When people are fully free to make contracts with one another, and property rights are protected by the rule of law, life improves.
But as vigilance for freedom wanes, instead of remaining eternal, governments progressively begin to interfere in the private business affairs of citizens with unnecessary regulations, and with “public-private partnerships” — which is a euphemism for fascism.
If you interfere long enough with economic freedom, debt builds up. This can create sovereign debt crises. Here are examples of that, with what appears to be back-door bailouts after (these terrible debt situations improved):
When debt is higher than equity, you are “under water” — because even selling everything that you own outright (all your equity), would not be enough to cover your debts.
In 2010 in the UK, the debt share of all assets owned was apparently 84% (only 16% of the physical objects in the UK were owned outright, with no debt claims against them). In 2010, the UK had become “worthless” (5 times more debt than equity).
Then something mysteriously happened to the debt, as if the UK made “a deal with the devil.” Their debt problems apparently “went away” after that.
To proactively prepare for the debt crises which socialist and fascist policies cause, world leaders could attempt a world takeover — a Great Reset — so that individual nations who’ve been more fiscally irresponsible and “interventionist” won’t have to pay the price of mass public grievance (people rioting in the streets).
This is like a type of a “Hail Mary” pass, as when far behind in American football, and it can make it so that, instead of losing the game, the one-shot effort leads to a win.
Importantly for the world’s elites, the public doesn’t get to figure out that “big government” makes you poor. By using a bait-n-switch, they try to trick us into thinking that being poor (‘owning nothing’) is moral.
But the solution is a return to the economic freedom of pre-New Deal America — when government spent less than 10% of GDP, and federal regulations were the exception, not the rule.
Four things are required for perpetual economic growth: free trade, sound money, low regulation, low centralized planning and spending. The Great Reset involves violating all 4 things that are required to maintain a standard of living.
Reference
[17-to-1 debt-to-equity ratio for GE after forensic audit] — Madoff whistleblower claims General Electric is committing fraud ‘bigger than Enron and Worldcom combined’. https://finance.yahoo.com/news/madoff-whistleblower-claims-ge-committing-accounting-fraud-131211577.html
National Bureau of Economic Research, Ratio: Worth to Debt, All Manufacturing Corporations for United States [Q09092USQ156NNBR], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/Q09092USQ156NNBR
International Monetary Fund, Total Debt to Equity for Spain [TOTDTEESA163N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TOTDTEESA163N
International Monetary Fund, Total Debt to Equity for France [TOTDTEFRA163N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TOTDTEFRA163N
International Monetary Fund, Total Debt to Equity for United Kingdom [TOTDTEGBQ163N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TOTDTEGBQ163N
International Monetary Fund, Total Debt to Equity for Republic of Korea [TOTDTEKRA163N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TOTDTEKRA163N
International Monetary Fund, Total Debt to Equity for Canada [TOTDTECAQ163N], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/TOTDTECAQ163N