This perspective is getting easier for people to understand since housing busted and the financial crisis reversed the “wealth effect” in 2008.
Great empires such as the Romans and the British were extractive. These empires succeeded because the value of the resources and wealth extracted from conquered lands exceeded the cost of the conquest and resulting governance.
However, unlike these empires of the past, the American Empire has a logic all of its own.
America’s wars are very expensive. Both Bush and Obama have doubled the national debt fighting the War on Terror in Iraq, Afghanistan, and other locations around the globe; and the American people have received little to no benefits from spilling its blood and spending its treasure in these efforts. There have been no riches, nor bread, nor oil flowing to Americans from Washington’s wars.
In the big Iraqi oil auction of 2009, for example, as U.S. helicopters hovered overhead, the oil minister gave out no contracts to American firms. Washington spent America’s blood and treasure to the tune of $3 Trillion, $2.9 Trillion more than Bush’s team originally estimated, and there have been no profits from oil to pay for the war.
Russia actually was the big winner in the oil auction in Iraq as the American Empire has twisted the long standing Roman mantra of “Veni, vidi, vici” which translates to “I came, I saw, and I conquered” to an imperial slogan of “We came, we saw, and we borrowed.”
The results from this turn of phrases are very less than desirable. Washington’s empire extracts resources from the American people for the benefit of the few powerful interest groups that rule America. These include the military-security complex, Wall Street, agribusiness, and the Israel lobby all use government to extract resources from Americans to serve the profits and power of the 1%.
That is how the American Empire functions. To grow, the American Empire is always looking to inflate the next bubble. These serial bubbles each have the effect of extracting more wealth from the citizens in the form of bigger mortgages, more credit card debt, and stuffed stock portfolios. The extracted money, over time, is taken from the wallets of citizens and passed to the pockets of the well connected.
For example, 30% of Warren Buffet’s publically disclosed companies in his stock portfolio, received $95 Billion of the $700 Billion TARP money … now that is money passing from the citizens to the pockets of the well connected, if you believe Warren Buffet is well connected. Without the bailout, you can bet that many of his stock holdings would have gone to near zero instead. In return for this financial benefit, perhaps this is why we now see Warren Buffet out cheer-leading to raise taxes on the rich; not just the 1% but all those working professionals with income over $250,000 a year … to pay for the TARP monies.
The message is clear. The American Empire is out to extract your wealth with another financial crisis now being called the Fiscal Cliff.
What should you do to keep from getting poorer and poorer? Obtain more financial education and learn how to protect yourself during these trying times of massive money printing, fiat currency, and soon-to-be runaway inflation. Purchase precious metals, including gold, to hedge or protect your net worth against the decreasing value of the US Dollar, which is just paper money.
I favor a quote from Steve Forbes … Forbes says that pursuing additional financial education and the resulting increase in our financial literacy will open our eyes to being savvy with our money and using alternative wealth creating strategies; this will be they key to resolving our financial crisis.
To gain the necessary financial education, it is best to pursue association with, access to, and membership in, a wealth creation community. As a result, you will learn about alternative wealth creating strategies and consider investments in non-dollar denominated assets … perhaps emerging markets … perhaps energy assets that are inherently useful like oil rigs, hydropower, or methanol plants … perhaps precious metals, rare earths, water rights, oil, natural gas, potash mines, or gold mines … things hard to build, difficult to replace, and costly to substitute … definitely not financial stocks, definitely not retail stocks, definitely not commercial property.
For those wanting protection of their purchasing power in gold, there are several ways that may be appropriate to obtain this protection. These include direct ownership in minted coins, use of gold exchange traded funds, gold mutual funds, and junior gold stocks. Many are investigating having part of their IRAs in gold, silver, precious metals, and non-dollar denominated currencies.
In addition, for those that truly believe default of sovereign debt is the greatest risk we all face, it is wise to learn how to implement a multiple flag strategy to diversify this risk or provide protection against higher taxes, capital controls, hyperinflation, civil unrest, erosion of personal liberty, and the rise of a police state. With a multiple flag system, you consider taking preparations like, but not limited to, establishing a foreign bank account, purchasing some real estate overseas, seeking alternate sources of income, dual citizenship, and carrying multiple passports.
I will continue to provide examples of things we need to learn, the secrets of the insiders, as part of being savvy with our money, and introduce alternative wealth creating strategies, in future articles and updates at my blog over the next few weeks.
Finally, I want to thank Addison Wiggin of Agora Financial, as he was the source of some of the material mentioned in this post.
In closing, be sure to Meet Me at my website, WhoIsMikeFarrell; Read Posts about my Internet Marketing Business at aspenIbiz blogspot; and Obtain Some Tips About Being No 1 on Google at aspenIbiz My Go-To-Market Partners website; and Learn How to Live Longer at aspenIbiz My Life’s Advantage Today site.
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