The Coming Bankruptcy of the American Empire

Via The American Conservative

Better to bring the troops home on our terms than wait for a debt crisis to do it for us.

The chickens are coming home to roost. It’s only a question of when.

Herbert Stein was chair of the Council of Economic Advisors under Presidents Richard Nixon and Gerald Ford and is the father of the more well known Ben Stein. In 1976, he propounded what he called “Stein’s Law”: if something cannot go on forever, it will stop. Stein was referring to economic trends, but the same law applies just as much to foreign policy and the concept of empire.

Stein’s Law at first glance might seem like a banal platitude. But we should be fully cognizant of its implications: an unsustainable system must have an end. The American empire is internally flawed, a fact that anti-imperialists both left and right should appreciate.

The United States’ national debt is approaching $22 trillion with a current federal budget deficit of over $800 billion. As Senator Rand Paul often points out, bankruptcy is the Sword of Damocles hanging perilously close to Uncle Sam’s neck. Outside of a handful of libertarian gadflies in Congress such as Paul, there is no serious political movement to curb the country’s wayward spending. It would take some upset of multiple times greater magnitude than Donald Trump’s 2016 victory to alter this course.

The United States holds the most debt of any country in the history of the world. In fairness, when our debt-to-GDP ratio is factored in, there are many countries in far more perilous economic situations than the U.S. But there will come a tipping point. How much debt can the system hold? When will the cracks grow too big to hide? When will the foundation crumble? There’s a great deal of ruin in a nation, said Adam Smith, and our ruin must ultimately come.

Is bankruptcy possible? As some Beltway economists remind us, no. Technically the government has the power to artificially create as many dollars as it needs to pay its debts. But this kind of hyper-inflation would deprive the U.S. dollar of any value and tank the global economy that trades with it. Simple failure to pay back our debt might even be a better scenario that such an inflationary hellscape.

When the world loses confidence in the American government’s ability to pay its debt, or the interest rate on our debt becomes unsustainably high, choices will have to be made. No more kicking the can down the road, no more 10-year projections to balance the budget. Congress, in a state of emergency, will have to take a buzzsaw to appropriations. And the empire will be the first thing to go.

Just like its warfare state, the government’s welfare state has plenty of internal calamities. But while it might be the preference of some megalomaniacal globalists to let the proles starve while preserving overseas holdings, it’s not going to happen. What would transpire if Social Security checks stopped showing up in mailboxes and Medicare benefits got cut off? When presented with that choice, will the average American choose his social safety net or continued funding for far-flung bases in Stuttgart, Okinawa, and Djibouti? Even the most militaristic congressperson will know which way to vote, lest they find a mob waiting outside their D.C. castles.

Neoconservatives constantly harp on the danger of vacuums. Without a U.S. presence, the logic goes, more sinister forces will take over. What happens when American troops must be evacuated from all over the world because we can’t afford to keep them there anymore? There’s no debate, no weighing of options, and no choice. If the money isn’t there, the money isn’t there. Nothing could tie the hands of America’s military more than a debt crisis. And if one happens, it will be in part because those same neoconservative intellectuals preached a multi-trillion-dollar global war to remake humanity in our image. Hubris leads to downfall.

This is the kind of danger that Rand Paul and others warn about. Not only are our undeclared wars illegal, counterintuitive, and destabilizing to foreign regions, they’re financially destabilizing for us as well.

A radical reexamination of America’s overseas assets and obligations must take place. Ideologically motivated wars have led us to the precipice of financial disaster. American foreign policy must adopt a limited, highly strategic view of its national interest and use its remaining wealth sparingly and only when necessary. Realism can stave off national ruin. Close bases in Germany and bring the money home, instead of forcing the troops to evacuate in the dead of night after it’s too late. Enter negotiations with the Taliban and have a planned withdrawal from Afghanistan, lest it end with helicopters fleeing Kabul like they did Saigon. Make the hard choices before circumstances make them for you.

Our leaders ignore Stein’s Law at their own peril. No matter what, U.S. troops are coming home. Better it be our decision than the debt collectors’.

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unit472

Our ability to continue to spend 3.5-4% of GDP on defense is definitely in doubt however since 55% of defense spending is personnel costs we aren’t going to save much if anything by withdrawing troops from Japan or Germany. It might even cost us more since the bases and infrastructure in these allied countries already exist and have been paid for. Any ships, aircraft or troops brought home will still need bases to operate from unless we simply strike them from active duty.

