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Paul Kennedy – The Stirrings of Slave Nations

Futurists have been warning us for decades that the American political system is failing. It´s only a matter of time before the US joins history´s ranks of collapsed superpowers. For now, the future is uncertain. One such commentator is Paul Kennedy, political historian and former advisor to Bill Clinton.

In his 1988 book, “Rise and Fall of the Great Powers,” Kennedy suggested that US bureaucracy are worsening long-term policies, “… accelerated by policies which bring merely short-term advantage but longer-term disadvantage.” Twenty-five years on we find ourselves in the grip of economic disaster that is predicted to span more than an entire decade.

Corrupt banking system

The corruption in the banking system reached its peak in 2007 when it was alleged that investment banks Layman Brothers and Goldman Sachs were loaning out cheap mortgage bombs that made them millions of dollars. When the bomb exploded the taxpayer was left to pick up the pieces whilst the banks were handed a trillion dollar bailout.

Kennedy had seen the crisis coming in the late 1980´s. The Federal Reserve headed by Paul Volcker then Alan Greenspan allowed monetary policy to boost inflation. It got out of control and interest rates have hit a steep decline. Subsequently savers and pensioners suffer. Kennedy also points out the same thing has happened throughout history with the collapse of previous empires; Spain, France, Rome and the Austro-Hungarian rule.

Kennedy´s warning echoed that of Will and Ariel Durant in their book The Lessons of History, which describes the destruction of the Roman Empire. Taxes were hiked so high the people became slaves to the state.

 “Rome had its socialist interlude under Diocletian. Faced with increasing poverty and restlessness among the masses, and with the imminent danger of barbarian invasion, he issued in A.D. 3 an edictum de pretiis, which denounced monopolists for keeping goods from the market to raise prices, and set maximum prices and wages for all important articles and services. Extensive public works were undertaken to put the unemployed to work, and food was distributed gratis, or at reduced prices, to the poor. The government – which already owned most mines, quarries, and salt deposits – brought nearly all major industries and guilds under detailed control. ‘In every large town,’ we are told, ‘the state became a powerful employer, standing head and shoulders above the private industrialists, who were in any case crushed by taxation.’ When businessmen predicted ruin, Diocletian explained that the barbarians were at the gate, and that individual liberty had to be shelved until collective liberty could be made secure. The socialism of Diocletian was a war economy, made possible by fear of foreign attack.”

Violation of freedom

We find startling similarities in today´s world. The erosion of the United States is taking place slowly. People are being deprived of their freedoms and the noose is tightening. Last December, Barack Obama signed The National Defense Act which gives the state the right to arrest and imprison anybody they authorities consider is an enemy of the stat, or “terrorists,” as they call them. Under the terms of the act, a terrorists is broadly defined to mean anybody who does not comply with government policy.

The alarm bells should be ringing – not only in the United States, but all over the world. Roughly two-thirds of US currency circulates outside the US. When the dollar struggles people inevitably struggle with it. Not only that, but history tells us increasing taxation is characteristic of a declining power. So governments try and seize more power by taking it away from the people. As result the people become serfs.

Taxes for top earners in France are being increased to 75%. In UK, top earners have been given a 5 per cent discount and now pay 50% tax on their earnings. To make up for the shortfall however, families will not receive child benefit if one parent earns more than £60,000. For the average family with two children, this is the equivalent of paying 66% in tax. The middle classes are gradually being stripped away. This is the beginning of slave nations Paul Kennedy warned us about 25 years ago.

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