Argentina: A Case Study in How An Economy Collapses
Friday, June 10, 2011
Chris Martenson: Absolutely, and I want to get to that really important point about how fear can be demotivating. Let’s get to that later. Let’s track this now. So how quickly did the collapse happen? You know, what is a boiling frog situation and people woke up one day and said “whoa, how did we get here?” Or did it feel somehow like the world changed overnight?
FerFAL: It’s a bit of both. These things don’t happen overnight. You see them coming for years. As you see it in U.S.A., as well, we saw it here as well, and that’s the reason why some of the richest, most powerful elite manage to leave the country with more than enough time. Some happen to do it more in a rush, but most of these guys that have the inside information manage to avoid having their bank accounts frozen, as we saw. So there are signs, and it is a bit of a boiling frog situation. The thing is, eventually when it cracks down, it does so all of a sudden. All of a sudden, you know, when the banks close, that’s when people go absolutely ballistic, because that’s when they realize that their money has been stolen from them - or when inflation turns to hyperinflation one day to the next. That’s when people see that even though you didn’t steal their money directly, as it happened here with the banks, you’re stealing it through inflation as well. So they just bought half of what they used to with the same amount of money. It’s, in a way, stealing their labor, their savings.
More at: http://www.chrismartenson.com/blog/argentina-case-study-how-economy-collapses/59179#comment-112587
