Monday, March 23, 2015

The Party’s Over, by Robert Gore

Since the end of World War II, the US government has deluded itself, but like all delusions, the government’s has run into reality. It has done so before, but this may mark a demarcation. It would be too much to expect the delusion to give way to wisdom, but the delusion cannot persist, as even a few of the deluded are beginning to realize.
Washington’s delusion has been that the anomalous position of supreme, unchallengeable power in which it found itself at the end of the war—leader of the winning alliance, sole possessor of the atomic bomb, keeper of the reserve currency, with the only intact industrial infrastructure—would be permanent. Reality soon intruded. The USSR penetrated the US nuclear weapons program and detonated its first bomb in 1949. The Korean war was a stalemate, not a win. Vietnam was a defeat. The US abandoned the responsibility it had undertaken to maintain the world’s reserve currency, to redeem dollars for gold, when President Nixon closed the gold window in 1971. Islamists overthrew the US puppet Shah of Iran and installed a theocracy hostile to the US. This sparked an upsurge of Islamic militancy in the Middle East that bedevils the US to this day.
US hegemonic triumphalism rallied after the dissolution of the USSR, but it proved to be a dead cat bounce. Welfare state transfer payments, overall spending, and the national debt continued to grow as the we-can-have-it-all fantasies of the populace and its politicians persisted. There was no scaling back of either domestic or global commitments, even as the economy began to demonstrate subtle signs of deterioration. That deterioration was masked by central bank machinations that promoted rising equity, bond, and housing markets, bestowing paper wealth that served as an imperfect and skewed replacement for shrinking opportunities in an increasingly debt-saturated and government-controlled economy.


Read the rest @ http://straightlinelogic.com/2015/03/23/the-partys-over-by-robert-gore/

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