How War-Driven Economies Exhaust Resources and Empower Elites, Echoing Athens' Fall in Modern America
How War-Driven Economies Exhaust Resources and Empower Elites, Echoing Athens' Fall in Modern America
The US is now over 80% import reliant on Silver. Yet it's also the World's Largest Silver consumer, two facts that seem incongruent.
Starting next week, The Silver Academy is launching a series of online courses (FREE) that will provide invaluable knowledge on the value and opportunity of Silver and Gold Mining Stocks. This is a unique opportunity for the villagers to enhance their financial education.
Understanding the historical context is not just a part of our first lesson; it's the key to unlocking the potential of Silver and Gold Mining Stocks. Our first lesson, out by Thursday, will take you to the Silver mines near Athens that sourced one of the world's first silver coins: The Mines of Laurion.
Once The Central Bankers, Generals, Politicians & War Profiteers Divvy Up the Resources Little Remains for the Villagers
The parallels between ancient Athens and its reliance on the Mines of Laurion, and the United States today, are striking and offer valuable insights into the cyclical nature of economic and military power.
Athens, like the modern United States, built its dominance on a combination of economic strength and military might. The silver from the Mines of Laurion funded Athens' powerful army and navy, much as America's economic prowess underpins its global military presence. Both societies faced the challenge of maintaining expensive military operations while balancing domestic needs.
The Athenian dependence on imported tin for bronze production mirrors America's reliance on global supply chains, particularly for manufactured goods from countries like China. This "just-in-time" system, while efficient, creates vulnerabilities in times of conflict or global disruption.
The United States today faces significant dependencies on foreign sources for many critical raw materials and active ingredients essential to its industrial and military sectors. Much like ancient Athens relied on imported tin, the U.S. now heavily depends on global supply chains for crucial components.
For instance, the US imports a substantial portion of its active pharmaceutical ingredients (APIs) from overseas, with over 80% sourced from just India and China.
This dependence extends beyond pharmaceuticals to other vital sectors. The U.S. relies heavily on imports for many critical minerals used in advanced technologies and defense applications.
Additionally, despite being a steel producer, the U.S. still imports significant quantities of specialized steel products. This reliance on foreign sources for key materials and components creates potential vulnerabilities in the nation's supply chains, particularly in times of global disruption or geopolitical tensions
War spending strained Athens' economy, leading to currency debasement as they diluted their silver coinage. Similarly, the United States' massive defense budget and trillions spent on wars since 1990 have contributed to its growing national debt, now approaching $36 trillion. This fiscal strain has led to concerns about the debasement of the US dollar through inflation and quantitative easing.
Both Athens and the US demonstrate how military overextension can weaken a nation's economic foundation.
Athens' eventual defeat in the Peloponnesian War was due to economic and resource exhaustion, a cautionary tale for modern superpowers. The US faces similar challenges in maintaining its global military presence while addressing domestic economic issues.
These parallels underscore the delicate balance between military power and economic sustainability, highlighting the risks of overreliance on finite resources and the importance of responsible fiscal management in maintaining long-term geopolitical influence.
Jon Little states, “The exhaustion of the Mines of Laurion played the key role in Athens' decline and eventual conquest by Rome. Athens heavily relied on silver from these mines to fund its military and maintain its empire, the depletion of this crucial resource weakened its economic and military power. By the time Rome emerged as a dominant force, Athens had already lost much of its former strength due to this resource exhaustion. Athens never saw it coming, it was gradual then sudden”
Today, the United States finds itself in a similarly precarious position regarding silver, with over 80% import reliance on this critical metal. Silver is essential for numerous cutting-edge technologies including solar panels, batteries, AI components, 5G infrastructure, aerospace applications, electric vehicles, and various military technologies. This heavy dependence on foreign sources for such a strategically important resource echoes Athens' vulnerability and could potentially compromise the US's technological edge and national security in the future. As global demand for silver in these high-tech applications continues to grow, securing a stable and sufficient supply becomes increasingly crucial for maintaining technological leadership and military superiority.
An average military budget for Athens during the classical period, focusing on the time around the Peloponnesian War (431-404 BCE).Estimating troop numbers:
Hoplites (foot soldiers): Athens could field around 10,000 hoplites.
Navy: At its peak, Athens had about 400 triremes, each with approximately 170 rowers, totaling 68,000 naval personnel.
Pay rates:
Hoplites: Approximately 1 drachma per day, or 30 drachmas per month.