Militarily it makes more sense to be forward deployed for, in the case of any hostilities, ‘getting their firstest with the mostest’ can be decisive in terms of outcome.

SmallerGovNow
SmallerGovNow

That’s the EXACT type of thinking that has us in our current and very untenable situation… Chip

unit472

Remember the “Peace Dividend” when the USSR collapsed. The US cut over 500,000 men from the military payroll. The GOP had just taken Congress and they managed to hold government spending down as Clinton backed welfare reform but it didn’t last. The peace dividend and more was eventually spent ( squandered ) by Bush with his war on terror and medicare expansion.

That’s the problem. Cut the military and Congress will spend the savings on some other program. At least we get something from military spending. It supports the dollar as the global reserve currency since we are the global superpower. Lose that status and the dollar turns into the Euro.

Morongobill
Morongobill

That was the Soviet attitude also and look what happened- they came home. We should start getting out while we still can. At least the Red Army didn’t have to cross two oceans to come home.

Dutchman
Dutchman

Nuke’em till they glow!

mark branham
mark branham

Why does the U.S. borrow it’s own currency? As a sovereign it can issue and spend it’s own money, no interest and no debt.

Problem solved.

Brian Reilly
Brian Reilly

Mark, You might want to read about hyper inflation to answer your question. Recent history in Venezuela and Zimbabwe can be quickly reviewed, and Weimar Germany as well.

Closer to home, note that the US dollar has lost 98% of the value it had in 1913, when the latest currency manipulation here was instituted.

Stein was right. What can’t go on forever will stop.

mark branham
mark branham

Perhaps, if you put a little more thought into the nature of money, you’ll come around. It’s really simple but you have to think deeply about the consequences of the various forms of money. It’ll take time, won’t come to you immediately, but persistence will lead to a revelation about what needs to be done to create an equitable momentary system.

Darrell Dullnig
Darrell Dullnig

It’s too complicated for you, Mark. Forget it.

mark
mark

MB,

One reason is every time a President tries that (Executive order 11110) the real rulers kill him.

Maybe if the process was reversed your solution would have a chance?

That makes me a real AMERICAN DREAMER not one of these illegal imported phonies.!

card802
card802

“Venezula’s minimum wage is, like, millions per month, and ours isn’t even close to that,” she said. “Our minimum wage is, like, seven bucks or something. We call ourselves a developed country, but we don’t even just like print nearly as much money as Venezuela and give it out for free, because of businesses and corporations and things like that.”
She also called Venezuela’s leaders “really smart” for overloading the economy with more currency, and called on America’s leadership to do the same. “It just goes to show that socialism is better because you can inflate the currency to a lot more, and more is better than less, obviously.”

“It’s just common sense, and you know, like, human rights and stuff,” she added.

Alexandria Ocasio-Cortez . Braindeadfucktardliberalprog

Ivan
Ivan

Doubtful the trough feeders will take necessary proactive steps.

History repeats.

BB
BB

That ” debt ” doesn’t exist . Never has and never will except on a computer screen so why not withdraw from the Federal reserve and issue our own money debt free and interest free ? Do like Hitler did . Germany was broke 20 different ways until Hitler took control of the money. Then in less then 10 years Germany was a military and industrial superpower. That’s the reason He has been so slander by the Jewish media . What He did worked . Either that or your children and grandchildren become slaves to the Jews who control the banking system. Make a choice.

Ivan
Ivan

People are required for debt and tax plantation, so yes.

Money one thing, currency entirely different thing.

Tony
Tony

Agree, but who will make that happen? Won’t be a dead President. Won’t be the always with their hand in the cookie jar congress. I think we are stuck with the status quo until it caves in on itself, then we are all screwed.

Dutchman
Dutchman

We’re already bankrupt – it’s just the paperwork hasn’t caught up with us yet.

NickelthroweR
NickelthroweR

None of this will matter for much longer as Drone Warfare is just around the corner. Low cost, A.I. controlled drone swarms will replace 80% of our soldiers. If they can replace truckers then they most certainly can replace a guy with a gun.

Anonymous
Anonymous

What is meant by bankruptcy is the taxes to service the debt lead to a downward spiral in the velocity of money. I think we will have other factors causing that before we reach that point.

However, the US can renege on old dollars held outside the US. And readjust US citizens dollar holdings at banks. Let’s say add another 5% to your bank account while simultaneously devaluing old dollars by 10%.

