The New Imperialism: Debt Slavery and Western Decline

We are presumably in a post-imperialist, post-colonialist world. Gone are the three masted ships carrying slaves to the New World, or European administrators presiding over backwards peoples across the globe. But a new imperialism has sprung up in its place, fostered by central banking institutions who have chained much of the Western world to debt, and in turn, are chaining it all to the authoritarian but productive East.

Our fifth column academics, who sympathize and identify with the West’s enemies, are blind to this dangerous phenomenon. They believe ethereal “public goods” are the justification for vast and unending amounts of public debt; and if those debts aren’t repaid, then it’s the fault of the stingy rich. Never mind that those greedy rich people are responsible for creating the majority of jobs, whether through corporations or small businesses. And never mind that if you seized the rich’s assets and redistributed them, it would pay the nation’s bills for about half the year. And their ability to expand and create more jobs would have been completely wiped out.

Instead of recognizing that the West is in danger of being subjugated by foreign held debt, many academics make tendentious assertions that the West’s historically successful economic system of capitalism is synonymous with neo-imperialism. Capitalism’s wealth generation effects and ability to lift the majority of mankind out of abject poverty is cast aside in the elites’ rush to blankly assert that they could administer the world’s economies better and more fairly.  So the spread of an economic system that allows men to serve themselves instead of the state is thereby vilified as akin to previous empires conquering and enslaving peoples by the sword.

Numerous empires throughout human history have sought domination over foreign powers, and the establishment of private property rights and free markets where the exchange of goods and services are protected had naught to do with it. Empires are always hostile to true markets; protection of the colonized from external trade is the norm, and one cannot exploit those who have the right to keep the fruits of their own labor.

But one can exploit human beings through the instrument of debt. The eradication of slavery as human chattel was a great benefit for mankind. But its replacement has arrived; indirect enslavement to indebtedness is becoming the norm. And this state of affairs is being indisputably created by central banks. Westerners are under threat to be shackled, not by musket-toting colonizers, but by public and personal debt to the state. The West, in turn, is becoming indebted to and dependent on the rising East.

Without delving deeply into the history of central banking, which is unflaggingly negative, the intentional policy of uniform inflation and thereby, currency devaluation, has lead to disastrous socio-economic effects in those countries foolish enough to adopt it. Eventually, the culture deteriorates; households rip apart due to financial pressure, ideas lubricating the transition to two-earner families arise, and children are delivered into the waiting hands of the paternal state.The state becomes proxy for parenthood, and incubates children and teenagers in a state of intellectual immaturity through prolonged schooling, subsidies, and welfare.  This makes the improperly parented and educated youths ripe to take on vast amounts of debt; and inclined to blame the system for their inevitable financial shortcomings, which result from the oversaturation of the labor market with half-educated college graduates.

These youths, who lack moral compass, direction, or confidence in the absence of state institutionalization, are the intellectual proletariat. And we are seeing them erupt in anger and terror across the country, and indeed, around the world. They are demanding even more public debt, not that the state can even provide for the elderly, to whom they have promised pensions and sometimes long-term care for upwards of a decade. This is not even to mention the debacle of socialized medicine, or the U.S.’ unnecessarily exorbitant and wasteful defense spending and global democratization projects.

When the European Union declares its intention to solidify control over the economies in the federation by establishing one treasury paired with one central bank, it sounds eerily familiar to what we Americans have done.  Increasing banking centralization commenced our period of intentional decline, and simultaneous economic enslavement. When a country self-finances its own debt, it effectively cannibalizes itself. When a country outsources debt, it is offering itself up for dinner.

Meanwhile, elsewhere on the sprawling Eurasian landmass, the Russian nomenklatura are seeking to consolidate a new Eurasian dictatorship. Whether or not the Russians’ sheer enormous volume of petro-resources will be enough to accomplish that goal, through its intricate spiderweb of oil and gas pipelines, is a matter of debate. More significantly, the Chinese are quietly building up a mighty economic base financed by American consumption. It stands poised to overtake the U.S. as the world economic leader.

