The U.S. economy has devolved from primarily a producer economy into a consumption economy over the last several decades. This circumstance could not have occurred without the U.S. dollar being the world’s primary reserve currency since World War II. A number of other constituent parts combined with the U.S. dollar hegemony during this period to create the biggest fascist state that history has ever known and all based on the USA being the lone standing power after World War II. These include the increased power of the big banks, big corporations, military-industrial complex, and the growth of other big government agencies of power. Yes, we did have the Soviet Union as the creditable threat, as historian Carroll Quigley would say, to justify the maintenance of a huge military and to create fear in order for the government to more easily manipulate and control the populace. But the Soviet Union economically and as we later found out, militarily was no match for the USA. During this time, the U.S. government and their closely aligned big corporations had become the biggest unchecked block of power in the world and they constantly looked to take full advantage of that situation with little regard to the rights of other countries, entities, or its own citizens. The U.S. fascist state looked to continually increase its empire at any cost to those who stood in their way or could not be bought off by the “funny money” it created out of thin air because it possessed the world’s primary reserve currency. The U.S. dollar was backed by gold until 1971, when that became too much of a hindrance to the powers that be in their lust for power, that could only be fueled and supported by more paper money and so they abolished the gold backing of the dollar. You see, parts of the world (the French for one) were slowly catching on to the profligacy of the U.S. government and started exchanging their paper dollars for U.S. gold, a hard asset with real value as opposed to paper. The U.S. dollar was now backed by the full faith and confidence in the U.S. government along with the largest military in the world and a little side deal the U.S. did with Saudi Arabia, which required them to sell their oil in transactions denominated only in dollars.
The U.S. government did not just blossom into this overwhelming power overnight, although the result of World War II was a major impetus to their top billing on the world stage. Most U.S. citizens have been indoctrinated to believe that this rise to rise to power is a good or even great thing. But only for a relatively select few, because those in power have to have people to take advantage of or rule over for power to be profitable and enjoyable (only for the sociopath type minds). Those in power want to stay in power, so they cannot have everyone freely competing in an open marketplace to improve their lot in life. That would be too much of a threat to the status quo, so the populace at large just like the world at large must be cleverly and covertly controlled through the buying off of the people through social welfare programs, state indoctrination camps called public schools, propaganda called mainstream news, and government spokespeople and reports (more propaganda). Other countries are bought off through foreign aid and promises of military protection. Now if the carrot does not work, then the stick is applied through first covert means if possible, such as the CIA, clandestine military operations, and other secretive government agencies that do not look to attract too much attention to their activities except when they want to or have to put a positive spin on some of them if they are discovered. If the US fascist government cannot accomplish their ends through covert means or if they need a reason to justify the existence of their huge “peacetime” military, which is basically a continuous operation, then a bigger, much more overt stick is applied. This type of invasive aggression can be because the country has valuable natural resources, it does not want to continue using the U.S. dollar in its commercial transactions, it does not have nor want a central bank, or it is unwilling to cooperate with the always “good” (as promulgated in their propaganda and brainwashing activities) USA in whatever it feels like doing at any particular time because it’s the biggest, baddest, meanest, SOB in the world. The target of attack is also always demonized as a serious threat to humanity in an effort to make the U.S. government look like it is the “good guy”. Of course, the U.S. government could not get away with this masquerade without distributing copious amounts of paper money to both its citizenry and allies, as well as the always present potential use of force against anything or anyone that opposes its agenda. This type of power structure is designed to keep a relatively few at the top at the expense of the many below as exemplified by the pyramid structure. This system that the population at large has been brainwashed to support and be loyal to is akin to the slave worshiping and loving their oppressive master because the master may give you a nice bed to sleep in or reasonably good and plentiful food to eat or regular assortment of entertainment. But in the meantime, the master and its corporate cronies will use you as a statistic in increasing their market share for its largely unnecessary consumer goods and pharmaceutical products due illnesses created by the master and it cronies. They enslave you to their corporations, jobs, government dependencies, and an unquestioning respect for government through the use of debt, illness, fearmongering, propaganda, plenty of funny money, and strictly limited (and limiting) “education” process. This is also designed to keep you from competing against the status quo in a widespread manner that would normally occur in free, open markets. The system is designed to protect the status quo and the status quo will use all the power it has built up to do so while at the same time presenting a very nice picture to the public, that has little to do with the actual truth, about its activities and intentions. The irony of all this is the U.S. government, and any other government that follow similar methods, are perpetrating their own demise in this mean, ugly, and criminal process. The premises of their system is leading to self-destruction, slowly at first but quickly hastening as the end nears. For all their extensively and excessively aggressive actions against citizens, countries, or other groups that they perceive either as their pawns to do as they wish to or foes to their agenda that they need to destroy, these central bank funded, fascist states are quickly reaching the limits of projecting their power that requires the further printing (it’s primarily digital creation) of paper money. Because the system has lasted so long, most of the older and not so old generation is heavily vested in the current system as the primary or sole means of their support. This makes the demise of the system in the U.S. very hurtful to many as well as basically buying their support for a system that is already obviously not working for a large number of people and that number will continue to grow to include many of the people within the system for whom it still appears to work for.
