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Future Fear

Is America on the brink of economic and social collapse?

by
David Solway

Bio

June 13, 2014 - 11:01 pm

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In a recent, hard-hitting article for American Thinker, Ed Lasky anatomizes the “pack of lies” that Obama and his party have “peddled to the American people” with respect to the Affordable Care Act. This is no longer news, obviously, though many of the electorate still remain in the dark, to awaken in the course of time to an unwelcome revelation. Lasky goes on to focus on “previous revelations that periodically cloud the luxurious fantasy world where Obama dwells,” such as, to take one example, his admission that there are “no such things as shovel-ready projects,” and concludes: “For a man who went to a swank private high school in Hawaii, then Occidental, Columbia and Harvard Law School, [Obama] is the most clueless president to occupy the Oval Office.”

Lasky’s assessment, which a plethora of writers and analysts has come to share, seems indisputable. Indeed, Obama’s regulatory, stimulus-oriented and redistributive economic program is perhaps the most damaging “legacy” he will have left the American people. “The economy continues to strengthen and recover,” touts the president’s Council of Economic Advisers, and Obama opines that the nation’s financial system is “safer” now than it was in the recent past, and that his administration has laid a “new foundation” for a healthier economy. The facts tell an entirely different story.

For America is simultaneously trapped in a vertiginous debt spiral while relying on the binge printing of fiat money — a process known by the euphemism of “quantitative easing” — brewing a perfect storm of decline and eventual collapse. Of course, as Milton Friedman observes in Money Mischief, since Nixon “broke the final tenuous link between the dollar and gold in 1971, no major currency…has any connection to a commodity,” and therefore, “Every currency is now a fiat currency.” The problem, however, is one of fiscal promiscuity or the absence of discretionary oversight of the quantity of money swamping the fiscal marketplace, that is, the unstinted printing of the money supply backed by nothing but the happy accident that the American dollar is the world’s reserve currency. Such intemperate printing of American dollars to service debt load, prop up a bloated entitlement apparatus, and generate “stimulus” projects — those “shovel ready” jobs but only in the sense that the shovel is the gravedigger’s implement — dilutes the value of the country’s legal tender and is viable only so long as the dollar does in fact remain the world’s reserve currency.

But will it? According to China Daily USA, “The World Bank’s former chief economist wants to replace the US dollar with a single global super-currency, saying it will create a more stable global financial system.” Michal Krol, a researcher at the Brussels-based European Center for International Political Economy, concludes that “it is time to formulate the fundamentals for global monetary governance.” The New York Post has reported that “the US dollar is getting perilously close to losing its status as the world’s reserve currency.” If the currency goes under, as investment banker James Rickards warns us in his new book Currency Wars, “everything else goes with it…stocks, bonds, commodities, derivatives and other investments are all priced in a nation’s currency. If you destroy the currency, you destroy all markets and the nation.” “Former Washington D.C. attorney Michael Snyder agrees, stating that “interest rates on our debt and everything else in our financial system would go up to crippling levels.”

Lending greater credence to the threat, the International Monetary Fund (IMF) has advocated the replacement of the U.S. dollar with Special Drawing Rights (SDRs); these would allow for certain assets traded in dollars to be priced using SDRs, a strategy that would reduce the dependence of central banks on U.S. Treasury bonds. “The dollar’s days as reserve currency are numbered,” blazons the Financial Times. Should an event of this magnitude come to pass, America will find itself virtually bankrupt. Every indicator — the unlimited expansion of the monetary base, the impact of prospective rising interest rates on servicing the debt, a paper-thin currency, the international threat of abandoning the U.S.-based financial system as a result of a federal Treasury suffering from prolonged dollarrhea — will have ominous consequences. Even as we speak, the Chinese devaluation of the yuan against the dollar spells further damage to the U.S. export market leading to greater unemployment (real unemployment is at least twice the official figure) — the outcome of a failed or adversarial leadership.

The currency shift has already started to happen. According to the ITAR-Tass news agency, Russia’s Gazprom Neft has “signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts.” The oil company’s head, Alexander Dyukov, told a press conference that “with Belarus, payments in roubles are agreed on [and] nine of ten consumers had agreed to switch to euros.” Dyukov is a leading proponent of the move toward ditching the dollar. In the same vein, Russia Today reports:

“Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times.

