Posted May 29, 2014 by Martin Armstrong
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QUESTION: Mr. Armstrong,
As I continue to read your blog, I have to wonder if America will survive the coming hardships. America is split about 50-50 politically with no real possibility of reconciliation. Victory for one side or the other (left or right) is the only real “solution”.
Given this perspective is it possible America will break up along geopolitical lines as we are seeing with Scotland, Catalonia, etc. Or is this simply the hopeful illusions of a proud Texan who longs for an independent Texas?
ANSWER: Historically, all governments are simply evil. Even Jefferson said if he was compelled to choose between government or the free press, he would choose the latter. Within government, there are agencies competing against agencies. It is all about their own survival. Even when the economy turns down, the fiscal conservative lobbyists converge upon the Hill and expect government to cut spending, just not theirs.
Just look at the UN. Yes it is one place also full of corruption. Is it capable of a one-world government? Not likely. China supports Russia against the USA right now. There does not seem to be the potential for harmony.
The crisis we face is all the unfunded liabilities and the endless borrowing with no possibility of paying anything off – ever. Government must collapse of its own faulty design. It needs no help for this will not work nor end nicely.
Wealth moves in three phases depending upon the severity of the crisis.
If it is a currency inflation, then everything rises across the board from commodities, stock, and real estate.
If there is a threat of invasion, then the stocks and real estate decline and we then see capital move into the movable assets.
If there is a total collapse and we enter a Dark Age, then nothing exists as wealth and we return to GO when it is back to just food.
There is no single solution. It depends upon where you are located and how far we go down the chain.
As far as the USA breaking apart, that seems inevitable for there are tremendous differences in beliefs that are clashing – ie Tea Party v Republican establishment.
To cause that we need the economic decline. That is what causes the entire motivation.
A one-world reserve currency would most likely emerge from some sort of G20 type model. We are talking about only a reserve currency that will require international agreement like Bretton Woods. Each country’s currency would float against that based upon confidence. That will replace the dollar as the reserve. The people would not surrender their cultures to one government – just look at the results in Europe.
There is no question that the monetary system must fall as we know it. This is simply a matter of time. As far as government, when the economy falls, then we will see the pressure build. We either move toward totalitarianism or freedom. I personally see the best form of government is one without career politicians where the people actively retain the check and balance. This was the ideal design in Switzerland, but even their the bureaucrats have zero experience in the real world. You cannot write about stuff you have no practical experience in to begin with. That is why we are in such an economic mess.
We need the people who are out there and clueless. That is the engine that propels the economy between boom and bust. Your independent Texas will come. It just taxes time.