American is falling from within and the public is now just beginning to catch on. The outliers of the economic pain are effects of attempted empire building and short sighted greed of American leadership. This article should help explain the cause of how this is occurring. Events for American’s are going to be messy and most likely, very bloody by the time it’s all over.
At the tail part of the Roman empire, the empire began recruiting mercenaries alongside it’s professional standing army of Legions. The problem of course is that mercenaries are not aligned with the goals of an empire. Loyalty is determined by whom pays the most. Mercenaries also wanted the privileges of Roman citizenship but would not integrate into the society. Rome cheapened it’s citizenship in such fashion losing it’s primary purpose and value of what citizenship meant.
If you don't know the story, Rome fell from within in 476 AD when Odoacer, a German mercenary deposed Romulus Augustulus: http://ancienthistory.about.com/od/fallofrome/a/EndofRome.htm . I see a lot of similarities to utilizing Mexican illegal aliens as cheap labor to substitute a fundamentally sound nation and empire. The result of Odoacer’s actions of splitting the empire was foreign interests controlling the west and Rome still maintaining control in the east. These are not lesson lost on me and should not be discounted out of hand. Nor would such lesson be ignored by America’s enemies. The fall of American empire is not a secret desire I wish for, as the dark ages followed this period, creating massive power vaccums, physical and economic turmoil as those attempting conquest rush to fill the void of law and order.
The United States relies heavily on oil imports, meaning it must bend it’s foreign and domestic policies around the wishes of oil producers. The Roman’s energy source was slaves, captured via military conquest. In today's terms of abundant energy source, cheap oil was the result of our military presence in the Middle East. But like the Romans whom overextended themselves, the tables are turning as America will be unlikely to maintain it’s military monopoly in the Middle East. The very same source of energy will dictate the price of it's product.
Lastly, empires begin to borrow from foreigners to maintain it's positioning and the compounded interest means foreign creditors greatly influence the affairs of state.
A Fresno judge shuts off water for farmers and those crops grown domestically then get imported from China and other nations at a substantial mark-up. This practice is known as mercantilism and was the real reason of the American Revolution, as people are unable to afford the increased cost to live. Britain forced the colonists to move away from it’s own banking system and colonial script and into the pound. Britain itself being empire had overextended themselves and felt it was the colonists duty to fill the economic void.
The American politicians can no longer hide the agenda of providing non-sustainable entitlement promises in exchange for votes. The United States government can no longer afford empire and expects it’s citizens to fill the economic void, borrowing from foreigners whom now are practicing mercantilism as American politicians wink at it, themselves bribed and corrupted to leave such practice intact. Is any of this sounding remotely familiar to you as it applies today? Is the US government, meaning the people in control of it’s own printed currency or is it completely private interests in control? Are they interested in reinvesting in America or have they decided China is a better bet?
Here is a great article with some historic American figure warnings and, further food for thought on this subject matter: http://www.americanchronicle.com/articles/view/20035
The key to renewing America is vastly increasing domestic energy production. But what is America’s energy policy? Outside of mercentilism, there doesn’t seem to be one. Cap & Trade, meaning accepting higher energy import prices and subsequent trickle down costs seems to be the policy. This will be a huge additional drag on our economy already in shambles. Meanwhile, we will cater to the whims of foreign nations.
That Healthcare was the current Adminstration’s policy centerpiece demonstrates either complete ignorance of history or purposeful intent to keep America controlled by foreign interests. Now if all American’s had the right to freely invest in other soveriegn nations without restrictions or the threat of confiscations by Socialist or Communist regimes, then I believe that would all be well and good. But we don’t live in such a world – yet. It seems we have decided to trust sovereign nations to decide what is best for the American people. But perhaps just as much folly is these foreign nations believing that somehow the American government can enforce increased innovation and productivity while being in perpetual poverty.
I for one would have voted for the government conducting the Manhatten Project of energy independence and paying higher taxes for such an energy independence effort in the short and medium term. I cannot vote for and must oppose policies that support repeating the mistakes of the very same empire America fashioned itself upon. If that makes me racist, then give me the grand prize of racism.
