|Empires Often Die From Corruption And Weakness Within|
Now for the more interesting question, have those in power only delayed the last scene of a bad play, have the last nine years all just been an extend and pretend scenario? Sadly, few solid changes and actions have taken over the last few years to repair and set right many of the problems and issues that plagued us. We were given time to change our evil ways such as spending money we didn't have and dealing with growing debt loads and unfunded promises, but in truth, we have failed to address the many structural problems before us. We printed money to build a new future but unfortunately looking back we have little to show for how it was spent.
History is full of tales where countries go to war and use propaganda or "fake news" as a way of diverting the eyes of the people away from its failures. To address growing discontent and opposition most empires develop an apparatus to silence criticism. When in decline it is not unusual for that part of the government to rapidly expand. What might be called the "Deep State" definitely exists and it often works in plain sight and not how it is depicted in the movies. It is not a complex conspiracy but the gut of a system laced with ever-growing corruption and relaxed morals. In reality, human beings are generally too incompetent, lazy and inept to carry out schemes on a grand scale. People are generally bad at keeping secrets and insider knowledge is almost always passed around, even in secretive organizations, often recklessly so. Doling out secrets and insider information confers status, tactical advantage, and sometimes even financial gain.
assurances gain from not following through. Faith is often the glue that holds all of society together and while it is most likely the economy won't fall apart or collapse today it is that faith that will allow a new economy to rise from the ashes.
A question everyone should be asking is, what happens when the current economic momentum ends? The whole concept of economic growth is based on an ever-growing trend of year over year increased production. We must remember the influx of monetary stimulus from QE and massive government deficit spending has created the illusion of more pent-up demand then exist or can be substantiated. This discounts the need for quality economic growth and allows quantity or any type of growth to be substituted. This results in an elevated baseline for comparing year on year growth, in short, we have to move forward faster next year just to keep growing. Such an economy encourages leverage and a multitude of tricks to mask the weak foundation on which it is built.
When looking through the eyes of modern monetary theory things get fuzzy. The denial of inflation and worries of deflation still exist even as ever larger amounts of money are being printed. These "interesting times" play havoc with the value of things and what they are worth. Like some of the cruel games children play you don't want to find yourself without a chair or holding the "hot potato" when the game ends. In the same way that corruption and crony capitalism are cancers on society and empires they also are huge factors in the economy. The bottom-line is all this is intricately linked and the game will end and start anew, but questions remain as to when and what the new rules will be.