Such foreign currency manipulations, however, are a mere handsel prefiguring the chaos that eventual reserve-deprivation will unleash. Ultimately, one should not forget Friedman’s resonant dictum in Money Mischief: “The fate of a country is inseparable from the fate of its currency.”

At this juncture, one recalls the infamous Cloward-Piven strategy of orchestrated crisis which, as the Discover the Networks website explains, “seeks to hasten the fall of capitalism by overloading the government bureaucracy with a flood of impossible demands, thus pushing society into crisis and economic collapse.” Choking the welfare rolls would serve to generate a political and financial meltdown, “break the budget, jam the bureaucratic gears into gridlock, and bring the system crashing down.” The fear, turmoil and violence accompanying such a debacle would provide the “perfect conditions for fostering radical change. That was the theory.”

And that, I am almost certain, is the theory that Obama, a master of presidential stealth, is attempting to convert into practice — Cloward-Piven in its exponential form: burgeoning debt, calculated unemployment (i.e., freedom from “job-lock”), exploding entitlements, higher taxes for the employed and rising costs for everyone, a chaotic medical-and-insurance state of affairs, an unreliable currency, industrial stagnation, infringement of privacy concerns, a green energy boondoggle, a billion dollar global warming swindle (based on dodgy computer models and selective disinformation omitting the many salient facts that would discredit the AGW theory), and the continued flouting and undermining of the Constitution.

Accompanying this manufactured crisis is an amnesty scheme envisioning the legitimizing of an estimated eleven million illegal immigrants (aka “undocumented workers” and, now, “aspiring Americans”) who have streamed across porous borders to clog the welfare, housing, labor compensation and social assistance programs, foster the expansion of make-work bureaucracies, and, predictably, vote Democrat. As Donald Trump aptly remarked at the March 2014 Conservative Political Action Conference (CPAC), “We’re either a country or we’re not. We either have borders or we don’t.” Borders, however, are anathema to a president who has further troubled the waters by ceding American legal and political space to foreign bodies like the United Nations.

It is not farfetched to assume that such an ongoing concatenation of events as we have enumerated may well comprise a deliberate project meant to inflame social unrest and bring about a civil crisis that would facilitate the ostensible goal of the Obama administration, namely, the “fundamental transformation” of the republic into a socialist welfare state — or a de facto one-party system. Indeed, the various scandals that have plagued the Obama administration — NSA spying on citizens, IRS targeting of conservative organizations, Fast and Furious gun-running operations, illegal deferring of certain provisions of the Affordable Care Act, the exchange of the dubious Bowe Bergdahl for five battle-hardened Taliban insurgents without consulting Congress, thus breaking a law signed by the president himself — are all forms of autocratic practice and are redolent of police-state actions.

One would prefer to regard this hypothesis as the stuff of fiction or unhinged conspiracy theory. But the circumstances described above, considered alongside the president’s Marxist training and Alinskyite methods, as well as a number of new developments, fuel such troubling speculations. These new developments involve a set of curious events within the military establishment. As Larry Kelley writes in Freedom Outpost, “Over the five years of his presidency across all branches of the armed services [Obama] has fired 197 senior officers. Just this year, he fired nine commanding generals, including General Ham, head of US Africa Command, who publicly stated that he disagreed with the order not to send a rescue mission into Benghazi on the night of the attacks when our people were pleading for their lives. Retired and active members of our most elite warriors are openly speculating that an Obama purge of its commanders is under way.”

It goes on. Obama’s gutting of the military — changing the rules of engagement thus resulting in higher casualty rates, downgrading fitness qualifications, relaxing military dress code, impairing veteran healthcare, staging fundraisers not for the Navy SEAL Foundation or the Special Ops Warrior Foundation (SOP) but for the LGBT community — is increasingly worrisome. Moreover, the plan to transform the Special Operations Forces from an elite killing force into a public relations committee, as has already befallen NASA, and Secretary of Defense Chuck Hagel’s proposal to downgrade the armed forces to pre-World War II levels, are issues that should concern every responsible citizen.

