The Republicans Make a Stand
With deadlock in Washington and default date looming on the 17th there seems to be a general feeling that when the time comes one party will blink and the problem will go away, after all America will never default?
However to understand more fully what is really going on in Washington we need to look back at the big picture of the cycles of empire and place this political confrontation in context. According to all my analysis, America is in the last of five phases and its decline is accelerating, both internally and externally. The American nation was built by an over class whose values are most closely epitomized by the Republican party, and now due to demographic displacement the old underclass has now gained control of the nation via the precepts of the Democrats. Their inheritance of relative poverty means that one of the key drivers is social equality and the sharing of the nation’s wealth, in programs like Obama care. However at the same time focus by Obama on internal inequality, has been at the cost of American foreign policy and influence, which is at the core of the nation’s wealth generation. In short Obama wants to spend more when he has less, which is a dangerous desire indeed.
At the last election the Republicans finally realized that the demographic shift had displaced their power base and their time hallowed principles would not enable them to regain power in the foreseeable future. During the intervening period they have bided their time. However they must collectively have felt that they had lost control of the country their fathers had built and at some stage sought to make a stand. I suspect that this deadlock is just that stand, and with nowhere else to go they will not back down, nor will Obama, so the situation will deteriorate.
I have long argued that the best thing America could do is to default, and release itself of its debt burden, so that it is free to build a real and vibrant economy in time to compete with China, before it is too late. So what happens if the Republicans have made this calculation too? Economically there would be great upheaval for a time but ultimately a new realistic equilibrium would be achieved without the printing press of the Federal Reserve. Poltically it could level the playing field as Obama would suffer the most, and might even catalyze the much needed changes to the moribund three way power structure in Washington that currently makes America ungovernable.
Read more of David Murrin's geo political writing here: www.davidmurrin.co.uk