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BFCSA investigates fraud involving lenders, spruikers and financial planners worldwide.  Full Doc, Low Doc, No Doc loans, Lines of Credit and Buffer loans appear to be normal profit making financial products, however, these loans are set to implode within seven years.  For the past two decades, Ms Brailey, President of BFCSA (Inc), has been a tireless campaigner, championing the cause of older and low income people around the Globe who have fallen victim to banking and finance scams.  She has found that people of all ages are being targeted by Bankers offering faulty lending products. BFCSA warn that anyone who has signed up for one of these financial products, is in grave danger of losing their home.

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BFCSA: Capitalism is in crisis, warns Bridgewater's Ray Dalio - widening inequality

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Capitalism is in crisis, warns Bridgewater's Ray Dalio

Australian Financial Review Sep 13 2017 10:14 AM

John Kehoe

 

A crisis in global capitalism characterised by The head of the world's largest hedge fund, Ray Dalio of Bridgewater Associates, says the economy was not delivering prosperity to the bottom 60 per cent of income earners and this had helped hoist the "populist" and "strong" Donald Trump into power.

He likened the present day combination of populism, inequality, high indebtedness and near-zero interest rates to the late-1930s, just before World War II broke out.

Mr Dalio does not envisage an imminent stock market crash. However, he said fixing the festering tensions inside the United States and between countries would be "even more important" for the economy, markets and society than Mr Trump's proposed tax reforms.

"I think as a manager, over the longer term, I'm worried more about the wealth and social gap and the conflicts that we're going to have with each other," he said at an investment conference in New York.

"I think it will be very important, you know, how that conflict is handled."

Australian Andrew Liveris, executive chairman of the recently-merged US chemical multinational DowDuPont, said a failure to address widening income inequality and an inadequate training of workers for digital disruption in the labour market had "come home to roost".

"We have many, many open jobs but not the skills to fill them," Mr Liveris told The Australian Financial Review on the sidelines of the CNBC Institutional Investor Delivering Alpha conference.

"That means we have employment but it's 'fake economics' because the people getting employed are in service jobs, contractor jobs with no benefits and no real income growth.

"It's almost a failure of Western democracies and capitalism," he said.

US census figures published on Tuesday showed real median household income rose a healthy 3.2 per in 2016, to $US59,039 ($73,584), but had barely increased from $US58,544 in 1999.

"For the American middle-class, it hasn't just been a lost decade. It's pretty much a lost two decades. An urgent economic crisis," Michigan University economics professor Justin Wolfers tweeted.

The resulting disenchantment and social disconnection has driven voters into the arms of populism and economic nationalism, which helps explain the election of Mr Trump and Brexit.

Mr Liveris led a White House manufacturing advisory council until it was disbanded recently after dozens of chief executives walked away from President Trump in response to his ambiguous and divisive reaction to race riots in Charlottesville.

Divisions between Americans over Mr Trump's reaction to the clashes between white supremacists and counter-protesters provided a glimpse into the social discord gripping America.

Darwin-born Mr Liveris said he continued to engage with the White House on workforce training, tax reform and streamlining project approvals. He also held out hope that the council could be "reconstituted" in some shape of form.

"Business would welcome that and I believe the White House would welcome that," he said.

"You've got to stay engaged."

Another business adviser to Mr Trump, Blackstone Group's Stephen Schwarzman, said the Charlottesville controversy had put "astonishing" pressure on public company chief executives to cut ties with the President.

"I was accused by people of being a Nazi. And I'm Jewish," Mr Schwarzman said.

"And so it was pretty clear that the country, itself, it felt like it was going out of control."

Mr Schwarzman, a billionaire private equity boss, said America had become an "adversarial society, and it's very broad. It's very deep".

He criticised the suppression of free speech, including by groups preventing right-wing speakers appearing on university campuses.

"That is not the way a democracy is supposed to work. I happen to think we're, like, really off-course. And ultimately these things get corrected."

Bridgewater's Mr Dalio said the widening social divisions made it imperative that the US and other world economies avoided recession in the near term.

"Because if there's a downturn in the economy, with this kind of a wealth gap, imagine what that would be," Mr Dalio said.

The rise of populism and economic nationalism in the US, Britain and parts of Europe has been emboldened by Mr Trump's criticism of globalisation and international trade that he argues has hurt working-class voters.

Australia would not be immune to a backlash against international economic and security integration.

Dennis Richardson, the former head of the foreign affairs and trade and defence departments, said in Washington this week the rise of populism in liberal democracies was triggering "anxiety and global uncertainty" not seen since before World War II.

"Australia trades a much higher percentage of its GDP than what the United States does. Therefore changes to global trading environments can affect us substantially," he said.

 

 

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