And Factor X is What Threatens the United States the Most

The DOW is down almost 1000 points in three days. As always, "Oil, Smoke and Mirrors" predicted this two years ago.

Colin Campbell: "They're going to have to wipe out just mountains of capital"

Well, maybe not wipe out. Perhaps replace with taxpayer money would be better phraseology. But where will those taxpayer dollars come from? The wealth has accumulated at the top.

Chris Sanders: "And this is where Peak Oil comes in because the implication of Peak Oil is that oil prices are going to become more volatile, and that the average price of oil is going to remain structurally higher than it has been in decades. And if that happens then the economic value securing the American debt structure has got to be valued downwards by some factor...let's call it Factor X. And Factor X is the thing that threatens the United States most."

The economic value securing the American debt structure is collapsing, so the American debt structure is no longer secure.

The U.S. Government is throwing good money after bad in an attempt to keep the illusion going that an economy based purely on consumerism in light of declining energy can continue. Bush and his administration will be lucky if they aren't lynched soon.