The richer countries get into debt by borrowing from poorer countries that save more—that

1. the cycle of good and bad finances (e.g., the capital markets cycle), 2) the cycle of internal order and disorder

When the debt bubble bursts, the government bails itself and others out by buying assets and/or printing money and devaluing it.

When one can manufacture money and credit and pass them out to everyone to make them happy, it is very hard to resist the temptation to do so.

“from shirtsleeves to shirtsleeves in three generations.”

humanity’s capacity to evolve,

Of the roughly 750 currencies that have existed since 1700, only about 20 percent remain, and all of them have been devalued.

1. Austerity (spending less)

having a reserve currency is one of the greatest powers a country can have because it gives the country enormous buying power and geopolitical power.