Don’t just take your correspondent’s word that the American Colonies are a failed kleptocracy.
The MIT professor Simon Johnson, a former Chief Economist at the International Monetary Fund and editor of the brilliant Baseline Scenario weblog, articulated quite clearly in May 2009 that the U.S. and A. was morphing into a banana republic. When emerging markets take a nosedive and creditors run for the hills the IMF usually has to pick up the pieces, lending money at concessionary interest rates in return for painful but necessary policy adjustments. These nations, like the Ukraine in 1994, Indonesia in 1997, and Russia in 1998, all got in trouble not because they were developing countries per se, but because powerful special interests had taken on too much risk while assuming (usually correctly) that their cronies in the government would clean up the inevitable mess.






