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.
““You will be surprised how adaptable people in hyperinflation environments. It won’t be Mad Max level.”
Agree - it takes an EMP (or worse) to get to that level. Argentina is the textbook case.”
Argentina had one huge advantage that we won’t have. They have functioning economies around them. We won’t have that luxury. If the US economy collapses under the weight of its debt, the collapse is worldwide (actually, I think the collapse will start elsewhere, but that is beside the point).
I’m not saying it will be Mad Max (more like The Road? jk). But Argentina is not really a good parallel. This is unprecedented, largely because of the worldwide nature of the problem.
“Curious about your rational. If you have the time a quick outline would be appreciated. Denninger has proven, I think, that almost all major banks are insolvent at the present time. Yet we continue to print money. Would not inflation be a more likely outcome? “
You’re right, of course...you cannot FLOOD the world with dollars and then expect deflation. People are trying to apply the old rules here and this situation is TOTALLY DIFFERENT and a lot worse.
Immediate default on all entitlement debts is going to be a bad thing. You will have people screaming because they were screwed over by their government who stole their money for years to pay for someone else, you will have people who are too dependent on the State to fend for themselves, you will have people who will use the breakdown in society to commit evil acts.
No one ever learns do they?
That’s fine livin’! I grew up in Baltimore playing Rebels with my cousins. Have many great memories from Southern MD and the Eastern Shore.
I think something else that supports the market is the fact that so many 401Ks and Roths, etc. are on auto pilot. Just like so many people don’t really care about politics, many just put their savings in Mutual Funds. “Diversity “ just means several Mutual Funds. That money keeps going in, week after week, and has to be put where the fund it aimed.
I would love to see information from anyone here that knows what percent of plans are invested in individual stocks and ACTIVELY traded. Anyone know??
“I’m not saying it will be Mad Max (more like The Road? jk). But Argentina is not really a good parallel. This is unprecedented, largely because of the worldwide nature of the problem.”
I hear you, but not as worldwide as you think. China will lead the way (even without as much in exports to us, and I’m sure they understand now that our debt is worthless), and then other countries WILL take the necessary steps to get out of the mess. The problem will be here, with a government that has INTENTIONALLY caused this crash and profits from it.
I’m with you on that one.
“...We all drive in and show up in DC pushing wheelbarrows! What a STATEMENT!!”
Ooh. That would make for a great visual.
“No one ever learns do they?”
Some do, but they are ignored.
This health care bill had to pass. There will be many more initiatives like it.
“...We all drive in and show up in DC pushing wheelbarrows! What a STATEMENT!!”
“Ooh. That would make for a great visual.”
Yea, now we just have to get the idea over to the Tea Party.
Bottom line - you better have A LOT of stuff stored up (I have 4 years worth of everything non-perishable that I can think of) and be ready to defend it...
I would imagine as much a supply of needed medicines (in the case of say someone who has to inject insulin for diabetes, insulin and needles, for instance) as possible in case they are not available?
And for food as much dry and canned food as possible?
They have no clue about the detonation that is going to occur because of the debt levels and our inability to meet our obligations.
Absolutely right!
“I hear you, but not as worldwide as you think. China will lead the way ...”
Maybe, but China has every appearance of being a massive bubble (warehouses full of products bought by the govt to boost spending numbers, newly built ghost cities, etc.).
But I agree that the problem may be more severe here, largely because of our large entitlement class and the violence we can expect when the checks stop arriving, and when the corner stores are empty.
That is called the 'Front Line'.
Speaking of the 08 “crash”
Did all the super smart people in the D. of C figure out who was taking all the money that caused all the trouble?
Russia?
China?
Soros?
the feds?
You can go eat with them.
Obama will have all the troops overseas.
He will have the DEA,FBI,BATF,IRS,SS,abc, etc etc do his dirty work.
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