The Result of Economic Collapse

Raging Debate.com ^ | 9-21-09 | Jason Rines

[iThinkBig]

was curious what a 'collapse' would look like for a superpower and the most recent reference point is the former Soviet Union 1991-1998 meaning these events reach a tipping point rather then instantaneous collapse. The Russians experienced both a deflationary environment on non-essential goods and hyperinflationary on essential goods such as energy and food. If you lived in the colder portions of Russia you could expect enough diesel or electricity for two to three hours a day which kept a few people together under one roof from freezing. Food rations such as wheat were provided so starvation was rare but hunger prevalant.

In Russia this event created two seperate economies. one was the cash economy called the cash loop and the second is the barter economy, the barter loop. The general population would look for work but jobs did not pay enough for roof, energy or food. Needless to say, crime was rampant. Some entrepenuars became in effect brokers of debt trading for necessary commodities. Luxuries were black market only. So in a sense this scenerio would be an extreme life changer for the general population but not to the extent of those whom envision outright armageddon when collpase is discussed.

[justa-hairyape]

Unfortunately what the MSM never talks about are the vendors who do business with the government. You know, the actual free market companies that turn a lot of our tax dollars into goods and services. They are getting stuck with worthless IOU’s and/or higher taxes. They are shutting down. They are going away.