by John Stoltenberg

A pretty good read is the recent essay "Why the Oil Price Is High" by Paul Craig Roberts. 
 
The second paragraph gets right to the point.  It reads as follows:

"In my opinion, the two biggest factors in oil's high price are the weakness in the US dollar's exchange value and the liquidity that the Federal Reserve is pumping out."

The last paragraph explains some of the consequences, but not all of the consequences, of the decline of the American dollar as the global currency. 

"The crisis that looms for the US is the loss of world currency role. Once the dollar loses that role, the US government will not be able to finance its operations by borrowing abroad, and foreigners will cease to finance the massive US trade deficit. This crisis will eliminate the US as a world power."

Paul Craig Roberts has avoided the domestic economic, social and political consequences.  They are:
 
(1) The American economy is hit by a devastating economic depression, possibly on the order of the 1930s depression.
 
(2) The American economy experiences rampant inflation, possibly on the order experienced in Germany following World War One.
 
(2) There is massive social and political unrest.
 
(3) The fascist regime in power at the time, Republican or Democrat, declares martial law and imposes a fascist military/police state.
 
(4) The private fascist armies, such as Blackwater, perform the role for which they were created, which is the same role that was played by the Schutzstaffel (SS) in Germany, and terrorize all opposition to fascist rule.
 
In closing, notice that Paul Craig Roberts explains what is taking place and why, but he does not offer a solution to our present crisis.  This leads me to believe that he does not think there is a solution to our present crisis. 

After all, if there was a solution, and he knew what it was, I am sure he would not let the opportunity to present it slip-by.

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