We are reaching a global denouement after 45 years of fiat monetary manipulation. Whether this will result in a Reagan-like economic rescue and continuation of American prosperity or a Great Depression-like global meltdown followed by social chaos, government mistrust, and war remains to be seen. At some point though, the world will work itself back to monetary stability based on a classical gold standard. The world will have no other choice. It is simply not possible to efficiently manage economies if the standard for the value of labor, goods, and services is constantly changing.
One hundred years from now, future generations will look back on this era and say, “They did what!!!? They gave the chairman and 11 other members of a privately held bank, known as the Federal Reserve, complete discretion to enact their academic theories and manipulate the world’s reserve currency at whim, without regard to any standard? They held the economic well-being of the global population of billions hostage to one man’s PhD thesis? How was it possible for humans, in an era of great technological leaps, to be so economically backward? They not only purposely destroyed their global standard of living, but had to live without virtual sex.”
But what do I care. Keynes got one thing right. In the long run, I’ll be dead.