I'll try to get and read a copy sometime.
What They Saw in America: Alexis de Tocqueville, Max Weber, G. K. Chesterton, and Sayyid Qutb, by James L. Nolan, Jr. (Cambridge: Cambridge University Press, 2016).
Showing posts with label America. Show all posts
Showing posts with label America. Show all posts
Tuesday, March 27, 2018
Friday, July 07, 2017
Kunstler's Columns This Week
Kunstler: Lighten Up to Tighten Up.
Perhaps the presidency has been an overly solemn office since, oh, the days of Millard Fillmore, the dreary weight of all that mortal responsibility — slavery, war, more war, depression, yet more war, nukes, we shall overcome, terror, Lehman Brothers, Ferguson, Russia here, there, and everywhere…uccchhh….
And so, at last: a little comic relief. I mean, imagine Grover Cleveland putting the choke-slam on Thomas Nast. Dwight Eisenhower punching out Edward R. Murrow. Jack Kennedy applying the Macumba Death Grip to Walter Lippman. Nahhhh. But Donald (“The Golden Golem of Greatness”) Trump versus CNN! Now that’s a matchup worthy of the WWF Hall of Fame. I just kind of wish the big fella had gone all the way and put in Anderson Cooper’s mug instead of the CNN logo box. Make it truly up front and personal since, let’s face it, Andy has been the most visible conduit of Jeff Zucker’s animadversions.
More here.
and
Kunstler: Suicide by Stupidity.
One has to wonder, though, about the editors who serve up this baloney. Are they mere servelings of the Rand Corporation, Raytheon, and other parties with an interest in the war business, or can they possibly believe their own extrusions of fabricated agit-prop?
For instance, the imputed Russian “annexation of Crimea,” as if the place was some kind of nostalgic, sore-beset Ruritania of independent princes, colorful peasants, and earnest postal clerks cruelly enslaved by bloodthirsty Cossacks. No, Crimea had been officially a province of Russia since exactly 1783 — which was, by the way, the same year that the American Revolution officially ended via the Treaty of Paris.
After the Russian Revolution (1917) the Crimean peninsula became an autonomous province of the Soviet Union, meaning it remained a part of what was then Russia. In 1954, Nikita Khrushchev turned the administrative duties over to the Ukrainian Soviet Socialist Republic, which was then also a province of the greater USSR, i.e. Russia. Through the entire modern era, Crimea has been the site of the USSR’s, and now Russia’s, only warm-water naval bases. Ask the average American college student why that is, and you will surely receive a blank stare.
Crimea is a peninsula on the Black Sea, which connects to the Mediterranean Sea. Hence Crimea’s strategic value. For a few short years in the 21st century, following the breakup of the USSR, the now-independent Ukraine had possession of Crimea and essentially rented the existing naval bases to Russia. That provided a much needed revenue stream for the struggling country, which was also utterly dependent on imported Russian natural gas supplies, which Ukraine had to pay for.
When the elected president of Ukraine, Victor Yanukovych, was overthrown in 2014, with the help of the US State Department and CIA, Russia was obliged to secure its naval bases in Crimea — where the overwhelming majority of citizens were culturally and linguistically Russian anyway. A referendum ratified the transfer of Crimea back to Russia. Apart from these procedural details, it must be obvious that Russia would never have ceded its strategic naval bases on the Black Sea to Ukraine, especially when that beleaguered country was being manipulated by the USA and NATO into becoming an adversarial presence on Russia’s border.
More here.
Perhaps the presidency has been an overly solemn office since, oh, the days of Millard Fillmore, the dreary weight of all that mortal responsibility — slavery, war, more war, depression, yet more war, nukes, we shall overcome, terror, Lehman Brothers, Ferguson, Russia here, there, and everywhere…uccchhh….
And so, at last: a little comic relief. I mean, imagine Grover Cleveland putting the choke-slam on Thomas Nast. Dwight Eisenhower punching out Edward R. Murrow. Jack Kennedy applying the Macumba Death Grip to Walter Lippman. Nahhhh. But Donald (“The Golden Golem of Greatness”) Trump versus CNN! Now that’s a matchup worthy of the WWF Hall of Fame. I just kind of wish the big fella had gone all the way and put in Anderson Cooper’s mug instead of the CNN logo box. Make it truly up front and personal since, let’s face it, Andy has been the most visible conduit of Jeff Zucker’s animadversions.
More here.
and
Kunstler: Suicide by Stupidity.
One has to wonder, though, about the editors who serve up this baloney. Are they mere servelings of the Rand Corporation, Raytheon, and other parties with an interest in the war business, or can they possibly believe their own extrusions of fabricated agit-prop?
For instance, the imputed Russian “annexation of Crimea,” as if the place was some kind of nostalgic, sore-beset Ruritania of independent princes, colorful peasants, and earnest postal clerks cruelly enslaved by bloodthirsty Cossacks. No, Crimea had been officially a province of Russia since exactly 1783 — which was, by the way, the same year that the American Revolution officially ended via the Treaty of Paris.
After the Russian Revolution (1917) the Crimean peninsula became an autonomous province of the Soviet Union, meaning it remained a part of what was then Russia. In 1954, Nikita Khrushchev turned the administrative duties over to the Ukrainian Soviet Socialist Republic, which was then also a province of the greater USSR, i.e. Russia. Through the entire modern era, Crimea has been the site of the USSR’s, and now Russia’s, only warm-water naval bases. Ask the average American college student why that is, and you will surely receive a blank stare.
Crimea is a peninsula on the Black Sea, which connects to the Mediterranean Sea. Hence Crimea’s strategic value. For a few short years in the 21st century, following the breakup of the USSR, the now-independent Ukraine had possession of Crimea and essentially rented the existing naval bases to Russia. That provided a much needed revenue stream for the struggling country, which was also utterly dependent on imported Russian natural gas supplies, which Ukraine had to pay for.
When the elected president of Ukraine, Victor Yanukovych, was overthrown in 2014, with the help of the US State Department and CIA, Russia was obliged to secure its naval bases in Crimea — where the overwhelming majority of citizens were culturally and linguistically Russian anyway. A referendum ratified the transfer of Crimea back to Russia. Apart from these procedural details, it must be obvious that Russia would never have ceded its strategic naval bases on the Black Sea to Ukraine, especially when that beleaguered country was being manipulated by the USA and NATO into becoming an adversarial presence on Russia’s border.