Since I could care less about race, religions, sexual preference otherwise known as ‘equality’ seeing Barrack Obama elected, I care now only about Liberty. The right for an individual to reap rewards for productivity, innovation and accepting the consequences of wrong decisions. That is the foundation of Capitalism. I want a government that more then acknowledges this God given right, it defends it as it once did. The exact opposite is happening so it should be no surprise to see hundreds of thousands of people protesting whom understand the difference between Capitalism and Mercantilism, Fascism, Feudalism, Communism, Socialism or whatever term describes theft of productivity. The names change but the games stay the same.
In the information age, cause and effect of the rise and fall of empires are compressed in mere decades rather then centuries. The fall of the Soviet Union was twenty years ago and we are now at the very doorstep of the collapse of the American empire. Will America survive and prosper once again? Yes, but the question of whether the United States government known as Uncle Sam does is probably the more pertinant question.
Other nations chasing the prize of global hedgemony and preparing to receive spoils of our collective stupidy have already missed this important lesson - That obtaining such a prize of empire in the Information Age has become far less valuable. Alas, in the nuclear age, another world war would be catastrophic and the prize of empire made meaningless. But unfortunately I feel that the nations of the world will not learn this painful lesson until such a conflict is concluded and leaving us all on earth the job of building a shattered world to rebuild. Perhaps the only silver lining is that we may just leave certain practices behind and improve on others.
If We the People are going to pay a heavy, collective price for not paying attenting these last few decades to arrive where we are at now just like the Roman empire, then that price paid should include restoring Truth, Justice and the American way, true Capitalism – Reward for prudent decision-making and the protection of the fruits of one’s labors.
Jason Rines is the founder of Raging Debate, LLP which facilitates responsible writers and politicians with websites whom are tech challenged and attempting to educate the public.
70 Comments
Anonymous
Interesting essay. You have correctly seemed to have identified the problem now what is the solution?
American
Education would be a starter for such a solution. 5,000 The Burning Platform type sites online should do the trick. But the people running for public office that face a pay-to-play system will also need to be supported. How many hundreds of millions in campaign contributions for Barrack Obama came from overseas? A lot of bailout money in the form of 'State Aid' for job creation like Acorn type organizations will need to be matched from Patriots going the other direction. It seems we'll all be tasked to tackle the enemy within and then the enemy without.
doubleguns
You very well have summed up the issues. We are heading for a collision with destiny and that destiny is led by rampant corruption and apathy by the people. Too fearful to stand up and too fearful to seek a solution. They continue to grasp onto what they know and fail to realize it is the very cause of this crumbling nation.
So like lemmings to the sea they plung head first down the spirl, bitching and complaining but still embracing the cause of the collapse around them ignoring all possible solutions. This will end very bloody and ugly unless we stop it.
"Think we should get up from the couch, maybe do something, oh pass me another beer and shut up. Go read a website or something."
It is time to do something! "If not us, who? If not now, when?" Hillil
Be an involved patriot and turn your country around. Don't just be a flag waver sitting on the couch.. Join GOOOH and be the solution before we get too far down this road and its too late.
Kopernicus
I apologize; I’ve held my tongue, but....
Among other things: please look up when to use “who” and “whom”. “Whom” is used for accusative and dative purposes. “Who” is for nominative cases. Not one have I seen you get correct.
English is a Germanic language from Germanic peoples: the first wave being the Germanic Anglo-Saxons; the second wave being the French speaking Germanic Normans. So… if you consider “the German mercenary Odoacer” taking over Rome as Mexicans taking over America, then looks like the Germans, Scandinavians, English, Scottish, Dutch and French are all “cheap Mexican labor”, and we should be "pressing two for Dutch, English, German, Norwegian, etc."
Oh, and nothing happened during the Dark Age either…. For example, the Germanic King of the Franks (lineage of Charlemagne) did not, in one of the greatest battles of history, defend Western Civilization against the Arabic hoards…. Look up the Battle of Tours among many other things in the "Dark Ages" when the "Mexicans took over".
