The end of the American oil "empire"

I put "empire" in quotes because the USA was never a real empire like Rome and Britain but there are some good observations in How will America handle the fall of its Middle East empire?

The British empire reached its fullest extent in 1930. Twenty years later, it was all over.

Today, it is reasonable to ask whether the United States, seemingly invincible a decade ago, will follow the same trajectory. America has suffered two convulsive blows in the last three years. The first was the financial crisis of 2008, whose consequences are yet to be properly felt. Although the immediate cause was the debacle in the mortgage market, the underlying problem was chronic imbalance in the economy.

For a number of years, America has been incapable of funding its domestic programmes and overseas commitments without resorting to massive help from China, its global rival. China has a pressing motive to assist: it needs to sustain US demand in order to provide a market for its exports and thus avert an economic crisis of its own. This situation is the contemporary equivalent of Mutually Assured Destruction (MAD), the doctrine which prevented nuclear war breaking out between America and Russia.

Unlike MAD, this pact is unsustainable. But Barack Obama has not sought to address the problem. Instead, he responded to the crisis with the same failed policies that caused the trouble in the first place: easy credit and yet more debt. It is certain that America will, in due course, be forced into a massive adjustment both to its living standards at home and its commitments abroad.

I don't agree completely with the author's world-view but the rest is worth reading.