Global Economy Continues To Cool
If it isn’t already, surviving economic collapse should be at the forefront of your mind. And with good reason; the pitiable state of the economy has sparked fear that the world is to face an even larger economic collapse in the coming year.
The recent global stock market turmoil has left investors panicked and worried. This is nothing compared to what we (and our ancestors) have seen in the past. Here we take a look at the most devastating financial crises that wreaked havoc through modern history.
The financial markets reflect the irrationality, optimism, and panic of market participants. Sometimes extreme optimism causes asset prices to disconnect from the reality, only to fall dramatically when the bubble bursts. Examples include the Tulip Mania (1637) and the South Sea Bubble (1720).
These are the top 10 most devastating financial crises:
10- Argentine economic crisis, 1999
Much like other Latin American nations, the Argentine economy was hit hard by the Latin American debt crisis in the 1980s. Its forex reserves were running low. The rampant corruption, sky high inflation, military dictatorship, and the Falklands debacle drove the Argentine economy to the verge of collapse.
The steep devaluation of the Brazilian currency in 1999 hurt Argentine exports. Soon the Argentine economy was in full-blown recession that lasted three years. Following the dramatic run on banks, the government froze everyone’s bank accounts. Violent protests erupted all over the country. In the absence of cash, people bartered for goods. Two consecutive governments failed to bring the economy out of recession. It took Argentina three years to recover from the crisis.
9- Russian financial crisis, 1998
Five years prior to the financial crisis, Russia issued GKOs – inflation-free treasury bills – to fund its budget deficit. The GKOs attracted a huge number of foreign investors because of high interest rates. The government was using proceeds from GKO sales to
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LewRockwell.com is a libertarian website that publishes articles, essays, and blog posts advocating for minimal government, free markets, and individual liberty. The site was founded by Lew Rockwell, an American libertarian political commentator, activist, and former congressional staffer. The website often features content that is critical of mainstream politics, state intervention, and foreign policy, among other topics. It is a platform frequently used to disseminate Austrian economics, a school of economic thought that is popular among some libertarians.