Yesterday, the Fed pulled back its forecast of higher interest rates this year. Our economic overlords now plan to launch two rate hikes in 2016 instead of four, given the global risks that are showing up. I’m not convinced they’ll even do that much. But even if they do, it won’t matter. They simply don’t have the tools to address what ails the nation. Neither do any other central banks.
For years we’ve been warning that every developed nation is facing a demographic pandemic for which there’s no good solution. Long-term, each one has to figure out how to maintain its population, to say nothing of growing it. Without kids, we lose the major spending driver in the economy, as well as the working population of the next generation.
It’s the biggest economic story – and threat – of a generation, and almost no one is talking about it.
There’s only one solution. As I told Boom & Bust subscribers in their February issue: we need more sex.
Judging by what I hear on the radio and see on television, one might suspect people are having sex every minute of the day.
But while people are consuming sex-based media at a record pace, they’re not following through. If they were, then we’d have baby booms around the world, even with contraceptives.
In Japan, the problem is so bad that by age 34, 26.1% of men and 23.8% of women have no sexual experience. And the problem doesn’t go away once a couple gets hitched. 44.6% of married couples say they’re in sexless relationships. And of course, without sex, there are no kids.
We don’t have this extreme of a problem in the United States yet, but we’re moving in that direction.
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