CNN host Lou Dobbs says the U.S. economy is heading for a stagflation crisis as a result of the U.S. government's policy of dollar depreciation and that the only solution is for the American people to restore a proper Constitutional system of government.

Dobbs told The Alex Jones Show today that the decline of the dollar was, "a clear signal as to how much trouble this economy is in," added to a 9 trillion dollar national debt and a 6 trillion dollar trade debt.

America's dependence on cheap imported Chinese consumer electronics, clothes and toys was negating any elasticity that could be gained from the demand relationship with China on imports, meaning that the only conceivable benefit of a weak dollar - cheaper exports - was not even applicable, Dobbs explained.

"We have the specter of stagflation staring at us coldly and inevitably right now," said Dobbs, adding, "There's no doubt that those who would degrade the sovereignty of this country would want to certainly the power, the strength, and the respect of the U.S. dollar and it is the last thing we should permit."

Stagflation is a macroeconomics term used to describe a period of inflation combined with stagnation, ie slow economic growth allied to a potential recession.

"We have to come to terms with the amount of debt that we have allowed the elites of this country to run up," Dobbs concluded.

"I believe very strongly that we will either take back our system of government that will function through the consent of the governed, or we will see an absolute change of direction, I don't think it will be a violent revolution, but I think there will be a crisis that will impend and demand action on the part of the people," said Dobbs, pointing out that the will of the working and middle class majority was being derided and spat upon by those in Washington.

Pointing out that "both parties were paid for by corporate America and special interests," Dobbs said that the era of politicians representing the people when they went to Washington was over and that the 2008 election, no matter who became president, would change nothing whatsoever.

Click here to listen to the MP3 interview with Lou Dobbs.