Chris Hedges discusses his book, “Empire of Illusion: The End of Literacy and the Triumph of Spectacle,” at Cambridge Forum. Hedges argues that we now live in two societies; the first is literate and can cope with complexity. The second is retreating from a reality-based world into one of false certainty and magic.
During the 19th century, the sun never had a chance – the British Empire spanned the globe soaking it up 24 hours a day. Eventually, the Empire grew too big, became too bloated, and had too many interests in too many places. Its eventual decline should have surprised no one.
Next up to rule the World was America. Millions of eager immigrants flooded the New World and planted the seeds which created the most powerful empire since the days of Julius Caesar. Yet as all good things must come to an end, so to will the American Empire.
While nobody is exactly sure when the transition will occur, America’s bloated debt problem and unfunded future liabilities all but ensures the day will come. And when that day arrives, we are confident the US Dollar will be worth considerably less than it is today.
However, a funny thing happened on the way to USD devaluation – Europe is getting in the way. Thanks to a disastrous handling of Europe’s debt crisis, Ben Bernanke and the US Federal Reserve will become the recipients of billions of Euros, Swiss Francs, British Pounds and other currencies resulting in a strengthening of the USD.
All money needs a home. And due to its status as the World’s reserve currency, the USD becomes the home of choice for everyone during times of crisis. As the debt crisis in Europe rolls into Rome, everyone everywhere should fully expect the USD to strengthen as a result.