View Full Version : Mikhail Khazin: U.S. will soon face second "Great Depression

mick silver
10th November 2008, 23:24
Renowned economist Khazin predicted U.S. financial crisis in 2000
KP.RU, Yevgeniy Chernyx 29.10.2008
Five years ago, I ran the cultural section at Komsomolskaya Pravda. Publishing houses used to send me their new releases now and again for review. One day, after digging through the latest shipment of such literature, I stumbled upon a book titled, "Sunset of the Dollar Empire and the End of the Pax Americana."

I remember reading the title over to myself several times in disbelief. Way back when, Soviet Americanologists loved to debate the collapse of the U.S. financial empire. But this book was published in 2003.

I flipped through the pages, skimming over the text. The conclusions of the author an economist named Mikhail Khazin seemed convincing enough. So I gave the book to our economics columnist at KP Jenya Anisimov, who wrote a review and interviewed the author later at our editorial offices

mick silver
10th November 2008, 23:24

mick silver
10th November 2008, 23:30
Khazin: Yes. The U.S. was able to make the next step in technological progress as a result of this excess demand. They accomplished the collapse of the USSR and numerous other significant fears. But... The boom took place thanks to resources that were supposed to provide for future growth. The country ate its own resources two generations ahead of time. The U.S. built up tremendous debt. This is clearly seen if we compare the growth of debt in U.S. households with the entire U.S. debt and GDP. The economy is growing at an annual rate of 2-3, or at a maximum 4 percent. But debt is increasing at a rate of 8-10 percent.

this sound alot like what has happen

mick silver
10th November 2008, 23:35
Khazin: That's an incredible amount! But what exactly does this mean the destruction of one-fourth of the U.S. economy? It means an uncontrollable increase in unemployment, a horrible depression, a sharp increase in the effect of social services on the budget... Now, the U.S. is jumping all over the place doing everything its can to rescue this fraction of the economy. The government is stimulating banks and manufacturing... But regardless, in 2-3 years, the U.S. will face a crisis similar to the Great Depression.

I think his timing is off , i think we could see this next year

11th November 2008, 00:20
A great depression will not happen unless are currency is debased. As long as other countries accept our dollars we can print our way out of this mess. The bad thing about a strong dollar is that is that we have to service the debt by way of taxes and cut backs. If we monetize the debt by way of devaluing our currency then we dont have to pay back as much. Both implications are bad solutions.

The only other way out of this mess is world domination. Rome tried that, it didnt work.