Yet the problem with Italy is not the problem that the European Commission or financial markets see.
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News and views on the coming collapse
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There are lots of ways to kill off a civilization. Wars, politics, economic collapse. But what are the actual mechanics? It might be a useful thing to know whether or not we are killing ourselves off.
Ancient Rome is a good place to start. They had an advanced civilization. They had running water, sewers, flush toilets, concrete, roads, bridges, dams, an international highway system, mechanical reapers, water-powered mills, public baths, soap, banking, commerce, free trade, a legal code, a court system, science, literature, and a republican system of government. And a strong army to enforce stability and peace (Pax Romana). It wasn’t perfect, but they were on their way to modernity.
One of my favorite quotes is from Marcus Tullius Cicero, statesman, orator and writer (106-43 BCE):
Times are bad. Children no longer obey their parents, and everyone is writing a book.
If that isn’t a mark of a civilized society I don’t know what is.
But Rome collapsed. I often wonder what would have happened if it hadn’t. Could we have avoided a thousand years of the Dark Ages. Could we have been flying airplanes and driving cars in the year 1000?
What the hell happened to Rome?
Dictators. After 500 years, the famous Roman Republic ended with the dictator Julius Caesar taking power. Four hundred years later his progeny and usurpers ran the Empire into the ground and Rome fell to invading barbarians.
The standard explanation for Rome’s decline and fall is that they devolved into dictatorships (true, but not the cause of their fall). Or they became decadent and corrupt (true, but not the cause of their fall). They fell to barbarian invasions (true, but not the cause of their fall).
Rome fell because the dictators ruined the Roman economy and the institutions that had made it prosperous. Rome was falling apart before the barbarian invasions.
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Something’s been nagging me for the past few days, and I’m not sure I’ve figured out why yet. It started when Donald Trump first called off the alleged planned strikes on targets in Iran because they would have cost 150 lives, and then the next day said the US would do sanctions instead. As they did on Monday, even directly targeting Trump’s equal, the “Supreme Leader Khameini”.
When Trump announced the sanctions, I thought: wait a minute, by presenting this the way you did, you effectively turned economic sanctions into a military tool: we chose not to do bombs but sanctions. Sounds the same as not doing a naval invasion but going for air attacks instead. The kind of decisions that were made in Vietnam a thousand times.
However, Vietnam was all out war (well, invasion is a better term). Which shamed the US, killed and maimed the sweet Lord only knows how many promising young Americans as well as millions of Vietnamese, and ended in humiliating defeat. But the US is not in an all out war in Iran, at least not yet. And if they would ever try to be, the outcome would be Vietnam squared.
Still, that’s not really my point here. It’s simply about the use of having the world reserve currency as a military weapon instead of an economic one. And I think that is highly significant. As well as an enormous threat to the US. The issue at hand is overreach.
While you could still argue that economic sanctions on North Korea, Venezuela and Russia are just that, economic and/or political ones, the way Trump phrased it, comparing sanctions one on one with military strikes, no longer leaves that opening when it comes to Iran.
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Our society has a legal structure of self-rule and ownership of capital, but in reality it is a Neofeudal Oligarchy.
The Inheritance of Rome: Illuminating the Dark Ages 400-1000 is not an easy, breezy read; its length and detail are daunting.
The effort is well worth it, as the book helps us understand how the power structures of societies change over time in ways that may be largely invisible to those living through the changes.
The Inheritance of Rome focuses on the lasting influence of Rome’s centralized social and political structures even as centralized economic power and trade routes dissolved.
This legacy of centralized power and loyalty to a central authority manifested 324 years after the end of the Western Roman Empire circa 476 A.D. in Charlemagne, who united much of western Europe as the head of the Holy Roman Empire. (Recall that the Eastern Roman (Byzantine) Empire endured another 1,000 years until 1453 A.D.)
But thereafter, the social and political strands tying far-flung villages and fiefdoms to a central authority frayed and were replaced by a decentralized feudalism in which peasants were largely stripped of the right to own land and became the chattel of independent nobles.
In this disintegrative phase, the central authority invested in the monarchy of kings and queens was weak to non-existent.In the long sweep of history, it took several hundred years beyond 1000 A.D. for central authority to re-assert itself in the form of monarchy, and several hundred additional years for the rights of commoners to be established.
Indeed, it can be argued that it was not until the 1600s and 1700s–and only in the northern European strongholds of commoners’ rights, The Netherlands and England–that the rights of ownership and political influence enjoyed by commoners in the Roman Empire were matched.
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Some of the most telling moments in history are when we look back and see people in a vastly different world behaving exactly as people do today. From 286 to 305 Diocletian, one of Rome’s most powerful and consequential emperors, tried to fix the political and economic systems which he inherited and were teetering on the brink of collapse. In doing so, he made mistakes remarkably similar to those made by people in government today.
