When Money ceased to be backed by Gold five decades ago, our economic system began to function very differently than it had up until then.
Capitalism began to evolve into Creditism.
One key element of this transition involves International Trade.
Specifically, when Gold was Money, international trade had to balance. When Gold ceased to be Money, it no longer did.
Since then, the cumulative US Current Account deficit has been $15 trillion!
The importance of this change cannot be overstated.
It set off the greatest global economic boom in history.
Macro Watch On Substack is rolling out a series of videos that clearly explains everything necessary to understand how our economy works at the macroeconomic level in this post-Capitalist era.
This series is called Creditism 101. This video is the third in the series. WATCH IT NOW. You might need to disable your pop-up blocker.
From Balanced Trade To Globalization