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The financial problem with Argentina , and related to why they have such high inflation, is that they have a foreign debt problem.
The US is not in any real debt. The national debt is largely a fiction. That does not mean that there is no danger. If the US discredits its currency with technical defaults so badly it would need to begin securing a means of exchange not under its control. If it starts borrowing in those terms then prepare for Argentinian style inflation.
Its kind of ironic. People ask what will happen if the US defaults having completely missed it. It already did on broadcast television when it cancelled the international gold standard.
Again this is another problem with blanket terms called "debt" when the nature of the relationship is undefined. If I owe one dime to a well armed and ruthless lender that has removed all said currency from circulation then it falls to what ever liquidation terms are available. It cannot be unilaterally paid by the debtor. If its the terms of the lender due to being well armed that is a sitting on the curb bankruptcy. However it reminds me of owing a bank $100 being my problem, but if I owe $100 million to the bank, its the banks problem. If I also control the only industrial base post WWII at the time then the debt certainty would not be my problem. 100 trillion of nonconvertible currency in ones control can be paid off with a key stoke.
kind of a dick move but it was the French after their gold. There are American cemeteries in France which was part its liberation at no charge. Not sure how many free refills is supposed to be good for though.
Yes we will be there and it will come with the destruction of the value of the dollar.
There are pre-33 one ounce gold coins that say $20( nearly an ounce of gold). Silver dollars were one ounce.
Between the two there is roughly 1-4% of residual value left, and that is with metal suppression given monetary metals suffer from rampant rehypothecation. A cup of sugar must go into the cake but gold can be recirculated particularly by low lease rates from central banks. So that 1-4% is understated.
In the 1870s they were even trying to figure out how to add to circulation with expiring stamp currencies( Silvio Gesell) ... a problem created after canceling greenbacks and silver which caused that depression. Infact both major depression were caused by gold standards which as a calculated demonetization.
So I am not sure what catastrophe it would be to erode that final fraction. To state the obvious its da guberment and the dollar reflects their stewardship.
Dollars are not, and never were, a good saving instrument, and never will be. The so called constitutional silver was also a bad investment until the face value hit the commodity price of silver, for example.
Be one the look out for bail ins, what is in your safety deposit boxes, brokerage accounts etc. Don't want too much in any one place . Most people know about FDIC , but may not know about $250k limits on brokerage accounts which are now considered collateral, not directly owned by the client. The Swedish haven is gone.
Argentina has 100% inflation. In America its 3.7% and going down in response to Fed policies.
Tucker's statement is nonsense. It's a fear tactic.
Stop listening to US propaganda.
The US is able to export its inflation. It'll all come crumbling down once others start rejecting the USD and we'll approach 100% in no time.
Stop listening to US propaganda.
The US is able to export its inflation. It'll all come crumbling down once others start rejecting the USD and we'll approach 100% in no time.
Nowhere in your reply do you account for the fact that Argentina has 100% annual inflation while the US has only 3.7% inflation. Why should I believe you that "it will all come crashing down"? What is your evidence?
Nowhere in your reply do you account for the fact that Argentina has 100% annual inflation while the US has only 3.7% inflation. Why should I believe you that "it will all come crashing down"? What is your evidence?
It’s right there in my post, the US is exporting inflation. Do you not understand what that means?
Stop listening to US propaganda.
The US is able to export its inflation. It'll all come crumbling down once others start rejecting the USD and we'll approach 100% in no time.
Quote:
Originally Posted by bluesclues5
It’s right there in my post, the US is exporting inflation. Do you not understand what that means?
I don't accept that (1) we can simply export our inflation; or (2) that somehow this will result in 100% inflation in the USA. Argentina is a worst case scenario. Your post truly is illogical.
I've seen doom and gloomers come and go from this forum over the years.
I don't accept that (1) we can simply export our inflation; or (2) that somehow this will result in 100% inflation in the USA. Argentina is a worst case scenario. Your post truly is illogical.
I've seen doom and gloomers come and go from this forum over the years.
Foreign trade assists with our inflation.
First off many dollars go overseas, so there are always that many fewer here in the USA for commerce. Fewer dollars, less inflation.
And second, by using our dollars to buy cheaper imports, that also helps with our inflation.
I don't accept that (1) we can simply export our inflation; or (2) that somehow this will result in 100% inflation in the USA. Argentina is a worst case scenario. Your post truly is illogical.
I've seen doom and gloomers come and go from this forum over the years.
Thr reality of the past 50+ years is the US has exported its inflation to keep its costs low.
Will they take us to war to preserve U.S. hegemony via the petrodollar? Possibly, with a slight lean toward probably.
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