The Daily Bell is pleased to present another exclusive interivew with Richard Maybury.
Introduction: Richard Maybury publishes U.S. & World Early Warning Report and was formerly Global Affairs editor of MONEYWORLD. One of the most respected business and economics analysts in America, his articles have appeared in numerous major publications. His Uncle Eric series of books are extremely popular among both the general public and home schoolers, and include Whatever Happened to Penny Candy?, Whatever Happened to Justice?, Evaluating Books: What Would Thomas Jefferson Think of This? and eight other titles. Maybury's writings have been endorsed by top business leaders, and he is a consultant to numerous investment firms in the US and Europe.
Daily Bell: Good to speak with you again. Let's jump right in by reminding readers you see the world in part through what is sometimes called the prism of empire. This refers to the belief that the behavior of governments is best understood as the attempt by unfettered politicians and bureaucrats to dominate others. You believe the decline of the federal government's global empire is the lens through which investors must look at the world – at least partially. How do you define an empire?
Richard Maybury: A collection of governments or countries under the control of a single authority. In 1939, President Roosevelt said of President Anastasio Somoza in Nicaragua, "Somoza may be a son of a bitch, but he's our son of a bitch." That does a good job of expressing the spirit of the whole US Empire. The US Empire could be the most powerful force affecting investment markets and practically everything else. Before we go further, I'd like to make a special point. I think the United States of America is a wonderful country and I would not want to live anywhere else. But the country and the government are not the same thing. That's extremely important. Nothing I say should be taken as a criticism of America or of the principles on which America was founded. But the government, I believe, is the most dangerous enemy. The federal government has gone renegade, and if it is not returned to the Constitution, especially the Bill of Rights, the country will be destroyed.
Daily Bell: Okay, that's pretty clear. Please continue.
Richard Maybury: It's very important for those individuals who did (and are) attending government-controlled schools to not believe everything you were taught in school. The schools are (and have been for some time) owned or controlled by government agencies, and they provide a history that is the background for practically every decision you make in your life, whether you are aware of it or not. This official history is flattering to the government because the government controls its own story. To make wise decisions, each individual must understand what actually happened in the past rather than what we were taught. This generally requires re-education for many of us, which is one of the reasons that I wrote the Uncle Eric books.
One thing I try to do in both the Uncle Eric books and Early Warning Report newsletter is explain the need to look back to at least World War II, and preferably a lot farther.
Daily Bell: Why WWII?
Richard Maybury: In my opinion, that war is still the greatest influence on us — on our careers, businesses and investments. Let's begin by doing a quick summary of the war. Three-quarters of the Second World War was the Eastern Front battle between Hitler's German Nazis and Stalin's Soviet Socialists. Americans are taught about Iwo Jima, the invasion of Normandy, the Battle of the Atlantic, and the other parts of the war that Americans were in. But actually, most of the war was fought on the Eastern Front, where Americans weren't even present.
Let me point out that the largest ally President Roosevelt had during the war was Stalin's Soviet Socialists. Except for Obama, Franklin Roosevelt was America's most socialist president. Instead of staying out of the war and letting the German and Soviet barbarians pound each other to dust on the plains of central Europe, Franklin Roosevelt abandoned neutrality and in June 1941 — five months before Pearl Harbor — announced he would back the socialist Stalin. Stalin was the worst known evil in history. In his book about the true nature of old world governments, called Death by Government, historian R.J. Rummel reports the most accurate estimate of Hitler's murders is 20.9 million, and Stalin's death toll was 42.7 million. Franklin Roosevelt backed Stalin, so the worst evil in history won the war, Stalin.
Daily Bell: And we've been trying to live with the results ever since.
Richard Maybury: Correct. By 1945 it was clear Stalin intended to conquer the world. There was near panic in London and Washington as these governments realized what they'd done by aiding Stalin. Only seven months after the War ended, Churchill announced that an Iron Curtain had descended across Europe, and a year later Harry Truman proclaimed the Truman Doctrine in which Washington pledged to help anyone who resisted the Soviet Union. That's the key point – he pledged to help anyone who resisted the Soviet Union.
Daily Bell: So what were the implications of that?
