[PRCo] Re: Inflation; Collapse of U.S.A.

[Edward Skuchas]

Bah, humbug.  A real positive story for Christmas.


On Dec 21, 2008, at 1:43 PM, Phillip Clark Campbell wrote:

> Hello!
>
>
> The official definition of inflation is:  an increase in the money  
> supply
> without a corresponding increase in goods and services the results of
> which are higher prices and higher wages.
>
> Media focus is always on the end of the definition isn't it but it  
> is the
> government who creates it and walks away while business and-or labor
> get the blame and battle each other.  The following is one of the  
> extremely
> rare times I have seen someone express this in print - URL follows:
>
> " Inflation is growth in the monetary base beyond GDP growth.
>
> The simplest way to explain the inflation thought is if you have
> 10
> apples and $10, each apple is worth $1. Next year you grow
> 12 apples
> and increase the money supply 2% to $12. There is
> 0% inflation in this
> scenario but let say you get in a bind and
> need more dollars so you
> print up $24 making each apple now
> worth $2. That equals 100%
> inflation. The price of the apple is
> simply an effect of more money
> being circulated. Unfortunately that
> concept is not even taught in many
> prominent universities today."
>
> http://www.gold-eagle.com/editorials_08/bevan120808.html
>
> In this same report the writer makes the following comment:
>
> "A shocking report out of Russia is predicting the breakup of the USA
> into six parts."
>
> The actual article follows.  My first impression is that the Soviet  
> writer is
> projecting experience in the  USSR  on his projections; others have  
> commented
> similarly.  However, if we look at scoffed and ridiculed ideas  
> throughout history
> we might find an amazing element of validity there.  Rare that any  
> of us write
> gospel isn't it but it is interesting to see how others might view us.
>
> Russian analyst predicts decline and breakup of U.S.
>
> MOSCOW, November 24 (RIA Novosti) - 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."
> On the fate of the U.S. dollar, he said: "In 2006 a
> secret agreement
> was reached between Canada, Mexico and the U.S. on a common Amero
> currency as a new monetary unit. This could signal preparations to
> replace the dollar. The one-hundred dollar bills that have flooded the
> world could be simply frozen. Under the pretext, let's say, that
> terrorists are forging them and they need to be checked."
> When asked how Russia should react to his vision of
> the future, Panarin
> said: "Develop the ruble as a regional currency. Create a fully
> functioning oil exchange, trading in rubles... We must break the
> strings tying us to the financial Titanic, which in my view will soon
> sink."
> Panarin, 60, is a professor at the Diplomatic
> Academy of the Russian
> Ministry of Foreign Affairs, and has authored several books on
> information warfare.
>
>
> http://en.rian.ru/world/20081124/118512713.html
>
>
>
> Phil
>
>
>
>
>
>