MAUI, Hawaii - Former House Speaker Newt Gingrich outlined for attendees at PSCU Financial Services Annual Forum what he called three great challenges that all Americans, including credit unions, will need to confront if the country is to remain a world leader.

First, Gingrich argued at the April 29 talk that Americans will need to reform their government and other institutions so that they will be nimble enough to keep up and take advantage of the changes in technology. He noted that the average smart phone of today has as much computing power as a desktop computer had as little as two years ago and he contended the way government is currently configured it will not keep up.

Second, he said that "China and India are not threats; they are facts" and that Americans will need to look closely at how many of its institutions such as education and taxation are structured to prepare to meet the dual competitive challenges China and India present.

Finally, he warned that "Government has become the fourth bubble," arguing that government, specifically the cumulative burden state, local and federal government has become too large and complex to be accountable or sustainable. The first bubble was the dot.com bubble, Gingrich said. The second was the real estate bubble and the third is was the Wall Street bubble, both still ongoing. The fourth bubble will be government and the amounts of sovereign debt that the U.S. and other governments around the world, particularly in Europe, have built up and which can no longer be financed.