Surviving the Collapse

Castle in the Clouds

There are many scenarios that one can prepare for, but this is specifically dedicated to helping you prepare for the coming socioeconomic collapse of the United States. First let us define what a socioeconomic collapse is. According to Websters Dictionary socioeconomic means a combination of social and economic factors, and collapse means to break apart. In a socioeconomic collapse there will be several factors which will determine when there actually is a collapse and most of the time we won't know it hit us. Many of us think that it will hit us suddenly, like a bomb, however that isn't the case. We will use the socioeconomic collapse of Argentina from 1998-2002 as our primary example. The factors which contributed to Argentina's collapse were:
 * 1) The Asian financial crisis of 1997
 * 2) The Russian financial crisis of 1998
 * 3) The Brazilian financial crisis of 1999
 * 4) Widespread unemployment
 * 5) Riots
 * 6) Fall of government
 * 7) Failure to repay national debt
 * 8) Rise of alternative currencies
 * 9) Ending of the Pesos fixed rate to the US Dollar

The Asian Financial Crisis of 1997

In the countries of Southeast Asia, during this time period there was great economic unrest. This was all due to the devalue of the Thai baht currency. What started this was an announcement made by their prime minister General Chavalit Yongchaiyudh when he said that he would reduce the value of the baht. Because of this, and the lack of funds to back the baht, 600,000 foreign workers were sent back to their native countries, the Thai stock market plummeted 75%, and their largest finance company Finance One evaporated. Not only did this collapse spread from Thailand, to Indonesia, South Korea, and Hong Kong, but there was a great fear that it would spread to even South American countries. As a result drastic steps were made by countries such as Brazil.

The Russian Financial Crisis of 1998

Beginning in August 17,1998 the Russian government devalued the Russian Ruble failed to pay its domestic debt, and declared temporary prohibition on paying foreign creditors. As a result of these policies, Russian inflation in 1998 reached 84% and there were similar living conditions as in the American Great Depression. Another problem was that millions of people had lost their life savings due to inflation. In October of 1998 military units were placed on high alert due to demonstrations across the Russian cities of Vladivostok, Krasnoyarsk, Yekaterinburg, and Moscow itself. Due to these instances, spending dropped 4% locally from 18.2% to 14.8%, federal support of the Agriculture economic sector dropped sharply, and politically, support for officials plummeted. Not only did it affect Argentina, but it also affected the World Market as a whole. Countries affected by this crisis were: The "Samba" Effect
 * The Baltic States
 * Estonia, Latvia, and Lithuania were reduced to recession.
 * Heavy decline in exports from said countries to Russia in 1999
 * Food, Beverage, and Processing industries suffered the most in these countries
 * Belarus
 * Output growth fell from 8.5% to 3.4% in a single year from 1998-1999
 * GDP (Gross Domestic Product) dropped from 6.1% to 2.2% from 1998-1999
 * Kazakhstan
 * No exports were able to be made during this time period
 * Domestic industries were being destroyed through the consumption of cheap Russian goods being imported
 * Kazakhstan spent nearly $1 Billion to balance their local currency during this period
 * Foreign reserves lost half of their value
 * Moldova
 * Before 1998, Russia purchased 85% of Moldova's wine, brandy, canned goods, and tobacco. After the crisis all imports stopped.
 * Crisis cost Moldova 5% of its annual GDP
 * Forced Moldovan Parliament to look to other markets than Russia
 * Ukraine
 * Ukrainian Hryvnia lost 60% of its value
 * Local prices rose 20%
 * Bank of Ukraine lost 40% of its total reserves
 * The United States
 * DOW Jones Industrial Average fell 984 points in 3 days
 * As a result it destroyed the year's market gain
 * Stock market was saved by the Federal Reserve through interest rate reductions
 * Uzbekistan
 * Government banned unlicensed sales of food most of which was imported from Russia

This is in reference to a huge drop of 35% of the Brazilian currency in 1999 which resulted in widespread interest rate increase, spending cuts, and tax increases, to stabilize its national currency. A cause of the 1997 Asian Financial Crisis. This however did not affect the currency whatsoever and therefore Brazilian officials had to peg it to the US dollar further lessening it's value. But the United States, in answer to pleas from the Brazilian government received a $41.5 Billion dollar package to stabilize its currency.