Kopernicus
There is no similarity to "cheap Mexican labor" and Germania and the fall of Rome. The Germanic peoples were the defenders of Western Civilization and took up the torch when Rome was falling. Not only was Germania particularly integrated with Rome (Emperors before Odoacer were FROM Germania and elsewhere), the Frankish Holy Roman Empire which lasted over 1000 years established and defended Christianity on the continent. These people were Indo-European just like Romans and Greeks, not "cheap Mexican labor".
What about Trajan, Claudius or Hadrian????? Claudius was born in Serbia. How come their ascension didn't symbolize "cheap Mexian labor" taking over???
anarkst
"... then that price paid should include restoring Truth, Justice and the American way, true Capitalism – Reward for prudent decision-making and the protection of the fruits of one’s labors."
"True" capitalism? I 'm not sure who came closer to the real thing, the Soviets to communism, or the Americans to capitalism? In other words, "-ism" is simply another term for, "We're going to steal you labor power from you, and here is our new and improved way of doing so!"
bloodworm
"The right for an individual to reap rewards for productivity, innovation and accepting the consequences of wrong decisions."
You hit the nail on the head with that one! But lets make sure we understand that this problem did not start with the Obama administration. In fact I think it really started with the "Greenspan" administration.
The bailout madness went big under Bush/Paulson/Bernanke and got a dose of roids under Obama. The entire economy seems to be propped up by "givernment" right now.
No action is needed by us....its actually too late to do anything and only a matter of time before the real depression hits.
jakgaph
Great work Jason !
Novista
Nicely written, Jason.
I think on the nature of capitalism and view the golden age as the 19th century America. Yes, well ... was it perfect"? By no means, just the best system that worked for the people generally. This is evidenced by the rise of productivity in significant rates, despite the facts of conflicting policies and cabals, not the least of which was the Hamilton, Clay, Lincoln and disciples of mercantilism. Nonetheless, the standard of living for the average American was the envy of the world.
Unfortunately, few seem to know the positive aspects of that era. Negative ones, like 'the robber barons' (Matthew Josephson's term) actually described crony so-called capitalists working hand in glove with government subsidies. Meanwhile, James J. Hill completed the successful Great Northern with no 'help' from the Washington cabal, all private capital.
Positive ones, like George Westinghouse (railway air brake and signaling systems, later development of Tesla's alternating current system, valued their workers and also plowed a lot of capital returns into research and development. The last factor was what got Westinghouse removed from his own company, courtesy of the banker class. Nothing new under the sun ... Oh, but -- Westinghouse after his retirement invented the automotive shock absorber.
Even Henry Ford, with all his faults, asserted, "I should pay my workers enough to buy what we build." The second-rater so-called capitalists hated him for that. And thus the automobile which started as a rich man's toy became the modern 'horse' for ordinary people. (Ironic factoid, his original design was based on an engine using ethanol ... ) Now, the suburban sprawl due to the auto is taken for granted.
By then, the bloodied 20th century had already risen its tarnished rise-of-empire head from the aftermath of the Spanish-American war and the repression of the Philippines. Step-by-step, the tentacles enmeshed the United States: Panic of 1907, precursor of Jekyll Island secret conference, the 16th amendment, a world war. The Recession of 1920, the only non-invention one because the government didn't get into "We must do something!" mode quickly enough, ended in less than a year. Then the Fed tried its sleight-of-hand and brought about the Great Depression, with a complimentary recession in 1937. Unemployment at 25% peak, so much for the Fed's dual mandate -- and their long term performance on the stability of the currency is nothing to write home about.
The rise of the military-industrial complex that Eisenhower railed against in his farewell address (a key word -congressional was in the original draft but deleted from the speech) developed in response to WW2. The war ended and the MIC didn't. The Cold War took its place.
"A recently declassified study on Soviet intentions during the Cold War identifies significant failures in U.S. intelligence analysis on Soviet military intentions and demonstrates the constant exaggeration of the Soviet threat.
The study, which was released last week by George Washington University’s National Security Archive, was prepared by a Pentagon contractor in 1995 who had access to former senior Soviet defense officials, military officers and industrial specialists.
