The Road To Ruin: From Empire To Banana Republic

Banana republic – (n.) A politically unstable country whose economy is dependent on a single export and substantial foreign investment.

Readers of Rogue Money and followers of The Guerrilla know that the United States of America has been transformed into a banana republic. This transformation has taken place over many decades through a cancerous process of rampant corruption, corporate greed, self-destructive monetary policy, and so-called “free trade” agreements that serve no one but the nation’s oligarchic masters.

Bad economics are a key characteristic of every banana republic, along with police state oppression, unstable politics, and miserable social conditions. The exception proves the rule in banana republics because none of them ever harnessed the wealth and freedom generating systems of anarcho-capitalism and free markets

A cursory glance reveals some disturbing commonalties between the many tin pot fiefdoms that existed in the 20th Century and our own “free-dumb” loving nation in North America today, including a lack of upward mobility, a vast disparity between the rich and poor, a police state complete with secret police, intimidation of the population by said police, ridiculously high incarceration rates, collusion between government and multi-national corporations, high unemployment, sub-par health care, failing infrastructure, and a faltering currency.

The Guerrilla could wax eloquent on all these subjects, but he thinks you can see the similarities. 

The Wealth Gap

It is no secret that the economic collapse of 2008-2009 played favorably into the hands of the top .001%. The oligarchs and corrupt politicians have lined their coffers with the “cheap money” that is readily available from the FED, while the middle and working classes have remained just barely afloat. In a world of zero-interest rates, falling wages, and high unemployment, the middle and working classes cannot take advantage of the FED’s cheap money without taking on tremendous debt and vastly increased risk. The middle and working classes have no repo window to utilize. There is no endless inflow of reserves from the electronic spigot spewing ones and zeroes at 33 Liberty Street in Manhattan.

All the middle and working classes can do is work harder and attempt to save a few measly bucks after paying their bills. But even saving is impossible, right? Pathetically low interest rates, bank fees, and soon negative interest rates, make the very idea of saving insane. You are better off spending everything you have as soon as you earn it so that you at least have something to show for your efforts.

A huge number of the working class have also joined that portion of the population considered by the Banksters to be “unbankable.” Banks won’t do business with these poor souls for any reason, putting them at the mercy of shady payday loan sharks and check cashing shysters. The total number of these unbankable masses is roughly 88 million. Folks, this is almost 30% of the U.S. population!!!!

The wealth gap continues to widen as the middle class, a vital component for a real functioning economy, is whittled away, shrunk, extracted, and out-sourced. With their purchasing power destroyed their future and that of the nation as a whole is in jeopardy and all so some deviant executive on Wall Street can purchase another $100,000 diamond encrusted toilet seat.

The end of America’s middle class signals the end of upward mobility in a nation that was founded to provide exactly that kind of future. Instead, Americans are being subjected to a type of serfdom, a form of neo-feudalism where the wealthy top .001% get to tell the huddled masses how to live and what to eat. The people that will be hurt the most are those currently living on the poverty line, or those struggling to make it in rough neighborhoods. Their opportunities have already vanished and with them their chances of achieving better lives for themselves, their families, and their communities have also disappeared. The Guerrilla asks you to think of places like Detroit, Baltimore, Flint, and countless other devastated communities in this context for they represent the not-too-distant future for all Americans under the current system.

Today’s United States is a Kleptocracy, a system of organized crime intended to extract as much wealth from ordinary people as possible. No other word in The Guerrilla’s vocabulary can describe the collusion between the monopolistic interests of the State and Crony Capitalism, where all the profits, advantages, and leverage are privatized while all the risks generated by the system are socialized. Our Founding Fathers must be rolling in their graves. You, America, have been hoodwinked by the banana republic and a thorough cleaning of your house is in order.


Another hallmark of a banana republic is a paper currency that is an international laughing stock. Followers of The Guerrilla know that the U.S. Federal Reserve Note is right now in the terminal stages of what he calls “Monetary Hypoxia,” a high-altitude, death-inducing phenomenon that chokes the life out of the currency right before the implosion of the very system on which it is based.

