Charlie Munger Sees the End of America

By on February 28, 2010

Paul B. Farrell has written an interesting article on the challenges facing the U.S. from the viewpoint of Warren Buffett’s sidekick Charlie Munger. Farrell translates Munger’s bleak vision into a 10-scene crime-thriller about America’s “road to ruin.” It pretty much amounts to an emphasis on gambling in derivatives as opposed to real work.

But we also know, as we said earlier in “The Death of the Soul of Capitalism,” that over the long-term, through many centuries, historians give nations an average of about 200 years before they burn out. Why? Because the “blind optimism” that makes a nation great in the early years of its rise to power and glory becomes, paradoxically, its worst enemy in the end-days.

Their arrogance traps them in a self-sabotaging cycle that weakens their resolve, makes them vulnerable to new, unpredictable challenges, ultimately destroying them from within. That happens over and over throughout history, even as their optimistic brains tell them they’re still the greatest.

Source: Marketwatch

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