It demonstrates the consistent U.S. exaggeration of Soviet “aggressiveness” and the failure to recognize Soviet fears of a U.S. first strike. The study begs serious questions about current U.S. exaggeration of “threats” emanating from Iran, North Korea and Afghanistan."
None of this 'just happened'. Day by day, the best of America was eroded from within. By design. Maybe it wasn't intentional but ignorance of unintended consequences is no justification.
"Looking forward" is not the answer if you don't know where you came from as a nation or where you are going, like a chip of wood at the mercy of a raging river current. Do you want to regain what America once had or restore that and improve on it? To do so, you need to understand the past and plan for that improved future.
Mikey
Jim..... Don't let this Jason Rines post major articles on your site. Jason's a deadening writer and a shallow thinker. Keep the banner posts for your own articles, which are scintillating. If you consider replacements in the future, vet your surrogates. Bloviates, like Jason, if given banner space, will undermine your site..... Mikey
vike23
The Bible is a collection of 66 books written by 40 authors over several thousand years, yet we find it is an integrated message system from outside our time domain. We know this because as we live in four dimensions the Bible records history before it happens! This must mean that the role of the prophets was to relay a message from some intelligence outside of our physical dimensions who could see both the end and the beginning at the same time.
From the study of quantum physics we know where these dimensions begin yet they are not definable. After10 to the minus-35th centimeter all matter loses locality and is every where at the same time. Combined with Einsteins theory of relativity we can arrive at the reality of our existence. As Einstein said "Those like you and me who believe in physics know that the distinction between the the past, present and future is but a stubbornly persistent illusion".
The point is we are involved in a spiritual battle of a supernatural realm . These times are the culmination of all history as the Bible contains more information regarding this period then it does the time Jesus walked the shores of Galilee and climbed the mountains of Judea! And as He foretold...Matthew 5:18..." For verily I say unto you, Till heaven and earth pass, one jot or one tittle shall in no wise pass from the law, till all be fulfilled". Today it would be said that not the crossing of a 't' or the dotting of an 'i' would be missed before all prophecies are fulfilled.
The following verse will clearly explain why God has been under attack in this country for at least a century but truly obvious to any paying attention over the last 40 years. It was 1963 when the Supreme Court first ruled prayer in public schools was unconstitutional. That year also marked the lows for societal factors such as violent crime, teen pregnancy, and divorce rates. This was in direct violation of our constitutional 1st amendment..."Congress shall make no law respecting an establishment of religion, or PROHIBITING the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances." Notice it states...prohibiting the free exercise thereof not freedom from. Many of these court challenges have been instituted by the ACLU(anti-Christ litigation unit)
Ephesians 6:12 For we wrestle not against flesh and blood, but against principalities, against powers, against the rulers of the darkness of this world, against spiritual wickedness in high places.
Ask yourself, why would our govt want to rebuke God and endorse materialism, abortion, socialism, debt and homosexuality? Because it is the antithesis to what made this country great. Those in control hate freedom as much as they hate God. Believe it or not freedom is a concept from the Bible. Noah Webster wrote "the Christian religion, in its purity, is the basis or rather the source of all genuine freedom in government… I am persuaded that no civil government of a republican form can exist and be durable, in which the principles of that religion have not a controlling influence." Jedediah Morse son of Samuel Morse stated "to the kindly influence of Christianity we owe that degree of civil freedom... Whenever the pillars of Christianity shall be overthrown, our present republican forms of government, and the blessings which flow from them, must fall with them." James Madison stated "almost all the civil liberty now enjoyed in the world owes its origin to the principles of the Christian religion" Blasphemy against Christianity was a crime in America because it was a crime against our freedoms. An attack on Christianity is an attack on our freedoms.
And if you don't believe me then believe your lying eyes as the powers that be are striving for a one world govt, a one world currency and a one world religion. A totalitarian system is so close at hand even the ignorant can feel it and thus represents the public's late arrival to the theft of their country, their heritage, their way of life and their freedoms. If you would like to read a Biblical parallel to America read the short book of Hosea who was a prophet to the northern kingdom, the House of Israel, after their civil war. They experienced over 2 centuries of unprecedented material wealth while adopting the practice of worshiping idols. Hosea tried to inform them..4:6 My people are destroyed for lack of knowledge.
