Farewell the Trumpets, as the Brits would say

There's a fascinating article in the Journal from earlier this week called "Russian Professor Predicts End of US." It's written by a Russian fellow called Igor Panarin. I'll let the article's author, Andrew Osborn, introduce Mr Panarin and his theory:

MOSCOW -- For a decade, Russian academic Igor Panarin has been predicting the U.S. will fall apart in 2010. For most of that time, he admits, few took his argument -- that an economic and moral collapse will trigger a civil war and the eventual breakup of the U.S. -- very seriously. Now he's found an eager audience: Russian state media.

In recent weeks, he's been interviewed as much as twice a day about his predictions. "It's a record," says Prof. Panarin. "But I think the attention is going to grow even
stronger."

Prof. Panarin, 50 years old, is not a fringe figure. A former KGB analyst, he is dean of the Russian Foreign Ministry's academy for future diplomats. He is invited to Kremlin receptions, lectures students, publishes books, and appears in the media as an expert on U.S.-Russia relations.

This whole concept intrigues me and has done for years.

It's easy to dismiss anyone who warns of Dire Things to Come as a nutjob, crackpot, Nostradomus wannabe, black-helicopter-Michigan-Militia type. And more often than not, this dismissal is probably appropriate. But a theme I have touched on repeatedly in my previous essays is the fundamental and profound unseriousness with which this country of ours conducts its affairs. I've been using Social Security as my favorite Most Pressing Issue in this regard since early 2005, when it became apparent that George Bush's fellow Republicans in the Congress were content to kick Social Security reform down the road to a future administration to deal with.

Surely we all recall the halcyon days of early 2005, no? The win in the bitter election season had produced some alleged political capital to the returning president, some of which he intended to spend on reforming the great hulking albatross of Social Security which hangs round our collective necks. By June 2005 this initiative was dead. While there's surely little point in rehashing the battles of two Congresses ago, the failure to either fix or kill Social Security when the president made it his top domestic agenda item is symptomatic of a large and unattractive feature of modern political discourse in the US (and Europe): a connection to reality that is tenuous and occasional at best.

The details of the Social Security budget aren't that essential for the current discussion, so allow me to summarize: at some point the number of workers paying into the system at present tax rates will be insufficient to support the projected number of retirees drawing from the system at present benefit levels. (Poof! Complex issues made simple.) At present we are (and even in 2005, we were) running some pretty considerable budget deficits even when Social Security was a net contributor to the federal budget, and it is to be supposed that the budget deficits would become unacceptably large at such time as Social Security becomes a net drain on the federal budget. (Leaving aside for a moment the fact that the Congress and our fearless and handsome president-elect appear prepared to regard even staggeringly, unfathomably large deficits with total insouciance.) There are a number of solutions, none of which is terribly complex:

1. Reduce future benefits in some way.

2. Increase future tax receipts in some way.

3. Some combination of 1 and 2.

4. Recognize that the system has become unwieldy for our current economic and demographic climate, and fundamentally restructure it.

5. Decide that all the above are politically undesireable in some way and defer the decision until the budgetary crisis is of sufficient gravity that politicians will be rewarded for taking "brave and decisive" steps to address it.

There are probably other approaches, but I'm pretty sure most of them are just a flavor variant away from being one of the above five.

Naturally our illustrious betters in the federal Congress (which was under nominal Republican control at the time) chose option number 5. In 2008 the foreclosure epidemic, with its effect on the credit markets, and the frozen credit markets' effect on the stock markets, and so forth created a sort of perfect storm where action was unavoidable. It will take a similar crisis in Social Security to achieve action there; I have observed through this that decisions taken at 2AM on a Sunday so as to be able to calm jittery markets before their Monday opening tend not always to be duly thought out. Has anyone really noticed that we've spent half the TARP money to no noticeable effect and with little accountability? That is, after all, $350 billion--mostly wasted because our political betters won't act on anything save perpetuating their own political careers, until God's own hammer comes down wreaking sweet vengeful justice on the wicked and innocent alike.

So how does this ressurection of a four-year old political non-event factor into our good Mr Panarin's forecast?

Mr. Panarin posits, in brief, that mass immigration, economic decline, and moral degradation will trigger a civil war next fall and the collapse of the dollar. Around the end of June 2010, or early July, he says, the U.S. will break into six pieces -- with Alaska reverting to Russian control.