Debt and energy dependency are becoming the ultimate means of colonization. No need for red rivers of blood to conquer a nation; plenty of black gold and red ink will do.

The signature role of the United States in the world nowadays, when it’s not taking out undesirable regimes, has been to bail out socialist economies, like The Fed has been doing secretly. We have become the drafters of the Western world’s suicide pact.

By extension, the several states of America are being colonized by the nation’s capital. Washington has become its own kind of empire, conquering the states through fiat and debt more thoroughly than any foreign power could with weaponry.

The new imperialism is thus not one of sailing ships and mercantilist policies, nationalistic invasion followed by forced tribute, but one of the seductive appeal of easy debt, which erodes self-reliance and leads to socialist policies and foreign-financed debt. All of Western civilization is crippling itself by embracing an ideology rejected by the Asian upstarts and thought to be dead.

The Worst Countries in the World in Terms of Debt-to-GDP

Rank Country % of GDP
Date % of GDP (IMF) [3] Date Region
22  United Kingdom 79.9 2010 est. 75.50 2010 Europe
25  Israel 74.5 2010 est. 77.42 2010 Asia
18  Sri Lanka 81.9 2010 est. 78.2 2010 Asia
 World 59.3 2010 est. 79.25 2010
19  Hungary 81.3 2011 est. 80.20 2010 Europe
23  Nicaragua 78.0 2010 est. 80.34 2010 North America
20  Belize 80.0 2010 est. 81.36 2010 North America
17  France 82.4 2010 est. 82.33 2010 Europe
46  Seychelles 54.8 2010 est. 83.11 2010 Africa
15  Canada 84.0b 2010 est. 83.95 2010 North America
16  Germany 83.2 2010 est. 83.96 2010 Europe
 Mauritania 86.16 2010 Africa
 Guinea 88.56 2010 Africa
6  Iceland 126.1 2010 est. 92.37 2010 Europe
13  Portugal 93.3 2010 est. 92.92 2010 Europe
32  United States 62.3a 2010 est. 94.36 2010 North America
12  Ireland 94.9 2010 est. 94.92 2010 Europe
9  Singapore 105.8 2010 est. 96.29 2010 Asia
11  Belgium 96.2 2010 est. 96.67 2010 Europe
 Grenada 98.64 2010 Caribbean
10  Barbados 102.1 2010 est. 117.79 2010 Caribbean
7  Italy 118.4 2010 est. 119.00 2010 Europe
 Iraq 119.55 2010 Asia
4  Lebanon 133.8 2010 est. 134.07 2010 Asia
8  Greece 116.0c 2011 est. 142.76 2010 Europe
5  Jamaica 126.5 2010 est. 143.36 2010 Caribbean
 Eritrea 144.76 2010 Africa
3  Saint Kitts and Nevis 185.0 2009 est. 155.79 2010 Caribbean
2  Japan 197.5 2010 est. 220.00 2010 Asia

On the other hand, Russia and China are using capitalism to develop, right as the West is adopting socialism and declining.  It is a great reversal, and one that should have us all thinking of the wisdom of our present course.

A more ingenious or efficient form of imperialism cannot be imagined than one a people are persuaded to inflict on themselves. Americans are being lured into debt by its government, which in turn has become gravely indebted to others. This chain of debt is a new form of imperialism that threatens to hang us all together. Whether the enemies of the West choose to pull the lever or join us on the scaffolding is the real question. But I wouldn’t count on it. The relative rise of the rest has its appeal, and they are all too willing to learn and exploit our self-inflicted mistakes.

Cui bono? Who benefits?

Western elites are not overly concerned about absolute decline, in terms of GDP or living standards, because they see themselves as presiding over a future political order they will exert more influence over and extract benefit more from. Thus, if China and other countries are able to extract resources from their citizens, it is of no great concern to them.  But they are making a risky bet. When the well has been sucked dry, and the West is unable or unwilling to pay back its creditors, war looms on the horizon. The newly risen powers will take what the elites believe rightfully belongs to them, or else will inflict the sufficient amount of pain to force the debtors to pay up.

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