What Has Happened In Fiat Failures Of The Past?

[Allen72289]

Some questions...

Will/did the goons of the hierarchy actually work for worthless fiat?

Did the masses accept government intervention or revolt in total anarchy?

My guess is that the fed itself is attempting to prevent a collapse or at least cover it up by looking for scape goats for two reasons..

Their grand scheme would be discovered or total lawless anarchy

I just can't see federal agents willing to work for toilet paper to resolve this.

I don't think lawless anarchy or a discovery of this would help them.

My best guess is the masses will look to the government for help.

 

[Paulitician]

I suppose the book Fiat Money Inflation in France by Andrew Dickson White [right-click and choose "Save Target As..."] answers some of your questions. I've yet to read it, though, so I can't say for sure but it is on my reading list.

 

[Allen72289]

Thanks for the suggested read.

 

[theseus51]

Usually re-issuance of new currency, or "new" money. Like each 1000 units becomes 1 "new" unit. Also price controls to keep prices down, but if it becomes unworkable, a barter system and/or a black market economy springs up. Or people use the currency of a more stable country.

Some historical hyperinflation fiat currency examples from the past:
http://dollardaze.org/blog/?p=107

 

[ghemminger]

Great thread - I am really into studing hyperinflation history

BAsically it turn society on it's head - all conservative savers lenders even get screwed - all the lve on the edge types make out

Everyone loses their innocence that is one of the resaons the NAzis and the holocaust happened - hyperinflation prepped the germans for it

 

[Allen72289]

Great thread - I am really into studing hyperinflation history

BAsically it turn society on it's head - all conservative savers lenders even get screwed - all the lve on the edge types make out

Everyone loses their innocence that is one of the resaons the NAzis and the holocaust happened - hyperinflation prepped the germans for it

Any good info, Ghemminger?

Please share. x)

=( Yeah... I hope people don't rampage out into the streets.


The Katrina of all economic crisis.

Lol. Get ready to be locked in an arena full of feces.

Thanks, theseus

 

[ghemminger]

Any good info, Ghemminger?

Please share. x)

=( Yeah... I hope people don't rampage out into the streets.


The Katrina of all economic crisis.

Lol. Get ready to be locked in an arena full of feces.

Yeah any specific questions?

Of note Gov. Employees cover thier asses first - expect NO service from public agencies even though they will steadily increase their salaries - even allowing for daily trips to the bank for public employees so they may cash thier hyper inflated checks....

The worst? As the currency become debased - farmers will sell food overseas to hard currurency countries leaving many American to fight for the leftovers - Gov't will set price controls and the farmers will react by not producing - hence dissapearance of basic food - this is when things become dangerous

 

[ghemminger]

Argentina seems to be a good example of may happen here but to less of an extent

Argentina (1975-1991)
Argentina went through steady inflation from 1975 to 1991. At the beginning of 1975, the highest denomination was 1,000 pesos. In late 1976, the highest denomination was 5,000 pesos. In early 1979, the highest denomination was 10,000 pesos. By the end of 1981, the highest denomination was 1,000,000 pesos. In the 1983 currency reform, 1 Peso Argentino was exchanged for 10,000 pesos. In the 1985 currency reform, 1 austral was exchanged for 1,000 pesos argentine.
Hyperinflation continued reaching a peak annualized rate of 4,923.3 percent in December 1989. At that time, government expenditure reached 35.6 percent of GDP and the fiscal deficit was 7.6 percent of GDP.
In 1990 the Argentine government announced a stabilization plan which included:

1. Comprehensive liberalization of foreign trade and capital movements
2. Privatization of public enterprises and the deregulation of the economy
3. Reduction in the size of the public sector and reconstruction of the tax system
4. Creation of a new monetary system, including the establishment of a Currency Board in April 1991.

Disinflation was gradual, with inflation falling from 1,344 percent in 1990, 84 percent in 1991. In the 1992 currency reform, 1 new peso was exchanged for 10,000 australes. The overall impact of hyperinflation: 1 new peso = 100,000,000,000 pre-1983 pesos. The inflation rate for 1992 was 17.5 percent, 7.4 percent in 1993, 3.9 percent in 1994 and 1.6 percent in 1995. By 1995, government expenditure represented 27 percent of Argentina's GDP.

