In watching global “leaders” act like schoolchildren in all matters economic – whilst currencies collapse, commodities explode, and dictators (like Obama) attack anyone they can exploit, I reconsidered the term “third world.” Supposedly, such nations are composed of inferior minds and work ethics, where citizens are oppressed and governments constantly engage in self-destructive policy. Inevitably, such nations end up with collapsed economies, social unrest, and – of course – currency crises in ALL instances where fiat currency is utilized.
The term third world was arrogantly concocted during the Cold War by Western “elites” seeking to belittle and patronize those they aimed to dominate. The so-called “first world” was reserved for nations allied with the U.S.; while “second world” nations were allied with the U.S.S.R., leaving the “poor, huddled masses” elsewhere to be demonized as third world. In other words; so poverty-stricken, destitute, unsophisticated, and lacking in moral compass, they were “not even good enough” to be controlled by evil Russian communists.
While I’m being facetious about the genesis of the term, there is no doubt it applies to countless nations across the globe; and in fairness, when “third world” was coined in the 1960s, most of the nations it referred to deserved the moniker. To this day, many “banana republics” in Africa, Southeast Asia, and Central America PRINT MONEY, terrorize citizens, glorify war, and have not a shred of sustainable – let alone regulated – economic activity. However, since the false prosperity following gold standard abandonment finally ran its course at the turn of the century, the line between the first, second, and third worlds has become blurred. How ironic that the universally recognized “cradles of civilization” in Greece and Egypt are among the most egregious violators of such guidelines; and worse yet, that the Middle Eastern “Holy Land” is on the cusp of hosting the flash point for the “World to End all Wars.” Yes, I know they said that about World War I; but then again, nuclear weapons didn’t exist in 1918.
As for the “third world,” I’d argue that said global “leaders” are moving rapidly in that direction; while frankly, few are on the cusp of ascending from its depths. For example, I just used the term “banana republic” above; which frankly, is more derogative than third world. Third world implies a hopelessness that cannot be helped, whilst banana republic suggests an acute idiocy among the nation’s leaders.
To wit, the Wikipedia definition of banana republic is:
politically unstable country whose economy is largely dependent on the export of a single limited-resource product, such as bananas. It typically has stratifiedsocial classes; including a large, impoverished working class and a ruling plutocracy that comprises the elites of business, politics, and the military. This politico-economic oligarchy controls the primary-sector productions and thereby exploits the country’s economy.
Pray tell, how much does this definition differ from that of the United States – sans the one-product economy, of course. But then again, when a nation runs trillion dollar annual deficits – as the world’s largest importer – what does it matter if it exports one product or a thousand?
Forensically, the U.S. is as “banana” a republic as one can find; particularly as its “main” export is the INFLATION it creates via central bank printing presses. For that matter, how is the “United” continent of Europe any different; let alone Japan, which has sadly countered the world’s most progressive business practices with the most destructive MONEY PRINTING in recorded history. Sure, it faces shrinking manufacturing market share, the world’s worst demographics, and an accelerating nuclear Armageddon. However, how does that explain the enforcement of such suicidal economic policies since the early 1990s; let alone, the kamikaze tactics of “Abenomics.” In a nutshell, there is NO WAY Japan’s economy survives the coming financial conflagration that will send it straight through the third world, and into the feudalprimeval world of its past; likely, MUCH sooner than can be imagined.
In my view, ALL nations that embark on the well-traveled, oft-destroyed path of the fiat currency Ponzi scheme are third world “banana republics.” There is not a single instance throughout history where such hubris was not followed by currency implosion; followed by social unrest, totalitarian government, and nearly always, WAR. I fully expect the same in today’s “civilized” Western world; and as things appear, said END GAME just may commence in a country 95% of the global population can’t identify on a map – i.e., Syria.
As we head down the road of the inevitable, there are numerous “harbingers” to watch for. Most will be self-evident – such as a loss of control by the world-destroying gold Cartel, or a super-spike in the all-important crude oil price ($109/bbl as I write). However, the single most important “signpost” will be what Jim Sinclair calls the “fifth pillar” of the gold bull market; i.e., a “recognized top in the U.S. Treasury market.” In my opinion, that event occurred earlier this year – ironically, as the Fed’s “tapering” stratagem backfired in its face. Treasuries are still catching a mild, QE-aided bid as global currencies collapse and the U.S. prepares to lead the world into a Syrian military cataclysm. However, with the world’s largest Treasury owners – China and Japan – actively selling, only the Fed itself has even a chance of reversing this powerful negative trend.
Inevitably, it will fail – with only the how and when in doubt. Personally, I anticipate a “QE5” announcement this fall – i.e, an increase of the current, $85 billion/month monetization scheme. If the Fed can survive such an announcement without fostering a MASSIVE, GLOBAL currency collapse I would be quite surprised. And if not, said “Day of Reckoning” will arrive shortly thereafter. But regardless of such minutia, if you have not PROTECTED yourself when the time inevitably arrives – with PHYSICAL Precious Metals and other life necessities – it will already be too late.
