I mean Bernanke isn’t the Keynesian that Krugman is.
If anything, I’d put him up there with Mankiw and honestly Mankiw isn’t as insufferable as Krugman is.
But yeah I…
The average US citizen benefits from the reserve currency system in the same way that a group of wild animals benefit from an 85 year old terminally-ill cancer patient feeding them every night.
I’m not sure I understand that metaphor but the US Citizens do benefit from the Fed and the Fiat Currency we push as well as the wars we fight.
All of it has been to our benefit.
The problem is that the system is unsustainable. Eventually, you run out of willing trade partners and you run out of confidence in your currency.
The good part about our money is that everything associated with it is deferred.
The bad part about our money is that everything associated with it is deferred.
That’s the underlying philosophy of Keynes and his General Theory. “In the long run, we’re all dead”.
The theory is that we can, if we are actually careful and diligent and near perfect with our monetary policy, we can always put off the debts and virtually no one will notice and we can keep this up for as long as others are willing to believe that we are strong and capable and wealthy.
The problem is that when it catches up with you, the entire system crumbles onto our heads.
The citizens of America haven’t really had to bear the burden of our own flawed system. We are just coming under attack because of it from both abroad and within. But, until now, we’ve all benefited from it. No need to lie about that.