The shift in the balance of power from West to East means that those living in developed economies must come to terms with the need for a lower standard of living said a spokeswoman at Okuma Group.
The Asia-based investment firm told clients in a scheduled email that the high levels of debt built up over decades by governments in developed economies would see significant increases in personal and corporate taxation whilst increased competition for natural resources from emerging economies including China, Russia, Brazil and India would most likely see them having to pay more for commodities like crude oil.
Okuma Group are thought to believe that the new austerity measures aimed at reducing debt may lead to increasing social unrest in countries like the United States, Portugal, Greece and the United Kingdom.
The spokeswoman continued by citing significant social unrest currently taking place on the streets of Athens in Greece with protesters angry about pay freezes in the public sector and looming increases in income tax. The measures are made all the more unpalatable by the fact that several nations still remain constrained by poor or anemic economic growth.
Okuma Group said that the divisions between haves and have-nots are likely to become more pronounced in the years going forward and suggested that the best way for its clients to ensure their financial well-being was to protect their wealth from the ravages of inflation.