The American Empire Self-Destructs
https://www.zerohedge.com/geopolitical/ ... -destructs
Like other empires before it, the US is now on the verge of relinquishing the crown of empire. If there’s any difference this time around, it’s that its collapse will very likely be far more spectacular than that of previous empires. However, just as in previous collapses, those who least understand that the collapse is around the corner are those who are closest to its centre. Clearly, the majority of Americans are worried about their future yet cannot conceive of their country as a second-rate power. And those who hold the reins of that power tend to be the most deluded, delving ever-deeper into debt at an ever-faster rate, whilst expanding welfare and warfare without any concept of how it might all be paid for.
It’s understandable, therefore, that those of us who are on the outside looking in find it easier to observe objectively from afar and see the coming self-destruction of yet another empire.
As stated in the first line of this essay, “empires are built through the creation or acquisition of wealth.” They tend to end through the gradual elimination of the free-market system, the metamorphosis to a welfare state, and, finally, through the destruction of wealth through costly warfare.
Does this indicate the “end of the world”? Not at all. The world did not end with the fall of Rome, Spain, England, or any one of the many other empires. The productive people simply moved to a different geographical location—one that encourages free-market opportunity. The wealth moved with them, then grew, as the free market allowed productive people to make it grow.
Freedom and opportunity still exist and indeed flourish. All that’s changing is the locations where they are to be found.
Unfortunately, most people have no idea what really happens when an economy collapses, let alone how to prepare.
A government in need of cash will turn to destructive “solutions.”
Money printing, higher taxes, and more regulations often come first. Unfortunately, these are just the hors d’oeuvres before a 10-course meal.
As they become increasingly desperate, governments implement increasingly destructive policies. This might include capital controls, price controls, people controls, official currency devaluations, wealth confiscations, retirement account nationalizations, and more.
The same pattern has played out again and again around the world and throughout history. The worse a government’s fiscal health gets, the more destructive its policies become.
This is the root of political risk.
It’s no secret that political risk is snowballing in many parts of the world. This is especially true in the US and Europe, where welfare and warfare spending continues unabated. It doesn’t matter which party is in power.
But no matter where you live, international diversification can greatly reduce the threat your home government poses to your personal and financial wellbeing.
You know the benefits of diversifying your investment portfolio. If you put all of your asset eggs in one basket, you could lose your entire portfolio if that basket breaks.
The same idea applies to political risk. If your home country “breaks”—and turns to the destructive policies I just mentioned—you could lose everything.
Most people have medical, life, fire, and car insurance. You hope you never have to use these policies, but you have them anyway. They give you peace of mind and protect you if and when the worst does happen.
International diversification is the ultimate insurance policy against an out-of-control government. Think of it as “freedom insurance.”
It frees you from absolute dependence on any one country. Achieve that freedom, and it becomes very difficult for any group of bureaucrats to control you.
The results can be life changing.