For those outside the Country...on long vacations or sabaticals
Posted October 7th, 2008 by voterp
output
So how is this going to effect our Central and South American Nations and locals...
and extended vacationers..?
Economics? Working conditions ok?
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Brazil and Argentina
Will no longer use the US dollar in transactions between them.
Instead the Brazilian Real will be the currency in use.
are they pretty stable at
are they pretty stable at the moment?
yep
http://www.time.com/time/...
My experience in South America
Suggests that it's actually kinda self sufficient. The part I live in doesn't seem to have an awful lot commerce with the north. Brazil and Argentina seem to be pretty big players.
Argentina already had a
Argentina already had a collapse. Do you think they are at risk again?
Depends...
on if they reinflated to get out of it, or if they're heavily integrated in the global economy. I'm pretty sure that the USA is the number one or number two trading parter for most of South America so if/when we go down they'll probably feel it, but to what extent I do not know. That all depends on how much their economy relies on exportation/foreign investment.
Also, don't underestimate the psychological impact of all this junk. Investors are skittish right now, so they're apt to get out of the way if the market starts moving. That, in turn leads to wild swings and drives more people to the side lines and so on and so on. Basically the fear of a collapse always makes matters worse, and can precipitate the actual collapse event.
So if they're not self reliant, they reinflated, or they start to panic because the sky is falling, then they'll be in for a world of pain whether or not they just went through a collapse (in fact their economy is probably pretty fragile making it all the more likely to happen).