From a response to the Greek crisis, some credence to the Russian's thoughts
As a lifelong Californian and American citizen, your comments are devastatingly accurate.
California's economy is not only in a free-fall, but the state government is intentionally attempting to improve the economic data.
Even with the lies and fraudulently reported economic data from counties like San Diego, Orange, Riverside and San Bernardino; the state has the worst unemployment seen since the Great Depression.
Your discussion points to the issue of US Dollar stability as an initiating cause. Your comments suggest that you are a citizen of the former USSR or China, and that you are unfamiliar with the actual workings of the California state government.
The biggest problem is that in democratic republics, the legislators are unable to resist the temptation to build short-term projects through the long-term debt.
Therefore, the state and federal government is manipulated by large corporate bribes to these otherwise weak legislators. These bribes are justified as Political Action Committee contributions from "lobbyists". It is as if the state and federal governments of the United States believe that the registration of these "lobbyists" actually justifies their behavior. It does not.
While California could attempt to remove itself from the United States, such a motion would not resolve the deeper policy issue in the "Golden State".
California's state government has so obstructed the operation and development of business that they have unmined productivity.
The high taxes, ridiculous government intrusions into the work place, and then increasing government taxation on the payments to workers (not just state) have pushed millions of people out of work.
The state government is increasing tax withholds on all citizens over the past month.
Predicting this recession or even depression is going to lead to the collapse of the US is utterly insane. Trust me I know how bad this situation is as well but to predict total collapse coming from a Russian KGB is laughable. BTW I am 100% short all over the place but a collapse into chaos and civil war is not going to happen. If this ever did come to pass the ROW will not be the place to be either.
Remember folks, The Soviet Union collapsed from govt corruption and a failed economy. It wasnt that clown Reagan winning any cold war.
Our very own Federal Govt just informed us recently that we were on the brink and they couldnt see it coming.
Now our fate is in the hands of these same politicians who refuse to listen to the will of the peolpe and take the necessary steps to save our nation.
If by Spring it becomes event that Obama can work no miracles, chaos could well erupt nation wide. IMO FAZ would do well as the bank stocks tumble in price. But gold and silver would be better plays as the value of the US dollar collapses. I currently hold several gold and silver mining stocks for this reason. After their recent price correction, they are now poised to move much higher IMO. SS