The Breakdown of Global Interdependence
We see the same play rerun throughout history: Empires and civilizations expand, moral and cultural cohesion dissipates, and centrifugal forces disperse the political community. Some become weakened from within and satellites simply break away; but when an empire is shattered by an external foe, more often than not it is merely a physical manifestation of the fallen empire’s moral defeat.
Our own historical stage is littered with crumbling social welfare states, which lack the resolve, the cultural moxie, really, to pick themselves up and move forward. Reversing decline takes fortitude, will power, and hard work, all seemingly in short supply in the West.
The precarious and crumbling pillars of Greece are being rocked to their foundation, now that the welfare state is inevitably running out of money to bribe its supporters. Prime Minister Papandreou, a verifiable socialist, is now having to turn to essentially nationalist austerity policies to attempt to restore some self-sufficiency to the failing state.
Italy’s situation is becoming dire, as the government bonds Italians depend on to live beyond their means are turning increasingly sour. The embattled Prime Minister Silvio Berlusconi may finally be forced to resign, since he has recently lost the support of the parliament.
An interesting story comes out of The Telegraph, which suggests that the decline of the EU could actually boost the British economy. One wonders if such temptations to recede from pacts with spend-heavy parasites will grow ever more hard to resist for nation states and people who simply want to get on with living productive, prosperous lives.
The EU is struggling to meet the demands of these dissipating welfare states, whose governments are coming more to resemble their gold-digging citizens. Passing the buck is becoming such a prevalent phenomenon on the continent, they may have to change the phrase to “passing the Euro.”
And America is no better. Pushing $100 trillion in debt obligations for the foreseeable future, and up to its neck in red ink to the Chinese, the banker of last resort is beginning to turn that role over to Beijing.
We are witnessing the real decline of a world power, and it is not being conquered by its external foes, but by itself.
Continued on Political Crush.