T Nation

Economic Crisis


#1

So I have been reading this blog, as recommended by someone on this site: http://ferfal.blogspot.com/

Very interesting, guy has a lot of stories that gun toting hillbillies who have the second amendment tattooed on their back will like (I dug them too).

The guy lives in Argentina, which I never really read about, and had no idea about the conditions that people are living in there after the economic collapse in 2001. Hell, I didn't know they had an economic collapse in 2001.

I began doing research on what caused the collapse, and the first thing I found was this:

[i]
The Argentina crisis of 2001-2002 exemplifies the economic, social and political upheaval that can occur during a time of economic and financial crisis. During the 1990's Argentina was heralded as a successful in developing its economy. Foreign investors poured billions of dollars into the country, inflation rates were lower than those in the U.S. at the same time, and the economy was one of fastest growing economies in Latin America. Argentina was the darling of international financial lending, strictly adhering to the IMF advice.

But in 2001 the Argentine economy reached its breaking point. The government announced that its foreign debt could not be paid back and billions of dollars in government spending would be cut. This translated to government employees receiving a salary reduction of 13% (Pastor and Wise 2001). While at the same time unemployment skyrocketed to nearly 20% (Stiglitz 2002). In one year Buenos Aires fell from being the most expensive city in Latin America to the cheapest city (Latin Trade 2003).[/i]

http://ucatlas.ucsc.edu/sap/Argentina_crisis.php

That part about not being able to pay back it's foreign debt sounded eerily familiar, especially combined withe massive cuts in government aid that caused the collapse. In NJ, this is happeneing on the state level, and I assume it's entirely possible on the national level.

Interesting shit about a society can change overnight. Thoughts?


#2

You ever hear of Peter Schiff?


#3

... and Gerald Celente?


#4

No but I just did some reading on Schiff. Assuming he's said similar things?


#5

Thanks for the site link - my grandfather worked for years in Argentina and I love the Argentinian people. I was so saddened by their silent suffering. I was so honored to ever have meet such humble and honest people.


#6

Who has said something relevant to the topic are Austrian economists who claim that precisely because the processes of specialization and the accumulation of capital need a sound currency we cannot let politicians temper with it.

So yeah, once the trust in money is gone it no longer pays off to cooperate with strangers, so people donĀ“t.


#7

Yup. Check out his vids on youtube. It may scare the shit out of you though. He has a free podcast too.


#8

"In March, housing prices accelerated on the downside indicating bigger adjustments dead-ahead. Trend-lines are steeper now than ever before--nearly perpendicular. Housing prices are not falling, they're crashing and crashing hard. Now that the foreclosure moratorium has ended, Notices of Default (NOD) have spiked to an all-time high. These Notices will turn into foreclosures in 4 to 5 months time creating another cascade of foreclosures. Market analysts predict there will be 5 MILLION MORE FORECLOSURES BETWEEN NOW AND 2011. It's a disaster bigger than Katrina. Soaring unemployment and rising foreclosures ensure that hundreds of banks and financial institutions will be forced into bankruptcy. 40 percent of delinquent homeowners have already vacated their homes. There's nothing Obama can do to make them stay. Worse still, only 30 percent of foreclosures have been relisted for sale suggesting more hanky-panky at the banks. Where have the houses gone? Have they simply vanished?"

http://www.marketoracle.co.uk/Article10168.html

Don't worry though --- Obama plans to buzz NY again and drop $100 bills from the sky. If it works, he'll take his clown act on the road.


#9

When I read this all I could think was some of the ignorant morons on the ObamaForum that think we can solve our economic problems with a printing press. Just prit more and then increase taxes later. Yeah that'll work. Anyway I'll be in Alaska in a few months, I'm stocking up on stuff, learning to hunt and fish I'm sure you can figure out the rest............


#10

Interesting video from Argentina warning what may be to come in the U.S.

http://revolutionarypolitics.com/?p=474


#11

one of us... one of us!


#12

This is how it starts. He'll be reading the austrians in no time.

Sorry Irish, no turning back. I'll bet you a six pack you vote for at least one libertarian in the midterms.


#13

hahah. Not quite. But I always, always support gun rights. You never want the government having the only guns around...


#14

BFFs? Can we get gambit_lost on board?


#15

Cutting spending was not one of the causes for the collapse. This was a a consequence of too much debt which was itself caused by too much spending to begin with.

Have you read the "Mystery of Banking" yet? If not, I highly recommend reading it to get a handle on the understanding of these insane economic times.