Quote:
Originally Posted by Jesus H Christ
Many have been trying to compare this crisis to similar scenarios, when in fact, there isn't one. Sure, many countries like Russia, Argentina, or parts of the old Yugoslav republic failed, but not the world wide financial systems fail collectively. Meaning, Russia/Argentina always had an outside influence or an avenue to recover from. When derivatives fail, everyone is in deep shit because all currencies are FIAT (backed by nothing) and we'll all be starting from ZERO.
Have you ever met anyone alive during the 30's? If so, did you notice they're very thrifty and never throw things away? This isn't because those things could hold some future value, it's because they're available. Meaning, most of everything we own is imported, could you imagine if all that just suddenly stopped?
Simple things like a spark plug, engine oil, air filter, light bulb, tools etc would be worth their weight in gold. Wake up people, you need to be spending at least $200 a month buying/storing these things.
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Great post. My grand parents and parents were all around during these times and the war years. They didn't waste money and were "careful" this rubbed off on me. I didn't buy a flash house, flash car or anything similar. We put money into things that will help when the collapse comes.
Now many major banks are being downgraded because they were not so frugal and had more debt than they could cover. Any country or person in a similar situation today is going to have problems.
Austerity, lower taxes, more Government spending (borrowing and wasting) are not going to save us. The problem is very simple.
Third World countries are taking far too much from the world's economy. Simply put the world's economy cannot afford the number of rich countries it has. If China, India, Russia, Brazil and a host of other countries have their wealth increase, it has to be balanced by a decrease in other countries. They have not "created" wealth. They took is from the already wealthy.
The problems started when those countries just borrowed to fill the gap.
Austerity will work, if China, India, Russia, Brazil and a host of other countries join in. We have to return to the living standards the world's economy can support. Consumerism is a flawed model.