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| John,
The difference I believe in this scenario is that:
1. If our $ would completely collapse, who's currency/banking system would step in? I don't think you can compare Zimbabwe to the US. However, that said it may take our $ to completely collapse to fix this problem, but it would be a price that I don't think we can afford to pay - government failure.
2. This economy is far different than past problems in that we have created a situation where our debt (consumer and government) is growing exponentially faster than our economy. The way those other recoveries occurred was through borrowing. Who is going to lend us money. Currently we are essentially borrowing from ourselves. The next step will be following Japan and Argentina and forcing pensions, 401Ks, etc to take on Treasury Debt, since no one wants it.
3. Unfortunately/fortunately the Great Depression was experienced by a much different US citizenship/culture/values system than we have today. Today's US citizen will not accept their responsibility for anything - especially city dwellers - and will look for blame anywhere. If the rural communities/farmers are doing well they will gang up on them claiming gouging, hoarding, etc. And men with guns will come into the rural communities to take goods away to feed the "oppressed" individuals in cities.
I have a bad feeling that we and our government have created such a polarized dichotomy (look at the Dems vs Rep distributions) that large population concentrations will be pit against the rest of us.
Wow that was really depressing - I need to go look at some pics of tractors or something. | |
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True state of the banking system
