There is no difference in a country between military, economic, and political affairs. It's useful for Business Insider to divide things that way. That's useful for a college program. But a country is a country. How do you understand China's economy without China's army? If you take these all into account you're ready to explain a question like, "How come the US doesn't have a debt problem?"

The most horrible sort of war is civil war.

Italy spills over to everything. Italy is a huge banking system. It has been the major banking system in Eastern Europe. It's worked with Austria's banking system. There's all sorts of interplays there. So it's not the PIIGS one should worry about. Germany hasn't even begun falling yet. And when Germany falls, and it will, that's when the panic begins to set in.

Success looks like you sitting here pretty confident that an armed brigade isn't going to come pouring in here and blow your head off. Which I don't think is your major concern. Therefore, the United States' foreign policy is successful.

Germany is the new pig. Germany depends on exports and its markets are drying up. When the Germans start getting 10% unemployment, 15% unemployment, which is the real variable, how are they going to handle it?

What is American strategy first of all? So American strategy is to command the seas, right? The foundation of our power is sea control. Nobody can invade us, but we can invade them.

Now if you can recognize and memorize a grandmaster's game, and you have the respect to understand [Zimbabwean president Robert] Mugabe who has survived past anyone's expectations, and make the simple assumption it wasn't an accident, and you understand why he did what he did, now you're ready to predict ... The key to forecasting is to understand both the constraints nations are under and the manner in which the struggle for power shapes leaders.