Click amount to donate direct to CounterPunch
  • $25
  • $50
  • $100
  • $500
  • $other
  • use PayPal
HAVE YOUR DONATION DOUBLED!

If you are able to donate $100 or more for our Annual Fund Drive, your donation will be matched by another generous CounterPuncher! These are tough times. Regardless of the political rhetoric bantered about the airwaves, the recession hasn’t ended for most of us. We know that money is tight for many of you. But we also know that tens of thousands of daily readers of CounterPunch depend on us to slice through the smokescreen and tell it like is. Please, donate if you can!

FacebookTwitterGoogle+RedditEmail

The Year America Dissolved

by PAUL CRAIG ROBERTS

It was 2017.  Clans were governing America.

The first clans organized around local police forces. The conservatives’ war on crime during the late 20th century and the Bush/Obama war on terror during the first decade of the 21st century had resulted in the police becoming militarized and unaccountable.

As society broke down, the police became warlords. The state police broke apart, and
the officers were subsumed into the local forces of their communities. The newly formed tribes expanded to encompass the relatives and friends of the police.

The dollar had collapsed as world reserve currency in 2012 when the worsening economic depression made it clear to Washington’s creditors that the federal budget deficit was too large to be financed except by the printing of money.

With the dollar’s demise, import prices skyrocketed. As Americans were unable to afford foreign-made goods, the transnational corporations that were producing offshore for US markets were bankrupted, further eroding the government’s revenue base.

The government was forced to print money in order to pay its bills, causing domestic prices to rise rapidly. Faced with hyperinflation, Washington took recourse in terminating Social Security and Medicare and followed up by confiscating the remnants of private pensions. This provided a one-year respite, but with no more resources to confiscate, money creation and hyperinflation resumed.

Organized food deliveries broke down when the government fought hyperinflation with fixed prices and the mandate that all purchases and sales had to be in US paper currency. Unwilling to trade appreciating goods for depreciating paper, goods disappeared from stores.

Washington responded as Lenin had done during the “war communism” period of Soviet history. The government sent troops to confiscate goods for distribution in kind
to the population. This was a temporary stop-gap until existing stocks were depleted, as future production was discouraged. Much of the confiscated stocks became the property of the troops who seized the goods.

Goods reappeared in markets under the protection of local warlords. Transactions were conducted in barter and in gold, silver, and copper coins.

Other clans organized around families and individuals who possessed stocks of food, bullion, guns and ammunition. Uneasy alliances formed to balance differences in clan strengths. Betrayals quickly made loyalty a necessary trait for survival.

Large scale food and other production broke down as local militias taxed distribution as goods moved across local territories.  Washington seized domestic oil production and refineries, but much of the government’s gasoline was paid for safe passage across clan territories.

Most of the troops in Washington’s overseas bases were abandoned. As their resource stocks were drawn down, the abandoned soldiers were forced into alliances with those with whom they had been fighting.

Washington found it increasingly difficult to maintain itself. As it lost control over the country, Washington was less able to secure supplies from abroad as tribute from those Washington threatened with nuclear attack. Gradually other nuclear powers realized that the only target in America was Washington.  The more astute saw the writing on the wall and slipped away from the former capital city.

When Rome began her empire, Rome’s currency consisted of gold and silver coinage. Rome was well organized with efficient institutions and the ability to supply troops in the field so that campaigns could continue indefinitely, a monopoly in the world of Rome’s time.

When hubris sent America in pursuit of overseas empire, the venture coincided with the offshoring of American manufacturing, industrial, and professional service jobs and the corresponding erosion of the government’s tax base, with the advent of massive budget and trade deficits, with the erosion of the fiat paper currency’s value, and with America’s dependence on foreign creditors and puppet rulers.

The Roman Empire lasted for centuries. The American one collapsed overnight.

Rome’s corruption became the strength of her enemies, and the Western Empire was overrun.

America’s collapse occurred when government ceased to represent the people and became the instrument of a private oligarchy. Decisions were made in behalf of short-term profits for the few at the expense of unmanageable liabilities for the many.
Overwhelmed by liabilities, the government collapsed.

Globalism had run its course. Life reformed on a local basis.

