Topic: Argentina heading for a repeat of 2001 collapse - page 2. (Read 7348 times)

The world economy is very integrated so the wave of something as big as the reserve currency that collapses will hit hard many companies, banks and countries; there will be a period of adaptation : a few months for the lucky few, a few years for those who are well prepared and more for the other

In 10years, a middle class and even low middle class chinese will live like a King in holidays in the States

Why would everyone suffer? Only because of sudden changes that can occur. USA does not currently produce the wealth of the world and distribute it all over. After the first world war, maybe. Nowadays, USA mostly export money, and receive goods from foreign producers, stacking up debt in the process.

Don't think one quality is sufficient obviously like in real life! But my point was everyone will suffer of the USA collapse in the short term but a lot of countries will fair well and may even benefit of the end of the USD reign; the USA will probably not die without a fight and it's a giant so it will survive then hopefully shine again when it will be again the land of the freedoms

Singapore has quality worker and little to no natural resources. It seems to be doing fine.

China has cheap and hardworkers, low taxes. They are also doing fine.

Saudi, Iraq and Iran have huge natural resources. Population is not doing ok despite the oil wealth even before US invasion.

I think natural resources is not a key point. Trade is what matters, taxes and tariffs means poverty. I guess the people of the land has to know this, and demand relative freedom, else they let the criminals to the top.

Please someone answer this!

Your second paragraph explains it very well but you have a large percentage of the young generation in the US that understood everyone was worse off when the state was manipulating markets, growing too big and money was taken out of revenues and wasted : some hope is still possible for the US

There is a whole world out there that is not the US; they are working hard, innovating, booming and not taxing too much (yet); vote with your feet?

The situation in the 50's and 70's that you describe was an unsustainable boom era post WWII where most of the world's manufacturing base was destroyed and the US represented over 50% of the world's manufacturing base. That was always going to self correct after a generation or two, and did.

The problem is that 50's to 70's boom era created a large sense of entitlement in the american mindset, and also created large government unsustainable great society programs. The hard work and self reliance mindset of the 1800's was replaced by an entitlement mindset.

After the 70's when the rest of the world caught back up, the US resorted to printing and the petrodollar to maintain an illusion of the 50's to 70's era. When what it should have done is realized the folly of the post WWII path and returned to it's roots of hard work and self reliance.

Now 3 generations have passed, and if the petrodollar falls the vast majority of the US will have no idea what to do. Everyone now turns to the government to fix everything, but if the government is no longer able to do so I seriously fear for what the government will turn into to do so. There are large pockets in the US that still try to do the right thing, but they will get swarmed in the post petrodollar crash.

I personally think Argentina is the US's future. Just 100 years ago Argentina was one of the strongest economies in the world. Much of the today's US political and academic direction takes the US straight down Argentina's path.

That is because people get lazy and provide sloppy service. On top of it, 9-10 people are now needed to do 1 person work because of large bureaucratic overhead.

The states have a lot of positive but huge negatives and unsustainable liabilities that will sadly undermine all the potential greatness; it used to be the land of the opportunity, freedom and free market and it became something else

The fall of the USD will hurt most of the world but when the dust settles, China and other strong economies will come out on top; they will be the USA that used to be
In the 50's one good salary was enough to support a whole family, a full time nanny without any debts; in the 70's americans were going in Europe and lived like kings; now two good salaries are usually not enough to live really confortably

and they are burning the night oil printing

Some have one quality, some two or three but probably none has it all; the more they have the best they will fair

USA has some natural ressources and part of its population is hard working but they have a HUGE government to support

and they are........?

don't worry, it's just the calm before the storm.

volatility will kick in once the next rally comes

Not all; countries with natural ressources, hard workers, low taxes, and small governmnt will come out on top

I think you can add most countries in the world,Argentina are not alone

the economies are all drowning in debt, all they can do is print

Maybe this is actually the reason for the recent price move upwards.

Didn't they already do this last year? Ended up the UK took a vote; http://www.bbc.com/news/uk-21750909, not that it really has that much validity in Argentina's mind, as far as I understand.

Look like some countries/cultures never learn.

i thought that was supposed to mean we've won?