The United States has long been following a dangerous course at the will of the political elite. Government self-interest has led us to abusive policies both at home and abroad. While many people ignore this reality, some are waking up and speaking out. However, it may very well be too little too late. In fact, our history and current direction bare striking resemblance to the Roman Empire. I feel it is time for me to make a prediction for the American future, and that, my fellow citizens, is appears to be a painful future.
Since 1913, the Federal Reserve has essentially dictated the course of our economy with various currency manipulations. Since leaving the gold standard, the U.S. has experienced a boom-bust cycle throttled by reckless printing of money behind closed doors. “Print money” seems to be the Keynesian solution for all woes and, because of the political expediency, is rather convenient. Inflation looks good tomorrow, but will prove disastrous in ten years.
Quantitative easing has only thrown gas on the fire. Coupled with ZIRP, we find ourselves in a period of a deceitful recovery. You hear statistics about this rate and that figure, but, in reality, these are all inflated due to loose monetary policy inflating asset prices. Saying our economy recovered is like saying a fat person lost weight because they had liposuction.
The US dollar is a reserve currency used around the world to settle most debts. I won’t get into to the details, but, basically, it’s everyone’s favorite. Why? The U.S. has a massive economy and, as a result, the currency is in high demand. Its value was backed by gold at a set standard. Now, the implication of our fiat currency is “trust us, it has value” or, more frankly, “trust us, or our military will have its way with you”.
But what happens if the world moves OFF the dollar? In truth, this could easily happen. China is a booming country and already taking steps to protect their gold reserves. In my opinion, this indicates they are aware of the pending devaluation of USD and preparing to establish their own currency dominance. Can you blame them? If this happens, there will be an exodus of gold from the U.S. and I don’t think we’ll be able to meet our obligations. Thus, we fall into a period of hyperinflation because those obligations can only be met one way: print money. It seems we have painted ourselves into a corner. But can we recover?
Let’s look at the US fiscal outlook. National debt recently hit $18 TRILLION and forecasted unfunded liabilities will exponentially grow our debts. Furthermore, the U.S. has made foreign policy commitments to countless nations ranging in the trillions of dollars. With omnibus spending packages from the likes of Obama and others, I highly doubt that will change any time soon either.
As if the Fed wasn’t bad enough, foreign policy is the nail in the coffin. We have stretched ourselves thin with bases in over 150 countries. Our inexplicable desire to play world police has created a lot of enemies, and understandably so. From arming rebel groups to secret coups, behind the scenes foreign policy makes us quite the agitator. In the process of that, we have spent (and will continue to spend) trillions of dollars maintaining a worldwide imperialistic veil.
Throughout our history there has always been a “threat”. Once the government realized the profits of war from WW2, we have not stopped bombing everything we did not like. Thus, we have given rise to the military industrial complex. First it was communism and now it’s radical Islam. However, tracing our steps backwards often show the U.S. to be the aggressor or, in political terms, “preemptive strikes”. The result has been trillions of dollars and nothing to show for it.
At home, our government flagrantly abuses civil liberties and makes power grabs under the guise of “protecting you”. They listen to your phone calls, read your emails, create poverty traps, and numerous other domestic abuses. They’ll kill unarmed people on US soil and not even blink. Let me be clear about this: the war on drugs and war on terror are both code words for war on you.
I don’t mean to suggest that I am right. This is purely speculation and a worst case scenario. However, I can’t help but notice the striking resemblance between the course of Rome and the U.S. Both lasted a little over 250 years. The collapse of Rome began will political secrecy, foreign interventions, devaluation of currency, and abuse of civil liberties. Where does this leave? Worst case, we have 5 to 7 years before total collapse. Best case? I give it 10 to 12 years, but certainly in my life time.
I hope none of these predictions and observations prove to be true, nor will I live my life in fear of collapse. If we do hit rock bottom, I believe liberty will rise from the ashes and we shall see a phenomenal transformation of the status quo.