary