Here’s my vote for Crackpot Article of the Year….

A leading Russian political analyst has said the economic turmoil in the 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 had exceeded $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 when the 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.”

Link: Full Article

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Personally I think this analyst is projecting the state of Russian influence on the US. The US has held fast through both good and bad times and still has come out strong. That certainly can’t be said of the USSR. If we didn’t break up in the Great Depression, then there’s no chance of it happening now and most of what this guy is spouting is wishful thinking.

While the dollar is fiat money and is not tied to gold or anything else (other than our promise to pay), neither is the ruble. Looking at Russia or China as possible market regulators is laughable.

U.S. Dollar to Russian Ruble Exchange Rate (Over 2 Years)

Interesting Russian Ruble Article: Click Here

LEX

Link to my politics.com page