The US dollar came to rule the world in the wake of two world wars. But back then, the dollar's hegemony was based on a solid foundation of savings and capital accumulation. But today, the dollar's growth is based on huge piles of debt.
Government manipulation is shifting wealth from Main Street to Wall Street. But most people don't see the growing gap between the growth of financial wealth and the real economy.
The thesis that “deficits don’t matter” does not begin with the English economist John Maynard Keynes, but with the much-less-known Polish economist Michal Kalecki.
Austerity need not be painful when the contraction of the public sector is accompanied by the expansion of the private sector. Thus, the real solution lies in fostering more progress in entrepreneurship and private ownership.
