The US Is An Empire. How Did The US Get The Tribute It Deserved As An Empire?

Oct. 5, 2010 - PRLog -- I ask this question all the time and never get the right answer. So, here goes.

Rome was an empire. Rome at it's peak had conquered all its neighbors. Empires can demand and get tribute from those it has vanquished in the form of gold, grain, slaves, spices, silk, olive oil, wine, wild animals for the coliseum blood sports etc. The United States of America has been the empire in the world for the past 100 plus years. We have 725 military bases around the world. So, don't tell me otherwise.

What, how and why did we get our tribute?  Tribute is a Roman word for pay as an acknowledgment of subjugation, for protection from invasion, etc.  We ruled the seas, the air, the markets. We were strong. We were and still are the policeman of the world. That was a big part of the reason Rome fell, by the way. They spent all their money trying to police their empire. We are rich. Wall Street ruled the world markets for years. Business across the land flourished. We had natural resources (gold, iron, coal) and fertile farm land. We deserved it and I say we got tribute. In spades!

How?  We lived the high life all these 100 years and exported our inflation to other nations. Yes, the rest of the world had to take our rotten fiat paper money that was consistently losing value. The U.S. dollar of 1913 is now worth only 4 cents. We made out like bandits. They had to take our stinking paper money that was losing 5% per year in value some years. They had to choke on it. While we lived high on the hog. We exported our inflation to other countries. We ripped off the whole world with our made-up monopoly money. No wonder other countries hate us.

95% of all U.S. paper money ever printed is in other nations. There is a huge market hedging interest rate risk on our dollars in Europe. It's a debt instrument on the commodity exchange called Euro dollars - not the Euro currency. Total open interest 8/6/2010 was a whopping - $7,830,000,000,000.

Our empire is ending. The GREATER DEPRESSION started in year 2000 with the dot com stock market peak. China will be the next empire. What happens when all those dollars around the world and the $860 billion that China holds tries to come back?

You can plan on big time drops in prices of real estate, stocks, corporate and municipal bonds, commodities (yes, gold and especially silver, palladium and platinum since the are all industrial metals) and antiques/art/collectables in the deflation economy.. This will be a nightmare. I expect "Antiques Roadshow" to go off the air. You can't eat that stuff. I was watching it the other night and someone on the program said prices were down by 33% in some areas of collecting.

We are firm believers in Robert Prechter's Elliott Wave analysis. How markets and indeed all nature works. Socionomics is his new joining of sociology and economics in relation to mans mood swings from positive to negative and someday back to positive. For now, Prechter sees mans mood waning until 2016. He says the effect on investment markets will be disastrous due to the fact that man is a herd animal and alway buys more a a top.
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Prechter has found it is better to be a contrarian investor when the direction of the wave changes to a deflation economy in the coming GREATER DEPRESSION. The Question now is will the U.S. dollar continue to lose value due to inflation or will the deflation put a stop to the free ride.  I say the next 5 to 10 years will have deflation.  Unless we get a private run gold money system, all bets are off after that.  That's my tribute to tribute.
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Delwyn Lounsbury - THE DEFLATION GURU is an Eagle Scout. He has been an award-winning real estate in California since 1968. He published the ECONOMIC SURVIVAL LETTER in the late 1970's.
What is Deflation? How to survive and get rich in the coming Greater Depression.
Get FREE 00 page DOWNLOAD " Deflation eBook" at: http://www.deflationeconomy.com
email: delwynlounsbury@aol.com