Widespread Unemployment

In Argentina, during this time unemployment reached 25%. This is staggering because we have to remember that it is 25% of its total population. At the time, it was 9,066,366 out of only 36,265,463 people were unemployed. Petras, James (30 October 2011). "Argentina: Depression, Revolt and Recovery". Global Research.Archived from the original on 23 January 2013. Retrieved 23 September 2013. "Between 1998–2002, Argentina experienced the worse socio-economic crises in its history. The economy nose-dived from recession to full scale depression, culminating in double digit negative growth in 2001–2002. Unemployment reached 25% and in many working class neighborhoods, over 50%. Tens of thousands of impoverished middle class professional lined up to receive bread and soup only blocks away from the Presidential palace. Hundreds of thousands of unemployed workers, piqueteros (picketers), blocked major highways and some raided trains shipping cattle and grain overseas. Banks closed depriving millions of depositors of their savings. Millions of middle class protestors organized radical neighborhood councils and linked up with unemployed assemblies. The country was heavily indebted, the people deeply impoverished. The popular mood was moving toward a revolutionary uprising. Incumbent President Fernando De la Rúaresigned in December 2001 as scores of protestors were killed and wounded during a popular rebellion that threatened to seize the presidential offices at the Casa Rosada. By the end of 2002, hundreds of bankrupt factories were 'occupied', taken over and run by workers. Argentina defaulted on its external debt. In early 2003, Néstor Kirchner was elected President, in the midst of this systemic crisis and proceeded to reject efforts to enforce debt payment or repress the popular movements. Instead he inaugurated a series of emergency public works programs. He authorized payments to unemployed workers (150 pesos per month) to meet the basic needs of nearly half the labor force. The most popular slogan, of the multitudinous movements occupying the financial districts, factories, public buildings and the streets wasQue se vayan todos ("All politicians get out"). The entire political class, parties and leaders, Congress and presidents were rejected outright. But while the movements were vast, militant and united in what they rejected, they had no coherent program for taking state power, nor national political leadership to lead them. After two years of turmoil, the populace turned to the ballot box and elected Kirchner with a mandate to produce or perish. Kirchner heard the message, at least the part which demanded growth with equity." This was similar to the American Great Depression of the 1930's. It's always difficult to find a job, but its even harder to find it in times like these. Be prepared.

Riots

In December 2001 riots broke out the most violent of which took place between the 19th and 20th of December. The riots began when the Economics Minister Domingo Cavallo made limitations on withdrawals of cash. By allowing people to still make payments by credit card, checks, and other forms of non-cash payments, he hoped to control the crisis in a period of 90 days, and stop the drain on deposits, until the debt could be completed. However, business slowed to a snails pace and large lines were formed at every bank. Long delays, and problems began to arise and soon grounded down to a halt. Soon convenience stores, and supermarkets were looted.

Fall of Government

As a result of the riots, increased crime, and general chaos, President Fernando de la Rusa formerly resigned on December 21, 2001. Confrontations between police and citizens became a normality. Then  Ramón Puerta became the head of state and afterwards Adolfo Rodríguez Saá, the governor of San Luis replaced him, shortly afterwards replaced by Eduardo Duhalde, and even Duhalde was replaced by Néstor Kirchner. This is an example of the type of political turmoil we can see in the United States. When this happens the government cannot adequately control everything anymore. Crime rates will skyrocket, and you will have to take care of yourself, your family, and your friends.

Failure to Repay National Debt

We see that America is also having this problem and the current political leaders aren't doing anything to solve this issue. With Argentina, the Rodriguez Saá administration failed to pay its national debt of $132 Billion, that is $188,490,000,000! By failing to pay off this debt, he created an entire new currency called the Argentino which was only exchangeable in cash but not in any other form and be pegged to the price of federally owned land. But it wasn't backed by the rest of the national government and therefore was never instated. Therefore Eduardo Duhalde was elected.

Rise of Alternative Currencies

This is also what we are seeing in America today. With the creation of Bitcoin, there have been thousands of other "cryptocurrencies" which have emerged and are now in direct competition with banks across the United States. Other currencies include Litecoin, Darkcoin , and Dogecoin. Other legal currencies in use in America today include the famous Ithaca Hour. These were created with the fear that the fiat currency of the United States will eventually collapse. In Argentina what happened was that although there were these currencies which arose, the cash supply for these currencies could not be supplied for the demand, therefore sadly they too fell into inflation's grasp, as well as the government's lack of accepting them to pay for taxes and other government charges.

Ending of the Peso's fixed rate to the US Dollar

Duhalde temporarily had the crisis under control and therefore called for a new election. With the election of Kirchner on May 25, 2003, he planned to increase imports and had a plan to increase tax revenue as well as encouraged domestic production. Eventually during his term the peso reached a 3:1 exchange ratio with the USD. Measures had to be taken to actually limit the rise of the Peso and redevelop local industry.

The Ensuing Nightmare

We as American Citizens are beginning to see such affects in America today. If things continue on their course, we will have a similar crisis on our hands and it won't just affect us, but it will affect the world. These are dark days for ourselves and our nation. But with preparation, we will come on top and we will survive. Remember, it's not an "if", it's simply a "when".