A sign of the upcoming collapse of America-central financial system is a crisis of the US national debt. You can see that this debt is growing exponentially. And any mathematician who looks at this graph will say that that the system has entered a critical phase and is in danger of self-destruction.
The American model is still strong. Americans dominate in financial markets, with about a 70% share of financial transactions. Having an opportunity of unlimited emission of the world currency, they finance a great share of military expenses, leading in the arms race. More then half of the world military expenses belongs to the US, and 2/3 - including NATO countries.
From the point of view of the long-term technological and institutional dynamics we are in a very dangerous period. This is a period of a shift of types of capital reproduction, cycles of accumulation, formation of a new core of economic development.
It could be called "a core of capitalism", however the Chinese model combines social and capitalist mechanisms of organization of capital reproduction. Unfortunately in the 1990's we tried to reproduce an old-fashioned model of capital reproduction, tried to copy the American model, and received a disaster as a result. If we followed the model which was chosen by China, offered by the Russian Academy of Sciences, and the Chinese implemented many of the ideas of our scientists, the most talented of whom spent a lot of time in China in the 90's and taught the Chinese how to built a transitional economy.
Instead of our scientists we used the recommendations of Jeffrey Sachs, and the like opportunists, who imposed the American model, making Russia a far outpost of the world economy. Today this American model is entering a phase of self-destruction. This is a very dangerous phase. So far there have not been any exceptions from the common cycles of accumulation. We are truly on the verge of a global war. This tendency of a world war is determined by the deep dynamics of institutional technological shifts.
Undoubtedly the United States will wage the battle for leadership "until the last Ukrainian", as they say now. Not accidentally they chose Ukraine as a tool of attacking Europe and Russia. Launching a world war is necessary for the Americans in order to preserve their hegemony in the world through strengthening control over Europe by imposing the Trans-Atlantic free trade agreement; establishing control over Russia and Middle East, thus expanding their competitive advantage in the battle for leadership with the Asian countries.
This war is doomed for defeat. Although Japan remains an occupied country, despite all the obstacles that Americans are trying to create in the Japanese-Chinese relationship, very quickly the Japanese capital is merging with the Chinese production system.
And we have to understand that these convulsions, that we see in Washington, from the point of view of global development, will not allow the Americans to hold on to leadership, but present a great danger for us, because they are starting a war in Europe against us.
We are the main victim of this war today, and there is no reason to believe that it will stop in the next few years.
Sergey Yurievich Glazyev is a Russian politician and economist, Full Member of Russian Academy of Science since 2008. He was a minister in 1993, a member of the State Duma in 1993-2007, and ran for President of Russia in 2004. Glazyev was a co-founder of the Rodina party.
foreigners like students in Moscow wrote back impressive stories how they rushed to buy iPhones etc. to take advantage of steep Ruble plunge, or Russian merchants had to cancel import orders or hold back payment in the meltdown.