Naval rowers: About 0.5 drachmas per day, or 15 drachmas per month.
Monthly costs:
Hoplites: 10,000 × 30 drachmas = 300,000 drachmas
Naval personnel: 68,000 × 15 drachmas = 1,020,000 drachmas
Total monthly cost: 1,320,000 drachmas
Converting to talents (1 talent = 6,000 drachmas):
1,320,000 ÷ 6,000 = 220 talents per month
Annual military budget estimate:
220 talents × 12 months = 2,640 talents per year
Additionally, this doesn't include other expenses like ship maintenance, equipment, and supplies.
For context, Thucydides mentions that by the outbreak of the Peloponnesian War, Athens' tribute income had reached an average of 600 talents per year. This suggests that maintaining a full military force would require significant additional resources beyond regular tribute income.
This rough estimate illustrates the enormous financial burden of maintaining Athens' military might, especially its powerful navy, and helps explain the critical importance of controlling silver resources like the Mines of Laurion.
It also underscores why Athens was so dependent on tribute from its allies to sustain its military power.
It estimated that Silver production over the 28 year period of Peloponnesian War was over 53 Million Ounces from Athen’s Mines of Laurion
Further Breakdown of these massive ships
The construction and operation of triremes
The construction and financing of triremes in ancient Athens was a complex and expensive undertaking. Here's a breakdown of the shipbuilding process, costs, and crew requirements for these ancient warships:
Shipbuilding Process
Triremes were sophisticated warships that required skilled craftsmanship to construct. The process involved several key steps:
Hull Construction: The hull was built using a shell-first technique, where planks were joined edge-to-edge and supported by internal framing. This method allowed for a lighter, more flexible structure.
Wood Selection: Various types of wood were used, with pine or fir often chosen for the hull planking due to their flexibility and resistance to water absorption.
Specialized Components: The ram, a critical offensive weapon, was made of bronze and attached to the bow. The construction of this piece alone was a significant undertaking.
Outfitting: The ship was equipped with rigging, sails, oars, and other necessary gear.
Costs
The exact cost of building a trireme varied over time and depending on materials, but we can make some estimates based on historical records:
Total Cost: While precise figures are debated, the cost of building a trireme is estimated to be around one talent (6,000 drachmas)
This aligns with other sources suggesting a cost of about two talents for both hull and rigging.
Bronze Ram: The bronze ram alone was a significant expense. In 325/4 BC, the price of bronze was approximately 61 drachmas per talent (weight)
A single ram weighed about 1.7 talents (44.5 kg or 98 lbs), making it a costly component.
Maintenance: The upkeep of triremes was also expensive. Thucydides mentions a cost of one talent per month for maintaining a trireme.
Equipment: Additional costs included 200 oars per ship and other necessary gear
Crew Requirements
Triremes required a large crew to operate effectively:
Total Complement: The standard crew (pleroma) of a trireme was 200 men
Crew Composition:
Nautai (Oarsmen): 170 rowers, arranged in three tiers.
Hyperesia (Petty Officers): Included the kubernetes (helmsman), keleustes (timekeeper), and others.
Epibatai (Marines): Soldiers carried on board for combat.
Rowing Power: The 170 oarsmen provided the primary propulsion for the ship. They could achieve sprint speeds of over nine knots and maintain a cruising speed of four knots for extended periods.
Maintenance Crew: When not at sea, the ship's own crew of 170 oarsmen could be used to drag the vessel out of water for maintenance.
Additional Considerations
Shipyards: Athens maintained extensive shipyard facilities for building and repairing triremes. These were considered vital to the city's naval power.
Drying and Maintenance: Regular drying of the timber was crucial to prevent water absorption and maintain the ship's speed and maneuverability.
Financial System: The trierarchy system in Athens required wealthy citizens to fund the outfitting and maintenance of triremes as a form of public service.
The construction and operation of triremes represented a significant financial and logistical undertaking for ancient Athens, reflecting the importance of naval power to the city-state's military and economic dominance.
A Silver Sunday Sermon
When nations prioritize war preparation, it always leads to misallocation of resources and a system that benefits insiders like politicians, generals, bankers, and defense contractors.
This skewed focus results in neglecting critical social needs, infrastructure, and the pursuit of other quality of life endeavors.
We really should view the US budget as a moral document, such misplaced priorities can weaken the fabric of society, exacerbate inequality, and ultimately contribute to the decline or collapse of a civilization by undermining its long-term stability and resilience.