Apr 09
6
What an economic collapse may look like…
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With all of the runaway government spending and borrowing and the Fed wrecklessly pumping money into the financial system, many seem to think that we may soon find our currency devalued or we default on our debt, or both. But what would that mean to the average citizen? History is often the best guide, and Argentina experienced an economic collapse when their currency was devalued and they defaulted on their national debt in 2001. The Washington Post did a great piece showing the effects on average Argentines, which can be found here.
Some of the highlights of the article:
- Snowballing poverty and unemployment
- The freezing of bank deposits of ordinary citizens
- A declining middle class population
- Hyperinflation of prices for basic staples, leading to severe hunger and malnutrition
- Large cities becoming the domain of thieves and scavengers
Not a pretty picture, but one that is becoming more and more likely here in the U.S. Remember: prepare for the worst, hope for the best.