[...]

He based the forecast on classified data supplied to him by FAPSI analysts, he says. He predicts that economic, financial and demographic trends will provoke a political and social crisis in the U.S. When the going gets tough, he says, wealthier states will withhold funds from the federal government and effectively secede from the union. Social unrest up to and including a civil war will follow. The U.S. will then split along ethnic lines, and foreign powers will move in.

California will form the nucleus of what he calls "The Californian Republic," and will be part of China or under Chinese influence. Texas will be the heart of "The Texas Republic," a cluster of states that will go to Mexico or fall under Mexican influence. Washington, D.C., and New York will be part of an "Atlantic America" that may join the European Union. Canada will grab a group of Northern states Prof. Panarin calls "The Central North American Republic." Hawaii, he suggests, will be a protectorate of Japan or China, and Alaska will be subsumed into Russia.

[...]

Interest in his forecast revived this fall when he published an article in Izvestia, one of Russia's biggest national dailies. In it, he reiterated his theory, called U.S. foreign debt "a pyramid scheme," and predicted China and Russia would usurp Washington's role as a global financial regulator.

Let's assume for the sake of discussion that he's wrong on the particulars, especially the date, and instead give consideration to the underlying question. This first step in the evaluation process is the one which normally is skipped--to talk like this about the United States after all seems more than a little ridiculous. So much easier to skip to the conclusion: nutjob. Impossible. But this skipping about over the hard parts of analysis strikes a bit as evidencing intellectual laziness, and it's here that we will find the seed of our fair republic's eventual undoing (never mind that our foreign debt is, in fact, fundamentally a pyramid scheme).

Let's start with what ought to be an uncontroversial proposition: the days of the United States being the world's sole military superpower, and its foremost economic power, will eventually come to an end at some point in the far reaches of future events--yes? Rome was once the world's mightiest empire and its capital and its reaches were referred to as "Eternal Rome." Now it's merely the 7th largest economy in GDP terms, which certainly isn't bad given that it comes mainly on the backs of Ferrari and Beretta, but it's a rather distant 7th at less than one-sixth that of the US. And less than a hundred years ago, Britain was the greatest empire in history in its geographic span and its military and economic prowess, and it is today similarly reduced in stature. And, for added relevance, the Victorian Empire came to an end as the result of a war which Britain won but which saddled them with insurmountable foreign debt and insufficient exports to actually satisfy their overseas financial obligations (does this sound familiar?). So: empires end. Yes?

Let's continue with what ought again to be uncontroversial: the world is an unfriendly (often hostile) and competitive place. Our own perpetual dominance of the world economy is by no means a certainty. China, with its >1B population and slave labor, may well overtake us one day. India, a nuclear-armed democracy with a population far greater than our own, may do so as well. What can keep us the world Number One is a lot of hard work, continued innovation, etc--basically the same instincts and attitudes that got us where we are to begin with. But so much of our ruling class has become totally divorced from the basic human condition--that of a medium-sized hairless mammal trying to ensure survival in a dangerous and difficult world--that we have become willing to tie our own hands competitively, simply assuming that our rightful place in the universe of nations will be ever unchanged and unchallenged.

Let's consider the accomplishments of the 110th federal Congress.

The current Congress will most likely be remembered for a $700 billion bailout lawmakers passed in October, in response to turmoil in financial markets. The bill allows the Treasury Department to buy troubled mortgages from financial institutions and stock in financial firms to limit the global economic fallout from drops in home prices and increases in foreclosures.

Top lawmakers quickly wrote the legislation in a series of round-the-clock negotiations with the White House over several days in late September. However, House lawmakers balked at being perceived as bailing out Wall Street and caught leadership by surprise by rejecting the initial measure — a move that sent stock prices plummeting.

A few days later, the bailout measure was approved by both chambers, but only after lawmakers added new oversight provisions for managing the $700 billion. Also, “sweeteners” were tacked onto the measure, including bipartisan mental health parity legislation and extensions for a package of popular tax breaks.

So even when faced with a genuine SHTF crisis, we confess ourselves unable to pay attention long enough to simply deal with the present crisis, at least without LOOK! A SQUIRREL!! funding special pet projects totally unrelated to dealing with the matter at hand. Exhibit A.

