So as we can read here, there are, (at least), two ideas as to how the current recession, world events and power will develop in the years to come:
One saying that gold will eventually re-take its place as "store of value" and currency. In addition, the US Empire will, like the Roman, Spanish and British counterparts, will fall.
The other one saying, this is one more cycle in the world of business and the companies that will survive will be those, which face the challenges with innovation taking the necessary steps to resolve problems and come out ahead. The surviving superpower is the US and will continue to dominate, in spite of current events, namely corporate corruption, lack of realistic political leadership, threats of war and excessive corporate and personal debt levels.
So...
Without a crystal ball, which one will be closer to the actual result?
The case for Gold and financial Armageddon. (As it seems that it would be by the way they are talking...)
financialsense.com
Anyone under the current scenario that makes a "bullish" case is deemed a clown or blind... and with reason for that given the last 2 years or so in the markets...
One thing that it is important to point out when comparing "Empire Falls" is the following:
Rome, Madrid and London where the respective headquarters of the greatest empires in history that wielded POLITICAL control over their colonies, the ensuing rebellions, wars and related costs brought those crowns to their knees and the empires disappeared. The USA however, has exercised POLITICAL control over only a few locales. The US power has been and still is exerised more than anything as a strong economical influence. So long this is kept so, the comparisons with past empires are defective and in my view not quite applicable 100%. UNLESS the US insists in becoming the world police... in that case, the US is doomed, because simply the cost of running such police will be overwhelming and financial chaos will be the result. I am certain that at some point, corporations will flee the domain of a run-away government bent on controlling the will of people who have absolutely no reason to plead allegiance in the first place to such government...
Economic power (through Laissez Faire Capitalism) may once again have a second chance since living under the boot of what will become a fascist government will be hard to survive....
On the other hand, if the government becomes more realistic as to how to go about defending its borders, we may still have a chance... Once again, through economic strength...
Unfortunately, under the current scenarios facing us all... it will be very hard... at times, it seems that an Iraqi war is a given... and once that starts, no one has control of events, I do not care how sophisticated weaponry is available... The irony is... Based on the recent terrorist attacks that there may not be an alternative to war... so... it appears we are painted into a corner and we either wait out until the paint dries... or a messy situation await us...
Time will tell... |
