Posted on 03/27/2010 6:45:03 AM PDT by OKSooner
Here's a question to open up conversation today:
What happens when an economy collapses?
Okay, hyperinflation causes money to no longer be worth even the paper it's printed on.
It might be a dumb question, but I ax it for a reason.
Have at it, please. TIA
Master/Slavery morality returns. Whatever is good for the Master, is moral. Whatever is not good for the slave is good for the master. Nietzsche.
I strongly recommend reading Fernando Aguirre’s book “The Modern Survival Manual: Surviving Economic Collapse.”
It’s about his experiences in Argentina after the 2000 currency collapse and bank closures, when civil order went off the rails.
The hyperinflation means that you cannot buy anything. So you go hungry.
Since no one is buying anything, most people lose their jobs.
Angry people with nothing to eat or do are not the best group that you can have walking around on your streets.
I know that sounds sarcastic and simplistic, but it pretty much sums it up.
See Jimmy Carter’s Mugabe and how it’s worked out for Zimbabwe.
Massive inflation followed by devaluation of the dollar. Everybody thinks you are a bad credit risk, so they stay away. It’s why Obama is building ‘the commie net’ to catch the American collapse and become dictator, he thinks.
Look at what is happening right now in Venezuela, as their economy shuts down.
Obama zombies are not very bright.
there are different degrees of collapse. in a sense the great depression was a collapse and we can learn from that period.
a collapse has complexity. what if america collapses but europe and china collapse to a greater degree?
Please understand, the economy will implode - but it will be through the destruction of credit (money), and be DEFLATIONARY in nature.
US dollars will have more purchasing power - but people will hold a lot fewer of them.
This list is not all encompassing but some thoughts and observations from 3rd World Countries
You will be surprised how adaptable people in hyperinflation environments. It won’t be Mad Max level.
But the currency would be worthless as it is established on the good credit of the U.S., which no longer exists. Nothing less than tangible currency would be acceptable, which is gold, silver, platinum, anything of value to the traders.
I don't know the answer but I think we're about to find out.
That said, I think it very much depends on why (who caused it--Obama), how fast was its collapse, how stable was the society and ecomomy before the collapse, whose economy was it that collapse, how knowledgeable are the citizens about economic matters in general, and just how feisty are the citizens.
In the case of the U.S. economy at the present time, I would expect that there will be pitchforks on Pennsylvania Avenue.
I hope there are cattle ranchers willing to bring herds of cattle to feed the standing "army".
There’s not going to be any inflation. The liberal Democrats have it all under control.
There’s not going to be any inflation. The liberal Democrats have it all under control.
There’s not going to be any inflation. The liberal Democrats have it all under control.
There’s not going to be any inflation. The liberal Democrats have it all under control.
There’s not going to be any inflation . . . .
(Just keep repeating this, like a mantra, until you believe it. You’ll feel SO much better.)
People should coordinate with friends.
Make a list of friends.
Hunt them up when it's time to set society right.
Form a posse to fix things.
Also make a list of enemies ...
And I don't think the Guard and Armed Forces will necessarily defend the current WH occupant by firing on a citizen army.
Excellent episode of Stossel this week is addressing this point (it’ll fun on Fox Business all weekend, so catch it).
You’re seeing a little glimpse of the future when our T-bill auctions are seeing less demand. It’s pushing interest rates on the debt higher.
As our federal spending grows it will reach an unsustainable point. The government will have two choices.
1) “Monetize” the debt, which means just printing more money. As easy as it sounds, this would devalue the currency and push inflation higher. But this won’t happen all at once, so there are lots of chances to repair the situation before we become Zimbabwe.
2) More likely scenario - as inflation starts to go up and spending gets beyond control, responsible people like Paul Ryan are elected. (See Christie election in New Jersey - if they choose a responsible governor, the US as a whole can come to the same choice). Responsible reform of entitlements is still possible and long-term fiscal health is restored.
A few more years of Obama make scenario #2 more likely. People are not stupid, and if New Jersey can start pension reform, the United States can too.
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