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What is an Economic Collapse?

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Clyde

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Definition of 'Economic Collapse'

A complete breakdown of a national, regional or territorial economy. An economic collapse is essentially a severe version of an economic depression, where an economy is in complete distress for months, years or possibly even decades.

A total economic collapse is characterized by economic depression, civil unrest and highly increased poverty levels. Hyperinflation, stagflation and financial-market crashes can all be causes. Government intervention is usually necessary to bring an economy back from collapse, but can often be slow to remedy the problem.

Investopedia explains 'Economic Collapse'

The Great Depression in the United States is a prime example of an economic collapse. The 1929 stock market crash brought on a collapse that lasted for many years and saw high levels of poverty. Well-known economist John Maynard Keynes claimed this was from the total lack of government involvement in the economy or the financial markets (Investopedia ULC, 2012).
 

goodselfme

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We are about to learn exactly the meaning of economic collapse. I do think we will experience this in less than 2 years. It might be sooner if we have 4 more years of the present administration running America into the ground.
 

Clyde

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We are about to learn exactly the meaning of economic collapse. I do think we will experience this in less than 2 years. It might be sooner if we have 4 more years of the present administration running America into the ground.
If i handled my money the way this administration has handled theirs I would be put in debtor's prison in short order!

This guy spent more money in less than 2 years than his 43 predecessors did in over 200 years!
It appears they have used mexico's style of economic recovery.... print it and they will come.... though this kind of worked.... China now has all of our cash!
 

Krime

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thats bull, the reason for the crash of 29 is this: the central bank runs all moneys and most debt not borrowed from other countrys, there for people invested in central bank make money per payed bac loan ie 1.00 is lent 1.10 is returned (just an example) but central bank can call in their loan at any time, during 1929 they opened 'mutual' stocks where only centrel bank and investors were alowed to place their money, central bank then called in their loan, banks had to pay back loans on the spot and didnt have enough to cover that + giving back money they were 'holding' for the people, ppl lost fortunes, buisnesses, because of this the market crashed, leaving only high end stocks that could afford the repay (or were invested in central bank) and those mutual holdings, central bank and investors became rich, america suffered, crazy hu?
 

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All I know is that my mortgage payment and my food bill to feed 5-6 people every month is just about a tie. Every time I go to the store the price of something has gone up. And lets not even talk about gas prices...
 

Clyde

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All I know is that my mortgage payment and my food bill to feed 5-6 people every month is just about a tie. Every time I go to the store the price of something has gone up. And lets not even talk about gas prices...
it is getting ridiculous! Where I am at even Costco gas is passed the $4.00 mark.
 

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it is getting ridiculous! Where I am at even Costco gas is passed the $4.00 mark.
Are you in CA ? We are close to $4.00 but we are not quite there yet. I know it hurts. Every time I fill up I count how many hours I had to work to pay for the gas to get to work for the week, lol.
 

Clyde

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Are you in CA ? We are close to $4.00 but we are not quite there yet. I know it hurts. Every time I fill up I count how many hours I had to work to pay for the gas to get to work for the week, lol.
Yes I am. Where do you reside? If I may inquire.
I have done the same. Thankfully I have a car that has a 12 gallon tank and gets about 30 miles per gallon.
 

Clyde

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I'm in Jacksonville Florida.
I've been there....
I heard on the radio this morning that there is a theory that if obama wins in November the country will have about 18 months before it financially goes belly up, with California leading the way.
 

Hades

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John Maynard Keynes was an idiot, lol. It was not the lack of government involvement in the economy or the financial markets (Investopedia ULC, 2012). In fact history tells a different tale.
The US economy is dependent on 1 single thread, and that is confidence , It is absolutly no different now than then. the stock market is the valued proof of our nations investors feelings on the future.
The stock market had ran a course of perpetually higher levels, in fact to levels that were absolutly unsustainable, By August 1929, brokers were routinely lending small investors more than two-thirds of the face value of the stocks they were buying. Over $8.5 billion was out on loan, more than the entire amount of currency circulating in the U.S. at the time. The market had been on a six-year run that saw the Dow jones increase in value fivefold, peaking on September 3, 1929. Shortly before the crash, economist Irving Fisher said "Stock prices have reached what looks like a permanently high plateau."
In the days leading up to the crash, the market was severely unstable. . Economist and author Jude wannisky said these swings with the prospects for passage of the Smoot–Hawley Tariff act , which was then being debated in Congress. Do you think investors dont know what polotitions are doing?

In may 1929, the house passed a bill, that would become known as the Smoot–Hawley Tariff act, a law that was proposed to keep US workers working and a higher tax on all imports.
It all sounded great except for the backlash that noone seen. or atleast no polotitions, many investors could clearly see the future. When US taxed all imports, every other country taxed our exports to make it fair. Imports fell by over 60%, exports fell by over 60% in following years, GDP formula—declined from 1 billion to 600 million. over the next few years. Now it goes without saying that this tarriff alone did not cause the crash, but do you think investors did not know of it, and act acording. at the first sign of the begginning, they closed out. leaving people who should not have been invested at all to scramble for thiers.
If the stock market hadnt crashed, the result would have been the same, we tax them, they tax us on thier imports. we take in less imports, so do they, without exports people here dont work. It really is that simple.


Anyone can say it was because of the governments failure to act, or that because of something the government did was the cause. Both would be right and wrong in thier opinions. It is my position that the federal goverment has no place in controlling free market. Each to thier own.
Any disaster will not be the blame of a single circumstance, but a failure on any of the many fronts, that are so intertwined that they cannot be seperated by man. When we live in a system that is proped up on nothing more than the smoke and mirrors of a sytem that is supported by nothing more than Confidence , then we are no farther than a single storm of wind and water to wash it away.

My 1st rule in survival is to know history, history repeats itself. If we dont know why we are in the positions we were in we will not know how to protect ourselves.
 

Krime

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history may tend to repete itself, however, you must also include the new variables that come with it as well.
take for example, newer technology, newer weapons, newer outlooks on life weather good or bad.
the actions of history may reserface, however, the outcome may be quite different than the first.
 

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If i handled my money the way this administration has handled theirs I would be put in debtor's prison in short order!

This guy spent more money in less than 2 years than his 43 predecessors did in over 200 years!
It appears they have used mexico's style of economic recovery.... print it and they will come.... though this kind of worked.... China now has all of our cash!
The sad thing is that china owns our debt but they can't call it in because they depend on us to buy there goods. Kinda funny if you think about it. IN WAL-MART WE TRUST !!! LOL
 

Clyde

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The sad thing is that china owns our debt but they can't call it in because they depend on us to buy there goods. Kinda funny if you think about it. IN WAL-MART WE TRUST !!! LOL
They cash in the debt we are going to be up a major creek with out a paddle!
 

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