The Fall Of The American Democracy!
|January 12, 2011||Posted by Roshawn Watson under Uncategorized|
By: Roshawn Watson
For the most part, China’s economy doesn’t seem to be missing a beat and is quite a force in the global economy. While modern China’s economy is blazing, the economies of Western democracies are growing more conservatively and still licking wounds from the recession. The late English historian, Alexander Tytler, has some fascinating writings on this subject. While the accuracy of his following quote is debatable, as our the conclusions, it does have obvious and potent implications today:
A democracy is always temporary in nature; it simply cannot exist as a permanent form of government.
A democracy will continue to exist up until the time voters discover they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by dictatorship.
The average age of the world’s greatest civilizations from the beginning of history has been about 200 years. During those 200 years, these nations always progressed through the following sequence:
- From bondage to spiritual faith;
- From spiritual faith to great courage;
- From courage to liberty;
- From liberty to abundance;
- From abundance to complacency;
- From complacency to apathy;
- From apathy to dependence;
- From dependence back to bondage.
How Does This Apply To America?
- In 1620, the Pilgrims sailed to America for religious freedom from the Church of England (bondage to spiritual faith to great courage). When you risk beheading and dying en route or after settlement for your beliefs, I’ll call that great courage too.
- In 1776, the signing of the Declaration of Independence meant that America was declaring war on the most powerful country in the world — England. With the Revolutionary War, the 13 colonies in North America broke free from the British empire, and the democracy was formed (courage to liberty).
- By 1933, the Great Depression caused Franklin Delano Roosevelt to allow the US dollar to no longer be backed by a gold standard.
- At the conclusion of WWII in 1944, the US dollar, now backed by gold, became the reserve currency of the world.
- Since the U.S. entered the war late, the U.S. essentially became the creditor to the world and financed the rebuilding of England, France, Germany, Italy, and Japan. This made America rich, our democracy moved from liberty to abundance.
- President Nixon took the U.S. dollar off the gold standard in 1971 because America was spending more than it was producing and the U.S. gold reserves were being depleted.
- The following year, Nixon opened the door for trade to China, which caused a huge economic boom. The U.S. borrowed money through the sale of bonds to China, which was then one of the world’s poorest countries.We stopped much factory production. We borrowed and printed money to maintain our lifestyles (abundance to complacency)
- We continued to borrow for the next three decades (complacency to apathy)
- You know what’s next. Fast forward to 2007, America has the subprime and general lending crisis, and by 2010 we have double-digit unemployment. Moreover, we are dependent on China to buy our bonds and produce cheap products for us (apathy to dependence). Additionally, we have millions of individuals and businesses dependent on the government for provision.
When I read Robert Kiyosaki’s review and commentary about the fall of the American Democracy a month ago, I knew I had to share it with you. Regardless of your feelings about him, these facts may have a tremendous impact on Americans and several other countries. That’s because the theory of decoupling remains just that: a theory. Our economies are still intrinsically linked, as proven by the global reverberations felt by the credit crisis. Personally, I’m hopeful that we will innovate and return to prosperity. However, given this historical basis, where do you see this going? According to Tytler’s cycle, the next stage is from dependent back to bondage.
When Mr. Credit Card shared We Don’t Export Enough, many argued. Where do you stand now?
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We Don’t Export Enough
Copyright 2012, Roshawn Watson, Pharm.D., Ph.D. All Rights Reserved.