Fascism and Economic Collapse
Down Argentine Way
by Ron Holland
There are many ominous parallels between Argentina and the U.S. and the question often asked is can America avoid the economic consequences that Argentina suffered from a fascist government combined with government debt and currency collapse? I believe the answer is likely NO!
“There are a lot of ways to ruin an economy. Argentina has experimented with most of them. It has devalued its currency, and revalued it. It has pegged it, and then knocked down the peg. It has regulated, controlled, inspected, taxed and confiscated. Following the 2001 crisis, earnings fell by 30% – with half the nation slipping below the official poverty line. What is remarkable is that the Argentine economy has survived at all.” ~ Bill Bonner
Down Argentine Way was the 1940 film that made a star of Betty Grable, who played an attractive young woman on vacation who fell in love with a wealthy racehorse owner. The storyline actually reflected a common occurrence during the 25 years prior to the film debut.
In the early 20th century, “as rich as an Argentine” was a common expression, often used in connection with poor British aristocrats attempting to marry off their daughters to wealthy Argentinians. Argentina was indeed a wealthy nation; for example, we all know about Harrods Department Store in London. Few realize that during this period of Argentine prosperity, Harrods also ran a store in Buenos Aires.
Buenos Aires is still a beautiful and interesting city. If you visit, you’ll learn that despite all the doom and gloom we hear concerning Washington debt and the dwindling dollar, there is life after debt repudiation and currency collapse. The same thing has been proven in Russia, Germany and other nations numerous times. It has even happened twice in the United States.
“May you live in interesting times” ~ A Chinese Curse
Since 2008, we’ve certainly lived in interesting times both in politics and in the markets. The US has tried standard Keynesian economic solutions with exploding deficits and trillions in government debt to solve the problems of mania, bubble and bust in real estate and the economy.
“Insanity is doing the same thing over and over again and expecting different results.” ~ Albert Einstein
If you haven’t noticed, the world is full of people who appear normal but by Einstein’s standard are insane. The problem for us is that many of them are politicians and government “leaders.”