The Chinese central government will slowly and steadily lose authority while regional armies [gain power]. The Western powers are going to take sides to protect their investments - they have put billions of dollars into Shanghai. Their fear is that [these investments] are going to be expropriated by a warlord from the interior who will sweep down on Shanghai. They will try to form alliances with warlords to protect their concessions, and there will be a huge flow of weapons into China.
George FriedmanConstraint theory defines for you what outcomes are possible and what outcomes are impossible. It also eliminates wishful thinking.
George FriedmanWith the decline of American interests in the outcome of this region, there is no glue holding it together. And the countries in this region are invented ... The last guarantor of the region's borders was the United States, and the US has basically said "the hell with it." What you're really having is the collapse of nation-states because they're not nations. They're only states.
George FriedmanThere has never been a century that has not had a systemic war - a systemic war, meaning when the entire system convulses. From the Seven Years' War in Europe to the Napoleonic Wars of the 19th century to the World Wars, every century has one.
George FriedmanItaly is the fourth-largest economy in Europe and the eighth-largest economy in the world, and its banking system is collapsing. And Germany is desperate. It must maintain its standard of living. It can only do that with exports and Deutsche Bank is very exposed to Italian debt. But so is the rest of Europe.
George Friedman