I have always been amazed by our collective ability to forget history. This applies to everything from politics, to war, to economics. The same things repeat with varying predictable patterns throughout the centuries. As Mark Twain is reputed to have said, “History doesn’t repeat itself, but it often rhymes.” I have always believed those who read history books are much better prepared for the future. We are at a moment in history where it feels like almost no one has read anything. Although that may be an exaggeration, it does seem like those who are most ignorant of history are also the people steering our current course.
As I look around, all I see is a perfect storm of stupidity. Trade wars tend to end in disaster, violent conflict, and bankrupt nations. Excessive debt robs future generations and excessive money printing eventually destroys all paper currencies. All of these threats are currently in play.
Previously, I have written about the dangers of trade wars and excessive debt. I think a series of recent events warrant a conversation about monetary policy. It’s a heady subject, I know. But people need to understand the basics if for no other reason than to plan their finances.