Bill S. Friend
Solutions:
1. Make all mortagages assumable.
2. Medical procedures should be priced the same regardless of payment source, and should be displayed.
3. All unfunded liabilities should be funded whether public or private.
4. Flat income tax.
5. Line item veto.
6. No contributions from lobbies.
7. Return to gold standard.
dholsop
HansGruber
Nice analysis. I think there are probably even more similarities between the Roman Empire and the American Empire. The decline of the importance of the Senate, inflation, etc. You touched on some important parallels; the expansion of citizenship buys the Empire time but is a short term solution. I would like to see your thoughts on the subject of an empire buying time for itself, because it seems that most of the contributors to the downfall of a nation do just that. They buy time for the empire, but ultimately lead to its collapse.
A key warning sign America's military might is on the decline is when we leave the Middle East. As our most important, strategic, geographical area outside North America, we will maintain a presence at all costs. History shows we just rotate our military headquarters and military presence there and whenever we wear out our welcome we move on to the next nation. First Iran and Saudi Arabia, now Iraq and Qatar. We always try and keep military forces in at least 1 one of these nations to keep the oil flowing.
Dickens
You cannot be serious.... If you are, please stop spamming JQ's website. I'd try to finish but don't understand 5th grade writing. Sorry Jim, I'm out if this continues....
Regards.
SSS
For Dickens:
YOU, sir, cannot be serious. First of all, Jason is a technical architect of this site, and you're accusing him of spamming a site he helped to build. What gall. Secondly, as I said to Mikey above in a thread, your comment smacks of censorship.
We're here to express our views on a wide variety of subjects of interest. If you don't care for Jason's writing style or his comments, you're free to move on .................. to another subject posted herein or another website. Your call.
Kaboom
JR, there is perhaps too much attention paid to the fall of the Roman Empire, which is temporally beyond the bounds of accurate modern historical examination and validation of record keeping.
A much better example of where a nation can go wrong is clearly evident. No, not Greece or Turkey, not Andalucia, nor Italy.... the nation I am thinking about is Great Britain, or more specifically, England.
England. Contemplate the comparitives, analyse, and weep. This is your future.
The bright spot is that it is a bipartisan future - both "sides" of politics will draw you in towards the bung-hole of no return.
gmm777
Thanks Jason !!! Keep up the good work !!!
ptownman
To all you naysayers about this article from Jason. You don't know your "ASS FROM FIRST BASE." End of discussion.
therealevil
The fact that America is undergoing some sort of collapse is not a novel insight. What I'm hoping for is the recognition of who stands to gain from this collapse, how this collapse is being engineered, and how the winners and losers are being picked as we speak. I hope you guys will recognize that politics, business, and the media in the United States is a rigged game. Getting worked up over Obama (or Bush) is an exercise in futility at this point. It really would not have mattered who won the 2008 elections, unless you are hoping to receive political favors from one party or another.
I submit that the financial elite of the world are engaged in a covert war against the civilian population. The financial collapse and long term neglect of educational and other social support institutions are what are used against the masses. Against individuals who are too smart or too lucky to fall into the big traps, there's something special... something most of you haven't run into yet (as far as you know).
I strongly suggest you keep an open mind and start reading The Hidden Evil website or the book by the site's author.
Robert Lowe
Dear Dr. Quinn,
Thanks so much for your insightful essays. My wife and I are mid-to-late-fifties Americans retired in Chiang Mai, Thailand, after 12 years of bicycling around the world.
Yesterday morning while riding our bicycles to Tesco/Lotus to stock up on essentials not available here in the local-market, we had a revelation. One that I'm thinking you may appreciate, because it puts a great deal of what's going on around us all into perspective, and we think frames our future options pretty vividly.
