99 years ago the Fed was born. Then there was a world war. Two decades later, Keynesian economics (in a somewhat mutated form than that envisioned by the author, much like the Taylor rule) became the gold standard (pardon the pun) of the status quo, as it gave the political establishment a "scientific" justification to spend and accumulate gargantuan debt loads without fear of backlash by the public. Then there was another world war. Then the gold standard was obliterated, allowing the same establishment to dilute the instrument used as money and to cross the "gargantuan" barrier in spending and debt issuance. Then the world came to the verge of complete socio-economic and systemic collapse after a ponzi pyramid of $1 quadrillion in credit money nearly imploded in on itself. Then the final chapter of the corporate takeover of the sovereign model established by the Treaty of Westphalia arrived, as private deleveraging at the terminal expense of public debt took place at a record pace. This is a nutshell is the world history of the past century. And to summarize where we currently stand, we present the chart below. In the entire "developed" world, there is only one country that runs a budget surplus, even as the entire "developed" world is now, according to the Reinhart and Rogoff definition of sustainable public leverage, insolvent.
[5]
And that, ladies and gentlemen, is Keynesian-Monetarist #winning!
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P.S. Among the list of key events above, we did not mention the following two other majors one: the creation of the Welfare state by Bismarck in 1870 as a German unification ploy, whereby people were promised virtually anything if only they voluntarily agree to participate in a sovereign ponzi scheme which by definition is unsustainable and cede liberty in order to perpetuate a lie subsequently adopted by all "developed" world governments taking advantage of their mathematically-challenged citizens, nor the 16th Amendment [6]ushering the personal income tax (previously ruled unconstitutional), coincidentally the same year the Fed was born, which in turn enabled the creation of the most bloated apparatus (which as a reminder produces nothing [7]) known to homo sapiens - the US government.