I'm afraid that we're reaching the end of a very long road. Unsound money ("fiat" money not backed by gold) has led, since the abandonment of the Bretton Wood’s “sound money” arrangement, to huge and unsustainable global imbalances in trade and debt. But because trade deficits REDUCE our nation's GDP, persistent trade deficits in our country have led to rising debt at every level as we try to maintain the "appearance" of a rising standard of living. This is partly why the US ran $10 Trillion in government deficits in the past 10 years alone. Can you imagine what our economy would have looked like without all that money? It would have been outright Depression. (I'm not even going to mention the $4T bank reserve creation by the Federal Reserve).
We're Reaching the End of the Road
We're Reaching the End of the Road
We're Reaching the End of the Road
I'm afraid that we're reaching the end of a very long road. Unsound money ("fiat" money not backed by gold) has led, since the abandonment of the Bretton Wood’s “sound money” arrangement, to huge and unsustainable global imbalances in trade and debt. But because trade deficits REDUCE our nation's GDP, persistent trade deficits in our country have led to rising debt at every level as we try to maintain the "appearance" of a rising standard of living. This is partly why the US ran $10 Trillion in government deficits in the past 10 years alone. Can you imagine what our economy would have looked like without all that money? It would have been outright Depression. (I'm not even going to mention the $4T bank reserve creation by the Federal Reserve).