For some time now too many Americans have been operating on the premise that there are no limits to [whatever] so long as someone else pays. I don't know when this started, but I'm pretty certain it began sometime before 1950, the year I was born, and then began accelerating with the aging of the Baby Boomer generation.
For example, for all those Americans who pay no IRS taxes whatsoever, why shouldn't everyone else, all those who do have to pay taxes, be required to help pay for their food, housing, education, healthcare, and even automobiles [Cash for Clunkers]? For all those Americans who live, function, and adhere to the principle that everything is morally and socially acceptable...so long as someone else pays, this is an understandable demand.
It also makes obvious that the takers now outnumber the givers in America, and that's a problem. Now that the taker constituency represents more than 50% of the American public, nearly all of whom voted for Mr. Obama, is there anything that can stop America's momentum toward near-certain economic [and social] oblivion?
We're thinking that this theme explains why the American government is now actively debasing the value of the US dollar. And it strikes us that if we want to protect ourselves from a depreciating US dollar, we had better first understand why it is happening.
With our little revelation, we now think of this "why" in terms of a Five Act play...
In the First Act, our elites in conspiracy with tens of millions of main-street Americans modified a socio-financial system to enable nearly everyone to purchase [whatever they wanted] on credit, regardless of his/her ability or willingness to repay. Then Wall Street's elites, with the full complicity of their Washington D.C. brothers [without whom none of this would have been possible], bundled these questionable loans into securities and sold them in the hundreds of billions of dollars to trusting foreigners all around the world.
When the American credit-bubble popped last September, as it inevitably had to, America left hundreds of millions of folks around the world holding the tab for our dirty little social secret... Everything is morally and socially acceptable...so long as someone else pays. Thank you world for America's latest free-lunch!
In the Second Act, Washington's elites accelerated the country's overseas borrowing by well over $4 Trillion. This Second Act began last October just after our housing/credit bubble burst, and represented Washington's desperate attempt to rescue the American economy from this frenzied self-created bottomless abyss. First they expanded the Federal Reserve's Balance Sheet by in excess of $2,000,000,000,000 [Two Trillion Dollars], all of which was pumped directly into American banks, primarily money-center banks. Shortly thereafter, our D.C. elites [led by Messrs. Obama and Reid and Ms. Pelosi] upped the ante and expanded the national debt by another nearly $2 Trillion to $9 Trillion [$1.927 Trillion = $700 Billion Tarp program, $787 Billion Stimulus program, $440 Billion 2008/2009 supplementary budget].
Adding in all the unfunded liabilities in Washington's Social Security, Medicare, Medicaid and Pensions systems [$56 Trillion at last count], every man woman and child in America is now saddled with $483,000 in government debt. That's impossible for each of 305 Million Americans to repay, at least anytime during the next millennium, so what can we expect to happen?
But hey, everything is morally and socially acceptable so long as someone else pays. Right? And in the meantime, hooray for all those naive foreigners who purchased all those US Treasury bonds required to fund these various crap-shoots.
In the Third Act, which began in March of this year after the US Treasury experienced significant resistance from foreigners to continue playing along, the elites in Washington and on Wall Street joined forces, and re-doubled their so-called "rescue" efforts. Not enough foreigners want to buy American Treasury debt...no problem! The Fed simply began "printing" dollars to buy the Treasury's debt. Jim, that is roughly akin to your left hand buying the debts incurred by your right hand, and then you partying to celebrate the resolution of all your loan problems! Most of the world's central banks [including Thailand's Central Bank] followed along with similar programs, like obedient little lemmings marching over the cliff and into the sea. Otherwise, the US Dollar would have long ago crashed.
Much of this "newly" printed money ended up sitting on the balance sheets of bankrupt money-center banks around the world. At the urging of these same Central Bankers, huge zombie banks promptly invested a portion in the world's stock markets. The stock market bubbles created from this joint exercise represent the lion's share of the so-called "green shoots" the mass media is forever touting. The American consumer is not spending, he's saving, or unemployed...15.2% in Michigan, 13.2% in Nevada, 12% in California.
Seventy percent of American GDP stems directly from consumer consumption. All the "green shoots" daily being advertised on the media relate to the prayer that stock market investments are somehow signalling an end to the world's economic woes.