More here.
Monday, March 20, 2017
Kunstler: Full Speed Ahead for Murphy’s Law
Kunstler: Full Speed Ahead for Murphy's Law.
You might not know it, given all the ambient noise of the moment, but beyond the torments of news and propaganda there is still something called the nation. It’s more than just a political compact. Until not long ago it was also a culture, an agreed-upon set of values, practices, and customs that amounted to an identity: I’m an American. If you canvassed the crowd in Yankee Stadium one summer afternoon in 1947, I imagine each person would answer that way rather than saying I’m a wounded war veteran, I’m a WASP, I’m an oppressed housewife, I’m a negro, I’m Italian, I’m a Jew, I’m a union member, I’m a communist, I’m queer, I’m a rape victim….
These days, the hardships of history are shattering the nation and our response politically has been to take refuge in a matrix of rackets. Most of these rackets are economic, because it’s the essence of racketeering to extract the greatest benefit possible from the object of your racket at the least cost to the racketeer. In plain English, it’s an organized way of getting something for nothing. The identity politics of our time is another form of racketeering — extracting current maximum benefits on claims of mistreatment, often bygone, specious, or only imagined.
And so one of the truly existential questions of the moment is whether we’ll continue to be a nation, even geographically, and a lot of sentient observers aren’t too sure. Apparently we’re not too sure we even want to be. This is why the campaign slogan of Hillary Clinton, “Stronger Together,” rang so false when the Democratic Party worked so diligently in 2016 to construct separate identity fortifications and then declared culture war on the dwindling majority outside the ramparts. And you’re surprised that Donald Trump won the election?
Trump won by making promises that he’ll never be able to keep under the current circumstances. The main promise was to restore the standard of living enjoyed in bygone decades by former industrial workers and clerks. His promise was based on a misunderstanding of history: the notion that the industrial organization of daily life was a permanent part of the human condition. You could detect by the early 21st century that this was not so anymore. That was exactly why we tried to replace it with an economy of rackets. When there’s nothing left, a lot of people are going to try to get something for nothing, because there’s nothing else to do.
Hence, the financialization of the economy. In the 1950s, finance made up about five percent of the economy. It’s mission then was pretty simple and straightforward: to manage the accumulated wealth of the nation (capital) and then allocate it to those who proposed to generate greater wealth via new productive activities, mostly industrial, ad infinitum. It turned out that ad infinitum doesn’t work in a world of finite resources — but the ride had been so intoxicating that we couldn’t bring ourselves to believe it, and still can’t.
With industry expiring, or moving elsewhere (also temporarily), we inflated finance to nearly 40 percent of the economy. The new financialization was, in effect, setting a matrix of rackets in motion. What had worked as capital management before was allowed to mutate into various forms of swindling and fraud — such as the bundling of dishonestly acquired mortgages into giant bonds and then selling them to pension funds desperate for “yield,” or the orgy of merger and acquisition in health care that turned hospitals into cash registers, or the revenue streams on derivative “plays” that amounted to bets with no possibility of ever being paid off, or the three-card-monte games of interest rate arbitrage played by central banks and their “primary dealer” concubines.
Some of what I’ve listed above may be incomprehensible to the blog reader, and that is because these rackets were crafted to be opaque and recondite. The rackets continue without regulation or prosecution because there is an unstated appreciation in government, and in the corporate board rooms, that it’s all we’ve got left. What remains of the accustomed standard of living in America is supported by wishing and fakery and all that is now coming to a climax as we steam full speed ahead into Murphy’s law: if something can go wrong, it will.
When all of America comes to realize that President Trump doesn’t know what he’s doing, it will make last November’s national nervous breakdown look like a momentary case of the vapors. What can go wrong awaits in markets, banks, currencies, and the immense dark pools of counterparty obligations that amount to black holes where notions of value are sucked out of the universe. There is so much that can go wrong. And then it will. And then maybe that will prompt us back to consider being a nation again.
---------------
JHK on Tucker Carlson’s Fox News broadcast last Friday night:
http://video.foxnews.com/v/5363878500001/?playlist_id=5198073478001#sp=show-clips
You might not know it, given all the ambient noise of the moment, but beyond the torments of news and propaganda there is still something called the nation. It’s more than just a political compact. Until not long ago it was also a culture, an agreed-upon set of values, practices, and customs that amounted to an identity: I’m an American. If you canvassed the crowd in Yankee Stadium one summer afternoon in 1947, I imagine each person would answer that way rather than saying I’m a wounded war veteran, I’m a WASP, I’m an oppressed housewife, I’m a negro, I’m Italian, I’m a Jew, I’m a union member, I’m a communist, I’m queer, I’m a rape victim….
These days, the hardships of history are shattering the nation and our response politically has been to take refuge in a matrix of rackets. Most of these rackets are economic, because it’s the essence of racketeering to extract the greatest benefit possible from the object of your racket at the least cost to the racketeer. In plain English, it’s an organized way of getting something for nothing. The identity politics of our time is another form of racketeering — extracting current maximum benefits on claims of mistreatment, often bygone, specious, or only imagined.
And so one of the truly existential questions of the moment is whether we’ll continue to be a nation, even geographically, and a lot of sentient observers aren’t too sure. Apparently we’re not too sure we even want to be. This is why the campaign slogan of Hillary Clinton, “Stronger Together,” rang so false when the Democratic Party worked so diligently in 2016 to construct separate identity fortifications and then declared culture war on the dwindling majority outside the ramparts. And you’re surprised that Donald Trump won the election?
Trump won by making promises that he’ll never be able to keep under the current circumstances. The main promise was to restore the standard of living enjoyed in bygone decades by former industrial workers and clerks. His promise was based on a misunderstanding of history: the notion that the industrial organization of daily life was a permanent part of the human condition. You could detect by the early 21st century that this was not so anymore. That was exactly why we tried to replace it with an economy of rackets. When there’s nothing left, a lot of people are going to try to get something for nothing, because there’s nothing else to do.
Hence, the financialization of the economy. In the 1950s, finance made up about five percent of the economy. It’s mission then was pretty simple and straightforward: to manage the accumulated wealth of the nation (capital) and then allocate it to those who proposed to generate greater wealth via new productive activities, mostly industrial, ad infinitum. It turned out that ad infinitum doesn’t work in a world of finite resources — but the ride had been so intoxicating that we couldn’t bring ourselves to believe it, and still can’t.
