By Walter Libby
First, let's put Marx in perspective. He starts The Communist Manifesto with: “The history of all hitherto existing society is the history of class struggles.” And then quickly gets to the gist.
Armed civil unrest, especially in the United States, is likely, but revolution qua revolution is unlikely. Revolution is out. Can’t seize and therefore why revolt? But with civil unrest, what is the probable political outcome. Marx he is irrelevant. So what is the probable political outcome?
Following World War II was the Golden Age of Capitalism. Enlightened policies towards Japan and Germany played a role in their rebuilding, but a role buttressed as the U.S. turned them into forts to guard against Soviet intrusion; assuring a stable government and their economic development. South Korea eventually fell under our umbrella and became one of the Asian Tigers. All in all, it was a period of huge global demand. But as the world’s largest economy, the United States is the focus.
As it stands now The Treasury General Account is held at the Federal Reserve Bank of New York. But understand that it is the Treasury that prints the Federal Reserve Notes, and for a fee, supplies the currency to Fed. Since all official payments of the U.S. government are made from this account., and all deposits, since with the collapse there are no taxes, are now made by the printing press, there is no problem funding the federal government along with providing block grants to state and local governments. Whatever needs to done will be; there are no limits to funding governments or subsidies for businesses.
These are hard times. The manufactured consumer have mostly been off shored. But we now have a solid foundation.