The Fed calls it "Quantitative Easing," but truth be told, Mr. Bernanke has been "Monetizing the Treasury's Debt" for quite some time. Ditto Great Britain and the ECB. America's big banks have dutifully sucked up much of this money, and along the way pretending to be "healthy," funneling $100+ Billion into the US stock market since March 9, 2009. Like cancer cells, this phenomenon has spread nearly everywhere around the world, including Thailand. Otherwise the US Dollar would most assuredly have crashed sometime in July. Everything is morally and socially acceptable so long as someone else pays.
In the Fourth Act, which began in late August or early September, and this is where it gets really interesting, the elites of Washington and Wall Street became desperate to continue fueling their "Big Lie." That's when they decided to actively [but covertly] devalue the US dollar.
We hourly hear this strategy expressed in mainstream American newspapers and other media...a devalued dollar increases the attractiveness of American exports, and that's supposed to be goooood, if not for the country's unemployed, that at least for restoring the long-lost power of America's Labor Unions, right? Oh really?
Where America's elites have previously been overt in twisting foreign arms to buy our debts, the economic situation is now so gawd-awful bad that the country's elites are driven into a rather more dangerous covert world.
As the value of the US dollar plummets, literally every human being on the planet [including all the Thai's we hang with here in Chiang Mai] is being covertly taxed to pay for America's profligate spending. Every time someone in Thailand or Rwanda buys a liter of petrol, they effectively pay a covert tax in US dollars [the US Dollar being the world's Reserve Currency]. Every time exports are traded for imports anywhere around the world, America extracts its covert tax.
But hey, everything is morally and socially acceptable so long as someone else pays.
America has finally sunk all the way down to its lowest common-denominator. This "taker" constituency has elected a terrific President to lead and cheer them on. Now the takers hold nearly all the levers of power in Washington. And their brothers, also natural-born socialists, the ethnic minority that control Wall Street [78% of whom voted for Obama], hold nearly all the levers of power on Wall Street. Taken together, these folks control America lock, stock and barrel. But hey, everything is morally and socially acceptable so long as someone else pays.
As happy readers of Ortega Y. Gasset were advised in the 1920's, Democacy's long-term tipping point occurs the moment the masses really, truly realize that they have the power to be absolutely selfish. When society declines sufficiently in terms of selflessness (i.e., religion, allegiance to something greater than self), then the masses will lay claim to the collective wealth of the entire polity. This concept feels fairly accurate about now.
What, we wonder, will be the Fifth Act of this grand play? What will be the consequences when the Fourth Act exhausts itself, as it most assuredly will?
We're thinking America had better dust off its plans for space exploration pretty soon. This con-game can last only so long before nations and little people alike all around the world begin to get seriously angry.
We're already beginning to see this happening in news reports from nearly everywhere around the world, including here in mild-mannered Buddhist Thailand.
My wife and I think the US Dollar's tenure as the world's Reserve Currency is numbered. But it will take quite a few more years for the rest of the world to garner the economic and political power needed to cajole America into giving up even a small amount of the power inherent in controlling the world's Reserve Currency. Hopefully, by then we'll have worked out a decent strategy to survive the loss of wealth that will inevitably ensue as American's are forced finally to pay up their debts.
It is likely that the US will slowly lose its Reserve Currency power as other countries sidestep the USD and trade in their own currencies [as e.g., China's recent antics]. And it is possible that some catastrophic event might accelerate that process, as WW II did to the British Empire and the almighty English Pound. But at some point, the US will be forced to the negotiation table, as happened to the British at the tail-end of the war.
That's likely to happen when the world’s largest economies muster the wherewithal and resources to push for a new monetary order, much like they did 65 years ago in 1944 by signing the Bretton Woods agreements. Recollect that even while World War II continued to rage, Allied leaders thought it important enough to meed in Bretton Woods, New Hampshire, to construct a new system.
Their mission: To stabilize wildly fluctuating currency exchange rates. Their solution: Create a new world monetary order that pegged global currencies to the price of gold.
