Thank to improved healthcare and better diets, people are living longer. What this adds up to is that, unless there are some radical solutions, the retired will start to exceed the actively working population in many countries within the next 50 years.The obvious effect of this is in pensions. These seem to eat up more and more money, and yet seem to need exponentially more to fill up the shortfall. What to do about funding retirement is a debate that has been raging for many years, without anyone really coming up with much of a solution. Looking at the figures from actuaries Watson Wyatt, estimating that public sector pensions have a £690bn black hole, I was reminded of the words of Tennessee Ernie Ford: Looking at the figures from actuaries Watson Wyatt, estimating that public sector pensions have a £690bn black hole, I was reminded of the words of Tennessee Ernie Ford: "You load 16 tons and whaddaya get?Another day older and deeper in debt"The Government's pensions problem mirrors that of the private sector, and both ultimately weigh heavily on the wallets of the poor workers.

German growth is still an oxymoron, while Japan has quietly slipped back into recession - its third in four years.Until these economies can begin to generate their own domestic demand, we should be grateful for America and its consumers.. They live beyond their means and are reliant on the rest of the world's savings to finance that consumption. But it is also true that without those American consumers, there would be precious little growth around.While the British and French economies are performing well, the eurozone as a whole remains weak. And that contrasts sharply with the ostrich-like approach of the Japanese and several European governments, which face a far more acute problem.Turning to the trade deficit, it is true that Americans consume too much. But it is a first step in recognising that there is a problem.

The proportion of those over 65 is set to double by 2050, while those in work will only increase by 20 per cent Hence, the situation will only get worse. The Bush plan is to allow individuals to set up private accounts to save for their own retirement.This amounts to a partial privatisation of the fund and is likely to meet with stiff resistance from the Democrats. It has until now been in surplus - that is, contributions have outpaced payments. But this is set to change.The non-partisan Congressional Budget Office argues that by 2020 the fund will be in deficit.