Headlines America a Banana Republic?

RebelBuddha

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Okay, im not starting this thread for my own personal contributions as much as i am for the commentary by other members more "in the know" about the economy and things. I'm eager to learn.

So this is a video that sparked my interest.


I was curious after reading a wiki on a Banana Republic as to if or not you all think we're in or moving towards such a thing. Why or whynot?

So id like to keep it centralized around a banana republic, but any other commentary on the video is welcomed.
 

RageAgainst

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Hell no. A banana republic is a country whose main source of wealth is exportations, especially of one thing in particular (like bananas). The wealth is not distributed at all in social infrastructures, it is kept by the elite and spent in the military to solidify their position and in their own leisure. Banana republics were more frequent in the 1960-1970-1980's, and by definition were countries allied and supported by the United States.

So for the US to be a banana republic, it would need to become an exportation oriented economy and spend most of its profits on the military to avoid a revolution. The elite would be extremely rich while the rest of the population (over 99%) would live in a world of shit. The elite would be supported by the country who gains most from the exportations.

Whose bitch would we be? China's? I don't think so. If the economy ever collapses, the US will become auto-centered, i.e. the economy will become local instead of global. I don't think it'll become a banana republic.
 

Avidity

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I have to agree with Rage on this one. If the economy collapses, the U.S. will revert back to its pre-Civil War stance of local government (minus the slavery, :p).
 

Bauber

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I also agree with Rage - amazing. Although Rage is usually pretty spot on with economic knowledge and advice.
 

RebelBuddha

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Hell no. A banana republic is a country whose main source of wealth is exportations, especially of one thing in particular (like bananas). The wealth is not distributed at all in social infrastructures, it is kept by the elite and spent in the military to solidify their position and in their own leisure. Banana republics were more frequent in the 1960-1970-1980's, and by definition were countries allied and supported by the United States.

So for the US to be a banana republic, it would need to become an exportation oriented economy and spend most of its profits on the military to avoid a revolution. The elite would be extremely rich while the rest of the population (over 99%) would live in a world of shit. The elite would be supported by the country who gains most from the exportations.

Whose bitch would we be? China's? I don't think so. If the economy ever collapses, the US will become auto-centered, i.e. the economy will become local instead of global. I don't think it'll become a banana republic.

Well, from what i read about a Banana republic, it has little to nothing to do with if or not the country is import or export oriented (though it does say it is agriculturally dependent). It seems to say more to How it is ruled and the ratio of foreign debt to GDP. It also seems to talk more about the polarization of rich and poor.

So, I'm sure there is something more i need to read about it, but from what i see, or can understand, we seem to be fitting the profile. We are a politically unstable country spending money on military and military legislation to keep those in power in power. We also have the massive solvency of the middle class, forcing the inevitable polarization of classes, the only thing we dont have to fit the mold is a dependency on agriculture.

You have any links that you would recommend for better understanding on it?
 

RageAgainst

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Well, from what i read about a Banana republic, it has little to nothing to do with if or not the country is import or export oriented (though it does say it is agriculturally dependent). It seems to say more to How it is ruled and the ratio of foreign debt to GDP. It also seems to talk more about the polarization of rich and poor.

Yes, the ratio of foreign debt to GDP was quite huge in banana republics, because dictators who were our bitch accepted huge loans to fund big infrastructure projects useful for resource extraction/exportation. When the Federal reserve (Paul Volcker) raised interest rates through the roof to fight stagflation around 1980, those countries debts went from 4-5% interest to literally 20%, which caused the third world debt crisis of 1982. After that, those countries had to export all their shit, to pay their debt.

Therefore, a banana republic is entirely export oriented.

We also have the massive solvency of the middle class, forcing the inevitable polarization of classe

That doesn't make sense; if the middle class is massively solvent, there is no polarization. Polarization is when you have a small elite who owns pretty much everything and the rest who are very poor. That's the case for banana republics, but not for the US.

The entire point of the video, though, is not banana republics but the option faced by the US: defaulting on debts or hyperinflation, which I also predicted here, and I seriously hope that I'm wrong.
 

RebelBuddha

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well the bit that sparked anything about a banana republic was right at the end... he didnt even go in depth about it. Thats why i was curious about it. Thanks for the info.
 

RebelBuddha

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HhhhhWheird. Who could have predicted it?

Albeit you could argue it's a subjective interpretation. I find it highly interesting.

"Unfortunately, as we showed back in November 2019, it may already be too late to fix the US: as the following stunning chart shows, the US is already effectively a banana republic if one defines such a nation as one which has a small but ultrapowerful and unaccountable kleptocracy which gets richer year after year by stealing from the rapidly shrinking middle class."

https://www.zerohedge.com/markets/u...top-1-now-own-more-wealth-entire-middle-class
 

CoprophagousCop

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1. Holy Necropost, Batman!

2. I have always seen the largest difference between Republicans and Democrats to be their view of the wealth gap in the United States. Republicans are always trying to widen the wealth gap by cutting taxes for the ultra-rich while also cutting social programs that benefit the poor and middle class. Democrats are always trying to do the opposite.

@RebelBuddha I thought you have identified as a Libertarian, which often follows the same philosophy as Republicans. However, a Banana Republic, as defined by the Zero Hedge site you linked, is exactly what Republicans want. So are the Libertarians with the Democrats when it comes to the wealth gap?
 

RebelBuddha

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1. Holy Necropost, Batman!

2. I have always seen the largest difference between Republicans and Democrats to be their view of the wealth gap in the United States. Republicans are always trying to widen the wealth gap by cutting taxes for the ultra-rich while also cutting social programs that benefit the poor and middle class. Democrats are always trying to do the opposite.

@RebelBuddha I thought you have identified as a Libertarian, which often follows the same philosophy as Republicans. However, a Banana Republic, as defined by the Zero Hedge site you linked, is exactly what Republicans want. So are the Libertarians with the Democrats when it comes to the wealth gap?

I'm not sure anyone said anything about Dems or Reps. They're all government. It's pointing out how the economy and political classes are distributed in the US.

I identify as a libertarian. Because I like Liberty and I hate the political system and the two party shit show.

Libertarians in general don't side with any particular party. They're for free association, responsible and decentralized economics and in almost every case a dissolution of the federal government. Democrats and Republicans ARE the federal government. So fuck'em.

Most of what both parties say as far as econ is lip service to win elections, and then in practice they're absolute shit-lords.
 

WolfmanYZ

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I identify as a libertarian. Because I like Liberty and I hate the political system and the two party shit show.
I entirely agree, the United States is falling apart because of the system. But the last thing we need is another green party or communist party.