To go all the way back to the first sentence of the last paragraph, where I said the U.S. government did not blossom overnight into this overwhelming power, I just wanted to highlight a few events preceding World War II that incubated this monstrosity. You have to start with the creation of the Federal Reserve, the U.S. central bank. Without its own independent source of funding, the U.S. government, or any government for that matter, would be much more limited in its power as well as much more representative of the people and its interests. Giving the government and its corporate cronies their own piggy bank where the money is created out of thin air, takes the power from the people and gives it to institutions and companies. Instead of representing and responding to the interests of the people, governments and their corporate cronies look to use the people as pawns to accomplish its own goals irrespective of the effects upon the people, whether it be as soldiers for its wars, guinea pigs and externally (and unnaturally I might add) sickened recipients for its drugs, labor for its corporate/government jobs, and targets to justify the existence of various bloated government agencies. And again, all of this is to ensure the protection and enlargement of the status quo against any competitive threats that would normally and naturally appear in a free, open market. Another event that further benefited the continual enlargement and encroachment of big government into the everyday life of the American citizen was the Great Depression. There are a lot of details here and I am not an expert on this event, but suffice to say this allowed the U.S. government to institute a lot more, new government programs with the intent of making the government appear to be the savior of the people. With all the machinations of the U.S. government apparatus, the nation did not emerge from its economic doldrums until World War II started, some 11 years later. Like many in government are now fond of saying, “do not let a serious crisis go to waste”. The government (like some people or entities), to increase its footprint of power, likes to prey on people who are in a vulnerable state due to circumstances. Fearmongering or demonization of a target are often used as tools to either induce/or further exacerbate that vulnerable state of mind or projecting the image that only the government is capable of reining in these targets, respectively. Anyway, the creation of the Federal Reserve central bank paved the way for the government and its cronies to basically rig the game in their favor at the expense of the people. Once the U.S. dollar became the primary world’s reserve currency after World War II, that and being the sole military and financial superpower in the world, the capabilities of the fascist big government/corporate cabal were greatly enlarged.
After World War II, other events occurred that will eventually lead to the self-destruction of this system such as the huge decline in small businesses starting in the early 1950’s, the moving of much of the U.S. manufacturing base offshore, the continuing increase of already heavy economic and business regulatory burdens (especially for small, startup businesses) , the almost constant warmongering (both overtly and covertly), the huge expansion of federal, state, and municipal governments, the immense encroachments of government on individuals and their rights in just trying to navigate a normal life, and the buying off of large segments of the population through social welfare programs that do not contribute to the progress of the individual nor to the productivity of the country. These events and actions not only lead to the self-destruction of the system and its accompanying economic downturn (probably collapse but I don’t want to be accused of fearmongering) but also to large societal problems and unnecessary social tensions. When the government, its central bank, and its relatively few favored corporations (and support contractors) become the major force in an economy, you do not have a healthy, robust, diversified, and vibrant economy that is capable of quickly bouncing back from normal downturns in a typical business cycle. The business cycle has become so distorted and extreme, on both the upside and downside, due to the funneling of make believe paper money into a relatively few favored hands. A Zero Hedge article the other day stated that only 60% of the U.S. population is fully employed, which I believe is much closer to the truth than the government rigged numbers that you get on unemployment. The 40% not fully employed take into account those that are only working part-time as well as those listed as no longer in the work force due to not being able to find a job for a long period of time. Since we are now supposedly in an economic recovery, how many of those 60% will be negatively affected in the next economic downturn? And since we are already in the sixth year of this “recovery”, the next downturn is not far away based on historical records (not government rigged statistics). And if you add to the next economic downturn, the possibility that the U.S. dollar will no longer be the world’s primary reserve currency, then how much more severely will the U.S. economy be affected? The U.S, economy is now largely a consumer economy but without the U.S. dollar being the primary world reserve currency, the ability to consume in the future will greatly diminish, as it already is for large segments of the population. Without the U.S. dollar being the world’s primary reserve currency, will the U.S. government be able to continue to spend (print paper money) and support large segments of its population through government jobs and social welfare programs? The prospects of the U.S. dollar retaining its unchallenged supremacy as the world’s primary reserve currency does not look promising as the government continues to run up huge amounts of debt. The only buyer of its debt obligations is its own central bank, which is a strong indication of the lack of credit worthiness of the U.S. government and as such is a direct reflection on its currency. The only reason the U.S. dollar looks relatively strong internationally is that most of the other major countries/regions are just as credit unworthy as the U.S. government. In effect, it is a race to the bottom for most of these fiat currencies. Just because the dollar is strong at the moment on a superficial price scale does not mean it is time to get comfortable. It just means that all of these countries are operating from the same corrupt, criminal, and failing playbook but the US dollar due to its world primary reserve status will be the last to go, but it will quickly bring up the rear when it hits bottom. So being largely a consumer economy where the government is also a huge force in the economy when you no longer have the world’s primary reserve currency, is a big fat zero. The government and it corporate cronies have systematically and purposely destroyed a once flourishing, diversified, and vibrant (yes, that almost seems like ancient history now) economy in quest for more power, more profits, and empire building at the expense of the people of the USA. My intent in this essay was to give you a quick overview on how we got here and what being here actually is and means. Books have been written on this and various parts of this subject matter so I have just begun to scratch the surface. Look to books by Murray Rothbard, G. Edward Griffin (The Creature of Jekyll Island), John Perkins (Confessions of an Economic Hitman), Carroll Quigley (Tragedy and Hope), Robert Chalmers Johnson (Blowback), John Whitehead (Battlefield America: The War on the American People), and others for further details as well as how the world really works.