This blog doesn't address geo-political events that often, but it is important. Not only is it important for the world we live in, but it can also affect our investments. This article today claims that Pakistan has blocked a vital supply route for NATO troops fighting in Afghanistan.
Don't be surprised to hear more stories like this. The "operation" in Afghanistan is not going well and it will likely get worse. It is hard to say how the Obama administration will react, but another "surge" would not be out of the question. This in turn will only make the deficit worse and make money creation (sorry, quantitative easing) worse.
The U.S. empire continues to expand. Afghanistan helped lead to the death of the Soviet Union and it will help lead to the death of the U.S. government. The U.S. government is in over 140 countries throughout the world and fighting two wars (sorry Obama, Iraq is not done yet). The deficit is running around 1.5 trillion dollars. More than one-third of the money spent by the federal government is borrowed or created out of thin air. We are probably already past the point of no return.
This doesn't mean that America won't exist. It doesn't mean that our culture will vanish. It means that the U.S. government is bankrupt and will default on its promises. There will be some tough times ahead for the American people, but a restoration of free markets would allow Americans to snap back quickly. We should hope that more freedom and less government is right around the corner.
The occupations and wars will end eventually. They will end through bankruptcy.