PAUL CRAIG ROBERTS was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury.  His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Press. He can be reached at: PaulCraigRoberts@yahoo.com

WORDS THAT STICK

?

 

More articles by:

Paul Craig Roberts is a former Assistant Secretary of the US Treasury and Associate Editor of the Wall Street Journal. Roberts’ How the Economy Was Lost is now available from CounterPunch in electronic format. His latest book is The Neoconservative Threat to World Order.

October 19, 2017
Farhang Jahanpour
Europe Must Stop Trump From Starting Another War in the Middle East
John W. Whitehead
The Experiment in Freedom is Failing
Karen Hicks
Make Big Pharma Pay for the Opioid Crisis
Patrick Cockburn
Why the Palestinian Unity Deal Might Not Change Much
Lawrence Davidson
A State for the Kurds?
Joseph Grosso
Guns, Drugs, and Suicide: Death in America
Desiree Hellegers
“Unnatural Causes”: “Unnatural Causes”: Health Takes a Hit in Portland, Oregon
Binoy Kampmark
Vengeful in Defeat: Hillary Clinton Fantasizes About WikiLeaks
Robert Fisk
ISIS Has Lost Raqqa, Where Will It Go Next?
Pepe Escobar
Why Trump Has Gone Nuclear on Iran
Jenny Clegg
Will the US and China Go to War?
George Ochenski
Seduced by Greed: the Perils of Environmental Collaboration
Phyllis Bennis
Decertifying the Iran Deal: Trump’s Most Reckless Move?
Arnold Oliver
Bring Back Armistice Day and Honor the Real Heroes
John Eskow
Witch Hunt TV: You Can Trust MSNBC, Really….
Kim C. Domenico
In Search of Moral Energy in the Neoliberal Wasteland: a Preferential Option for the Poor Soul
October 18, 2017
Patrick Cockburn
Seizing Kirkuk
John Wight
Weinstein as Symptom: Notes From Hollywood
Matthew Hoh
Bowe Bergdahl: Traitor to American Exceptionalism and White Supremacy
Chris Ernesto
Funding for War vs. Natural Disasters
Aidan O'Brien
Where’s Duterte From and Where’s He Going To?
Jon Bailes
Mental Health and Neoliberalism: an Interview with William Davies
Ramzy Baroud
The Real Reason Behind Trump’s Angry Diplomacy in North Korea
Paul Craig Roberts
Washington, Not China, is the Biggest Threat to American Power
Mike Davis
El Diablo in Wine Country
Binoy Kampmark
Trump’s Iran Deal
Lara Merling
Remember Puerto Rico Needs Fair Medicaid Funding Too
Phil Rockstroh
2 or 3 Things I Know About Capitalism
Eoghan O’Suilleabhain
Rambo Wept: Our Commandos Good, Your Terrorists Bad
Dimitris Bellantis
On Catalonia: Debates in the Greek Left
Robert Koehler
The Calm Before the Storm
Mike Hastie
Napalm Sticks to Kids
October 17, 2017
Suzanne Gordon – Ian Hoffmann
Trumpcare for Veterans? VA Outsourcing Will Create Healthcare Industry Bonanza
Patrick Cockburn
The Real Destabilizer in the Middle East is Not Iran But Trump
Jonathan Cook
The Real Reasons Trump is Quitting UNESCO
Murtaza Shibli
My Friend From ISIS in Raqqa
Kathy Kelly
Wrongful Rhetoric and Trump’s Strategy on Iran
David Bonner
Beyond Taking a Knee: Duane Thomas, Where are You When We Need You?
Tom Gill
Austerity, Macron-Style
Liaquat Ali Khan
Pakistan Faces a Life-Threatening Military Coup
Jeff Mackler
Is Trump a ‘Moron?’
Amena Elashkar
If You Work for Justice in Palestine, Why Won’t You Let Palestinians Speak?
John Feffer
Trump’s Unprecedented Right-Turn on Foreign Policy
Ariel Dorfman
Trump’s War on the Mind
Dean Baker
The Republican Tax Plan to Slow Growth
FacebookTwitterGoogle+RedditEmail