How an Economy Collapses

Philsword

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I am always skeptical about these the world about to end guys. The author of this article runs kind of a end of the world web site. He will tell you how to survive the end for only $30 a month or $300 a year. I guess this isn't technically a scam but its as close as you can get.
 

davonz

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Its not exactly the easiest to read.. i gave up after 5 mintues.. Boring, and i would say the agentine guy would/should me as worried or more so about the argentine economy right now..

But what does it matter.. so the USA goes down the toilet, they have some pain, then pull their finger out, get their house in order and recover, and if you are smart you short sell before it crashes and buy before it booms..
 

*SF_2_BA*

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If US economy collapses, and dollar is lost, what does that mean for ARG peso, global economy, and more importantly American expates in Bs As like me!?
 

stefano

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*SF_2_BA* said:
If US economy collapses, and dollar is lost, what does that mean for ARG peso, global economy, and more importantly American expates in Bs As like me!?

It means we'll all move to China and get jobs.
 

steveinbsas

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*SF_2_BA* said:
If US economy collapses, and dollar is lost, what does that mean for ARG peso, global economy, and more importantly American expates in Bs As like me!?

You can hope you already know someone who owns rural land in a relatively safe (defensible) location and has chickens, fruit trees, a vegetable garden...and is willing to share.

You will be much better off if you bought some land and built a house next to him before your dollars became worthless.

If you don't have money your chances of surviving (if not thriving during) such a crisis will increase dramatically if you are a beautiful woman.

With or without female companionship I plan to wait it out here:

https://www.facebook.com/photo.php?f...&id=1608109807
 

Ries

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what a bunch of hooey.
there are a few very significant differences between Argentina then and the USA today-

fer instance-

Interest rates-
Argentina was paying very high interest rates- those bonds and loans they defaulted on were mostly floating rate, which changed as the world market dipped. Currently, there is a lawsuit about some of the Argentine defaults- and the quoted interest rate is 101%.

The US, on the other hand, is still able to borrow at effective rates of zero, or even NEGATIVE interest. Interest rates are supposedly set by the old "invisible hand" of the marketplace, based on risk. So that means that, at the time that Argentina defaulted, the world lenders felt it was a lousy risk. But right now, people with money still feel the USA is such a GOOD risk that they are willing to loan it money at zero percent interest.
Which means either this guy is wrong, or everybody else with money in the entire world is wrong.

then-
Propping up currency-
Argentina tried, and failed, to keep the peso at an artificial 1 to 1 with the dollar, and that was one of the reasons they kept borrowing, and that was what they could not do, and hence defaulted.

The USA, on the other hand, is letting the dollar float, more or less, and figuring that if it dives, then US manufactured goods will be more attractive, and sell more, around the world.

In other words, another example of exact OPPOSITE conditions.

There are tons of other reasons why this comparison is complete baloney. The USA is still the number one richest country in the world. Everybody with money still wants a place in NYC, or Beverly Hills.

There is just no comparison.

On the other hand, like Steve, I own rural property, with lots of in place food production capacity, and I ought to be picking apples and digging up potatoes right now. But I am not stockpiling beautiful women or automatic weapons, as my land is in one of the most desirable parts of the USA.
 

steveinbsas

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Ries said:
On the other hand, like Steve, I own rural property, with lots of in place food production capacity, and I ought to be picking apples and digging up potatoes right now. But I am not stockpiling beautiful women or automatic weapons, as my land is in one of the most desirable parts of the USA.

Actually, I replied to this post by *SF_2_BA*

"If US economy collapses, and dollar is lost, what does that mean for ARG peso, global economy, and more importantly American expates in Bs As like me!?"

If you own land in the US good for you. I guess you'll just go home when the shit hits the fan. I hope you can defend it if the dollar ever collapses and over 300 million people, 40 million (equal to the entire population of Argentina) of whom are used to getting food stamps go in search of food they can't buy. I hope you can at least buy the plane ticket to get home...if it isn't too dangerous to return (considering how many automatic weapons there actually are in the USA).

I wonder how many believe the dollar is immune from collapse? Just today, inflation in the US was "suddenly" reported at just below 7%. A couple years ago it was zero. Given the increase in the money supply, federal spending, and debt in the past few years, an annual inflation rate of 7% may soon seem very, very low.

I remember the inflation of 70's. What's coming will probably be much worse.

I do not have any automatic weapons or a stockpile of beautiful women...not even one (but there's always hope). I only have fertile land with a fresh crop of fruit and veggies on the way and chickens who provide more eggs I can eat. That all helps offset an ever shrinking dollar income that buys less, and less, and less.
 
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