Politics Politics is affected by economics and affects economics in classic ways. I won’t go into them all now, but I will touch on what I believe is most relevant for us to now consider. As previously mentioned, when interest rates hit 0%, central banks print money and buy financial assets, which causes these assets to rise. That benefits those who own financial assets (e.g., the wealthy) relative to those who don’t, which widens the wealth gap. Other factors such as technology and globalization (which remove the barriers between lower-cost and higher-cost populations) also contribute to the widening wealth gap within countries while narrowing the wealth gaps between counties. This causes the rise of populism and greater conflicts both within countries and between countries. Populism can be of the right or of the left. The conflicts can become harmful to the effective operations of government, the economy, and daily life (e.g., through strikes and demonstrations). This dynamic can become self-reinforcing because when populist conflicts undermine efficiency it can lead to more conflict and more extreme populism, which is more disruptive, and so on. Such times at their worst can threaten democracies and favor autocracies as most people believe that a strong leader is needed to get control of the chaos “to make the trains run on time.” For a more in-depth examination of this dynamic, see “Populism: The Phenomenon” (located here). Because populists are more confrontational and nationalistic by nature, and because domestic conditions are more stressful, the risks of confrontations between countries also rise during such periods. Over the past few years, we have seen this grow around the world. The emergence of populism in developed countries classically happens most forcefully late in long-term debt cycles when the short-term debt cycle turns down, which happened in the late 1930s and has a good chance of happening over the next couple of years, perhaps before the next US presidential election. The outcome of that election will have a big impact on just about everything.事业部门 :开那个视频会员好At the big picture level, there are three important equilibria that must be achieved or big changes will eventually occur to lead them to adjust toward these things being in equilibrium. Governments have two levers to use in order to push them toward equilibrium—monetary and fiscal policy. By understanding these three equilibria and these two levers, and by understanding how they influence each other, one can pretty well see what will come next.