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The transient nature of economic centres of influence
Things change....that’s the nature of our existence on the blue marble inside the bubble of the universe. Galaxies, Stars, planets, continents, coastlines and countries change. Civilisations and empires rise and fall and stars are born and fade away. The same is true of centres of economic influence or empires. Not many people live to see the end of an empire, but we are getting a front row seat to the end of an Empire, the US, and the rise of a previously once dominate empire, Asia.
The end of an empire has looked exactly the same many times in history. Let’s take a look at the end of the Roman Empire as a classic example of warning signs that can be taken. The military lost its effectiveness at the end of the Roman Empire and uprisings sprang up with Germanic mercenaries, exerting pressure on Romulus Augustus.
End of thrift and start of decadence during a huge consumption boom
Romans became unrepentant consumers and productivity fell at the end of the Roman Empire. Savings rates plummeted and the military and work ethic disappeared as easy monetary policies dominates and gambling and speculation became rife.
The debasement of the currency
The gold coins, once the standard of the Roman Empire gradually had less and less precious metals in them as the emperors tried to make their resources go further as their empire grew and eventually the money flow back to Rome was sucked dry by the rapacious appetites of the population.
Long terms trends down in the value of the currency and the productivity of the population, couple with an over extended military...this signalled the end of the Roman Empire. Today, the parallels with the American empire are striking. The currency has steadily been debased for decades, the population are immense consumers who have little savings and the productivity of the US Empire has steadily dwindled, The US tax code made speculation more lucrative than real work. We can see the results of that all around us today. Are you listening to history America? Other articles that may intrest you
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History of Banking
History of the Alliance and Leicester Bank
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