If you can't fund basic services to the degree that it results in mass casualties, you'd better start raising taxes.

But this doesn't change what I say. Even if you get an increased mortality, you will eventually return to full employment via salary cuts. It won't be fun and it won't be pretty and most importantly it will be a really stupid way to do things, but eventually you will reach full employment.

I'm not arguing this is the good way to do things, I'm just saying that eventually that's what will happen, even if I also think the devaluation road is far more politically likely (and a lot smarter).

Peak oil is not an energy crisis. It is a liquid fuel crisis.