Contributed by: Partisan, of GUERRILLAMERICA.COM
From CNBC:
In July, Americans withdrew a record … $94 billion, from their banks — an amount equal to 7 percent of the country’s overall economic output — as doubts grew about the durability of America’s financial system.
More disturbing for America is that the flight is starting to include members of its educated and entrepreneurial class who are fed up with the lack of job opportunities in a country where the unemployment rate touches 25 percent.
The above paragraphs are actually about Spain, but could just as easily be written about America in the future. What we saw in Greece and what we’re about to see with Spain are going to be our reality as well.
After working six years as a senior executive for a multinational payroll-processing company in Barcelona, Spain, Mr. Vildosola is cutting his professional and financial ties with his troubled homeland. He has moved his family to a village near Cambridge, England, where he will take the reins at a small software company, and he has transferred his savings from Spanish banks to British banks.
“The macro situation in Spain is getting worse and worse. There is just too much risk. Spain is going to be next after Greece, and I just don’t want to end up holding devalued pesetas.”
But there is no doubt that many of those in a position to do so are taking their money — and in some cases themselves — out of Spain.
In another small handful of years – and maybe less – this could be your above-average American. I just don’t want to end up holding devalued dollars. The sovereign debt contagion is spreading. Through the rest of this year, we’ll continue to hear about the Eurozone collapse. Next year we could see the Amerozone collapse.
As far as leaving the nation, there are many out there who profess the economic freedom of Chile, New Zealand, Singapore, etc. But no nation aside from ours is distinctly American and there’s no nation where we can fight for our freedoms should our government become destructive to the ends of Life, Liberty, and the pursuit of Happiness. That’s why I moved to the American Redoubt.
According to official statistics, 30,000 Spaniards registered to work in Britain in the last year, and analysts say that this figure would be many multiples higher if workers without documents were counted. That is a 25 percent increase from a year earlier.
“No doubt there is a little bit of panic,” said José García Montalvo, an economist at Pompeu Fabra University in Barcelona. “The wealthy people have already taken their money out. Now it’s the professionals and midrange people who are moving their money to Germany and London. The mood is very, very bad.”
If you want a strong economic system, I implore you to move to the American Redoubt. Wyoming, Montana, and Idaho are ranked 8, 14, and 25, respectively, for national unemployment rates. The average unemployment rate of these three states would put the American Redoubt as a region in the top 25% in the nation. With an influx of American patriots who bring their businesses and families, those numbers could very well improve. We could do organically what national leaders are trying to do artificially: increase economic demand and create employment opportunities.
To read this, and other writings by Partisan, visit GUERRILLAMERICA.COM
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Note from JJS: Another well-written and thought-provoking article by Partisan. One project we’re develolping is an ‘Economic Recovery Team’, to formulate a comprehensive plan to rebuild the economy of the American Redoubt, post-collapse. It is in the conceptual stage at this point, so if any of you out there have economics backgrounds and/or expertise (and a Constitutional and Biblical view of money/economics), let me know! Email me at JohnJacob@RadioFreeRedoubt.com and type ‘Economic Recovery Team’ in the Subject line. Oh, and you MUST possess a willingness to participate. The time for talking and moaning and groaning is over.
Remember: “Prosperity follows peace.” This is why thinking/productive people who have in their power to hire others, with ANY choice in the matter do not build their businesses in crime infested ghettos and why those who CAN move to areas most likely to survive and eventually THRIVE the all too evident collapse are doing so. As JJS illuded to, this only reenforces the liklihood of enhanced prosperity in the Redoubt, being far above the national average.
Haaaar!
Popeye
I am not an economist, I don’t even play one on the Internet, but it’s clear to me that any post-collapse banking system will have to have these two features: specie money and no more fractional reserve banking. That may put a crimp on future growth, but those two features would prevent the disaster we’re living in now.
Bear, you’re right: in the post-collapse there will be no more loans to spur growth and money will be expensive. A decentralized banking system will eventually follow, but local barter economies will flourish. I kind of liken the post-collapse environment to Greek city-states (rather dreamily, I suppose) where merchants from one region trade wheat (or whatever) for, say, wine from a different region. I’m sure with some work, the Economic Recovery Team can lay a framework for trade routes or something to that effect.
I have a couple of suggestions for the Economic Recovery Team:
1) What will need to be done will be dependent on how unravelled the economy becomes. Rather than guess, and plan to, a single level of economic damage, why not take a layered approach? Layer ‘A’ is light damage, something we can see from here. Layer ‘B’ is more severe, but ‘fixing’ layer B brings you go layer A, where the layer ‘A’ plan can work. Layer ‘C’ is more severe than layer ‘B’, but fixing it brings you to layer ‘B’, where the B plan can work, etc..
2) Start with your ideal result and ask yourself what it would take to get there from a given starting point. You’re likely to make fewer wrong turns if you have a clear idea of where you’re going.