What came first in the rich world, poverty or money printing…?
What ensures the success of a rich country? How to gauge where it is headed?
Do the answers lie in… technology, rightly obtained wealth, colonial gains, preservation of culture or geo-political might…? Possibly none.
Then what might it be?
We illustrate the possible answer through 3 countries. Guess the country before the name is revealed at the end of the each section.
Guess country #1
Tax revenues $1.5 trillion per year, with population of only 126 million.
19 million people equal to 16% of population in poverty, public debt including money printed 310% of GDP. Budget in deficit $160 billion.
$5 trillion money printed, equals 335% of tax revenue.
High technology excellence caused desexualisation of the country leading to depopulation. Unwelcoming of immigrants, more adult diapers sold than baby diapers.
Central bank equity down to only $36 billion, 0.6% of its assets.
Guess country #2
Just 70 years ago took away >$45 trillion from it’s colonies.
$800 billion money printed equals 80% of tax revenue.
Tax revenues of $1 trillion/year with population of only 66 million.
14 million people equal to 20% of population in poverty.
Public debt including money printed 110% of GDP. Budget in deficit $80 billion
Central bank equity of only $5 billion, equal to 0.6% of its assets.
Guess country #3
Total bank deposits of $2 trillion against GDP of $700 billion.
$800 billion money printed equal to 432% of tax revenue.
Direct democracy, where people directly decide policy matters, for 120 years.
Public debt including money printed 155% of GDP.
Eight percent of small population equal to 700,000 people in poverty.
Going back to our initial question… if poverty alleviation is a key metric for a country then what does it take to succeed as a country…? If it is not technology, colonisation, rightly or wrongly obtained wealth or geo-political might… is it also not how much money you have or you can print.
It may be simply good old living within the means…but going forward… do central banks balance sheets & money printed provide us the best guide to the future of the countries?
Authored by: Mohit Arora and Devesh Srivastata for Credit-Cue.com
Disclaimer: We are not related to economics or tax policy in any manner nor such any association is implied. Information not to be used without independent verification by users. Analyses based on publicly available information using layman’s sense. Such data is widely accessible on the internet. No accuracy assured. Information sources available separately.