Thanks Vishal - appreciate you writing this article and the insights. This is not a criticism of the ideas the investment legends have put forward - but to me they are still looking at it from the context of the current system (I guess the best they can do). Yet what if a country is insolvent for example? There are a few what-if's to ponder, but the current actions of governments (oddly globally coordinated and prompt) have set the stage for changes that won't be "capitalist" friendly (in my opinion).
Interesting interpretation, and agree PIIGS etc. will be challenged, but in the Australian context this conflates government and corporate debt (plus the ideology and politics of tax cuts re. the Treasurer's comments), while ignoring our massive personal debt? In global terms Australia's government debt is relatively modest a little over 40% of GDP , while being viewed as a safe haven and could well attract funding globally (ameliorated by an inevitable decline in tax income/base due to significant decline in temporary resident churn over or NOM, 'net financial contributors'). However, the elephant in the room is personal and household debt which is very high in global terms i.e. round 120+ %, with increased unemployment, hence reduced ability to service mortgages and loans in short and medium term. Maybe our political and economic narratives need to focus upon the well being of all individuals and households and not just the need for 'tax cuts' and/or 'trickle down effect'.