Our world currently has:
- A common commodity of exchange per nation, which is infinite in supply.
- A common commodity of exchange of one nation (USA) being used as the common commodity of exchange between nations.
This has lead to irrational behavior among the governments and especially USA like:
- Irrational credit & spending.
- Larger governments controlled by pull & lobbyists instead of merit & reason.
- Irrational wars. (It is no coincidence that the century of World Wars coincides with rise of fiat money).
- Richer religions capable of lobbying for irrational laws.
- Morally corrupt, Clandestine operations funded by the government.
Let me try to speculate how this will turn out:
The US congress will increase its statutory limit on federal debt and continue to pay back its foreign creditors in new devalued US$. The asians, especially the Chinese and the Russians will try to own a lot of gold instead of US government bonds. This will result in hyperinflation by the US government if they wish to continue to spend for their ambitious plans. If the US government keeps becoming a regulator instead of a facilitator of human activity, a mere 50 years is all that is needed for brain drain from USA. If enough chinese communist party members are still alive 50 years from now, the Chinese will go back to their communist ways, otherwise they will remain a profit seeking economy with strict regulations, no social freedoms and high growth. Indian economic growth will become unsustainable if the government does not allow privately owned infrastructure. If the western civilization do not continue to keep their economy well running and demography secular, they will not be able to maintain social freedoms. This will automatically result in end of social freedoms across the rest of the world because the west is the only reason why people believe social freedoms are good.