With industry expiring, or moving elsewhere (also temporarily), we inflated finance to nearly 40 percent of the economy. The new financialization was, in effect, setting a matrix of rackets in motion. What had worked as capital management before was allowed to mutate into various forms of swindling and fraud — such as the bundling of dishonestly acquired mortgages into giant bonds and then selling them to pension funds desperate for “yield,” or the orgy of merger and acquisition in health care that turned hospitals into cash registers, or the revenue streams on derivative “plays” that amounted to bets with no possibility of ever being paid off, or the three-card-monte games of interest rate arbitrage played by central banks and their “primary dealer” concubines.
Some of what I’ve listed above may be incomprehensible to the blog reader, and that is because these rackets were crafted to be opaque and recondite. The rackets continue without regulation or prosecution because there is an unstated appreciation in government, and in the corporate board rooms, that it’s all we’ve got left. What remains of the accustomed standard of living in America is supported by wishing and fakery and all that is now coming to a climax as we steam full speed ahead into Murphy’s law: if something can go wrong, it will.
When all of America comes to realize that President Trump doesn’t know what he’s doing, it will make last November’s national nervous breakdown look like a momentary case of the vapors. What can go wrong awaits in markets, banks, currencies, and the immense dark pools of counterparty obligations that amount to black holes where notions of value are sucked out of the universe. There is so much that can go wrong. And then it will. And then maybe that will prompt us back to consider being a nation again.
---------------
JHK on Tucker Carlson’s Fox News broadcast last Friday night:
http://video.foxnews.com/v/5363878500001/?playlist_id=5198073478001#sp=show-clips
Tuesday, December 06, 2016
Tuesday, September 06, 2016
Thursday, August 11, 2016
A Map of the United States Adjusted for Population
Here, @FiveThirtyEight's graphic of what the US map would look like adjusting for population (and if bees built it). pic.twitter.com/VYcj0ZGR5S
— Mark Harris (@MarkHarrisNYC) August 9, 2016
Monday, March 23, 2015
Monday, September 01, 2014
Kunstler: Busybody Nation
I plan to have some photos and a lot of writing about my trip soon. For now, this is Kunstler's latest column. Happy Labor Day.
Kunstler: Busybody Nation.
I f anyone above a kindergarten pay-grade has figured out America’s vital interest in the Ukraine, it has not been reported — or even leaked from the foundering vessel that is the US State Department. In fact, when you consider the results, it’s hard to understand the rationale behind any recent US foreign policy endeavor. Mr. Putin of Russia summed it up last week, saying, “Anything the US touches turns to Libya or Iraq.” Vlad has a point there, and what he left off the list, of course, was Ukraine, which entered the zone of failing states a few months ago when the US lubricated the overthrow of its previously-elected government.
What complicates things is that Ukraine is right next door to Russia. For many years it was even part of the same nation as Russia. Russia has a lot of hard assets in Ukraine: pipelines, factories, port facilities. Because they were recently part of the same nation, a lot of Russian-speaking people live in the eastern part of Ukraine bordering Russia. The casual observer from Mars might easily discern that Russia has a range of real interests in Ukraine. Especially if the central government of Ukraine can’t control its own economic affairs.
The US claims to have interests in Afghanistan, Iraq, Syria, and Libya. These nations are respectively 11,925, 11,129, 10,745, and 10,072, miles away from America — not exactly neighbors of ours. All of them, one way or another, and partly due to our exertions, are checking into the homeless shelter of failed statedom. Afghanistan was, shall we say, a special case, since it was being used thirteen years ago explicitly as a “base” (al Qaeda) for launching attacks on US soil. But that was then. No other war or “war” in US history has lasted as long. And it remains unclear whether our presence there yet today is a “nation-building” project or a mere occupation, in the absence of some better idea of what to do.
President Obama has made noises about pulling US troops out of Afghanistan, but we’re still there. How is the nation-building project working out? With Mr. Osama bin Laden dead and in his watery grave, and the Islamic extremist action moved to other venues, how significant is Afghanistan’s role as a strategic base for Jihad?
How many educated, media-marinated professors in their Ivy League turrets can explain in one paragraph what the necessity of overthrowing Muammar Gaddafi was, exactly? Anyone remember? I suppose, like many actions in history, it just seemed like a good idea at the time. If the idea was to keep the oil and gas flowing to western nations — i.e. the “Carter Doctrine” —well, excuse me while I cough into my sleeve. Production is about one-eighth what it was before Mr. Gaddafi exited the scene. That really worked.
Then, of course, there is ISIS (or the Islamic State or the Caliphate), the most visible outcome of a decade of US foreign policy endeavors in Iraq and Syria. Good show, ladies and gentlemen! You have managed to give the world a political movement arguably more barbaric than even the Nazis. On Sunday, The New York Times stood back in breathless admiration for the accomplishments and skills of that organization in the headline: ISIS Displaying a Deft Command of Varied Media. Like a mad scientist in thrall to his own creation, the Times appears dazzled by the political Frankenstein monster we have loosed upon the world.
Considering all the current mayhem in the Middle East, and the potential for deadly mischief from it spreading even into the US and western Europe, do we really have any business hassling Putin and Russia about its feckless, floundering next-door-neighbor, Ukraine? In fact, is any other nation in a better position to prevent Ukraine from descending into full-blown failure? Why don’t we just shut up and mind our own business?
Kunstler: Busybody Nation.
I f anyone above a kindergarten pay-grade has figured out America’s vital interest in the Ukraine, it has not been reported — or even leaked from the foundering vessel that is the US State Department. In fact, when you consider the results, it’s hard to understand the rationale behind any recent US foreign policy endeavor. Mr. Putin of Russia summed it up last week, saying, “Anything the US touches turns to Libya or Iraq.” Vlad has a point there, and what he left off the list, of course, was Ukraine, which entered the zone of failing states a few months ago when the US lubricated the overthrow of its previously-elected government.
What complicates things is that Ukraine is right next door to Russia. For many years it was even part of the same nation as Russia. Russia has a lot of hard assets in Ukraine: pipelines, factories, port facilities. Because they were recently part of the same nation, a lot of Russian-speaking people live in the eastern part of Ukraine bordering Russia. The casual observer from Mars might easily discern that Russia has a range of real interests in Ukraine. Especially if the central government of Ukraine can’t control its own economic affairs.
