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We Are Following Rome

May 19, 2011

Following a great speech I read about inflation and the fall of Rome, there are some new interesting developments occurring which put us more in sync with their collapse.

One of those is here, where California is thinking about creating a state bank. Apparently there are 11 other states with this idea being strongly pursued. The banks would essentially be able to loan against state assets, thereby creating interest revenue for the state. With state budgets in a horrible mess its a great way to make some extra money. The next logical step here is a state currency…this is all much like rome.

The other piece is an analysis from Martin Armstrong about federal pension liabilites helping to crush Rome. Again more parallels to our problems today. Specifically he notes “the greater the threat of political instability, the higher the military pay rose. This expanded the cost of government and facilitated a spiral of inflation forcing the government to debase coinage to increase the money supply…The Decline and Fall of Rome was driven by UNFUNDED guarantee of PENSIONS and like social security today, thee wsa nothing actually put aside.”

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