Learn How to Buy Gold and Silver at the Best Prices and at the Best Times

The Twilight of American Hegemony

by Jerry Robinson on October 16, 2013 · 11 comments

The Twilight of American Hegemony


Those who continue to believe in the perpetual resilience of the American empire must face facts. And facts are stubborn things.

by Jerry Robinson

Since 1945, America has been the world’s supreme political and economic power. Throughout the second half of the twentieth century, the U.S. implemented its domestic and foreign policies with little regard for other countries. In our vast power, none dared to directly challenge America. Today, those days are nearing their end as the age of American hegemony slips into its twilight years.

For far too long, the American people have operated under the assumption that the economic good times would never come to an end. The reality, however, is that this assumption is nothing more than a manufactured illusion that somehow still holds our nation spellbound.

The great noise created from America’s long economic boom has fully awakened a host of emerging nations. As technological advances have leveled the global economic playing field, many of these emerging nations are now eager — and, more importantly, able — to walk the path of mass consumption, Western-style. Ironically, it is not just America’s own overconsumption that will bring it to its knees, economically. America’s economic failure will also be deeply aggravated by the attempts of emerging nations to emulate the consumption patterns of the West. We are living at the end of an empire. Accordingly, America will be forced to watch from afar as more nimble nations rise in economic dominance. These nations will rise unfettered by the crushing weight of unpayable debts, unsustainable monetary policies, and an entitlement-minded population.

Those who continue to believe in the perpetual resilience of the American empire must face facts. And facts are stubborn things.

  • America is waging a trillion dollar global war on “terror” with virtually no end in sight.
  • America has a weakening currency with no clear strategy on how to revive it.
  • America’s debt-based monetary system requires exponential growth, debt, and production in order to expand. This is clearly unsustainable.
  • America’s massive consumer debt levels are placing heavy constraints on the general economy.
  • America is faced with trillions of dollars in government debts — growing by the millions every single minute — that can never be repaid without completely debauching its currency, wiping out vital social safety nets, or taxing the American population into oblivion.

Like a race car heading straight toward a brick wall with the driver asleep at the wheel, the collapse of American hegemony will not be a pretty sight.

What Goes Up, Must Come Down

Scottish historian Alexander Tyler documented the typical life cycle of a democracy:

“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasury. From that moment on, the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship.”

Throughout history, all of the world’s former empires have risen only to fall later. Many have fallen by military conquests. Others by the weight of their own miscalculations.

The Egyptian Empire rose . . . then gave way to the Assyrian Empire.

The Assyrian Empire rose . . . then gave way to the Babylonian Empire.

The Babylonian Empire rose . . . then gave way to the Medo-Persian Empire.

The Medo-Persian Empire rose . . . then gave way to the Greek Empire.

The Greek Empire rose . . . then gave way to the Roman Empire.

The Roman Empire rose . . . then fell at the hands of others.

Then we fast-forward through history.

By 1714, Holland and its ability to harness power from the wind and sea made it a great place to reside as the Dutch rose to dominate European trade.

In 1814, Britain‘s coal-fired naval fleets and rapid economic expansion sparked the rising sun of the British Empire.

In 1914, as Britain and the rest of Europe squandered their money on decades of bloody conflict, the U.S. emerged as a new global contender. America, of course, would go on to dominate the 20th century.

So, what nation is preparing to economically dominate the 21st century in 2014? While the big money is betting on China, others favor Europe or an organized Middle East (Is that an oxymoron?).

Nations have a life cycle. If they didn’t, we would all still be speaking Greek or using Roman coins in economic trade.

The immorality of our fiat paper money system, coupled with a fraudulent fractional reserve banking system, has greatly distorted humanity’s economic expectations. The erroneous belief that infects America, as well as other modern civilizations, is that “the present must be the minimum.” In essence, because our fake paper monetary system allows us to print more money when needed, we falsely associate a rise in nominal asset prices with an increase in actual value (i.e. home prices or stock market levels). This is incorrect as the inflationary pressures created through the excessive printing of money leads to an artificial increase in asset prices, not an increase in the actual value of the underlying asset.

The “present must be the minimum” attitude requires a neverending increase in asset prices. How can the monetary authorities expect this to be sustainable? The truth is that they know it is unsustainable. Instead, the money masters at the Federal Reserve are simply trying to stave off the next collapse by pumping $1 trillion of new currency into the U.S. economy each year.

But when the house of cards falls, it will all come tumbling down. Only then, will America’s hegemonic crown be passed to another country, or set of countries, which will start the process all over again.

The time for debate is over. The time to prepare is now.


Related Posts

Sign up now and join the tens of thousands who get the FTMDaily Briefing in their inbox every afternoon! >>

The S&P Roller Coaster – Virtually Zero Returns over Last Two Months


US default threat will not go away, even if the can is kicked down the road

“Even if a deal is patched up soon, you can be fairly sure that the crisis will reappear in some form or other.”

Treasury Bills Reprice For February Default Risk

February Treasury Bills are already repricing higher in yield in preparation for the next fight…

Fitch Places United States’ ‘AAA’ on Rating Watch Negative

The latest survey, conducted this month after the shutdown started, showed 37 out of 46 economists now expecting a Fed pullback on the bond-buying program to begin in December or January.

E.U. Takes Final Step on Unified Bank Regulation

New plan will give the European Central Bank direct oversight of nearly 130 of Europe’s largest financial institutions by the end of 2014.

