"telling the American people that they are in control of their own destiny" what's needed is telling the people they are RESPONSIBLE for their own destiny. Unfortunately the nature of democracies is that the people vote for politicians that tell them the good times will continue or get better.

Above, "And to most of us, this feels like rapid progress to something like the USSR."
"we will slide into Socialism. Everybody will be equally miserable."
Why do Americans keep insisting that any sort of collective social action is communism?

There is no group of humans more socialist in thinking and behaviour than the superrich. The average human with a net worth exceeding 30 million US has a far more extensive social network and social support than the average person. Most billionaires literally have hundreds of friends that can help them out financially and in other ways-the average person is lucky to have a handful. The rich are socialist because socialism works.

There are many leaders out there. Don't dispair because you see the President (tial Choice) as "The Leader". That's what democracy /was/ trying to alleviate/correct. What other leaders are out there? Well looking at one! definition of leadership, it could be one who is followed. Why are we following those who sell/lead/ us the new big SUV? or the newest fastest computer, or the bigger house? Where are the education and values being taught? TV and other media outlets, maybe. Why do we have a culture where two income families are pretty much a necessity, and teachers are one of the lowest paid professions, along with others that protect and serve? Perhaps a focus on more and better education is the only way for the next ( or its too late for any but the next next) generataion.

There are many leaders out there. Don't dispair because you see the President (tial Choice) as "The Leader". That's what democracy /was/ trying to alleviate/correct. What other leaders are out there? Well looking at one! definition of leadership, it could be one who is followed. Why are we following those who sell/lead/ us the new big SUV? or the newest fastest computer, or the bigger house? Where are the education and values being taught? TV and other media outlets, maybe. Why do we have a culture where two income families are pretty much a necessity, and teachers are one of the lowest paid professions, along with others that protect and serve? Perhaps a focus on more and better education is the only way for the next ( or its too late for any but the next next) generataion.

Gail,

I quite often here this 'financial crash' type scenario where everyone dumps their Dollars but I have to ask if this is reasonable and under what circumstances? It seems to me that the fiat currency based world is so intertwined that to suddenly abandon the dollar would be death to those that did it as well, like a poker game where everyone is all-in but no-one reveals their hands...

So isn't it more likely that we will simply see debt continue to rise and rise 10 Trillion, 20 Trillion, 50 Trillion, perhaps with some Inflation until the numbers are at such dizzying heights that... well, some would say we are already there I guess...

Nick.

Gail, the government has avoided raising taxes to pay for things for the last few years and as you say it is just not possible to raise taxes to cover all the bills. For years America and others have been living beyond their means and now there are hard times ahead. Imagine if taxes had been raised to cover the Iraq war, just imagine how quickly the adventure would have been over.

Your points above:
IMHO a national grid is required to ensure that electricity can be efficiently transmitted across the nation rather than having individual companies controlling their own regions.

Railroad tracks should be controlled by the government so that long term plans can be undertaken.

Airline industries to smaller cities should not be subsidised, otherwise how long do you think these subsidies should continue, 5, 500 years or until reached by rail?

Auto manufacturers have fought tooth and nail to prevent reasonable CAFE limits to be introduced, have bought and closed down railroads. Let them go bust and someone will buy the assets from the receivers and use them more efficiently.

Housing problems, stop falling prices?? I thought one of the problems has been a house price bubble? Surely lower prices are more affordable and will increase demand to remove the overhang of new houses?

Government to provide support to the new manufacturers? I will be manufacturing pork barrels and bridges to nowhere at low cost for voters, how much can i have?

State and local governments, this is a cash flow problem caused by the freeze of the money markets. Sure government can help out.

Failing banks, now there's a question, hang on just got to get back to work.

To me, it looks like there is a significant chance of a fast crash at some point down the road, once the solvent portion of the rest of the world decides it is no longer going to fund America's extravagance.

I am having a hard time figuring out who exactly is solvent right now or even what solvency means in the current context. With Ireland, Iceland, Germany, etc. guarenteeing all of their bank accounts, it is difficult to think of a solvent country of significant size. China and India perhaps are solvent but how can one be solvent holding onto large numbers of dollars. Maybe this is where we get one world government. Oops, I almost forgot Canada. Canada does not seem to have much exposure. Of course they balance that by having an environmentally collapsing province in Alberta. But damn few people live in Alberta, so why not turn it into the world´s largest toxic waste pit.

I would suggest that a country can potentially be solvent if it has food and water security. Perhaps we should get away from the idea of solvent countries and start thinking about solvent small safehavens.

"once the solvent portion of the rest of the world"
Gail, which portion would that be? :)