Heading For A “Russian Style Collapse”?

Former Agonist editor Ian Welsh writes that, no matter who wins tomorrow, the US is headed for a “Russian style collapse, but worse” with bipartisan approval. Powerful and controversial stuff, as usual from Ian. Be sure to read the comments too.

I don’t think it’ll all turn out as badly as Ian expects, at least not in just four short years – but I’m in general agreement that short-termist thinking in each of the major parties, always fixated on winning the next semiannual “most important election EVAH!”, is leading the US inexorably and slowly downhill.

I also agree with Ian and Digby, among a few others, that the next DFH’s “we told you so” will be Obama’s Grand Bargain with the GOP on gutting welfare for rich-folk tax cuts

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Steve Hynd

Most recently I was Editor in Chief of The Agonist from Feb 2012 to Feb 2013. My blogging began at Newshoggers and I’ve had the immense pleasure of working with some great writers there and around the web ever since, including at Crooks & Liars. I'm a late 40′s, Scottish ex-pat, now married to a wonderful Texan, with Honours in Philosophy from Univ. of Stirling, UK 1986. I worked most of life in business insurance industry (fire, accident, liability) including 12 years as a broker/underwriter/correspondent at Lloyd’s of London. Being from the other side of the pond, my political interests tend to focus on how US foreign policy affects the rest of the planet. Other interests include early and dark-ages British history, literature and cognitive philosophy/science.

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    • Perhaps, but there are moves afoot to scuttle the petrodollar – Iran/China outside the loop, others resentful of our arrogance. If all the bailout money in bank & corporate coffers ever goes public and we get runaway inflation, will the dollar still remain the reserve currency?

    • Correspondingly, I expect that as soon as another viable global reserve currency is established, the USA will immediately have that Russian-style collapse. Which means it can happen as soon as the world’s other economic powers agree we’re more trouble than we’re worth.

  • Renminbi Relentlessly Replacing Dollar as Reserve Currency

    The Street, By Jeff Nielson, November 5

    VANCOUVER (Bullions Bull Canada) — It is no secret that China is replacing the U.S. dollar with its own currency in more and more of its bilateral trading. It’s apparent to all that the renminbi will soon have (at least) a co-equal status with the dollar as the global “reserve currency.”

    Yet, what is rarely, if ever, discussed in the mainstream media are the enormous economic repercussions of a world suddenly awash in a massive glut of surplus dollars.

    In most respects economics mirrors one of the basic principles of physics: For every action there is an equal-and-opposite reaction. If farmers produce a bumper crop of wheat and supply soars, then the price falls. Similarly, if the demand for wheat suddenly collapsed, the price would also fall. Both a jump in supply and/or a plunge in demand result in the same state: abundant/excessive supply. The consequence of excessive supply is always a fall in price.

    This economic “physics” applies in an identical manner to the world of currencies…eventually. In a global economy ever more corrupted by serial market-rigging, nowhere is this manipulation more blatant than in the world’s forex markets.

    Indeed, the world’s nations have openly declared they are all competitively engaged in currency manipulation as denoted by the euphemistic term “competitive devaluation.”

    Much more at the link

  • I don’t know what will happen, but I fear the worst. Like perhaps, Obama wins and then gets assassinated or somesuch. Or a major war breaks out. Etc. Coupled with continual climate change/resourse depletion scenario unfolding and all that debt waiting to implode worldwide.

    There’s a rythym to the madness. Anyone failing to notice we’re in a prolonged crisis period ain’t paying attention.

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