Superb account of the state of the USA
This outstanding book is the best study of the current state of the USA. Kevin Phillips, the vastly experienced American political and economic commentator, depicts the USA¿s economic and religious interest-groups and their effects on the Republican coalition. For this paperback edition, he has written a brilliant 40-page introduction updating his 2006 analysis. He shows how deindustrialisation is destroying the US economy. The debt-driven finance, insurance and real estate sector accounts for 21% of US GDP, manufacturing for only 13%. 44% of all US corporate profits come from the finance sector, 10% from manufacturing. Household incomes have not risen since 2000. Wages are 62% of national income, compared to an average 73% in the late 1960s. He describes what he calls the `oil-national security complex¿ and its `100 years¿ oil war¿. The USA, with 200 million of the world¿s 520 million automobiles, defeats conservation and energy efficiency. The USA consumes a quarter of the world¿s energy, but has only 5% of its reserves. Since 1998, the USA has been importing more than half the petrol it uses. A barrel of oil cost $3 in 1970, $10 in 1986, $30 in 2002, $75 in 2007. Non-OPEC oil will peak in 2010. So the US state wants to secure oil supplies from the Middle East, but in a classic case of imperial overreach, its efforts are counter-productive. White House economic advisor Lawrence Lindsay said in September 2002, ¿the key issue is oil, and a regime change in Iraq would facilitate an increase in world oil so as to drive down prices.¿ Pre-war, Iraq produced 3.5 million barrels a day, now just 1.1 million, ¿U.S. mismanagement in Iraq having only aggravated the oil-supply and terrorist threats¿, as Phillips writes. The war has caused most of the recent $45-a-barrel rise. Phillips also studies the USA¿s rightwing religious fundamentalism ¿ a toxic brew of Biblical inerrancy and born-again evangelicalism. It claims that we live in the `end-times¿, when the defeat of the antichrist at Armageddon heralds the second coming. It is anti-women, anti-science, anti-modernism and anti-Enlightenment. It opposes sex education, women¿s rights, contraception, stem-cell research and abortion. He shows how successive US governments have indulged the soaring debt and credit industry. They encouraged reckless credit expansion, blowing up the ballooning national, international, business, financial and household debts. Low-interest rates led to the credit-card boom, to exotic mortgages, derivatives (which the speculator Warren Buffett called `financial weapons of mass destruction¿), hedge-funds and debt instruments. Buffett also said, ¿Hyperactive equity markets subvert rational capital allocation.¿ Americans now owe more than they make. Finance firms are debt collectors credit card companies offer to consolidate people¿s debts, but once the debtor is hooked, the company can raise interest rates to 20-30%. No wonder that in Bush¿s first term (2000-04), there were five million personal bankruptcies and by 2006, the USA¿s total debt was $40 trillion, 304% of GDP.
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Overview
From America's premier political analyst, an explosive examination of the axis of religion, politics, and borrowed money that threatens to destroy the nationIn his two most recent New York Times bestselling books, American Dynasty and Wealth and Democracy, Kevin Phillips established himself as a powerful critic of the political and economic forces that are ruling-and imperiling-the United States. Now, Phillips takes an uncompromising view of the political coalition, led by radical religion, that is driving America to the brink of disaster.
From Ancient Rome to the British Empire, Phillips demonstrates that every world- dominating power has been brought ...