When a debt circus starts to fold there is a desperate resort to hard assets. The banker seizes the real estate; investors head to precious metals. America’s biggest debtor is the federal government itself. As the hyper-leveraged economy contracts; and as China and other countries balk at financing the deficit that the Bush Administration deliberately has created; there will be demands to liquidate the common pool to keep the operation going. It won’t be entirely an accident.
We’ll be told we have to ease restrictions on poisons in the water and air, to get the “economy” going. We’ll be told the public domain has to go as well. Offshore oil? National forests? Resort developments in the national parks? There will be a replay of the contractor honey pot that the occupation of Iraq became, only this time on the privatizing front. There have been previews around the country. Local governments, starved of tax revenue, have had to sell access to a captive audience of school children to corporate advertisers, just to raise money. We’ve tossed the kids into the liquidation fire. Why not trees?