The Year America Dissolved – Paul Craig Roberts


Posted by sakerfa on July 27, 2010


(InfoClearingHouse) – 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.

Dr. Roberts was Assistant Secretary U.S. Treasury, Associate Editor Wall Street Journal, Columnist for Business Week, Senior Research Fellow Hoover
Institution Stanford University, and William E. Simon Chair of Political
Economy in the Center for Strategic and International Studies,
Washington, D.C.

Source: Information Clearing House,

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