Weaseldog's Lair: Serguei Vorojtsov Discusses Business During Perestroika

Tuesday, January 27, 2009

Economic Crisis: My Two Rubles

At 2:24 PM, Anonymous said...: Hi weaselgod,

Funny, I agree with him in strange ways. He notes the russian default, then goes on to say that usa may experience a similar event. In a macro sense, the usa and fsu are very similar, both are lawless kleptocracies at the highest power levels. However, i diagree that the usa will default in its own currency, that would cause a worldwide epic deflation, because the only way that most usa "money" exists in a "stable" form is through treasuries. If another world currency is accepted we will likely experience large inflation, but likely not 1000% yoy. On a micro level, the upper eschalon kleptocracy will certainly force a larger and larger segment into the underground economy, both due to a lack of currency among the masses, and a desire to be off the PTB radar. It is an interesting comparison, I'm sure many volumes could be written.