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  Date / Time: 9/5/2009 12:04 AM UTC

  Predicting Worse Ahead From The US Economic Crisis
  

  Austrian economist Ludwig von Mises (1881-1973) said:

   

  "There is no means of avoiding a final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved."

   

  Under Alan Greenspan, Ben Bernanke and successive US Treasury Secretaries, America chose the latter path and now faces the consequences of their reckless, criminal behavior.

   

  In early 2009, economist Michael Hudson said:

   

  The (US) economy has reached its debt limit and is entering its insolvency phase. We are not in a cycle but (at) the end of an era. The old world of debt pyramiding to a fraudulent degree cannot be restored," only delayed to postpone a painful day of reckoning.

   

  Economist Hyman Minsky (1919 - 1996) described a "Ponzi finance" system during prolonged expansions and economic booms. Speculative excesses create bubbles, triggering structural instability, then asset valuation collapse that turns euphoria to revulsion and market crashes.

   

  On December 29, 2008, the Wall Street Journal online headlined: "As if Things Weren't Bad Enough, Russian Professor Predicts End of US," then continued:

   

  "For a decade, Russian academic (and former KGB analyst) Igor Panarin has been predicting the US will fall apart in 2010" to include an "economic and moral collapse, a civil war, and the eventual breakup of the country." For years, no one took him seriously, but no longer. He's invited to Kremlin receptions, gets interviewed twice a day, publishes books, is a frequent lecturer, and appears regularly in the media as an expert on US - Russia relations as well as the great interest in his predictions and new book titled, "The Crash of America."

   

  On March 25, 2009, RussiaToday.com headlined: "Is there anything Obama can do about the US Collapse?" No, according to Panarin, for these reasons:

   

  -- "the moral and psychological factor and the stress of the American population;"

   

  -- America's deepening financial and economic crisis; and

   

  -- "the increase of anti-Americanism in the world," the result of continued US belligerency.

   

  Panarin sees America collapsing into six areas of foreign influence and perhaps disintegrating as a nation:

   

  -- depressed northern states close to Canada "in their mentality and economic development;"

   

  -- the Southwest "fuel and energy complex, the oil sector" close to Mexico;

   

  -- California and the Pacific Northwest falling under Chinese influence;

   

  -- the Northeast and Middle Atlantic regions under the EU;

   

  -- Alaska may be returned to Russia; and

   

  -- Hawaii may become a Japanese or Chinese protectorate.

   

  Panarin sees 2010 as America's tipping point and says no miracle rescues can save it. In addition, he cites French political scientist Emmanuel Todd's 1976 prediction of the Soviet Union's dissolution that got him laughed at and scorned at the time but proved right.

   

  Todd now predicts a similar fate for the US in his 2002 book, "After the Empire: The Breakdown of the American Order." He cites:

   

  -- unilateral militarism shows weakness, not strength;

   

  -- America is parasitic, relying on voluntary or extracted "tributes" from vassal states;

   

  -- global terrorism is a myth;

   

  -- many nations, including EU states, China and Russia, are beginning to resist US adventurism;

   

  -- terminal corruption and decay;

   

  -- economic weakness and decline;

   

  -- producing little, America's "specialty is consumption (so) relies on foreign imports" to satisfy it;

   

  -- a declining middle class and growing poverty will curtail spending sharply;

   

  -- if capital inflows cease, the dollar will crash:

   

  -- a coming collapse of the stock market, financial institutions and the dollar;

   

  -- a ballooning trade deficit and shrinking manufacturing base;

   

  -- a predatory ruling class plundering the world with impunity, yet out of touch with its own people growing poorer, more desperate and angrier;

   

  -- America's abandonment of universalism and egalitarianism;

   

  -- excess consumption trapping people in an ocean of debt and lowering their living standards;

  -- "the rest of the world....is on the verge of discovering that it can get along without America; America is realizing that it cannot get along without the rest of the world;"

  -- an emerging Eurasia will end US supremacy, then isolate and curtail its dominance; and

   

  -- "If America continues to endeavor to show its power, it will simply reveal (to) the world its impotence."

   

  For his part, Panarin compares America to the Titanic after hitting an iceberg when it was unclear whether the crew would try to save the ship or more importantly its passengers. Unfortunately, under Bush and Obama, they're trying to save themselves at the expense of the ship and passengers.

   

  After disintegration, Panarin sees three dominant influence areas emerging - the EU, Russia and China. After 11 years of monitoring US policies, he believes his prediction is largely confirmed and states the following:

   

  America's FY 2009 "budget deficit is 4.5 times the 2008 deficit, while firearms sales are up 40%. On October 1, the coupons that were given state workers are to be cashed out. When (they) realize that they are getting nothing for (them), they will take out their firearms and chaos will unfold."

   

  Further, on September 30, 2009, results will be published that are "destined to shock investors worldwide. After that, and (Japan and China's) snubbing of the dollar....which will transfer 50% of (their) international operations to Yuan starting in 2010, the currency will then flow like a landslide out of style." Already nations like China, Russia, Brazil, Argentina and others are trading in their own currencies or will do so shortly.

   

  In Panarin's view, "the probability of the US ceasing to exist (in its present form) by June 2010 exceeds 50%. At this point, the mission of all major international powers is to prevent chaos" because what hurts America also harms them.

   

  A Multiple-Dip Depression

   

  Economist John Williams publishes the shadowstats.com electronic newsletter with updated sample data on his site. He calls government figures corrupted and unreliable because manipulative changes rigged them for political and market purposes. To correct them, he reverse-engineers GDP, employment, inflation, and other key data for greater reliability to subscribers.

   

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