Beware the Consequences of Debt and War

Historical patterns reveal that unreliable currency and excessive government borrowing inevitably lead to lenders withdrawing their support, as exemplified by Sir Thomas Gresham’s principle of bad money driving out good. Current geopolitical tensions exacerbate this scenario, with countries like China divesting from U.S. debt while being pressured to finance military activities against them. The foolishness of governments is highlighted as they engage in practices that alienate potential allies, evidenced by the complicated situation in Ukraine, which resulted from foreign intervention and political instability. Overall, this cycle of dependency on debt and military threats leads to unsustainable and detrimental outcomes.