We are all rich, very, very, rich. (Western world)
How did we get here?
We now have mucho debt.
We also have assets. (businesses, real estate, precious metals)
If you think anything other than businesses, real estate, and precious metals qualify as assets you are in for a rude awakening.
Even if your assets are made up of those three you and I may still be in for a rude awakening.
The assets can change in value, the debt doesn't.
Oh contraire you say, countries just write off, or write down the debt.
Voila you don't have to pay it back.
Some are doing that, but how many can do that before the debt holders get a little cranky.
Cranky as in no more new debt for you.
Cranky as in your new interest rate is now 21%.
The USA requires 1.6 trillion in new debt every year to keep the ponzi scheme afloat.
You know what happens to a ponzi scheme when the new money stops coming in.
It collapses and Bernie goes to jail.
Who's in charge of this ponzi scheme?
You and I.
We elect those who promise to spend more and tax less.
You would think that we the ponzi schemers would want to come clean now. Admit our mistakes, go to our collective debtors prison so to speak.
You would think that, but you would be wrong.
That would be painful. We don't like pain. We like IPhones.
So now the masses have hit the streets, not to demand debt repayment start immediately. No, no, to demand government take more money from someone else and give it to them. That and borrow forever, as the government must take care of us.
Make rich people and big companies pay for it all.
How did we turn into this blubbering mass of pathetic spineless humanity?
The Keynesians tell us that we need to borrow more when we have an economic downturn. I assume Keynes also suggested we save (?) or pay it back during the economic boom times?
Look at the top three charts again. The boom was nuclear. Did we take that opportunity to pay back debt?
We borrowed more during the boom and now we are supposed to borrow even more?
That is my issue with Keynes. He assumes, like many economists, that humans and governments will do the rational thing.
Ever see a 2 year old throw a tantrum in a supermarket when Mom says no to the candy placed at the 2 year old's eye level at the check out counter?
Only we can vote.