The key events that I see are:<p>1) The outsourcing boom<p>2) The Nixon Shock: <a href="http://en.wikipedia.org/wiki/Nixon_Shock" rel="nofollow">http://en.wikipedia.org/wiki/Nixon_Shock</a><p>3) The elimination of Glass-Steagal<p>#1 killed the well-paying blue collar job and unions. #2 killed the stability of the dollar. #3 (especially combined with #2!) allowed banks to leverage regular deposits to inflate M3 and create mega-bubbles and then drop their losses on the depositors and the taxpayers.<p>Put it all together, and we are indeed on our way to third world status: 10% own 90%, everyone else is poor.<p>Then add in the recent resumption of Vietnam-style expensive smoldering meat-grinder warfare, which is bankrupting the federal government. Then, for the cherry on top, throw in peak oil.