Nick Giambruno: Doug, I know you’ve been thinking about how the Greater Depression will unfold. It’s no secret the government has created the biggest credit bubble in history through endless money printing – euphemistically called QE – and now ‘NIRP’ (negative interest rates). But I understand you’ve had a different ‘bubble’ on your mind lately…
Doug Casey: Yes. I’ve been thinking about the gigantic bubble in military spending in the U.S. And how it’s one of the worst things that can happen, and at the absolute worst time. The U.S. Government is bankrupt, we’re about to go into the trailing edge of a monumental economic hurricane, and both of the presidential candidates are talking about vastly increasing military spending.
From an economic point of view, money spent on the military is almost totally wasted. It’s worse than money spent to dig holes during the day and then fill them in again at night – at least that does no actual damage. The ‘product’ of the military is killing people and destroying property. And the amount of money the U.S. spends is provocative to other powers, who feel they have to counter with their own spending. Arms races never end well.
I’m going to say some unflattering things about the military, and realize it will probably shock most Americans to hear them. Americans still have a high regard for the military – far too much. They see it as one of the few American institutions that still ‘works.’ They see it as something defending them from evil outside the borders of the ‘homeland’ – which, by the way, is a very recently coined term. But the military is actually just another government bureaucracy, like the Post Office. Albeit much more heavily armed.
This post was published at International Man