As any regular reader of this column knows, we often use historical examples to demonstrate that this time is no different.
During the 18th century, France, for example, was Europe’s, if not the world’s, biggest superpower. However, they grew comfortable, thinking that they had a “divine right” to rule and that they could be as financially reckless as they pleased.
The French government was a drunken sailor when it came to spending money; they had large social programs, free hospitals, and magnificent monuments. They controlled large swaths of territory abroad, were always at war, and even had their own invasive spy agency that spied on both the King and the subjects. They couldn’t afford any of it, of course.
The French budget deficits had gotten out of hand, so they had no choice but to go deeply into debt and debase their currency. If any of this sounds similar, please let me know.
After the French economy collapsed, a 26-year era of hyperinflation, civil conflict, military conquest, and slaughter ensued.
From ancient Mesopotamia to the Soviet Union, history is littered with instances of civilizations collapsing when resource consumption and allocation reach unsustainable levels.
I’ve been writing about this for years, and it’s now becoming popular. This similar concept is highlighted in a recent NASA-funded study report. The authors claim that:
“Even sophisticated civilizations have collapsed many times in the last 5,000 years, and they have often been followed by decades of demographic and cultural loss, as well as economic regression.”
The findings of their tests indicate that some of today’s most obvious trends– unsustainable resource use and economic stratification that benefits the wealthy– may quickly lead to collapse.
“Collapse is extremely difficult to prevent and needs significant policy changes,” they conclude.
This isn’t exactly encouraging. But here’s the thing: our contemporary civilization seems to be plagued with these dangers, what with huge debts, deficits, money printing, war, resource depletion, and so on.
And history has shown that dominating powers shift over time. Empires come and go. The global monetary system is in constant flux. The current social contract is always shifting.
However, there is one historical pattern that much outweighs the others… The RISE of mankind is the result of this tendency.
Humans are, at their core, toolmakers. We transform challenges into possibilities. We come up with solutions. We adapt and persevere.
The world isn’t about to end. It’s going to revert to its previous state. There is a significant distinction between the two. Consider the system in which we now find ourselves.
The money supply is completely controlled by a small elite. They have invasive surveillance networks and weapons of mass devastation at their disposal. They have the authority to seize the riches of others at their discretion. They have the ability to owe future generations money.
Surprisingly, they are the same individuals that are incapable of putting up a website. It’s not going to work. And almost everyone is aware of it.
Growing up, we’re taught that at the voting box, ‘We the People’ have the ability to effect significant change. But this is a different kind of fairy tale. The players are only changed as a result of voting. It has no bearing on the game.
One significant game shift is technology. Today’s technology has the potential to fundamentally transform the way we live and govern ourselves.
The current system is just a 19th-century paradigm adapted to the 21st-century culture. I mean, a room full of guys debating the amount of money to print? It’s almost ridiculous how old it is.
However, considering that the vast majority of Western countries borrow money only to pay interest on money they’ve already borrowed, the present game is clearly over.
When it’s over, there’ll be a reset… one that may be turbulent. This is why you should have a backup plan and avoid putting all of your eggs in one basket.
After all, why put forth so much effort if all you’ve ever accomplished or given for your children are tethered to a nation with poor fundamentals?
If you agree with me, please share this post with your friends so that they may prepare a backup plan as well. They’re going to be happy they did.