The normalcy bias disposes us to disregard or extenuate such policy initiatives. But history has repeatedly instructed us that the normalcy bias may be lethal. “It can’t happen here” is often the prelude to it happening here with a vengeance. For no matter how we may wish to parse or interpret reality, facts are facts. “They’re little pictures,” says Selwyn Duke in American Thinker, “and as with a jigsaw puzzle, if you have enough of them, assembled properly, you can see the big picture. This is otherwise known as being in touch with reality.” When we consider what is being enacted under the aegis of a ceaselessly prevaricating president, we would be frivolous if not delusional to deny the possibility that something in the nature of what Pamela Geller and Robert Spencer in The Post-American Presidency: The Obama Administration’s War on America describe as an “attack from within at the highest levels of power” is gradually but inexorably taking place. Citing reams of fact, they have no doubt that “Obama is setting America on the path to ruin.”

One may hope that it is not too late to repristinate America after the podylike boogaloo of a devastating and farcical presidency, But it is hard to escape the conclusion that this is a president whose Merovingian sense of anointment is belied by the sordidness of his official comportment as commander-in-chief, steward of the American economy, custodian of his country’s well-being, and supposed “leader of the free world.” Perhaps the last word should go to former UN Ambassador John Bolton. America’s “biggest national security problem,” he has recently claimed, “is Barack Obama.”

(Artwork by Shutterstock.com.)

David Solway is a Canadian poet and essayist. He is the author of The Big Lie: On Terror, Antisemitism, and Identity, and is currently working on a sequel, Living in the Valley of Shmoon. His new book on Jewish and Israeli themes, Hear, O Israel!, was released by Mantua Books. His latest book is The Boxthorn Tree, published in December 2012. Visit his Website at www.davidsolway.com.

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Top Rated Comments   
Only one quibble with this otherwise excellent piece of analysis. Why has the number of illegal aliens been frozen at about 11 million for the past 10 years? If it has not increased in the last decade, then I guess we have a secure southern border. Since that is a joke, I think the writer should edit the post to give a reasonable estimate, which is certainly higher, probably more in the range of 30 million.
18 weeks ago
18 weeks ago Link To Comment
The writing was all over the wall the very day we started killing our own children in the womb LEGALLY. We as a nation had no mercy on a defenseless baby, expect no mercy from the forces that have been unleashed. I say this with sadness and not indignation. Repent before it is too late and become again a nation under God if you do not want to be a nation gone under.
18 weeks ago
18 weeks ago Link To Comment
For those who INSIST that Obama's Destruction of America is NOT Deliberate but merely his incompetence...
Answer me this ONE Question;
If he were to set out to Destroy The Country Deliberately, What Would He Be Doing Differently?
18 weeks ago
18 weeks ago Link To Comment
All Comments   (95)
All Comments   (95)
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I read this kind of doomsday scenario often enough. Congress has to know these concerns are reaching a stage where concerns, even if one would discount them, are having strong negative influences on the body politic.
Congress has two responsible choices. Either denounce the shrill rantings of guys like Soloway or act as if we are in a real and present danger. The founders gave the House of Representatives a weapon for conducting a bloodless revolution.
The choice is stark and must be made or we risk the worst situation. One way or the other, the House must save the Republic.That or bloody chaos that would unnerve even Jefferson.
18 weeks ago
18 weeks ago Link To Comment
headline ; only if we let our "leaders" carry on .
18 weeks ago
18 weeks ago Link To Comment
We all share Mr. Solway's alarm at this state of affairs. A large part of the problem is that outside of forums such as this, most Low Information Voters have no idea of the issues he describes, or if they have heard any of them, discount them at ten cents on the dollar.
18 weeks ago
18 weeks ago Link To Comment
This apocalyptic talk did not note that we have not had inflation nor has the dollar cratered. Most recently the RMB has gained value. Yes, the end could be nigh, but the same story could have been told and has been told by the catastrophists for years now, but it hasn't happened. Tomorrow is another day, but my skepticism remains intact.

Not that I think that the elite knows what it's doing, but they never have and we haven't crashed the currency. We are still the one-eyed man in the land of the blind. If you think we're screwing up, check out Europe...or Russia...or even China. Brazil can't even handle the World Cup. The world's problems are bigger than ours.

