It is often said that Empires crumble from within. Others say that Imperial overeach creates a dilemma, one of diminishing returns. In the initial growth period of empire, the return on investment is high, whereas once imperial overeach is attained, the cost of merely managing an empire becomes prohibitive, the return on investment diminishes. Empire then becomes a costly endeavor - the returns do not grow, the costs do. And ultimately, its costly maintenance ensures a tragic end.
But there are other forces that draw wealth from within the empire - the power elites. These power elites vary by empire and by the empire's period of growth. Some create more wealth than they draw, others are more parastitic. Some have been military, others industrial based, and others financial. One can draw obvious conclusions as to how an empire acts depending on the nature of the power elites.
From the end of the gold standard in 1971, and with the introduction of debt based money, it is the financial system that has become the power elite of the US. It created a new economy based on leverage and speculation. On the upside growth of such systems, wealth is created in a spectacular fashion. But on the downside, wealth evaporates just as in any Ponzi/Pyramid scheme. I fear that we are on the way down of a ponzi scheme, and now, I fear that the US Banking Elite have turned on their own country, and the world at large either to keep the Ponzi going, or to at least gather as much wealth as they can before it implodes.
"Bankers own the earth. Take it away from them, but leave them the power to create money and control credit, and with a flick of a pen they will create enough to buy it back."
- Sir Josiah Stamp, former President, Bank of England
The above quote was made by a central bank president. I have mentioned before that the US Central Bank, the Federal Reserve, is owned by its shareholders, the commercial banks. It is not federal, but a private institution. It is no wonder then, that the Banking Elites have been making greater profits since the financial crisis of 2008. But at who's cost? How did they do it? The videos below, one by Jesse Ventura, a former governor, Navy Seal, and professional wrestler, and the other by Professor Simon Johnson, a former Economic Chief to the IMF, give us a clue.
Professor Simon Johnson:
I have often said that a debt based monetary system ultimately self destructs as the leverage within the system becomes unbearable to manage. And thus to me, the rise and collapse of the Financial Elite is an unavoidable result. Don't get me wrong, the US is indeed facing imperial overstretch regardless of this financial crisis, but it could have handled this better without the economic crisis. They are two separate iussues. Unfortunately, the economic crisis has created a situation where the banking elites continue to plunder from within and continue to withdraw manpower and energy from other pressing issues the US faces. The US needs a strong president to handle this crisis, a Teddy Roosevelt type figure. Unfortunately, it doesn't have one, and thus, I believe the Banking Elites will ultimately create their own demise as they prop up and cling to a system that has a built-in termination feature, as all Ponzis do.