We have two very important economic essays today.

The first by John Mauldin discusses why rising government debt is so debilitating to the health of an economy.

The second by Woody Brock on strategies that minimise and maximise economic growth.

These are not easy reads but both are very methodical and well thought analyses of the challenges faced by the high income countries.

It may require you print them out, get out the yellow highlight pen, and slowing absorb their message.

It is worth it.

John Mauldin's The Last Chapter.

This week you will get a kind of preview as this week’s letter. http://www.ritholtz.com/blog/2010/09/the-last-chapter/?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TheBigPicture+%28The+Big+Picture%29

Woody Brock's The End Game Draws Nigh.

Preface: In this new report, we link together three quite different concepts that have been discussed in these publications during recent years. First, the problems posed for classical fiscal and monetary policy when extremely large deficits must be financed; second, the critical importance of the rate of economic growth as primus inter pares of all economic variables; and third, the all-important concept of "incentive-structure-compatibility" introduced by Leonid Hurwicz in the 1960s, and recognized in the award to him in 2007 of the Nobel Memorial Prize.  http://www.investorsinsight.com/blogs/john_mauldins_outside_the_box/archive/2009/05/18/the-end-game-draws-nigh-the-future-evolution-of-the-debt-to-gdp-ratio.aspx