Argentina Tops List Of 20 Signs Of Global Economic Meltdown

[Dublin2BuenosAires]

Regarding Ireland, as we are often held up as a case study of doom and gloom.

In Dublin house prices are up 15% last yr
In the rest of the country prices are up 6% last yr
GDP grew 2.2% last quarter,
Capital Investment up 11%
Demand is good for 10yr bonds
Unemployment is coming down

Bank debts are a long term millstone but not insurmountable and I remain extremely dubious that they won't be subject to various extentions of credit. We have exited the bailout program with no line of credit from the Eurozone other than normal international bond funding, we recently shifted 3.5 billion of 10 yr bonds without major issues.

Ireland is effectively an exporter of services, financial, legal and technology. We get battered by the storm when the US and UK (our main trading partners) suffer, but with reasonable recovery under way in both we have reason to be optimistic. We are completely reliant on both, our economy is very open, the internal market fairly small and our crashes and booms will inextricably be linked with external investment and the fortunes of the US&UK. Ireland forecast for 2% growth (not recession) , believe the US prediction is 3% and the Uk is reasonable as well.

Lets not lose the run of ourselves just yet.

 

[MikeB12]

I don't disagree with the general premise that the global economy is fragile, for other reasons than which the author mentioned. However, the author of the article has an obvious incentive $$ to make people believe the whole system will melt down and there will be chaos.

 

[Dublin2BuenosAires]

Exactly!

There are, sadly, some people out their who actively hope the world financial system will crash. Bizarrely, some of them want it to crash not just so they can boast about the amount of tinned tuna they own, but so that it can be replaced by an even more odious (and the current system ain't great in that respect!) system which allows even more wealth concentration and even less regulation and wealth distribution.

Kochs, the lot of them.

 

[nicoenarg]

Since the dollar is collapsing, and the world is ending, could you all please give me all your dollars and worldly possessions...seeing that you're really holding on to worthless crap?

I'm just doing my neighborly duty by getting rid of the crap for you

 

[steveinbsas]

If anyone would like to read what the folks in "Galt's Gulch Online" think of the article (presently a "hot" topic) in my first post in this thread, they can read their comments here:

http://www.galtsgulc...fiscal-problems

 

[Caliexpat]

I think we've done this before, but no, the Fed does not print and print. It performs an asset swap for banking reserves creating more reserves in banks by taking certain asssets in return, which allows more lending etc.

Well, you can call it what you want but essentially, it is money printing. If the money that you need to raise does not come from an already existing supply of money, then the new money is created out of thin air, thus money printing.

The US Treasury needs to raise a certain amount of money each month in order to stay operational. If it can't get the money it needs via domestic and foreign bond buyers, the fed steps in to make up the difference. As China and others are slowly weaning themselves away from purchasing treasury bonds, the fed will need to purchase more and more to make up the difference.

Because the US holds the world's reserve currency, it has the luxury of printing the money it needs from thin air because of the artificial demand for the dollar. In short, the US exports its inflation to other countries whose central banks hold dollars as their reserves.

However you slice it, this is not going to end well.

 

[steveinbsas]

Is the FED buying US Treasury Bonds?

If so, where did they get the money?

Is the FED is "monetizing" the debt?

What does that mean?

What will be the consequences?

 

[Reneige]

Funny you should mention lack of references when you talk about a "recovery" that can be found nowhere and people who claim things are better normally base their claims on stock market performance or other easily manipulated figures.

The dollar will collapse when the world decides to stop taking dollars. Being the reserve currency for the entire world gives you a lot of leeway. We criticize CFK for printing pesos out of control? The Federal Reserve prints and prints. The only difference is that no one wants Rocas and everyone wants Franklins. The day that OPEC countries come up with a way to bypass the USD it's game over. Argentine style inflation or worse will be rampant in the US. All the military presence in the middle east is not about oil like people claim, it's about the petro dollar. Sadam had a plan to talk other countries into walking away from the Petro dollar. That's why he was taken down. Not the oil, not the WMDs. It was all about preserving the status through dollar has.

I did give a reference, I posted the IMF report. Of course, the GDP statistics themselves say a lot, but I'm guessing you haven't looked at those. GDP growth being the de facto measure for the exit of a recession, so there is not much left to argue.

As for your claim regarding stock markets as measure, that's nonsense. I've never heard of any economist using the stock market as a measure for a recovery. What is your reference for this belief? The markets shot up like a champagne cork in January 2009, and nobody claimed we were in a recovery.

Quantitative easing = buying bonds with newly made money. When those bonds mature, the newly made money goes away as well. Nobody is rolling the printing press. The USA had 7% money growth in the money supply in the last 2 years, that's hardly a shocking amount : http://www.tradingec...ney-supply-m2��

As for your ideas about the dollar imploding, I'll have to discuss that one with my buddies. We talk a lot about gold and how to build bomb shelters, usually while sitting in the rocking chairs on our front porches, shooting squirrels, and playing the banjo. They usually have some pretty insightful thoughts on the dollar collapse.

 

[Joe]

As for your ideas about the dollar imploding, I'll have to discuss that one with my buddies. We talk a lot about gold and how to build bomb shelters, usually while sitting in the rocking chairs on our front porches, shooting squirrels, and playing the banjo. They usually have some pretty insightful thoughts on the dollar collapse.

Whose pick'in a banjo here?

 

[John.St]

20 Early Warning Signs That We Are Approaching A Global Economic Meltdown

This article was published on January 23, 2014.

http://theeconomicco...onomic-meltdown

I could have posted this in the "articles" forum, but I think a "global economic meltdown" will have a dramatic effect on "expat life" in Argentina.

Great site:

Buy our books like you did before the even greater meltdown called Y2K!!!

Join us in our cave in the Adirondacs before the end of the world!!