Obama will be gone in 2.5 years. We're going to muddle through.
18 weeks ago
18 weeks ago Link To Comment
Um, yeah, that would be the "normalcy bias" the article referenced.
It hasn't happened yet, so it will never happen, with no argument other than that to support your case. Europe and Japan are just ahead of us on the curve, and thier fates now tied to ours by "dollar swap" arrangements. We will muddle though- but at a third world standard of living as the best case, and complete civil war the the worst.
18 weeks ago
18 weeks ago Link To Comment
Yeah, in my own thinking, I go back and forth between the "collapse is inevitable" and "we'll muddle through" views. In the end, only time will tell. So I think the best strategy is "hope for the best (and do what you can to make it happen), but prepare for the worst."
18 weeks ago
18 weeks ago Link To Comment
We had price stability right up to the crash in '29, too.
18 weeks ago
18 weeks ago Link To Comment
The only remaining question may be which super power will hold the Guinness Book of World Records top spot for the fastest, most total disintegration of economic, military, political, and cultural power, the USSR or the USA. Remember how surprised folks were at the speed of the USSR collapse. With our competitive streak and the help of Lord and Savior Obama we may yet get to chant, "We're Number One! We're Number One."
18 weeks ago
18 weeks ago Link To Comment
"on the brink" or on its way?
18 weeks ago
18 weeks ago Link To Comment
When it comes to economics Obama don't know his ass from last Tuesday, and yes America is on the brink of economic and social collapse, but it's been a long time coming and Obama is only the latest bit player in a big show. I don't know that McCain or even Romney would have made much of a difference economically, and I don't know if anyone on the horizon has even a clue about where we are and what is going on, but most certainly Hillary does not. Look at that weasel Geithner out selling his book, and he was supposedly Secretary of the Treasury. Yeah, and I'm the Czar of All The Russias. And you have to ask if we're on the brink of social collapse? Gotta look back - and up - to see the edge of that cliff. So OK correct me, we're not on the brink, we're well over it, we just haven't come to that sudden stop at the bottom ... yet.
18 weeks ago
18 weeks ago Link To Comment
This article beats all the way around the bush without addressing our basic problem. Obama has the characteristics of a clinical psychopath. The Mainstream Marxist Media and prominent Democrat politicians are psychopath enablers. The closest analogy was Hitler (a nobody from nowhere with a compelling voice, like Obama), with Goebbels's propaganda and the German General Staff acting as psychopath enablers. You may recall how that worked out. But the world did not enjoy the psychological understanding in the 1930s and 1940s that it has now. We are as lacking in knowledge now as the world was back then because we ignore what has been learned. Clinical psychopathy is now well defined, primarily by Dr. Hervey Cleckley and Dr. Robert Hare. Obama and the current conflict within America is remarkably well described by the concept of clinical psychopathy.
18 weeks ago
18 weeks ago Link To Comment
The author thinks Obama is America's Castro; I think he's our Allende. When inflation really gets going, soldiers will get hungry. They'll march on Washington, and Congress will accede to their demands with a series of unanimous votes:

* Payment on the national debt will be suspended until further notice.
* All non-military government employees will be fired.
* All welfare and old-age benefits will stop, except for disabled veterans.
* All persons will pay a 15% income tax, except the indigent, who will be housed in tent camps ringed with razor wire, and fed a diet of potatoes and meat by-products.
* All serious crimes will be punished by public execution, and minor offenses by flogging.
* Cities and states will be free to demolish urban slums and redevelop the land as they see fit.
* The borders will be closed except to immigrants and liberals wishing to leave.
* Etc.
18 weeks ago
18 weeks ago Link To Comment
Obama isn't working at destroying America. He has succeeded. The point of no return has passed, and while that little punk will no doubt keep giving us his middle finger as he scratches his nose, believing such a thing is clever, the fact remains that even if Pro-American forces were to wrest the helm from those who would hurt our nation, they could not bring her back. The Republic is already dead, and any thrashing you see is because Obama has his axe embedded in her nervous system. The Economy is addicted to the crack cocaine of borrowed money to pay entitlements, and a cold turkey stop will send the economy into a tailspin as surely as continued printing will. Cloward-Piven have succeeded, and social unrest, crime and even civil war now lie as mile markers on the road ahead. You cannot stop it, but you can plan accordingly. Liberty or Death. So say we all.
18 weeks ago
18 weeks ago Link To Comment
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