The two pillars that support the entire modern monetary system—that central banks have a clear mandate for price stability and that they are independent from governments—have crumbled over time.

For years, people have questioned the independence of central banks. However, from 2020 onward, this independence has virtually vanished. A monetary authority that does not consider monetary aggregates in its policy is effectively abandoning price stability as a target.

If we look at the Fed’s actions since 2020, we can see how it has prioritized government debt over price stability. Initially, the Fed accelerated the money supply to its highest level in decades, enabling significantly higher spending during a lockdown. Afterwards, the Fed maintained aggressive easing policies despite rising inflation, announcing that price increases were “transitory.” Four years later, government spending has risen by $2 trillion above 2019 levels, and inflation is persistent despite the U.S.’s record energy production and competitive advantages.

Imagine a government that knows that the enemy is coming and decides to withdraw its troops. This is what California authorities have done.

They claim to know that climate change will cause more natural disasters yet decided to eliminate key investments and budget items to offset the impact.

The southern California wildfires could cause between $52 billion and $57 billion in economic damage and at least five dead. Imagine a government that knows that the enemy is coming and decides to withdraw its troops.

This is what California authorities have done. They claim to know that climate change will cause more natural disasters yet decided to eliminate key investments and budget items to offset the impact.

If you want to really understand the current monetary system and the risks and opportunities it creates, you must read “The Age of Debt Bubbles“. This is a comprehensive, informed, and thorough analysis of the current global monetary system.

Debt bloats the global economy. Spending and debt, rather than savings and prudent investment, form the foundation of economic development.

This debt-based system, where sovereign debt is allegedly the safest asset and governments continue to stretch their solvency ratios, is constantly generating boom and bust cycles. Through a meticulous examination of historical data and trends, this book analyses the risks posed by the ever-expanding debt bubbles.