I believe that the prevailing economic crisis has hit us Americans at two different levels. On the surface, we have become the victims of our own flawed economic policies, and now suffer the consequences in terms of rampant unemployment, rising poverty levels, and an insecure financial future. At a deeper level, we have perhaps suffered another loss. Our confidence and pride as a nation that used to be our biggest strength and which led to the making of America as the world’s only real superpower, both economically and politically, has been hurt somewhere deep down.
The global perception about the United States as a superpower has undergone a rapid change. China, Russia, India, and even Brazil are the new giants that harbor serious ambitions to dominate the 21st century completely. It seems they will not have to work too hard for it. We Americans and Europeans have almost self-destructed ourselves to make way for these new emerging economic and political powers. There is a palpable shift in the balance of world power that almost always follows the balance of world trade. Key global institutions such as the United Nations, the World Bank, the IMF, and the World Trade Organization are increasingly controlled by the newly emerging power blocs.
One of the biggest mistakes we Americans made in the last few decades is that we blindly believed in the power of the U.S. dollar as an international reserve currency. We failed to foresee the rising power of gold and its renewed role in global economics. Countries that focused on gold and believed it to be far more stable and trustworthy than the dollar are today laughing all the way to the bank. We Americans were inside the picture and we failed to see the writing on the wall. Gold is a completely neutral entity as a global reserve, unlike the U.S. dollar which belongs to just one nation.
The domination of gold in global economics is only a logical and natural conclusion, which most of us Americans failed to foresee. The result is that today we have insurmountable amounts of international debt, and our dollar is not worth the paper it is printed on to be able to be able to eliminate that debt. On the contrary, the value of gold has multiplied many times over, making it the most powerful unit of financial leverage today. Governments, financial institutions, banks, and individual investors around the world that placed their faith in gold are today in a commanding economic position, while America and Europe are in a state of not quite rapid, but noticeable, decline and decay.
The U.S. and Europe are no longer in a position to turn around global economic, trade, and political policies in a way that is most favorable to their interests. Oil producing nations have also used our diminishing power to their fullest advantage and have continued to push up global oil prices. As a highly oil-dependent economy, we are saddled with very large oil import bills that aggravate our debt situation further. It is a vicious economic circle, and it will take nothing less than a miracle for America to dislodge itself from this economic trap certainly if America continues to listen to folks such as Al Sharpton, Sean Penn, and George Soros.