Argentina is at it again
The country of Argentina has been the poster child of what ultimately happens when a country takes on too much debt—i.e. economy collapse and social chaos. You can read about what happened 10 years ago from an Argentinean himself: survival-spot.com
Well, wouldn’t you know it, Argentina is at it again! Read this from an article written on Tuesday, January 10, 2012:
“The economy [of Argentina] is rapidly deteriorating, and street-inflation has surpassed 25%. Naturally, the administration of President Cristina Fernandez insists that inflation is not a problem, despite the Argentine peso losing 25% of its value against the US dollar over the last three-years (and far more against gold). Meanwhile, [President] Fernandez has…imposed capital controls, raided pension funds, nationalized private property, and taken control of the media… all in a vain attempt to delay the endgame. A few weeks ago, the government passed a package of new laws, essentially criminalizing public protest under the auspices of combating terrorism. The legislation, snuck in at a midnight session during the holiday period, provides severe punishment for various crimes under a Very Broad Definition Of Terrorism.” (Excerpted from: simon-black-another-consequence-of-economic-decline)
We’re not that far behind. Our government is spending over 55% more than it receives in revenues. (i.e. U.S. Federal Spending is $3.626 trillion compared to Tax Revenues of $2.322 trillion; see: usdebtclock.org) Our national debt is already over 100% of GDP. Almost as bad as some of the crisis countries in Europe. And who is the government borrowing all this money from? The Fed is printing most of it, of course. More than half of it is being printed out of thin air. That’s because Japan, China, and Europe are not buying U.S. debt. They have problems of their own to deal with, thank you very much.
I still believe we won’t see a U.S. financial crisis until the 2013-2014 timeframe. Nevertheless, whenever it is, it will come and it will not be pretty. I hope you’re preparing for the inevitable. If not, consider reading this guide for ideas: what-should-i-do