This article originally appeared at TomDispatch.com. To listen to the author discuss the Chinese real estate bubble and other perils of the global economic system, click here. To stay on top of important articles like these, sign up to receive the latest updates from TomDispatch.com.
When my old gang and I were 14 or 15 years old, many centuries ago, we yearned for immortality in the fiery wreck of a bitchin’ ’40 Ford or ’57 Chevy. Our J.K. Rowling was Henry Felsen, the ex-Marine who wrote the bestselling masterpieces Hot Rod (1950), Street Rod (1953) and Crash Club (1958).
Officially, his books—highly praised by the National Safety Council—were deterrents, meant to scare my generation straight with huge dollops of teenage gore. In fact, he was our asphalt Homer, exalting doomed teenage heroes and inviting us to emulate their legend.
One of his books ends with an apocalyptic collision at a crossroads that more or less wipes out the entire graduating class of a small Iowa town. We loved this passage so much that we used to read it aloud to each other.
It’s hard not to think of the great Felsen, who died in 1995, while browsing the business pages these days. There, after all, are the Tea Party Republicans, accelerator punched to the floor, grinning like demons as they approach Deadman’s Curve. (John Boehner and David Brooks, in the back seat, are of course screaming in fear.)
The Felsen analogy seems even stronger when you leave local turf for a global view. From the air, where those Iowa cornstalks don’t conceal the pattern of blind convergence, the world economic situation looks distinctly like a crash waiting to happen. From three directions, the United States, the European Union and China are blindly speeding toward the same intersection. The question is: Will anyone survive to attend the prom?
Shaking the Three Pillars of McWorld
Let me reprise the obvious, but seldom discussed. Even if debt-limit doomsday is averted, Obama has already hocked the farm and sold the kids. With breathtaking contempt for the liberal wing of his own party, he’s offered to put the sacrosanct remnant of the New Deal safety net on the auction bloc to appease a hypothetical “center” and win re-election at any price. (Dick Nixon, old socialist, where are you now that we need you?)
As a result, like the Phoenicians in the Bible, we’ll sacrifice our children (and their schoolteachers) to Moloch, now called Deficit. The bloodbath in the public sector, together with an abrupt shutoff of unemployment benefits, will negatively multiply through the demand side of the economy until joblessness is in teenage digits and Lady Gaga is singing “Brother, Can You Spare a Dime?”
Lest we forget, we also live in a globalized economy where Americans are consumers of the last resort and the dollar is still the safe haven for the planet’s hoarded surplus value. The new recession that the Republicans are engineering with such impunity will instantly put into doubt all three pillars of McWorld, each already shakier than generally imagined: American consumption, European stability and Chinese growth.