For those keeping score at home, that means we are now playing the 1939 game, as that year provides the best analogy to our time.
In 1939, the world was slouching toward war. The West had returned to the austerity policies, negative growth and deflation of the crisis because bankers were back to making policy, and bankers don’t understand that money is a verb.
The bad guys of the time got this. Hitler ignored the bankers and re-armed his country. So did Japan. So did Italy. They demanded that money be spent, they directed it be spent on arms, and in the course of spending that money the economies of the Fascists grew rapidly.
In our time, bankers have far more control of the world than they did then, so austerity and deflation are more widespread. Austerity rules Europe, it dominates the U.S., and it’s becoming increasingly popular in China.
Only Vladimir Putin is prepared to ignore this reality and put money to work. He has sunk his currency, sunk his economy, but he has spent, believing that aggressive wars to win territory can succeed.