The greatest loss of the last decade was not in 401-Ks or manufacturing jobs or foreclosed houses, but the rule of law. Without genuine rule of law, anything goes and nothing matters. As a consequence of that, finally, everything goes. The rule of law is what kept foreigners buying our debt all these years (the fumes we've been running on). They kept buying because they believed, when all was said and done, that Americans would enforce contracts and regulate behavior in the direction of fair dealing - not for its own sake but because it made things work better. But when the rule of law goes here, the rest of the world will notice its absence. They'll stop believing in our money and our future. They'll cash out and we'll wash out. Then, as human tribes are wont, they may just turn around and kick our ass because we're down.
I think it goes even deeper than that, and I think, given the totality of the post (a post you should definitely find time to read), Kunstler would probably go along. As horrifying as the destruction of law is, what allows it - along with the destruction of the economy, the destruction of the social contract, and the destruction of representative democracy itself - is the wholesale assault on reality by what Mark has been calling "the Confederate Right".