As near as we can see just now, and the future remains very, very murky, this may well be the final component of the Fifth Act of this little Play. The issue is timing. Dr. Quinn, and if you can give us a clue to the actual timing of the destruction of the USD, that would be most useful.
Thanks,
Robert Lowe and Cindy Beyer
Chiang Mai, Thailand
safariman
To Robert Lowe & Cynthia Beyer
Love your comment, and especially your sense of adventure. My wife and I retired to Honduras about 14 years ago, and have travelled pretty extensively since. We like it here, and hope to be staying here. But Obama et al seem to be convinced that they need to reimpose a Chavez wannabe dictator on us. We'll have to see how it plays out.
Thailand would be my next choice if we have to leave. I understand it's pretty easy for retirees to get permanent residence. If you have the inclination, tell us a little more!
TLaCour
I am shocked at the ignorance and bigotry shown by the raft of "thumbs down" to Kopernicus' first post above that did no more than accurately point out gross grammatical, historical and spelling errors in Jason's thoughtful piece. Talk about kneejerk reactions! Grow up, voters, and pay attention to what is actually written or said, not just who says it or whether you agree with the article's (or commenter's) main points.
As for me, I find nothing to criticize in the occasional typo or grammatical faux pas in a post. But a piece as rife with poor writing as this one does its message a grievous disservice.
Jason, I found the piece interesting and worthy of comment, thank you for it. But next time, please clean it up before posting.
Tom Frank
Well, since we are discussing history and lessons of empire, western empires that is, let me fill you in about the east.
Eastern empires? There are none? Well there is one - the Mongol empire. That the Mongols invaded the middle east all way to Russia and Germany is well known. But less well known is what they did over the seas.
Around the 13th century, the Mongols, sitting from conquered China, invaded Japan twice. Didn't work. Lost about 200,000 men - the greatest lost of life in naval battles in history.
During the same period, spanning about 20 years, the Mongol built a grand fleet of blue water ships (about 30,000 in all) and explored the entire S Asian and S Pacific oceans, all the way to west Africa. Possibly even all the way to Americas (before Christopher Columbus). They were motivated by extension of the Mongol-Chinese empire globally, and collection of tributes to finance it. But all they found were primitive people in many far away lands.
These explorations suffered a 99.9% fatality rate - only a thousand returned after a total of 100,000 sailors were sent during the enterprise. Then the blow-back hit. S Asia nations including India and Arabic states learned from the Chinese how to build the giant ships, and started building their own 'battleships'. With such power, they began to refuse to pay tributes to China and dared the Chinese to fight for it.
As the Mongol empire faded away, the lessons of empire's high cost was burnt deep into the Chinese psych. As the next dynasty took charge, the emperor banned all explorations, all imperial overseas enterprise, and all traces of the Mongol projects were burned. It was so traumatic for the Chinese that even coastal fishing was banned. Never again, swore the Chinese, will they embark on empire enterprise. Better to focus to defend the northern borders from the 'barbarian' Mongol which they just kicked out.
300 years after this eastern development, Europe too learned how to build giant blue water ships and navigate the globe. Thus began the European empires. As they arrived on China shores they demanded tribute (in the form of 'trade'), ignorant of the Chinese experience. The result is two of the most dramatic developments in east-west history.
a) China destroyed its mighty navy and redirect defense against the barbarians from the north. But the real European barbarians arrived from the sea, in the south. They proceeded to destroy imperial China.
b) After a combined 300 years European empire conquering most of the world, they destroyed themselves as one big bang in the fields of WW1.
And now, the USA, having not learned the great lessons of history, performed its imperial expansion act to the T. It is now sitting on yet another self-destruction. Right on cue.
fatvito
Ya'll worry too much and sound like defeatist. Go hiking, there is plenty of freedom for the taking.
JasonRines
I am actually doing that this weekend Fatvito. I do not live my life in fear, I live it in faith. Those whom don't learn from history are doomed to repeat it. I assume that means on the downside and upside cycles. Peace...
Me
There is an end game to capitalism. You know what it is? Winner take ALL.