Vern Scott
1 min readNov 15, 2021

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The largest thread here is that all Nations are running up massive debt owed to private forces (the rich, but also pension funds etc) in hopes that they can keep printing money to keep up with the interest (all of which is inflationary). Eventually investors will look to non-government investments for better terms. Despite the assurances of MMT Economists, someday many countries will default, with the rich etc suffering massive losses with only some of those countries' assets (mostly land and inflated money) as partial compensation. Don't blame capitalism, since it provides needed investment (eventually in good things, like renewables and electrification). Remember that investors (and the rich) often get burned in a kind of "live by the sword, die by the sword" rule of economics. Many say the bailouts of AIG/Goldman Sachs were unfair, but most taxpayer supports were eventually repaid. The real danger is when taxpayers lose faith in governments and they go into default. A good historic example is that of France's financial default of the 1780s, prior to the French Revolution (noted as a massive breach of human faith in the recent book "Sapiens"). Note also that the aftermath was chaos and a massive "redistribution of wealth", much for the worse.

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Vern Scott
Vern Scott

Written by Vern Scott

Scott lives in the SF Bay Area and writes confidently about Engineering, History, Politics, and Health

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