The US claims to have interests in Afghanistan, Iraq, Syria, and Libya. These nations are respectively 11,925, 11,129, 10,745, and 10,072, miles away from America — not exactly neighbors of ours. All of them, one way or another, and partly due to our exertions, are checking into the homeless shelter of failed statedom. Afghanistan was, shall we say, a special case, since it was being used thirteen years ago explicitly as a “base” (al Qaeda) for launching attacks on US soil. But that was then. No other war or “war” in US history has lasted as long. And it remains unclear whether our presence there yet today is a “nation-building” project or a mere occupation, in the absence of some better idea of what to do.
President Obama has made noises about pulling US troops out of Afghanistan, but we’re still there. How is the nation-building project working out? With Mr. Osama bin Laden dead and in his watery grave, and the Islamic extremist action moved to other venues, how significant is Afghanistan’s role as a strategic base for Jihad?
How many educated, media-marinated professors in their Ivy League turrets can explain in one paragraph what the necessity of overthrowing Muammar Gaddafi was, exactly? Anyone remember? I suppose, like many actions in history, it just seemed like a good idea at the time. If the idea was to keep the oil and gas flowing to western nations — i.e. the “Carter Doctrine” —well, excuse me while I cough into my sleeve. Production is about one-eighth what it was before Mr. Gaddafi exited the scene. That really worked.
Then, of course, there is ISIS (or the Islamic State or the Caliphate), the most visible outcome of a decade of US foreign policy endeavors in Iraq and Syria. Good show, ladies and gentlemen! You have managed to give the world a political movement arguably more barbaric than even the Nazis. On Sunday, The New York Times stood back in breathless admiration for the accomplishments and skills of that organization in the headline: ISIS Displaying a Deft Command of Varied Media. Like a mad scientist in thrall to his own creation, the Times appears dazzled by the political Frankenstein monster we have loosed upon the world.
Considering all the current mayhem in the Middle East, and the potential for deadly mischief from it spreading even into the US and western Europe, do we really have any business hassling Putin and Russia about its feckless, floundering next-door-neighbor, Ukraine? In fact, is any other nation in a better position to prevent Ukraine from descending into full-blown failure? Why don’t we just shut up and mind our own business?
Tuesday, January 21, 2014
The Disenchantment of American Politics and the Coming Uproar
Kunstler writes essays for the Peak Prosperity site. Linked here is part one of his latest, "The Disenchantment of American Politics and the Coming Uproar."
Monday, November 18, 2013
Schilling Shilling
Kunstler takes on notions of energy independence and the seeming abundance of the shale boom.
Schilling Shilling
Such is the power of wishful thinking that a set of fool-making memes now pulses through the word-clouds of financial chatter in America spreading the false good cheer that our economic troubles are behind us and pimping for perpetual motion in wealth expansion. A poster boy for this bundle of falsehoods is financial analyst A. Gary Schilling. Just last week, he was talking out of his cloacal vent about US “energy independence” and “the manufacturing renaissance” that will allow this country to magically decouple from the compressive contraction driving the rest of the world.
Shilling is among the growing chorus of cheerleaders who believe that the shale oil and gas boom will make it possible for so-called “consumers” (what we foolishly call ourselves) to keep driving to Wal-Mart forever — which is the master wish behind all the current fantasies of endless expansion. That idea is going to leave a lot of people disappointed and put the nation further behind in the necessary reorganization of all the key systems that support everyday civilized life, namely: food production, commerce, transport, and the management of capital.
Here’s what’s actually going to happen with shale oil and gas. Best case scenario: shale oil production rises for three more years to about 2.3 million barrels a day and then crashes so quickly that in 10 years the shale oil industry ceases to exist. A less rosy forecast would admit that the exorbitant costs of drilling-and-fracking will not find the necessary capital to even take the industry that far. Rather, dwindling capital will see the shocking decline rates of shale wells (commonly 50 percent the first year and double digits the following) and will run shrieking for other places to hide.
Contrary to Gary Schilling’s blather, America is not practicing “energy conservation.” Rather, an economy engineered strictly to run on cheap oil has gotten crushed by oil that is not cheap. Does Schilling believe, for example, that American suburbia works just as well on $90-a-barrel oil as it did on $11-a-barrel oil, or that it has a future as the basic armature of daily life, or that we are doing anything meaningful to alter the burdens of living this way? My guess is that he has never thought about it.
Likewise, as the American economy got crushed by no-longer-cheap oil, all the working classes in this country below the one-percenters got crushed, hammered, and trashed. Among other things they can no longer afford is gasoline. Total vehicle miles driven has gone down by almost 3 percent since 2007. It will keep going down, and the Happy Motoring matrix will collapse for another reason: capital scarcity will translate into fewer available car loans for Americans, and fewer qualified borrowers, and Americans are used to buying their cars on installment loans.
The shale gas situation is also not the “energy savior” it’s cracked up to be. Because it costs so much to export the stuff, and we don’t have the export infrastructure in place — ocean terminals, fleets of special (expensive!) tanker ships — shale gas is hostage to the US domestic market. The initial boom was so extravagant that it produced a gas glut, which drove the price way below the level that makes it economically rational to drill for the stuff. Now, a lot of those drilling rigs are migrating to North Dakota, where the Bakken shale oil fields require perpetual increases in rig-counts to offset the rapid decline of existing wells.
The shale gas regions of Barnett (Fort Worth), Haynesville (Louisiana), and Fayetteville, Arkansas, are already dwindling. The “sweet spots” turned out to be smaller than the hype suggested. The Marcellus (Pennsylvania and New York) is next. Several of the other hyped shale gas “plays” — the Antrim and the Utica — proved too unpromising to even bother with and never made it out of the wish bag.
The problems with fracking and groundwater pollution are secondary to the economic quandaries as far as the fate of the industry is concerned. At under $8 a unit (1000 cubic feet), shale gas is not worth drilling-and-fracking for. It’s currently around $4. Above $8, Americans are going to have a hard time paying for it. So, enjoy the temporary glut and now stand back and watch the industry begin to dry up and blow away.
As for the “industrial renaissance,” clowns like Gary Shilling can’t put together the obvious trends. The talked-about new factories will be operated by robots, so there would be no employment renaissance to go along with them. Then there is the question of who might the products be sold to? To Americans who have no jobs and no money? To Europeans who are also going broke and also have the ability to roboticize industrial production and impoverish their own working people? To Asia, which is already at industrial over-capacity — and which will only grow worse as Americans and Europeans buy less stuff? I guess that leaves South America and Africa. Well, good luck with that.