 

[Allen72289]

Hoard food and water then I'll be okay.


This is going to be very interesting for the next 5 years.

 

[ghemminger]

Hoard food and water then I'll be okay.


This is going to be very interesting for the next 5 years.

Good ideas - but that won't solve ur problem long term - can u hoard enough food to last you 3-5 years? Clearly if it doesn't fix iself you need to determine an exit strategy

 

[Allen72289]

My exit strategy would simply be to get as much distance as I can between the mobs.

How has yet to be determined..

 

[Paulitician]

Some links:

http://www.sjsu.edu/faculty/watkins/hyper.htm

http://www.rogershermansociety.org/yugoslavia.htm

http://en.wikipedia.org/wiki/Hyperinflation

 

[ghemminger]

My exit strategy would simply be to get as much distance as I can between the mobs.

How has yet to be determined..

Coordinated groups will be the best way to survive - live in the wilderness with your hoard? Fine until they break in - then you will be subject to torture and cruelty for weeks if not longer - if you survive......

Coordinated communities or escaping to a safe haven -

 

[WilliamC]

Usually re-issuance of new currency, or "new" money. Like each 1000 units becomes 1 "new" unit. Also price controls to keep prices down, but if it becomes unworkable, a barter system and/or a black market economy springs up. Or people use the currency of a more stable country.

Some historical hyperinflation fiat currency examples from the past:
http://dollardaze.org/blog/?p=107

Yes, this is most likely what will happen in the near future.

A new currency will be issued (the Amero but maybe not with that name) and it will take x amount of dollars to buy one unit of the new currency.

All taxes, debts, and legal transactions will have to be paid in the new currency.

With any luck it won't be possible to undo existing mortgages and they will be able to be paid in old dollars and thus the banks and investors holding the mortgages will get screwed, thus washing out much of the bad debt from the growing housing foreclosure crisis.

I say with any luck because the only debt I have is a fixed rate mortgage and if this happens it will become cheaper to pay it off.

But people with consumer or unsecured debt will be forced to refinance it in terms of the new currency and they will not get off so lucky.

Who knows? Just get rid of as much debt as possible, get rid of your cash, and buy food, ammo, gold and silver.

 

[ghemminger]

Yes, this is most likely what will happen in the near future.

A new currency will be issued (the Amero but maybe not with that name) and it will take x amount of dollars to buy one unit of the new currency.

All taxes, debts, and legal transactions will have to be paid in the new currency.

With any luck it won't be possible to undo existing mortgages and they will be able to be paid in old dollars and thus the banks and investors holding the mortgages will get screwed, thus washing out much of the bad debt from the growing housing foreclosure crisis.

I say with any luck because the only debt I have is a fixed rate mortgage and if this happens it will become cheaper to pay it off.

But people with consumer or unsecured debt will be forced to refinance it in terms of the new currency and they will not get off so lucky.

Who knows? Just get rid of as much debt as possible, get rid of your cash, and buy food, ammo, gold and silver.

This is actually the most optimistic senario - All Saving will be wiped out unless it has been converted into hard assets -

 

[Laughingcow]

This is actually the most optimistic senario - All Saving will be wiped out unless it has been converted into hard assets -

Silver,Silver,Silver,Silver!!!!!!!!!!

 

[WilliamC]

Silver,Silver,Silver,Silver!!!!!!!!!!

Buying more this week!

 

[Laughingcow]

Get $1000 dollar face value bags of silver dimes, It is fungible and easily hidden, and you need to do it soon before your dollar can't buy them anymore.

 

[Laughingcow]

Buying more this week!

Good call, don't worry about buying on the dip, just buy. Previously I was into buying 100oz bars because you can sell them easy, but if the dollar collapses soon you will need something to trade that you won't need a hacksaw or smelter to break down to smaller increments. The silver dimes are very recognizable for what they are and will probably be used commonly for trading and wages when the dollar collapses.

 

[mordechai]

Actually, thing about Europe, when the Euro came out, different countries had to exchange at different rates. Some countries (like Italy) had big amounts of savings get wiped out. Others (like Germany) who had done better at this game came out better on the Euro exchange.

As bad as it will be for Americans, it will be much worse in Mexico for exchange rates to the nex currency (if it should be "Amero")