Worzels World - The End of Empires

 

I am happy enough to be a prophet of doom and have been predicting the collapse of what I call the Anglo-American Post Industrial Empire for well over a quarter of a century. Back then when people would ask when this was supposed to happen I would reply ‘soon’. Empires do not end on a certain date but it is certain that they end. I have not since seen evidence that I was wrong and much that adds support to my contention.

Speaking to a man in his 80s, he reminisced of his younger days doing farm work with a horse. He has lived through the transition from animal to machine caused by the oil boom. A fairly fit sort of chap, I reckon if he can hang in for another decade or so he might see the transition back again. He has lived through a tripling of the world’s population and tremendous advances in technology but when asked if he thought life was better these days he replied that it was not, that life was simpler and people worked together more back then.

Soldier and historian Lieutenant-General Sir John Glubb analysed the life cycle of empires. All empires large and small move through several stages and have many things in common. They last around 10 generations and start with a pioneering people and end in conspicuous consumption that is a burden on the state. There are six stages in the life of an empire: Pioneering, Conquest, Commercialisation, Affluence, Intellectualism, and finally Decadence.

The current Western Empire has entered the final stage, that of decadence. This is exemplified by conspicuous displays of wealth, an increasing disparity between rich and poor, an over-inflated unproductive state, an obsession with sex and pleasure, and perhaps the most astonishing similarity between previous empires in decline and our own is that they too made celebrities of their chefs. Of all the common traits observed in the final stage of empires in decline the most telling is the debasement of currency.

Since leaving the gold standard and adopting neo-classical economics we have discovered that it doesn’t work. This was known early on, yet because many powerful vested interests profit from this structure it has not been amended and has instead been expanded. A corporate controlled financial system, which exists outside of government control, is for commercial banks, literally a licence to print money. This licence was extended by the deregulation of the financial sector during the Reagan and Thatcher years. The global money supply has increased exponentially since.

Therein lies the problem: If money supply is not linked to production, those who create the money end up controlling production and owning all other common resources too, including the human ones. Currently 97 percent of the world’s money is represented as debt.

I don’t know why the Chinese get the blame for the rise in Auckland property prices. These increases reflect the manufacturing of debt money by the financial sector. The Chinese have simply worked out that paper or digital money that increases in supply over and above the rate of production eventually becomes worthless. French philosopher Voltaire stated that eventually paper money reverts to its intrinsic value: zero. If we must blame the Chinese for anything we should blame them for being smarter than us and realising that land, labour and natural resources are the sole source of all real wealth.

The only real use of money is to buy stuff. Someone, somewhere must make, grow, mine, or collect and package whatever stuff we buy. Those who do not produce or supply necessary goods or services but still make money are a burden on those that do.

When money, and more specifically debt, is used as a commodity then wealth can be accumulated without contributing anything. Even as I write this a Fonterra executive is speaking on National Radio saying, 'We did not foresee the Middle East situation or what has happened with the Chinese and Russian markets.' I would answer 'why then are you being paid millions per annum by farmers who you are currently bankrupting? This is a free newspaper – if you had regularly read my column you might have done better.

Stephen Vizinczey wrote: 'All a great power has to do to destroy itself is to persist in trying to do the impossible.' This current empire has not understood the story of Babel, which according to Biblical legend tried to build a tower to heaven. They failed of course and the empire collapsed. They too believed in growth while western governments continue worshiping at the economic alter and selling the false paradigm of continual growth within a finite world – an obvious mathematical and practical impossibility. Any chance of achieving sustainability which is dependent on static growth and renewal of resources is lost and the end of the empire is assured. When will this happen? My answer now is very soon.

n prof_worzel@hotmail.com