Schilling is really only shilling for delusional stock market psychology, which tends to be a self-reinforcing racket until it reaches a threshold of credulity criticality and then implodes from a sudden loss of faith, ruining even a great many one percenters. Money may indeed keep pouring into the US stock markets, especially from other countries, where the money is frightened. I’ll tell you what it ought to be really frightened about: that it doesn’t represent genuine capital, i.e. has no real value. One day not distant, all the nations will discover that their money is only notional and that notions have a way of going up in a vapor. Foolish ideas, though, appear more durable and plentiful. They just keep coming, no matter what’s going on in reality.
My basic wish is that we would quit all our wishing in America and get on with the job of transforming our economic arrangements to a scale and mode that are consistent with the resource and capital realities of these times — before they whap us upside the head and put and end to the project of remaining civilized.
Schilling Shilling
Such is the power of wishful thinking that a set of fool-making memes now pulses through the word-clouds of financial chatter in America spreading the false good cheer that our economic troubles are behind us and pimping for perpetual motion in wealth expansion. A poster boy for this bundle of falsehoods is financial analyst A. Gary Schilling. Just last week, he was talking out of his cloacal vent about US “energy independence” and “the manufacturing renaissance” that will allow this country to magically decouple from the compressive contraction driving the rest of the world.
Shilling is among the growing chorus of cheerleaders who believe that the shale oil and gas boom will make it possible for so-called “consumers” (what we foolishly call ourselves) to keep driving to Wal-Mart forever — which is the master wish behind all the current fantasies of endless expansion. That idea is going to leave a lot of people disappointed and put the nation further behind in the necessary reorganization of all the key systems that support everyday civilized life, namely: food production, commerce, transport, and the management of capital.
Here’s what’s actually going to happen with shale oil and gas. Best case scenario: shale oil production rises for three more years to about 2.3 million barrels a day and then crashes so quickly that in 10 years the shale oil industry ceases to exist. A less rosy forecast would admit that the exorbitant costs of drilling-and-fracking will not find the necessary capital to even take the industry that far. Rather, dwindling capital will see the shocking decline rates of shale wells (commonly 50 percent the first year and double digits the following) and will run shrieking for other places to hide.
Contrary to Gary Schilling’s blather, America is not practicing “energy conservation.” Rather, an economy engineered strictly to run on cheap oil has gotten crushed by oil that is not cheap. Does Schilling believe, for example, that American suburbia works just as well on $90-a-barrel oil as it did on $11-a-barrel oil, or that it has a future as the basic armature of daily life, or that we are doing anything meaningful to alter the burdens of living this way? My guess is that he has never thought about it.
Likewise, as the American economy got crushed by no-longer-cheap oil, all the working classes in this country below the one-percenters got crushed, hammered, and trashed. Among other things they can no longer afford is gasoline. Total vehicle miles driven has gone down by almost 3 percent since 2007. It will keep going down, and the Happy Motoring matrix will collapse for another reason: capital scarcity will translate into fewer available car loans for Americans, and fewer qualified borrowers, and Americans are used to buying their cars on installment loans.
The shale gas situation is also not the “energy savior” it’s cracked up to be. Because it costs so much to export the stuff, and we don’t have the export infrastructure in place — ocean terminals, fleets of special (expensive!) tanker ships — shale gas is hostage to the US domestic market. The initial boom was so extravagant that it produced a gas glut, which drove the price way below the level that makes it economically rational to drill for the stuff. Now, a lot of those drilling rigs are migrating to North Dakota, where the Bakken shale oil fields require perpetual increases in rig-counts to offset the rapid decline of existing wells.
The shale gas regions of Barnett (Fort Worth), Haynesville (Louisiana), and Fayetteville, Arkansas, are already dwindling. The “sweet spots” turned out to be smaller than the hype suggested. The Marcellus (Pennsylvania and New York) is next. Several of the other hyped shale gas “plays” — the Antrim and the Utica — proved too unpromising to even bother with and never made it out of the wish bag.
The problems with fracking and groundwater pollution are secondary to the economic quandaries as far as the fate of the industry is concerned. At under $8 a unit (1000 cubic feet), shale gas is not worth drilling-and-fracking for. It’s currently around $4. Above $8, Americans are going to have a hard time paying for it. So, enjoy the temporary glut and now stand back and watch the industry begin to dry up and blow away.
As for the “industrial renaissance,” clowns like Gary Shilling can’t put together the obvious trends. The talked-about new factories will be operated by robots, so there would be no employment renaissance to go along with them. Then there is the question of who might the products be sold to? To Americans who have no jobs and no money? To Europeans who are also going broke and also have the ability to roboticize industrial production and impoverish their own working people? To Asia, which is already at industrial over-capacity — and which will only grow worse as Americans and Europeans buy less stuff? I guess that leaves South America and Africa. Well, good luck with that.
Schilling is really only shilling for delusional stock market psychology, which tends to be a self-reinforcing racket until it reaches a threshold of credulity criticality and then implodes from a sudden loss of faith, ruining even a great many one percenters. Money may indeed keep pouring into the US stock markets, especially from other countries, where the money is frightened. I’ll tell you what it ought to be really frightened about: that it doesn’t represent genuine capital, i.e. has no real value. One day not distant, all the nations will discover that their money is only notional and that notions have a way of going up in a vapor. Foolish ideas, though, appear more durable and plentiful. They just keep coming, no matter what’s going on in reality.
My basic wish is that we would quit all our wishing in America and get on with the job of transforming our economic arrangements to a scale and mode that are consistent with the resource and capital realities of these times — before they whap us upside the head and put and end to the project of remaining civilized.
Monday, September 30, 2013
Kunstler: "Then What?"
We end the month with Kunstler's latest, an overview of things written in his inimitable style. Next month, I plan to gather more information on aviation, climate change, Colorado, and sprawl in Hilo, then write a coherent overview.
Then What?
A theme in my 2005 book, The Long Emergency, was the counter-intuitive idea that the federal government, rather than becoming the omnipotent Big Brother Moloch so many feared, would instead spiral into impotence and become too incompetent and ineffectual to run everybody’s life. Another theme was that the USA was entering a political impasse comparable to the years that preceded the civil war, with many of the same old grudges playing out in disguise. What we’re seeing is an empire that had grown too quickly to even acknowledge it had become an empire, enter, just as quickly, the throes of contraction.