Richard Maybury: Almost every president since Truman has embraced the Truman Doctrine. For a half-century they sent money, troops and weapons to far corners of the globe to help the armed forces of any regime that claimed to be anti-Soviet. Many of these supposedly anti-Soviet governments were crooks and tyrants. They included the Shah of Iran, Marcos in the Philippines, Manuel Noriega in Panama, Saddam Hussein in Iraq, Mobutu in the Congo, Chaing Kai-shek in Taiwan, General Park in Korea, President Diem in Vietnam, Suharto and Habibie in Indonesia. The importance is that nearly every thug who promised to be part of Washington's so-called sphere of influence received military assistance that was in most cases used to brutalize his own people.
Daily Bell: That's quite a rogue's gallery. We assume it included crooks and tyrants in the Islamic world, too.
Richard Maybury: I can see where you are headed with that question, and it's very astute of you. For instance, Washington helped the Shah of Iran for 25 years for no known reason other than the Shah claimed to be anti-Soviet. And for 25 years the Shah of Iran and his secret police terrorized Iranians.
Daily Bell: So you are saying this vast collection of crooks and tyrants in the Mideast and elsewhere became the US Empire.
Richard Maybury: Yes. And I was part of that process. I saw it with my own eyes, which I will get to shortly. It's a crucial part of history that Americans are not taught in government-controlled schools. The US Empire is a mighty dark and nasty beast. It's made up of people you don't want to meet in a dark alley.
Daily Bell: And this empire still exists, and these people make a lot of enemies for America.
Richard Maybury: They certainly do. After the USSR went down, Washington kept the empire going. Look at the thugs that federal officials put in place in Afghanistan, Iraq, Egypt and on and on. Those people have enemies, so now their enemies are our enemies.
Daily Bell: We seem to remember you writing elsewhere that the federal government's foreign policy boils down to poking sharp sticks at rattlesnakes.
Richard Maybury: I've been saying that for years, and I see no reason to change it. It's part of a strategy that power junkies have been using with great success since the days of the Roman Emperors. These people shout, "Rattlesnakes from everywhere are trying to bite us! We can't be safe unless we conquer the world!"
Daily Bell: Are you saying these rattlesnakes would behave if Washington would stop poking them?
Richard Maybury: No, no, no. There are lots of bad people. You can see bullies in any schoolyard. But don't provoke them. Leave them alone and arm yourself to the teeth. Be like a porcupine, gentle, quiet, calm, but always ready to put a big hurt on anyone who tries to get rough with you.
Daily Bell: You've said, instead of an imperial military − meaning a giant expeditionary force − have a whole nation of minutemen who can protect themselves, their families or their country if there is trouble.
Richard Maybury: Very good. Like the National Guard once was, or the Swiss still are to a large extent. A defensive military instead of an offensive military. What's wrong with America's foreign policy is not that we have a military, it's that we have...
Daily Bell: ... the wrong type!
Richard Maybury: Again, I see you've caught on to this way of thinking about the government's behavior. Yes, the US Empire, which grew to maturity in World War II, is a giant machine that makes enemies for America — for you and me. And the economy, the financial markets, the whole country will continue lurching from one disaster to the next because of this. For one thing, it's monstrously expensive. Unless I'm missing something, and I don't think I am, the only people who will prosper consistently in this political climate are those whose investments are set up to do well during wartime and currency debasement.
Daily Bell: And that's a great deal of what you write about in your Early Warning Report newsletter, correct? — ways to cope with and profit from the insanity produced by the US Empire?
Richard Maybury: Yes. My investment model is very simple. Buy things that do well during wartime and currency debasement. As you can imagine, it's been working wonderfully as a long-term strategy.
Daily Bell: So we've heard.
Richard Maybury: Let me go off on a tangent for a moment. I once heard a terrorism expert say that the people the government calls terrorists see every bullet fired at them as made in America. I would add that the so-called terrorists see it that way because the foreign aid sent by Washington to its pet tyrants for more than a half-century does buy those bullets. You can trace this all the way back to the alliance between the socialist Franklin Roosevelt and the socialist Joseph Stalin. Read the book Blowback by Chalmers Johnson.
Daily Bell: For most people this is eye-opening stuff but there is a lot more to cover in other fields. Give us a quick overview of your activities for the past several years.
Interview continues at: From Grammar School to Battlefield with Richard Maybury