In 2007, lawmakers also passed an energy bill that that will raise fuel-efficiency standards for vehicles for the first time since 1975. Additionally, the measure would set new requirements for developing renewable fuels and contains numerous provisions to promote energy efficiency.

“This legislation is a historical turning point in American environmental policy,” House Majority Leader Steny Hoyer (D-Md.) said.

Exhibit B. The congress clearly has satisfied itself that we don't actually have to compete in the messy, fussy world of automotive manufacture. Evidently, we can instead focus our efforts on writing laws about how many miles per gallon to get, and that all cars be equipped with traction control, and the like--both measures have to make a congressman (or -woman, let's not be sexist by failing to recognize the contributions of women toward realizing these deleterious accomplishments) feel good about his work for the day. But it just raised the cost of every car sold in this country, and lowered the standard of living for every person who now has to pay more for a car. But our standard of living is so high, it won't matter if we shave just a little bit off of it so the congress can feel good about itself.

GOP lawmakers said Congress’ most significant action on energy came this fall when leaders opted not to renew a long-standing federal ban on offshore oil drilling.

True. But it failed to repeal the still-continuing ban on ANWR oil exploration despite what at the time was $4.50 gasoline. The Congress, evidently including even Republicans, has satisfied itself that we don't need to utilize resources that we already own here on US soil if it harms the delicate sensibilities of the greener members of the congress. Even if ANWR was only capable of making a small difference in the price of fuel, the clear choice was (and is) between (a) let's make a small difference in the price of fuel, and create a bunch of construction jobs in the process, or (b) let's leave ANWR pristine for the caribou and not create a bunch of jobs in the process. The slight degradation to the standard of living of everyone in this country who buys fuel won't matter much since our standard of living is really high anyway, and not creating the thousands of jobs the project implies is also appropriate since we have so many jobs laying around unused as it is.

Also, it's worth observing that the most positive accomplishment by the last congress was an act of omission, rather than comission, which kind of says it all.

Other key legislation that passed included [a] five-year, nearly $300 billion farm bill authorizing federal agriculture and nutrition programs, despite a White House veto.

Once we've run up the price of corn to astronomical levels thanks to ethanol mandates, which also increases the price of any products with corn as ingredients, or any animal products (eg., beef and milk) fed with corn, we should be looking for ways out of giving subsidies to farmers since their products are certainly priced quite generously at present. Instead we decided to give them $300B, which even by federal government standards is a reasonably large wad of cash. Our craven but otherwise excellent political overlords have determined that they don't want to ask farmers to sacrifice the subsidies they've grown accustomed to, especially given that the farmers might then make some of the politicians unemployed, so naturally asking them (the farmers--and, come to think of it, the politicians) to compete on a level field without subsidies is out of the question. Even though this reduces the average taxpayer's standard of living slightly (both because of the taxing which must be done in order to, ahem, redistribute the $300B and by inflating the price of most of our foodstuffs) this won't matter much because our own standard of living is teh awesome already.

It would be possible to continue--really, it would--but this ought really to summarize the flavor. Every time you hear a mandate issued by the government, you should wonder if a hungry competitor in China bears the same burden, and if we can simply assume repeatedly that our standard of living is just so awesome that we can afford to sacrifice little slices and bits of it at every turn for measures which make our elected betters feel warm and titilated inside. Our hungry competitors operate under no such compunctions, and the day may well come that our self-indulgence and intellectual laziness catches up with us.

Will that day be in summer of 2010 like Mr Panarin predicts? Probably not. He's probably just a nutjob. After all, the idea that a fractured United States would come under foreign influence is a bit implausible (especially the idea that the heavily armed part which includes Texas and Florida would come under the sway of Mexico; individual Texans are probably better armed collectively than the Mexican army, to say nothing of the Texas national guard; on balance, I'd say the Republic of Texas attacking Mexico is far likelier). And Canada absorbing the north-central states seems equally a bit ridiculous; no matter how goofy Michiganders are, something like 80% of them are rifle-toting deer hunters who would probably respond rather vigourously if the Mounties started streaming across the Ambassador Bridge.

America's day in the sun will likely end eventually. But I would much prefer it if most of its wounds were not self-inflicted by the capricious self-indulgence of our political classes and the pie-eyed democrats who elect them to rule benevolently over us.