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US Wars - A Thing of the Past?
In Clif Droke’s latest article he uniquely explores the causes and effect of recent US wars. He also explains the effect wars have on our economy as well as the likelihood of further violence in the near future.
While many seem to believe that the US is nearing the end of an era, which has seen it participate in several wars, Droke explains why he believes US wars are far from over.
Despite 2012 being a relatively peaceful year in comparison to the prior ten, Droke thinks this is nothing more than a pause in violence.
Droke states “There is reason to believe, however, that the abandonment of Iraq and the proposed wind-down of U.S. involvement in Afghanistan is merely a brief intermission in a long and bloody theater of war. The second act will likely be the most intense one yet.”
Droke explains that ever since the US began withdrawing troops from Iraq, Al Qaeda-led violence has picked up in the country – leaving many to believe the US has a moral obligation to calm the violence.
While no new US-led war has ever been initiated during a presidential election year, Droke sees potential triggers in the next two years. He states “I also previously noted that based on the yearly Kress cycles, the current recovery phase is a temporary phenomenon, and that by no later than the second quarter of 2013 deflationary pressures should return once the 4-year cycle has peaked. War duration deflation is primarily used by political leaders as an instrument of distraction to get the nation’s mind off the economic depression. War is also a favorite tool of central banks during deflation since it offers the excuse to lend vast sums of money into existence. Major wars have been used by government to jump start the economy after a depression because war offers the ultimate excuse to spend billions of dollars into circulation and get money (the lifeblood of the economy) flowing once again.”
Although deflation hasn’t hit the US economy yet, it is expected to do so within the next 18 months. And although unemployment isn’t at a dangerous level (although 8.3% is disappointing), there is no expected improvements anytime soon. Lastly, although corporate earnings are still relatively strong, they have started a downward trend which could lead to further layoffs, less tax revenue for the government and shrinking GDP.
A new US-led war could be coming sooner than most think if the economy continues to deteriorate.
Click here to read Clif Droke’s article on the subject and find out why China may be getting involved in a war as well.