Hence, the great unacknowledged task before the leadership class is managing contraction. The radical Republicans, even in their Jeezus-driven transports of Dixieland retribution and John Bircher paranoia, come a little closer to recognizing the situation than the Democrats with their Leviathan problem — their nanny-state grandiosity. So, those red state radicals are gonna run that ole ‘possum up a gum stump now and see what happens.
What will happen is whole lot of uncertainty that will further undermine a faith-based economic system lurching on the fumes of legitimacy, especially where money and banking are concerned. The trouble with this kind of brinksmanship is that it is bound to produce unanticipated consequences. When the Carolina secessionists bombarded Fort Sumter in Charleston harbor, they didn’t have in mind the carnage-to-come of Spotsylvania and Chancellorsville. Similarly, the genteel spectators who rode carriages out of Washington to observe the doings at Bull Run as if it were the NFL season opener. In short, neither the Union or the Confederacy had a clue that they were entering upon the world’s first extravaganza of industrial mass slaughter. So, one wonders if their descendents today realize that are toying with the financial suicide of an advanced technocratic society.
The merits of the case for or against Obamacare are almost impossible for even well-informed and educated citizens to parse. You start with a law roughly 2,000 pages long, cobbled together largely by lobbyists for the insurance and medical industries, both of them hideous rackets, and move to a labyrinth of 50 different state’s systems for administering the darn thing, and then consider the supposed beneficiaries, namely young people so burdened by college loans in an economy that only offers minimum wage scut-jobs that, from one day to the next, they probably don’t know whether to shit or go blind. They don’t even have the scratch to pay the opt-out tax, let alone purchase an insurance policy.
Beyond that kind of uncertainty is the certainty that a whole lot of things are primed to shake loose. One that deserves the anxiety it is generating is the question of US debt, which translates directly into the question of US currency, i.e., the fate of the dollar. Does the legislative branch want to play games with the only thing that supports the market for US Treasury paper — the dollar’s proxy — which is the generally-held notion that the full faith and credit of the nation stands behind promises to pay? 200 measly basis points in the ten-year note is all that stands between the pretense of economic stability and some pretty serious chaos in the government/banking matrix. The one-two punch of the continuing resolution for appropriations and the imminent debt ceiling crunch may rip the fabric of our constructed financial reality and open a black hole into which the wealth of nations disappears forever.
Some observers think a government shutdown would be salutary, the beginning of a wholesale house-cleaning of federal agencies and pain-in-the-ass public employees who get paid too much, enjoy too many benefits, and work strenuously to impede honest enterprise. There may be something to that. But the current actions in congress are more likely to produce a kind of epileptic seizure of all economic activity, public and private.
If congress is really hot to de-fund something, I suggest they start with defunding suburban sprawl, which enjoys more direct government subsidy than even the medical racket. I bet that would not go over so well in the big red Nascar states of Dixie, where driving in a car to do anything has been more-or-less mandatory for decades. This is the kind behavior that is truly killing American civilization, but it’s the last thing we will pay attention to.
Then What?
A theme in my 2005 book, The Long Emergency, was the counter-intuitive idea that the federal government, rather than becoming the omnipotent Big Brother Moloch so many feared, would instead spiral into impotence and become too incompetent and ineffectual to run everybody’s life. Another theme was that the USA was entering a political impasse comparable to the years that preceded the civil war, with many of the same old grudges playing out in disguise. What we’re seeing is an empire that had grown too quickly to even acknowledge it had become an empire, enter, just as quickly, the throes of contraction.
Hence, the great unacknowledged task before the leadership class is managing contraction. The radical Republicans, even in their Jeezus-driven transports of Dixieland retribution and John Bircher paranoia, come a little closer to recognizing the situation than the Democrats with their Leviathan problem — their nanny-state grandiosity. So, those red state radicals are gonna run that ole ‘possum up a gum stump now and see what happens.
What will happen is whole lot of uncertainty that will further undermine a faith-based economic system lurching on the fumes of legitimacy, especially where money and banking are concerned. The trouble with this kind of brinksmanship is that it is bound to produce unanticipated consequences. When the Carolina secessionists bombarded Fort Sumter in Charleston harbor, they didn’t have in mind the carnage-to-come of Spotsylvania and Chancellorsville. Similarly, the genteel spectators who rode carriages out of Washington to observe the doings at Bull Run as if it were the NFL season opener. In short, neither the Union or the Confederacy had a clue that they were entering upon the world’s first extravaganza of industrial mass slaughter. So, one wonders if their descendents today realize that are toying with the financial suicide of an advanced technocratic society.
The merits of the case for or against Obamacare are almost impossible for even well-informed and educated citizens to parse. You start with a law roughly 2,000 pages long, cobbled together largely by lobbyists for the insurance and medical industries, both of them hideous rackets, and move to a labyrinth of 50 different state’s systems for administering the darn thing, and then consider the supposed beneficiaries, namely young people so burdened by college loans in an economy that only offers minimum wage scut-jobs that, from one day to the next, they probably don’t know whether to shit or go blind. They don’t even have the scratch to pay the opt-out tax, let alone purchase an insurance policy.
Beyond that kind of uncertainty is the certainty that a whole lot of things are primed to shake loose. One that deserves the anxiety it is generating is the question of US debt, which translates directly into the question of US currency, i.e., the fate of the dollar. Does the legislative branch want to play games with the only thing that supports the market for US Treasury paper — the dollar’s proxy — which is the generally-held notion that the full faith and credit of the nation stands behind promises to pay? 200 measly basis points in the ten-year note is all that stands between the pretense of economic stability and some pretty serious chaos in the government/banking matrix. The one-two punch of the continuing resolution for appropriations and the imminent debt ceiling crunch may rip the fabric of our constructed financial reality and open a black hole into which the wealth of nations disappears forever.
Some observers think a government shutdown would be salutary, the beginning of a wholesale house-cleaning of federal agencies and pain-in-the-ass public employees who get paid too much, enjoy too many benefits, and work strenuously to impede honest enterprise. There may be something to that. But the current actions in congress are more likely to produce a kind of epileptic seizure of all economic activity, public and private.
If congress is really hot to de-fund something, I suggest they start with defunding suburban sprawl, which enjoys more direct government subsidy than even the medical racket. I bet that would not go over so well in the big red Nascar states of Dixie, where driving in a car to do anything has been more-or-less mandatory for decades. This is the kind behavior that is truly killing American civilization, but it’s the last thing we will pay attention to.