The international dollar financial system is a giant pressure cooker held together by duct tape and propaganda. The Guerrilla cannot help but laugh when bank CEOs claim publicly that “U.S. banks are healthy and solvent,” because nothing could be further from the truth. His personal favorite, parroted by the big bank CEOs since 2008 is that “no one should question the viability of the U.S. banking system!” Comments like these cause The Guerrilla to spew his banana-flavored protein shake all over his computer screen.

The unvarnished truth, dear readers, is that the U.S. banking system contains unprecedented levels of risk! In 2008 this risk erupted into the public’s view as collateral calls and derivatives contracts exposed the complete lack of soundness in the system. Today, thanks to the wisdom of Keynesian morons like Ben Bernanke, Paul Krugman, and Janet Yellen, that risk has been transferred to the laughing stock currency that is one deleveraging event away from going full Zimbabwe. The world’s reserve currency, in addition to being dumped internationally, is also laced with the hidden TNT of junk loans and bond pressures traded at very high levels of leveraged risk. What the bankers have created using the U.S. dollar is the most crisis-ridden global financial market the world has ever seen. Most institutions today are drowning in derivative debt, repurchase agreement fraud, CDS time bombs, broken term agreements, distorted market pricing, skewed spreads, and non-existent Liquidity Coverage Ratios. One need look only at Deutsche Bank to see this.

Thanks To

Thanks To

Worst yet, the “blessing” of being world reserve currency also insures that U.S. paper is the most widely held. Thus all the financial fraud created in the last 16 years using the “one currency to bind them all” has created for the first time, an interlinked flotilla of Titanics called global investment banks. All of them are highly collateralized, tethered time bombs, a veritable daisy chain of guaranteed financial destruction.

Then, my friends, there is oil, the faltering beat of the global economic heart. The Petro Dollar is dying rapidly, not only because the glut of oil production means fewer dollars are chasing the price of oil, but also because the price has dropped so low and the margins have become so thin that using the “stronger” dollar in petro trade means reducing the meager profits that remain. The oil exporting nations of the world understand this, which is why they are looking for an alternative non-dollar pricing model. Space has been cleared for a new oil currency. The Petro Yuan, Petro Ruble, Petro Euro, and even Petro Gold trade credit system are all ideas being floated. The fact is that the Petro Dollar, long a sacred cow, is being done away with as nations become more open to using other mediums of exchange. The kleptocratic banana republic is about to receive the third world currency it deserves! 

The Nominal & Real Costs Of BRENT Spot CRUDE

The Nominal & Real Costs Of BRENT Spot CRUDE


The Kleptocrats

Another key hallmark of a kleptocratic banana republic is a figurehead president transforms from being a figurehead to becoming downright despotic. From George W. Bush to today’s Obama and tomorrow’s God knows who this is exactly what we have in the U.S., a despotic Executive Branch, a ceremonial congress, and a bought and paid for Judicial branch. All of this is a sign that something stinks in D.C.

The kleptocratic class has no remorse. The Guerrilla cannot name one official in any capacity who has apologized for destroying the nation’s economy, for killing the dollar, for vaporizing your savings, or for outsourcing your jobs. NOT ONE APOLOGY. These mavens of malice masquerade as entrepreneurs, pretending to be simple business owners just like you. What an outright lie! The Guerrilla asks what this ruling class has risked. What personal sacrifices have they made? As far as I can tell, they have risked nothing but someone else’s money while they siphoned off the profits for themselves. 

The Only Functioning Unit of a Banana Republic

 In the 1980’s we called the Soviet Union a banana republic with nukes. Sadly, this is a term that fits the U.S. quite well today. In fact, when you look at history the only thing that functions well in a banana republic is the military arm and police state.

Look around you! The Guerrilla has been saying for some time now that as the state goes broke its security apparatus turns inward. It no longer looks for enemies from without but for enemies from within. The only thing the flailing banana republic will do is continue its policies of perpetual war until its laughing stock currency is killed off and relegated to the historical dust bin of failed fiat. Then its efficient military can no longer continue the gun boat diplomacy required to feed the greed of its kleptocrats.

My friends, these are the harsh realities facing us as a banana republic. They are conditions that we each must overcome, leverage, and even profit from. Be astute, keep your wits about you, and most of all seek opportunities, monetary, spiritual, and material. They are there to be had, if you know where to look. Reach out to me if you need to. I will do my best to show you the way.


The Guerrilla