America as a Safe Haven

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18 Responses to America as a Safe Haven

  1. BronxZionist says:

    Gee, didn't someone around here say that a financial collapse in Europe and death of the Euro would mean everyone would want dollars and that our economy didn't automatically have to go belly up along with it?
    Oh right, that was me.

    Now for the next shocking revelation:
    Destructive inflation does not mean the death of the economy or of the government.
    All it means is the loss of savings.
    Now that is far from a good thing, but it does not mean everything goes with it.
    It also doesn't mean that what you need to invest in is gold, bullets, or both.
    What it means is that you want your "savings" in those consummables that you expect to become unavailable during the inflationary period – mostly various luxury and specialty foods, dietary supplements, and property maintenance items, with larger scale reserves in consummable commodity production – farmland, grazing land and livestock, lumber, mines. (Consummables are, by definition, consumed regularly. People will continue to need them no matter what. The relative cost remains stable before, during, and after a hyperinflationary period, with only the "start up" cost subject to the inflationary disruption.)

    • DB523 says:

      This could be under the heading "America Sucks…except everywhere else sucks worse."

      • BronxZionist says:

        Pretty much.
        As I quipped once before:
        Churchill said "the worst form of government except for all the others."
        I say "the worst economic system except for all the others."
        Adding in this case. the market says "the worst potential market except for all the others."

        It should go without saying that not collapsing the economy and destroying all savings with a period of default and hyperinflation would be vastly better. If that is not an option, sticking it out rather than giving up on everything is the best choice.

    • DB523 says:

      What you say is reasonable BZ. Just some of us with large stocks of tin foil believe there is a component to this current "redistribution" that goes beyond fiscal… and into that effort to ensure America is "unexceptional."

      There has been, for some decades now, a slow adjustment of "Law" into "regulation." Therefore, at any given moment, a very unexceptional fish, in a very muddy backwater can rummage around until a "regulation" is found that can be applied "as needed." This is of course no way to run an exceptional country…. it is however quite adequate for managing any turd world.

      • BronxZionist says:

        Yes, but . . .
        That is technically not the same as the basic comparison and innate competitiveness of the American economy with foreign economies, or the basic nature of boom and bust cycles with normal or hyperinflation.
        That is a cultural collapse issue, and must be dealt with differently from a "normal" economic collapse.

    • DB523 says:

      I thnk I'll throw in the demographic sink while I'm at this… your scenario is correct and works in our demographic world…but we are on the way out… just saying…

      • BronxZionist says:

        Again, "yes, but . . ."
        The current demographic implosion models presume a closed system.
        As long as people elsewhere keep breeding, there is no looming demographic doom.
        There is a looming cultural doom, but that is not intrinsically tied to the economy, and correcting it does not require the same kind of action as leaving the economy in peace. (Which of course is technically an inaction.)

        • DB523 says:

          Well, on a good day I'm all for the "yes, but…" 's… however I am well and truly down the path that ties all the cultural doom into anything including economic decisions. The economy could be rip snorting fine, commodities up and down, shelves stocked in the malls…. but if all the malls are Q'atar or Dubai…. well I consider that an epic economic failure…

    • Red47 says:

      Anything made of cotton…

      • DB523 says:

        undies as a luxury item… yeah, sounds about right…

        • BronxZionist says:

          As peculiar as it sounds, yes.
          Not the undies per se, but ones made of high quality cotton will definitely rise in scarcity, and thus cost.
          Back to the loose fitting, coarser weaves it all goes bad.

        • Red47 says:

          You don’t want the scratchy wool kind!

  2. Red47 says:

    here we gooooo

    ", but administration economists with whom I have spoken deny that uncertainty is a factor retarding the recovery."

    Ummm. Of course. They are Keynesian and kinda Ostrichy. Head in the sand and all. They are the ones who are surprised every report by the unexpected tallies. They have a huge stake in the game. They cannot accede to the concerns of business and the private sector.

    • DB523 says:

      well actually Red… I am positively certain that things are going to hell in a handbasket.. so, no uncertainty here…

    • The funny thing is, Keynes was the one who said that uncertainty definitely was a negative influence on an economy. It's just that he didn't foresee his cure becoming the cause.

      • Red47 says:

        Yes. I have read that. It is too bad only the disastrous part of his theory is absorbed by the Econ 101 students who become whisperers to presidents.

        • Yes, I should have said part of his cure. His cure was increased spending and tax cuts. That whole 'expanding the tax base to increase revenue' is just too much for a simple minded progressive to comprehend.