The United States dollar is the only currency that has never done this. The time will come when the Euro collapses and the dollar will soar to ridiculous highs.

robert h siddell jr
robert h siddell jr

Our military supports Zionist Corporations, not Democracy. Liberals have weakened our Military with Social Rot just like the public schools; excise that along with the strategic adjustments. Do we need 50,000 troops in Korea? How long will Aircraft Carriers survive in WWIII so how many do we really need? How long will B-52s survive? Hitler lost his air war building fighter-bombers; why are our leaders just as stupid? More money is wasted on Welfare than Defense and great social damage is being done: already half of Americans collect a monthly government check! Start pruning that strangler vine before it kills the last productive elements of society.

mark
mark

A provocative read from a Christian Biblical perspective for those interested.

RACING TOWARDS ARMAGEDDON

Did you know breakthrough technologies will soon lead to the fulfillment of hundreds of ancient bible prophecies concerning the end times, the Antichrist, and the Second Coming of Jesus?

In Racing Toward Armageddon, you’ll learn:

•Why global government is inevitable
•Why the world will worship the Antichrist
•Why a new movement promises to transform the human race
•And why an overlooked prophecy is the key to understanding the end times

For years, world leaders have warned we’re on the verge of Armageddon. Find out what the Bible says. Learn why our generation is unique in all of human history. Most of all, find out why modern technology will soon lead to the most epic battle of all time – the Battle of Armageddon.

Eyas
Eyas

TPTB don’t care about the debt, as they have no intention of ever paying it. As the author says:

Technically the government has the power to artificially create as many dollars as it needs to pay its debts. But this kind of hyper-inflation would deprive the U.S. dollar of any value.

This is indeed the plan. So why do I comment as a reply to your comment re Armageddon?

Because, when hyper-inflation reaches some arbitrary point, the U.S. dollar will be entirely replaced with a new currency …. a crypto-currency, possibly a global currency or regional currency.

A total cashless society from which one cannot withdraw, and in which “your” money can never be fully within your own control.

Consider this in conjunction with RealID, biometrics, a surveillance panopticon, and a “Social Credit System” tied to your bank account, and there’s really no need for a “chip implant”.

Your own palm-print (right hand, natch), or retinal-scan (eyes being in the forehead) will do nicely in any event.

Engaged in “hate-speech” (like that book recommendation) on the internet? No buying or selling for you!

Actually, forget the internet. We’ll have the IOT. So, did you engage in evil “hate-speech” in your own bedroom? No buying or selling for you!

Comparing Orwell’s 1984 to what’s actually coming (mostly here already), is like comparing DaVinci’s designs for an “air-screw”, or arm-powered bat-wings, to modern hypersonic flight.

mark
mark

Eyas,

Your hypothesis reads completely possible…probable and likely. I’d go a little further back to find it’s genesis.

Sounds to me like a global government and one language (technology)…is just another Tower of Babel. That’s always been their dream and our nightmare.

Genesis 11:1-9
Now the whole world had one language and a common speech. 2As people moved eastward, they found a plain in Shinar and settled there. 3They said to each other, “Come, let’s make bricks and bake them thoroughly.” They used brick instead of stone, and tar for mortar. 4Then they said, “Come, let us build ourselves a city, with a tower that reaches to the heavens, so that we may make a name for ourselves; otherwise we will be scattered over the face of the whole earth.” 5But the LORD came down to see the city and the tower the people were building. 6The LORD said, “If as one people speaking the same language they have begun to do this, then nothing they plan to do will be impossible for them. 7Come, let us go down and confuse their language so they will not understand each other.” 8So the LORD scattered them from there over all the earth, and they stopped building the city. 9That is why it was called Babel-because there the LORD confused the language of the whole world. From there the LORD scattered them over the face of the whole earth.

You can get back there from here…they demonic globalists have a tunnel ready called CERN.

Eyas
Eyas

Sounds to me like a global government and one language (technology)…is just another Tower of Babel. That’s always been their dream and our nightmare.

Exactly right.

Just think, if the Lord was so concerned about a tower of bricks, what will he do in response to things like A.I., transhumanism, &c?

lamont cranston
lamont cranston

Not to be outdone, Nixon’s Ag Secy, Earl Butz, responded to The Pope’s comment that abstinance was the way to limit population control with “You no-play-a da game, you no make-a da rules”.

Oh, Herb’s son Ben has done rather well for himself. Ask Ferris Bueller…

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