Tuesday, December 16, 2008



A rather dire prediction from abroad.

A leading Russian political analyst has said the economic turmoil inthe United States has confirmed his long-held view that the country is heading for collapse, and will divide into separate parts.

Professor Igor Panarin said in an interview with the respected daily IZVESTIA published on Monday: "The dollar is not secured by anything. The country's foreign debt has grown like an avalanche, even though in the early 1980s there was no debt. By 1998, when I first made my prediction, it hadexceeded $2 trillion. Now it is more than 11 trillion. This is a pyramid that can only collapse."

The paper said Panarin's dire predictions for the U.S. economy, initially made at an international conference in Australia 10 years ago at a time whenthe economy appeared strong, have been given more credence by this year's events.

When asked when the U.S. economy would collapse, Panarin said: "It is already collapsing. Due to the financial crisis, three of the largest and oldest five banks on Wall Street have already ceased to exist, and two are barely surviving. Their losses are the biggest in history. Now what we will see is a change in the regulatory system on a global financial scale: America will no longer be the world's financial regulator."

When asked who would replace the U.S. in regulating world markets, he said: "Two countries could assume this role: China, with its vast reserves, and Russia, which could play the role of a regulator in Eurasia."

Asked why he expected the U.S. to break up into separate parts, he said: "A whole range of reasons. Firstly, the financial problems in the U.S. will get worse. Millions of citizens there have lost their savings. Prices and unemployment are on the rise. General Motors and Ford are on the verge of collapse, and this means that whole cities will be left without work. Governors are already insistently demanding money from the federal center.Dissatisfaction is growing, and at the moment it is only being held back by the elections and the hope that Obama can work miracles. But by spring, it will be clear that there are no miracles."

He also cited the "vulnerable political setup", "lack of unified nation allaws", and "divisions among the elite, which have become clear in these crisis conditions." He predicted that the U.S. will break up into six parts - the Pacific coast,with its growing Chinese population; the South, with its Hispanics; Texas,where independence movements are on the rise; the Atlantic coast, with its distinct and separate mentality; five of the poorer central states with their large Native American populations; and the northern states, where theinfluence from Canada is strong.

He even suggested that "we could claim Alaska - it was only granted on lease, after all." Panarin, 60, is a professor at the Diplomatic Academy ofthe Russian Ministry of Foreign Affairs, and has authored several books on information warfare.

What is your response to this? Please click comments & let readers know.


davers said...

Sounds like wishful thinking to me. Funny comments about us having an unsecured dollar when nobody has secured money, nor have they for a hundred years.

Yeah things might get real bad here - worst in maybe 60+ years, I'll admit that but from what I hear they're a lot worse in Russia and China. Seems like everyone is predicting each other's demise with a sort of rabid giddiness. Very strange if you ask me.

davers said...

Incidentally, IZVESTIA, is the Russian government owned paper. It is not an independent new source, nor is it "respected" in anyway whatsoever as an unbiased news-source anymore than the Kremlin is an unbiased news-source. It is in fact the Kremlin Herald.

No wonder the typical gloom and doom tactics of the old soviets to scare people from investing in foreign sources.