It is important to understand that monetary orders do not fall because of a problem, but two problems one of which breaks the other. Inflation has been solved over the last 30 years by offshoring and reduction in wages in developed nations. This meant the increase in capital aimed at producing consumable goods. However, no matter how many car parts are made in China, it will not increase the amount of oil in the world. Quite the contrary, if the objective is to reduce energy, investing in China is almost the worst thing that can be done, since China uses more energy to make the same GDP, and the energy they use is dirtier.

The correct response is to dramatically shift incentives for consumers away from borrowing and consuming, and towards saving and investing. However to do this, there has to be - surprise - an incentive. Presently they have no incentive, political, social, or economic. Instead they have every incentive to consume now, before consumption later is too expensive, every incentive now to not vote for political change now of any meaningful sense, because none is on offer, and every social incentive to continue to put up appearances so they can sell their houses and get out.

It is this social revolution which is the ultimate preventative to violent revolution. The country is ripe for it, and wants it, but is not being offered it, because the powers that be, and the powers that wannabe, all want the American public to go back to chewing the cud of entertainment and consumption. From Ron Paul to Barak Obama, every figure now being talked about is part of the problem, not part of the solution.

However, Obama, alone, of all of the major figures being offered, has at least an incentive to look at the problem in a longer term, and an incentive to change the direction. Public investment is the key to the solution, and not public investment in wars in the Middle East. To get public investment means to tax, and not just tax domestically, but globally. To tax globally is to work through the G-7.