Monday, August 19, 2013
Monday, January 28, 2013
Kunstler: Sustaining the Unsustainable
The Master Meme
By James Howard Kunstler
on January 28, 2013 9:13 AM
The gentlemen and ladies of the meme-o-sphere, where collective notions are birthed like sleet from clouds, have decided lately that the USA has entered a full-on broad-based bull market - a condition of general happiness and prosperity as far advanced beyond mere "recovery" as a wedge of triple-cream Saint-Andre cheese is advanced over a Cheez Doodle. It has become the master fantasy of the moment, following the birth of some junior memes such as... we have a hundred years of shale gas and the "housing sector" (i.e. the suburban sprawl-building industry) is "bouncing back." What a sad-sack nation of credulous twits we have become.
You can be sure that when a nation is led by the reality-deficient, unhappy outcomes are a sure thing. They will systematically destroy trust in the way things actually work and beat a fast path to either tyranny (where reality doesn't matter) or anarchy (where reality cannot be managed at all). This is what happens when nations go mad. Even when they are led by people later-determined to be "evil" (Hitler, Lenin) this sad process is allowed to happen because it just seems like a good idea at the time - which is the central political tragedy of human history. To the beaten-down Russians, Bolshevism seemed like a good-idea at the time. To the bankrupt, hopeless Germans, Naziism seemed like a good idea.
I'm not even sure what to call the current disposition of unreality in the USA, though it is clearly tinged with different colors of grandiosity ranging from the plain dopey idea of "American exceptionalism" to the wishful claim that we're about to become "energy independent," to the lame assertion so popular in presidential addresses that "together we can do anything." Speaking of the inaugural, in all the Second-Coming-of-Lincoln-Meets-MLK hoopla of the grand day, with the national mall lined by gigantic flat screen TVs (an Orwellian nightmare), and the heartwarming displays of ethnic diversity, and the stridently inoffensive songs and poem, there was the genial Mr. Obama at the epicenter of the huge ceremony delivering a bouquet of platitudes so stale and trite that it could have been composed in a first-year Harvard Law School ethics skull session at a back table of Wagamama. Despite all the blather about his graying hair, and the wisdom of age, and the supposed music of his rhetoric, I couldn't detect a single idea in Mr. Obama's inaugural address that wasn't either self-evident, or devised to flatter some "identity" bloc, or an imitation of old tropes out of the "Great Speeches" book.
What's obvious to me is what I have been fearing about this country for some time now: that all the disorders of our time would prompt a campaign to defend the status quo at all costs and to sustain the unsustainable. That is really the master wish behind all the political hijinks of the day, especially the pervasive accounting fraud in all high-order money matters. We see the comforts and conveniences of modernity slipping away and we'll do anything to try to hang onto them, including lying to ourselves to such an immersive degree about what is really happening that we suppose we can manufacture a happy counter-reality. That's at the heart of zero interest rate policies, and Federal Reserve manipulation of markets, and statistical misreporting from all the national agencies charged with adding things up. So, the Fed pumps its $90 billion-a-month and the Standard & Poor's index inflates like an old tire while ten thousand more families get added to the food stamp rolls, and the banks sit on enough foreclosed property to fill the state of Indiana, and another 25-year-old college loan debt serf ODs on vodka and Xanax because he finally understands that even bankruptcy will not save him from perpetual penury.
Apparently, there are moments in history when nations just get lost. I maintain that things would go a whole lot better for us if we acknowledge what is actually going on, namely: a major shift of direction into economic contraction after 200-plus thrilling years of expanding energy resources and easy-to-get material riches. It's in the nature of this world that things cycle and pulse, and we have entered a certain phase of the cycle that demands certain responses. We have to make the scale of human activities smaller, finer, simpler, and more rooted to the local particulars of place. We have to let go of WalMart [and Target, the archetypical retailer of the 2010s--P.Z.] and globalism and driving cars incessantly and attempting to manage the affairs of people half a world a way... and we just can't imagine engaging with this endeavor. That is true poverty of imagination.
By James Howard Kunstler
on January 28, 2013 9:13 AM
The gentlemen and ladies of the meme-o-sphere, where collective notions are birthed like sleet from clouds, have decided lately that the USA has entered a full-on broad-based bull market - a condition of general happiness and prosperity as far advanced beyond mere "recovery" as a wedge of triple-cream Saint-Andre cheese is advanced over a Cheez Doodle. It has become the master fantasy of the moment, following the birth of some junior memes such as... we have a hundred years of shale gas and the "housing sector" (i.e. the suburban sprawl-building industry) is "bouncing back." What a sad-sack nation of credulous twits we have become.
You can be sure that when a nation is led by the reality-deficient, unhappy outcomes are a sure thing. They will systematically destroy trust in the way things actually work and beat a fast path to either tyranny (where reality doesn't matter) or anarchy (where reality cannot be managed at all). This is what happens when nations go mad. Even when they are led by people later-determined to be "evil" (Hitler, Lenin) this sad process is allowed to happen because it just seems like a good idea at the time - which is the central political tragedy of human history. To the beaten-down Russians, Bolshevism seemed like a good-idea at the time. To the bankrupt, hopeless Germans, Naziism seemed like a good idea.
I'm not even sure what to call the current disposition of unreality in the USA, though it is clearly tinged with different colors of grandiosity ranging from the plain dopey idea of "American exceptionalism" to the wishful claim that we're about to become "energy independent," to the lame assertion so popular in presidential addresses that "together we can do anything." Speaking of the inaugural, in all the Second-Coming-of-Lincoln-Meets-MLK hoopla of the grand day, with the national mall lined by gigantic flat screen TVs (an Orwellian nightmare), and the heartwarming displays of ethnic diversity, and the stridently inoffensive songs and poem, there was the genial Mr. Obama at the epicenter of the huge ceremony delivering a bouquet of platitudes so stale and trite that it could have been composed in a first-year Harvard Law School ethics skull session at a back table of Wagamama. Despite all the blather about his graying hair, and the wisdom of age, and the supposed music of his rhetoric, I couldn't detect a single idea in Mr. Obama's inaugural address that wasn't either self-evident, or devised to flatter some "identity" bloc, or an imitation of old tropes out of the "Great Speeches" book.
