I'm not sure if he is merely announcing the demise of politically liberal capitalists, bemoaning that fact, or celebrating it. Personally, I celebrate it--because it is "Time for Progressives to Grow Up" (Francis Moore Lappé).
Liberals have always served to preserve capitalism--that was their function. Because capitalism has now gone global, the US ruling class thinks globally--that's where the profits are--and doesn't care about its local constituents. It is depending on its many powerful organs of propaganda (schools, media, and Hollywood) to keep people misinformed and misdirected. Hedges seems mostly worried about the right-wing:
The collapse of the constitutional state, presaged by the death of the liberal class, has created a power vacuum that a new class of speculators, war profiteers, gangsters and killers, historically led by charismatic demagogues, will enthusiastically fill. It opens the door to overtly authoritarian and fascist movements.It is also quite possible that many people will wake up to see the system for what it is--a system designed to accumulate wealth in the hands of a few people--and change it.