This reminds me of a nice discussion on Edward Hugh blog in 2005
about demographics and PAYGO vs capitalization systems:

http://bonoboathome.blogspot.com/2005/09/oecd-ageing-model.html

Laurent

On Wed, 2010-06-09 at 09:00 -0700, Jim Devine wrote:
> New York TIMES / June 8, 2010
> The Blog Prophet of Euro Zone Doom
> By LANDON THOMAS Jr.
> 
> BARCELONA, Spain — For years, almost nobody paid attention to the
> sky-is-falling alarms of Edward Hugh, a gregarious British blogger and
> self-taught economist who repeatedly predicted that the euro zone
> could not survive.
> 
> Living a largely hand-to-mouth existence here on his part-time
> teacher’s salary, he sent one post after another into the Internet
> wilderness. It was the height of policy folly, he warned, to think
> that aging, penny-pinching Germans could successfully coexist under
> one currency umbrella with the more youthful, credit-card-wielding
> Irish, Greeks and Spaniards who shared the euro with them.
> 
> But now that the European sovereign debt crisis is rattling world
> markets, driving the euro lower almost every day and raising doubts
> about the future of the monetary union, his voluminous musings have
> become a must-read for an influential and growing global audience,
> including policy makers in the White House.
> 
> ...
> 
> At the same time, Mr. Hugh is determined to resist some of the
> newfound temptations that have lately come his way. He said he had
> turned down lucrative offers from hedge funds to provide exclusive
> research because he did not want his views monopolized by any one
> entity — although he said he was considering an offer to join the
> stable of contributors who work for Mr. Roubini.
> 
> And when the Michael Milken Institute — financed by Mr. Milken, a
> felon who managed to hang on to a fortune even after having to pay a
> $550 million fine for his actions during the junk-bond boom of the
> 1980s — paid him $3,000 for a short report he did in a day on Eastern
> Europe, Mr. Hugh gave the money to a friend who was having trouble
> paying her mortgage, he said.
> 
> “I don’t want to take a check from Michael Milken, thank you very
> much,” he said.
> 
> [http://www.nytimes.com/2010/06/09/business/global/09blogger.html]


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