What's obvious to me is what I have been fearing about this country for some time now: that all the disorders of our time would prompt a campaign to defend the status quo at all costs and to sustain the unsustainable. That is really the master wish behind all the political hijinks of the day, especially the pervasive accounting fraud in all high-order money matters. We see the comforts and conveniences of modernity slipping away and we'll do anything to try to hang onto them, including lying to ourselves to such an immersive degree about what is really happening that we suppose we can manufacture a happy counter-reality. That's at the heart of zero interest rate policies, and Federal Reserve manipulation of markets, and statistical misreporting from all the national agencies charged with adding things up. So, the Fed pumps its $90 billion-a-month and the Standard & Poor's index inflates like an old tire while ten thousand more families get added to the food stamp rolls, and the banks sit on enough foreclosed property to fill the state of Indiana, and another 25-year-old college loan debt serf ODs on vodka and Xanax because he finally understands that even bankruptcy will not save him from perpetual penury.
Apparently, there are moments in history when nations just get lost. I maintain that things would go a whole lot better for us if we acknowledge what is actually going on, namely: a major shift of direction into economic contraction after 200-plus thrilling years of expanding energy resources and easy-to-get material riches. It's in the nature of this world that things cycle and pulse, and we have entered a certain phase of the cycle that demands certain responses. We have to make the scale of human activities smaller, finer, simpler, and more rooted to the local particulars of place. We have to let go of WalMart [and Target, the archetypical retailer of the 2010s--P.Z.] and globalism and driving cars incessantly and attempting to manage the affairs of people half a world a way... and we just can't imagine engaging with this endeavor. That is true poverty of imagination.
Wednesday, July 25, 2012
The American View of Europe
Think about when the Griswolds toured the Continent in National Lampoon's European Vacation. They probably had a mental map similar to this one.
Monday, July 09, 2012
Kunstler: Laying an Egg
An excerpt from Kunstler's latest column:
"Over here, in this sorry-ass edition of America, the election will look more and more like a World Wrestling Federation staged dumb-show between two catamite hostages of a foul corporate oligarchy. Imagine that horse's ass Mitt Romney spending the next four months denouncing Obama-care, modeled on his own health care reform in Massachusetts, while Obama pretends he has a grip on an economy where the rule of law is absent due to Obama's own omissions and negligence.
"And if you can't stand that spectacle, just look around at America itself: a wasteland of futile motoring and discount shopping populated by depressed, overfed clowns bedizened with sinister tattoos, pretending to be Star Warriors. No nation ever seen in human history ever laid such a disappointing egg. Only to have it fry on the sidewalk."
"Over here, in this sorry-ass edition of America, the election will look more and more like a World Wrestling Federation staged dumb-show between two catamite hostages of a foul corporate oligarchy. Imagine that horse's ass Mitt Romney spending the next four months denouncing Obama-care, modeled on his own health care reform in Massachusetts, while Obama pretends he has a grip on an economy where the rule of law is absent due to Obama's own omissions and negligence.
"And if you can't stand that spectacle, just look around at America itself: a wasteland of futile motoring and discount shopping populated by depressed, overfed clowns bedizened with sinister tattoos, pretending to be Star Warriors. No nation ever seen in human history ever laid such a disappointing egg. Only to have it fry on the sidewalk."
Thursday, May 31, 2012
How I First Heard About Peak Oil
Nearly seven years ago, I saw a movie on fX called Oil Storm. This is how I first heard about peak oil. A few months later Shepherd Bliss gave a presentation on peak oil*. Among the books he had on display was Kunstler's The Long Emergency. Reading that book deepened my interest.
*Rising Gas Prices And
Dwindling Oil Supplies
By Dr. Shepherd Bliss
Sept. 28th Wednesday 12:00pm CC313
Sept. 29th Thursday 7:00pm CC301
This presentation will look beneath this symptom to consider a deeper problem—the rising demand for oil products, and the decreasing supply of the non-renewable fossil fuel petroleum.
Hawaiÿi’s situation within the global economy of oil will be explored, including data on oil company profits. Hurricane Katrina and its devastating impact will be considered, in the context of global warming, the likelihood of more such disasters,
and how they might hit Hawaiÿi. A discussion will follow the presentation.
Information from sb3@pon.net.
Sponsors: Global HOPE
*Rising Gas Prices And
Dwindling Oil Supplies
By Dr. Shepherd Bliss
Sept. 28th Wednesday 12:00pm CC313
Sept. 29th Thursday 7:00pm CC301
This presentation will look beneath this symptom to consider a deeper problem—the rising demand for oil products, and the decreasing supply of the non-renewable fossil fuel petroleum.
Hawaiÿi’s situation within the global economy of oil will be explored, including data on oil company profits. Hurricane Katrina and its devastating impact will be considered, in the context of global warming, the likelihood of more such disasters,
and how they might hit Hawaiÿi. A discussion will follow the presentation.
Information from sb3@pon.net.
Sponsors: Global HOPE
Friday, December 23, 2011
Big, Big, Big!
In partial response to Hattie's post "Big, Bigger, Biggest":
Blubberland: The Dangers of Happiness, a book I've heard about a few years ago but haven't yet read.
The anthem of Blubberland:
Blubberland: The Dangers of Happiness, a book I've heard about a few years ago but haven't yet read.
The anthem of Blubberland:
Monday, July 04, 2011
On the Fourth of July
"There is one day of the year when America should receive nothing but praise. That's July Fourth. On all other occasions, those who wish the United States well will vigorously distinguish the good from the bad, and especially from the BAD."
--Paul Fussell, BAD: Or, the Dumbing of America (New York: Summit Books, 1991).
--Paul Fussell, BAD: Or, the Dumbing of America (New York: Summit Books, 1991).
Friday, January 28, 2011
Tuesday, November 25, 2008
The (Dis)United States of America
From the Drudge Report:
RUSSIAN ANALYST PREDICTS DECLINE AND BREAKUP OF USA
Tue Nov 25 2008 09:04:22 ET
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."
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 national laws", 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 the influence 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 of the Russian Ministry of Foreign Affairs, and has authored several books on information warfare.
Developing...
RUSSIAN ANALYST PREDICTS DECLINE AND BREAKUP OF USA
Tue Nov 25 2008 09:04:22 ET
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."
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 national laws", 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 the influence 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 of the Russian Ministry of Foreign Affairs, and has authored several books on information warfare.
Developing...
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