Rome
1.
Began as a republic after overthrowing a monarchy
2.
For a considerable time, prosperity existed, as the economy was based upon sound money – gold & silver
3.
Government grew in size and cost and, increasingly, dominated and controlled the economy
4.
Excessive spending by government, on warfare and welfare, led to massive deficits
5.
Taxes were repeatedly increased in order to pay for the deficits
6.
When taxation had reached a saturation point, the currency was debased, in order to continue the transfer of wealth to the government
Then, under Diocletian:
7.
Greatly expanded emoluments to the homeless and unemployed, causing far greater deficits, creating significant inflation
8.
Rather than correct the problem by cutting expenditures, price controls were instituted, dictating fixed prices on goods and services
9.
Unable to raise prices to counter inflation, producers of goods and services ceased providing them
10.
Hyperinflation kicked in, destroying the economy.
11.
The productive people of Rome simply gave up and began to leave.
It’s interesting to note how major a role the elimination of
real
money had on the collapse. The various stages of denigration of money led to the fall of the empire.
And, this was not an isolated incident. The same series of events has been seen repeatedly in history. Government becomes obsessive in its own growth and expects the people to pay for their adventures in warfare and self-aggrandizement.
The natives become restless, so Bread & Circuses are introduced – a welfare state to placate the proletariat. This becomes unsustainable, so excessive taxation, monetary debasement, expanded warfare and, finally, price controls are undertaken.
Then, the inevitable collapse occurs.
And it’s just as true today. The same pattern continues. Re-read the above eleven points, but substitute “Venezuela” for “Rome.” And substitute “Maduro” for “Diocletian.”
Venezuela today is a dead-ringer for Rome in every way.
But, of course, Venezuela is a third-world country and, whilst we may sympathise, we can sit back and say, “I’m glad it’s not me that’s caught up in such a hopeless situation.”
But what if we were to read the above list once again, replacing “United States” for “Rome?”
Well, in fact, we have another match, on all events. However, the US hasn’t reached the point at which the new emperor, Diocletian takes power. If the pattern continues in the US as it has played out repeatedly in history, we can say that the US is primed for its own Diocletian and the balance of the above list is in store for the US.
But is that likely? Well, let’s have a look.
