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Comparing the US with Argentina is wild. Americans are buying gold because there's a lot of propaganda about how the country is going to hell, the economy is fu

Comparing the US with Argentina is wild. Americans are buying gold because there's a lot of propaganda about how the country is going to hell, the economy is fucked and there's plenty of marks out there that fall for this, while unemployment is historically low and the mcdonalds close to me is offering 17 an hour for line workers. There's been a huge increase in ads about "buying hold to protect yourself" instead of buying US government bonds, that will actually make you money, because these grifters feed off fear and there's plenty of people there that will believe in it. These people will all lose money on this gold when they decide to sell it.

noduerme 3y ago
This isn't some fear grift, just so you know. I lived in Argentina for many years, my family is from there, and I've been saying for awhile that America is on the brink of making the same mistakes that Argentina makes that lead to cycles of hyperinflation, default, and instability. It's clear that it's "wild" in the sense that everyone in the world pegs their economy to USD, and as long as you expect that to continue you have nothing to worry about. Fundamentally, though, in its divided politics and its willingness to oscillate between propping up the economy and going hog-wild with privatization, the US is the same as Argentina and has been for a long time. The only difference is the ability to project military power and enforce the value of its currency through bribery and fear; Argentina doesn't have that ability. (Nor would we think it would be great for the free market if she did).
- mlinhares 3y ago
  I’m Brazilian and I lived through our hyperinflation over the 80s and 90s, it’s not the same at all, if it was the economy would already be underground given how much money was printed
- marcosdumay 3y ago
  Brazilian here, I've also experienced the hyperinflation at the 80's and 90's. The US has recently been moving on the exact opposite direction from hyperinflation. At least on the short term, they don't have exploding debits, they are removing money from the economy, and have a concerned monetary regulator.
Izkata 3y ago
> unemployment is historically low This is a marker of a coming recession. The spikes happen after recessions begin, and it's bizarre that it's been so low for so long: https://fred.stlouisfed.org/series/UNRATE https://fred.stlouisfed.org/series/UNRATE Not exactly the same thing everyone's talking about here, but "historically low unemployment" isn't exactly a good thing overall - IIRC the theory behind why it signals a coming recession is something like "reduced job mobility because people are afraid of losing their jobs", because it only counts people who are unemployed and looking for a job.

noduerme 3y ago

This isn't some fear grift, just so you know. I lived in Argentina for many years, my family is from there, and I've been saying for awhile that America is on the brink of making the same mistakes that Argentina makes that lead to cycles of hyperinflation, default, and instability. It's clear that it's "wild" in the sense that everyone in the world pegs their economy to USD, and as long as you expect that to continue you have nothing to worry about. Fundamentally, though, in its divided politics and its willingness to oscillate between propping up the economy and going hog-wild with privatization, the US is the same as Argentina and has been for a long time. The only difference is the ability to project military power and enforce the value of its currency through bribery and fear; Argentina doesn't have that ability. (Nor would we think it would be great for the free market if she did).

mlinhares 3y ago
I’m Brazilian and I lived through our hyperinflation over the 80s and 90s, it’s not the same at all, if it was the economy would already be underground given how much money was printed
marcosdumay 3y ago
Brazilian here, I've also experienced the hyperinflation at the 80's and 90's. The US has recently been moving on the exact opposite direction from hyperinflation. At least on the short term, they don't have exploding debits, they are removing money from the economy, and have a concerned monetary regulator.

Izkata 3y ago

> unemployment is historically low This is a marker of a coming recession. The spikes happen after recessions begin, and it's bizarre that it's been so low for so long: https://fred.stlouisfed.org/series/UNRATE https://fred.stlouisfed.org/series/UNRATE Not exactly the same thing everyone's talking about here, but "historically low unemployment" isn't exactly a good thing overall - IIRC the theory behind why it signals a coming recession is something like "reduced job mobility because people are afraid of losing their jobs", because it only counts people who are unemployed and looking for a job.