November 25, 2008
USA breakup: Bloomberg News takes notice
Just when I thought I might have to dig into the archives for some more rare examples of the MSM's dabbling with the deathwatch, lo & behold Bloomberg.com has picked up on an interview that a Russian media outlet called Izvestia did with an economics professor named Igor Panarin: http://www.bloomberg.com/apps/news?pid=20601103&sid=a3sayDZz.QKc&refer=us
Russian Professor Says U.S. Will Break Up After Economic Crisis
By Robin Stringer
Nov. 24 (Bloomberg) -- A professor at the diplomatic academy of Russia’s Ministry of Foreign Affairs said the U.S. will break into six parts because of the nation’s financial crisis.
“The dollar isn’t secured by anything,” Igor Panarin said in an interview transcribed by Russian newspaper Izvestia today. “The country’s foreign debt has grown like an avalanche; this is a pyramid, which has to collapse.”
Panarin said in the interview that the financial crisis will worsen, unemployment will rise and people will lose their savings -- factors that will cause the country’s breakup.
“Dissatisfaction is growing, and it is only being held back at the moment by the elections, and the hope” that President- elect Barack Obama “can work miracles,” he said. “But when spring comes, it will be clear that there are no miracles.”
The U.S. will fracture into six parts: the Pacific coast; the South; Texas; the Atlantic coast, central states and the northern states.
“Now we will see a change to the regulatory system on a global financial scale: America will cease to be the world’s regulator,” to be replaced by China and Russia, he said.
Now while the current economic mess is cause for concern, I doubt it will result in a breakup so soon. We're entering a period where the Federal Gov't. may have to slowly nationalize the banking system, but Socialism still has a long way to go in America before I would say the game is over. It did reach game over in Iceland recently, but their combined banking and government debt had exploded to ten times the country's annual GDP. We are nowhere near that (yet).
Also in the news was the report that the total amount of the combined bailouts, loans and pledges by the Feds is now at 7.7 trillion dollars! What's amazing about this is that the total amount of all Mortgage debt in the USA is about 12 trillion. It would have been easier if the Feds has just decided to guarantee half of everybody's mortgages instead of giving it all to the bankers. For a complete look at the bailout breakdown, click the link below which will take you to Mike Shedlock's blog "Global Economic Trend Analysis". It's one of the best economic watchdog sites on the Internet.
Posted by AndyK at 8:45 PM