“After four years of warfare that tore the world apart like never before, a peace was finally reached. But it was a peace which one man in particular vociferously condemned — and that man was John Maynard Keynes.
In just two months, Keynes wrote the book that would make him a household name around the world — The Economic Consequences of the Peace.
In the book, Keynes was highly critical of the deal struck at Versailles, which he felt sure would lead to further conflict in Europe — describing the agreement as a “Carthaginian peace” — and with the passing of a surprisingly short period of time, he would be proven correct.”
~ Grant Williams in The Economic Consequences of Peace
After WWI, a particularly noxious set of treaties and economic reparations agreements were put in place that all but guaranteed a future WWII. Mr. Keynes sniffed that out and, sadly, was proven correct.
The lesson from this is that, at certain times, it’s really not that hard to predict “what” is going to happen next after disastrously short-sighted and self-interested policies are enacted. Predicting the “when”, with precision, is much trickier. But obvious misguided economic policies are destined to have a limited period of apparent (but false) prosperity, after which they end with a nasty Bang!.
We have entered just such a time. This isn’t a Trump vs. Clinton thing; I’d make this claim regardless of who won this week’s presidential election — as our plight is much bigger than a single Administration. And my observation is that neither political party had much interest beyond some temporary election year lip-service to the economic plight of the middle class.
And by “middle class” I mean anybody not in the top 5% economic bracket. For those doing the math at home, that leaves the remaining 95% of us stuck in the meat grinder.
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