The world Diocletian inherited was staggering out of the Crisis of the Third Century, a 50-year period that saw 26 claimants to the imperial robes, most of whom seemed guided by nothing more than personal greed and ambition. Relatively speaking, Diocletian brought stability and good intentions to the Roman state and helped it persist for another 150 years.
But virtually all of Diocletian’s individual reforms sought a stronger imperial state that exploded in both bureaucracy and godlike pageantry in an attempt to engineer prosperity from the top down. The astonishing part is that after more than 1,700 years, after the development of economics as a field of study, and under the auspices of liberal democracy, governments today proceed with largely the same instincts.
Is Four Greater Than One?
The man who would become known as Gaius Aurelius Valerius Diocletianus Augustus was born in present-day Croatia in the year 244. He first came to power as many emperors did, with an army under his command proclaiming him as such, and ultimately defeating other military rivals.
Diocletian realized that his vast empire was too large and complex to be ruled by a single man. This insight about the limits of top-down control may have been forward-thinking, but his solution shows how deeply important the elites of his time viewed a strong centralized state. By 293, Diocletian had fully formed the tetrarchy, where two junior and two senior emperors bound by a set of marriages would each rule a quarter of the empire.
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Sometimes we find ourselves merely pondering, not so much solving big problems. Is there playing out, in the world at large, or at least the world of men, something akin to the Kondratieff cycle in economics, a larger cycle, a force, a tide, an energy, that we mostly ignore, but which drives our ‘affairs’? Dr. D. thinks there may well be. But if so, what happens to free will?
Dr. D.:
Dr. D.: I seem to have taken a dark and grumpy turn lately. Probably the winter, but as I get older, I find the present state of the world more and more frustrating.
I fear with the present madness it’s just de rigor to 1) label people as something they’re not, even the OPPOSITE of what they are, 2) furiously fight that strawman and 3) not care. I have no explanation for it, but there are times and tides in the affairs of men (as Shakespeare would say) which flood you out and cost a fortune. …Or something like that.
And it’s certainly flooding in Europe right now, as darkness falls as the shutters of censorship and totalitarianism are bolted up everywhere, every bit as clear and methodical as was done in 1935, even with a call for a shiny new army. …To use on no one, of course, because we all know broke nations fund and create armies for no ill intent whatsoever. But these things happen regularly.
“If…any person had told me that there would have been such [chaos] as [now] exists, I would have thought them a bedlamite, a fit subject for a madhouse.”
– George Washington, 1786 (after a fiat money blowoff in the states)
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Are we ‘Rome’? The question has weighed heavily on the minds of American conservatives, libertarians and Catholics at their various conferences. Is America headed the way of the Roman empire? Bureaucratic decay, massive public debt, an overstretched military, a political system seemingly incapable of responding to challenges – “the late Roman empire suffered these maladies, and so, some fear, does contemporary America”, notes The American Conservative, a journal which has been pursuing this ‘line’ diligently, and with a growing constituency, over a number of years. (Note that this is not the constituency of Vice-President Pence who represents an Evangelical, fundamentalist, literal insistence on imminent Redemption, with its ‘Rapture’ politics).
The American Conservative rather warns:
“If libertarians on the Right worry about structural collapse – cultural and religious conservatives add a moral and spiritual dimension to the debate. Rising hedonism, waning religious observance, ongoing break-up of the family, and a general loss of cultural coherence — to traditionalists, these are signs of a possible Dark Age ahead”.
And this is their narrative in response to these fears: Around the year 500 (CE), a generation after the Franks deposed the last Roman Emperor, a young Umbrian man (i.e. hailing from a rural province in Italy), was sent to Rome by his wealthy parents to complete his education. However, disgusted at ‘Rome’s decadence, he fled to the forest, to pray as a hermit.
His name was Benedict. And he went on to found a dozen monastic communities, and wrote his famous ‘rules’ which are credited with having helped an earlier culture and its values survive in needy times. Professor Russell Hittinger summed up Benedict’s lesson to the Dark Ages like this: “How to live life as a whole. Not a life of worldly success, so much as one of human success”.
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QUESTION: Is MMA the new Roman Colosseum? I’m a layman in history but didn’t blood sports rise in popularity during Rome’s decline? Now everyone and their mother is talking about MMA, and random celebrities e.g. Logan Paul or now Trump Jr. are jumping in the octagon or being challenged.
JR
ANSWER: Yes. For some reason, society begins to turn more violent toward its end times. Mixed martial arts is a full-contact combat sport that allows striking and grappling, both standing and on the ground, using techniques from other combat sports and martial arts. It is an interesting pattern. The Christian Persecutions really came into full swing only as the Empire was collapsing during the 3rd century.
