07/29/10 Alexandria, Virgina — While there have been many comparisons of how the US’ current descent from its solitary superpower status bears an uncanny resemblance to the crumbling Roman Empire, Jim Rickards, in an interview with King World News, explains how the US is actually in a far worse situation.
From Zero Hedge:
“…alas, the similarities are just far too many, starting with the debasement of the currencies, whereby Rome’s silver dinarius started out pure and eventually barely had a 5% content, and the ever increasing taxation of the population, and especially the most productive segment – the farmers, by the emperors, to the point where the downfall of empire was actually greeted by the bulk of the people as the barbarians were welcomed at the gate with open arms.
“The one key difference highlighted by Rickards: that Rome was not as indebted to the gills as is the US. Accordingly, the US is in fact in a far worse shape than Rome, as the ever increasing cost of funding the debt can only come from further currency debasement, which in turn merely stimulates greater taxation, and more printing of debt, accelerating the downward loop of social disintegration.
“Furthermore, Rickards points out that unlike the Romans, we are way beyond the point of diminishing marginal utility, and the amount of money that must be printed, borrowed, taxed and spent for marginal improvements in the way of life, from a sociological standpoint, is exponentially greater than those during Roman times. As such, once the collapse begins it will feed on itself until America is no more. Rickards believes that this particular moment may not be too far off…
“In this context, Rickards presumes, it is not at all surprising that both individual Americans and domestic corporations have set off on a massive deleveraging and cash conservation wave: the subliminal sense that something very bad is coming, is becoming more palpable with each passing day.”
As we’ve discussed in the past, when it comes to currency debasement the US hasn’t even been able to maintain the zinc standard, much less the gold or silver backing the US dollar once had. Taxes are destined to increase, debt will continue to balloon, and the printing press will whirl away day and night. How this will lead to “social disintegration” is less of a straight line but, as Ron Paul has already predicted, there could very well be riots in the streets.
As Tyler Durden concludes his post:
“If Jim Rickards is correct, however, the realization [of just how much of a destructive influence central banking truly is] will be America’s last, just before US society disintegrates.”
You can read more of the interview commentary in a Zero Hedge post on how Jim Rickards compares the collapse of the Roman Empire to the US. The actual interview is available here and here.
Best,
Rocky Vega,
The Daily Reckoning
Rocky Vega
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
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If Americans are looking for the guilty party of the disintegration of its country they only need to look in the mirror. For decades they have watched their government amass debt that has never been seen since recorded history. For decades they watched foreign nationals known as illegal aliens invaded their country now numbering about 40 million with most on assistance keeping wages low. For decades they watched the progressive, liberal Demonrats dumb down their children. For decades they watched the foreign trade agreements hand over America’s manufacturing to other countries. That’s right you stood by and said or did nothing sometimes fearing being called a racist. Now you are nearing the point of losing everything including your freedom and what little bit of dignity and self respect you have left. Go ahead keep standing there and say and do nothing.
The problem is not that the USA resembles the Roman Empire.
The problem is that the Romans were able to keep their ruinous grip on the Mediterranean world for so long before they fell, while producing nothing in exchange for all the grain and slaves they consumed, except their own effective brand of “military enforcement services” which they delivered to their “clients” willy-nilly.
The Romans produced nothing, not even a new idea, while they ruled and robbed for almost four centuries, before they finally went whimpering to their end.
Hopefully the world gets a quicker turnaround this time.
There are so many similarities – Rome was actually the first large welfare state, an inordinate amount of time and money was spent on “entertaiments” for the public – colosseums, brutal “games” etc. Troops sent to far-flung areas such as Persia and Dacia in a vain attempt to maintain control over distant lands. All while society was crumbling from within. Even the vaunted Roman army came to be made up of mercenaries who had no real loyalty to Rome, so it had gotten to the point where Romans themselves were unwilling to enter military service, sort of like the soldiers for hire being used in Iraq now
Mary you are quite the idiot if you think liberals are to blame. Liberals are not or never have cut educational budgets. can’t say the same for the repukelicans.