Amid Government Shutdown, White House Pushes Forward with secretive Trans-Pacific Partnership

Ongoing secret negotiations regulate food, medicine, financial markers, Internet freedom…

Glenn Greenwald Will Leave Guardian To Create New News Organization

“The decision to leave was not an easy one, but I was presented with a once-in-a-career dream journalistic opportunity that no journalist could possibly decline.”

NSA Surveillance Hasn’t Foiled a Single Plot

No, NSA surveillance wouldn’t have prevented 9/11 and it hasn’t foiled a single terror plot to date…

Scripture of the Day

“He who tills his land will have plenty of food, but he who follows empty pursuits will have poverty in plenty.”
Proverbs 28:19

Print Friendly
Jerry Robinson
Jerry Robinson is the author of Bankruptcy of Our Nation: Your Financial Survival GuideIn 2010, Jerry created FTMDaily.com with a mission to wake up Americans and share with them the principles of true financial and spiritual liberty. Every Tuesday he hosts the FTMWeekly Radio, a podcast covering economic and geopolitical topics.Jerry has been blessed to be able to lecture around the globe on the topic of economic and geopolitical trends. He holds a degree in Economics from the University of Tulsa and resides in the beautiful Ozark mountains with his beautiful wife and son. Jerry is a licensed life insurance agent. See more
Jerry Robinson
Jerry Robinson
  • Robert

    Jerry, I am reading your book, Bankruptcy of our Nation, right now. Thanks for this great article.

    • http://ftmdaily.com/about Jerry Robinson

      Thanks Robert. I am glad you are enjoying the book.

  • Roger Dallman

    Jerry, did you hear that JP Morgan Chase, the head of the snake, being the largest “shareholder” in the Federal Reserve, will not allow cash transactions over 50K per statement period and more importantly, no international wire transfers after November 17th. I am trying to further verify this thru my own sources. What have you heard?

  • http://forward-usa.org Dave Redick

    Yes. The Twilight before the Crash! Take a look at my essays on the same topic;
    1, How empires rise and fall, and how the same five key characteristics apply to each Phase.
    2, Empire-USA is Crashing: Loss of Power Over Nations Abroad; Broke and Decadent at Home ‘, Sep. 5, 2013, http://www.activistpost.com/2013/09/empire-usa-is-crashing.html#more
    Comments? See Forward-usa.org

    • http://ftmdaily.com/about Jerry Robinson

      Thanks for sharing Dave.

  • James Smyth

    Jerry thank you for all you do. I woke up about 3 years ago and I have not stopped learning since. I grew up in a very left (dem.) family, with both parents being teachers. I grew up to look down on the founding fathers and all religion. I starting waking up to people like Fabian4Liberty and David McAlvany, both with strong Christian faiths. I realized I had been fooled into divide and conquer by the powers that… I will now only judge people based on their deeds and not their beliefs. The more I learn, the more humble I have become on how much I don’t know and how fooled I was. This knowledge has cost me most of my family and friends. I have had to learn the hard way like many that choose to keep looking, that denial and normalcy bias are stronger than anything. My choice is do not talk about this or no relationship. With my stress and stomach issues, over time, having to watch every thing I say, no relationship ended up being the result. I am grateful for people like you and real issues you discuss. It is people like you and so many more that help give me some faith in humanity. Thank you.

    • Georgia Brewer

      @James Smyth – James, know that you are not alone. I also grew up in a strong democratic family and over the last 10 years or so, opened my eyes. I really opened them in ’08 and have not stopped reading and learning since. My extended family, including two adult children think I am a doomsayer and “out there” because I have chosen to prepare for what is inevitable. I don’t even speak to my brothers about these things any longer because they will not hear it. I went from my early years of being a democrat, then a republican, and after realizing that both parties are equally to blame, I am independent but pretty much labeling myself as a christian conservative constitutionalist. I’m not quite a libertarian but, very close!.

      • James Smyth

        Georgia thank you for sharing. I have stopped trying to talk to most people b/c at this point if they are not going to get it now, I don’t think it will happen until the end game hits. I ran a business with my wife in CA so I learned what too much govt. can do. The issue that bothers me the most as I continue to learn are all the wars and real reasons for them (petrodollar). Luckily my wife finally realized this wasn’t a fad and started to get on the same page. Most of the time I am grateful for being awake and enjoy learning what should have been taught. But there are days that it gets to me. Peoples apathy is why bad things happen through out history and will not stop b/c of such apathy. But I was no different most of my life (49). I just wanted travel, paraglide and have fun. So I do have 3 fingers pointing back at me. In the end I will be prepared and I hope to help as many people as possible. Tough times are coming and my goal will be to leave the past where it is, and focus on being a blessing on to others as best I can. Thanks again for your reply.

    • http://ftmdaily.com/about Jerry Robinson

      Keep the faith James. Thanks for your readership.

  • Amish JJ

    What I see through all this government debacle is that all the government employees (and non gov folks too) need a savings account! It is amazing to read so many stories of gov’t workers that have nothing saved. They speak of not being able to feed their children, no food in their homes, not being able to pay many various bills. To think that it has only been about 2 weeks! The Senate/House votes will result in dealing with the same issues at the beginning of 2014.

    Even if you take out the government, there have been serious natural disasters that could produce the same result. Floods in Colorado and tornadoes throughout the US have seriously hampered businesses. I bet those small business employees didn’t think a natural disaster would stop the flow of money from their paychecks.

    We all need to have that emergency fund for these things that can and do happen.

    • http://ftmdaily.com/about Jerry Robinson

      So true. Good point Amish.