Yet the problem with Italy is not the problem that the European Commission or financial markets see.
…click on the above link to read the rest of the article…
In the year 6 AD, the Roman emperor Augustus set up a special trust fund known as the aerarium militare, or military treasury, to fund retirement pensions for Rome’s legionnaires.
Now, these military pensions had already existed for several centuries in Rome. But the money to pay them had always been mixed together in the government’s general treasury.
So for hundreds of years, mischievous senators could easily grab money that was earmarked for military pensions and redirect it elsewhere.
Augustus wanted to end this practice by setting up a special fund specifically for military pensions.
And to make sure there would be no meddling from any government officials, Augustus established a Board of Trustees, consisting of former military commanders, to oversee the fund’s operations.
Augustus really wanted this pension fund to last for the ages. And to keep a steady inflow of revenue, he established a 5% inheritance tax in Rome that would go directly to the aerarium militare.
He even capitalized the fund with 170,000,000 sesterces of his own money, worth about half a billion dollars in today’s money.
But as you can probably already guess, the money didn’t last.
Few subsequent governments and emperors ever bothered themselves with balancing the fund’s long-term fiscal health. And several found creative ways to plunder it for their own purposes.
Within a few centuries, the fund was gone.
This is a common theme throughout history… and still today: pension funds are almost invariably mismanaged to the point of catastrophe.
We’ve written about this topic frequently in the past. It’s one of the biggest financial catastrophes of our time.
Congress has even formed a committee that’s preparing for massive pension failures.
And here’s another, very recent example: the city of Wilkes-Barre, Pennsylvania is deep in the red with its police pension fund.
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Observations on the Causes of the Decline of Ancient Civilization
Knowledge of the effects of government interference with market prices makes us comprehend the economic causes of a momentous historical event, the decline of ancient civilization.
It may be left undecided whether or not it is correct to call the economic organization of the Roman Empire capitalism. At any rate it is certain that the Roman Empire in the second century, the age of the Antonines, the “good” emperors, had reached a high stage of the social division of labor and of interregional commerce. What brought about the decline of the empire and the decay of its civilization was the disintegration of this economic interconnectedness.
Several metropolitan centers, a considerable number of middle-sized towns, and many small towns were the seats of a refined civilization. The inhabitants of these urban agglomerations were supplied with food and raw materials not only from the neighboring rural districts, but also from distant provinces. A part of these provisions flowed into the cities as revenue of their wealthy residents who owned landed property. But a considerable part was bought in exchange for the rural population’s purchases of the products of the city-dwellers’ processing activities. There was an extensive trade between the various regions of the vast empire. Not only in the processing industries, but also in agriculture there was a tendency toward further specialization. The various parts of the empire were no longer economically self-sufficient. They were mutually interdependent.
What brought about the decline of the empire and the decay of its civilization was the disintegration of this economic interconnectedness, not the barbarian invasions. The alien aggressors merely took advantage of an opportunity which the internal weakness of the empire offered to them.
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Like the case of Rome before it, the Empire is bankrupting America. The true fiscal cost is upwards of $1.o trillion per year (counting $200 billion for veterans and debt service for wars), but there is no way to pay for it.
That’s because the 78-million strong Baby Boom is in the driver’s seat of American politics. It plainly will not permit the $3 trillion per year retirement and health care entitlement-driven Welfare State to be curtailed.
The Trumpite/GOP has already sealed that deal by refusing to reform Social Security and Medicare and by proving utterly incapable of laying a glove politically on Obamacare/Medicaid. At the same time, boomers keep voting for the GOP’s anti-tax allergy, thereby refusing to tax themselves to close Washington’s yawning deficits.
More importantly, the generation which marched on the Pentagon in 1968 against the insanity and barbarism of LBJ’s Vietnam War have long since abandoned the cause of peace. So doing, boomers have acquiesced in the final ascendancy of the Warfare State, which grew like topsy once the US became the world’s sole superpower after the Soviet Union slithered off the pages of history in 1991.
Yet there is a reason why the end of the 77-year world war which incepted with the “guns of August” in 1914 did not enable the world to resume the status quo ante of relative peace and prosperous global capitalism.
To wit, the hoary ideology of American exceptionalism and the Indispensable Nation was also, ironically, liberated from the shackles of cold war realism when the iron curtain came tumbling down.
Consequently, it burst into a quest for unadulterated global hegemony. In short order (under Bush the Elder and the Clintons) Washington morphed into the Imperial City, and became a beehive not only of militarism, but of an endless complex of think-tanks, NGO’s, advisories and consultancies, “law firms”, lobbies and racketeers.
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