Argentina or Zimbabwe?

[Seraphim]

http://www.oftwominds.com/blogaug09/KaPoom2CHS.htm

I do not believe this fits into the economics section. It's much deeper than that - and I think the author is correct about the analysis.

My verdict: Argentina.

[truelies]

http://www.oftwominds.com/blogaug09/KaPoom2CHS.htm

I do not believe this fits into the economics section. It's much deeper than that - and I think the author is correct about the analysis.

My verdict: Argentina.

Argentina with elements of 'tribal' bloodletting like Zimbabwe.

[Seraphim]

Agreed.

I told my dad a couple of months ago that I thought the end result of this would be a massive western world bank holiday. Once the banks reopen, the currency will be devalued to the point of most losing upwards of 50% of their savings with gold/silver prices much, MUCH higher.

I still think that's what will happen. Massive. Systemic. Devaluation.

Of course the social implications of this are enormous and things will get ugly.

[UMULAS]

I'm slowly but surely understanding the bank crisis that's happening in these coutries. The authors explaining it is very confusing. :confused:

[jclay2]

I agree with the Argentina analysis, however, I would note that the all likely instigator of the great devaluation will be interest rates increasing. This is the one thing holding the big house of cards together. When interest rates rocket up 300-400 basis points, watch the crap out. At 3% interest rates, Japan will forfeit 100% of tax revenue to cover INTEREST payments. The US will probably experience an instant recession within our current depression causing taxes to go down and deficits to go up. This along with higher interest payments will also cause a higher deficit which will lead to more borrowing and higher interest rates creating a negative feedback loop that will end with the fed devaluing the $ by a huge %. Oh and remember, this will be just the first round of devaluation.