Kunstler: Campaign Blues

…The president-elect will quickly realize that the number one problem is not that Americans can’t afford health care — it’s that they can’t afford anything, because their income is evaporating in terms of both lost jobs and a dollar that is racing toward worthlessness. They’ll be hard put to pay for food and gasoline, nevermind Grandma’s emphysema treatments. They will be walking away from home ownership — or yanked kicking and screaming by default-and-repo — and any government scheme devised to abridge their mortgage contracts will only undermine basic contract law that has made mortgage lending a credible thing in the first place. And that too, of course, would redound straight to a real estate sector already in price free-fall, with no one willing or able to think about buying a house.


As Obama and McCain go at it through the next eight months, they will likely focus on our situation in Iraq. (Calling it a “war” now is imprecise.) As merely one commentator among thousands, I’m not satisfied that either one of the contenders has defined his position on this coherently. Obama is disposed to get the US military out of there as quickly as possible. He’s right that the sheer awful cost of the adventure is one big factor in wrecking US finances while it erodes our standing in the world. But with our Iraq garrison shut down, he’d better be prepared for a further breakdown in Middle East stability and the oil markets that depend on it — meaning, the basis of American life for four generations, dependable oil imports, will sharply end. That would accelerate the disorderly abandonment of our massive misinvestment in suburban living, and also ramp up the anger and resentment of the public grieving over its lost entitlements.

McCain’s contrasting hundred-year plan does not take into account the severe impoverishment and exhaustion of the military itself, not to mention the overall purpose of the adventure — to keep suburban life and all its accessories running in the homeland — which is an exercise in futility under any terms. McCain would have to confront the terrible paradoxes of the war, namely that thousands of legs have been blown off for the sake of WalMart, which company will be hemorrhaging customers anyway, as incomes wilt, at the same time that WalMart’s own operating system — the “warehouse on wheels” — surrenders to the reality of five or six dollar-a-gallon diesel fuel. In any case, the implosion of the US economy during the next eight months will overshadow whatever we decide to do in Iraq, and that cratering will be laid directly at the feet of the Republican party. If the party survives that, which I doubt, it would a long time before anybody trusted it again.

Kunstler.com