Robert F. Sennholz is a contributor to Inflationomics.com.
1. My dad told me that you can’t run from your problems…they’ll just follow you. Perhaps I was unfortunate to have a father who was a former fighter pilot whose primary instruction was, “Attack.”
2. Most of the world uses the U.S. dollar as their reserve currency. When the U.S. dollar fails, the countries holding U.S. dollars will have problems, too…and they will blame their problems on the United States and its citizens. Would I want to be in their country so they could persecute me? No.
3. I don’t speak any languages other than English (perhaps you are multi-lingual?). Most of the world speaks languages other than English. What kind of job would I be able to find when I don’t speak the language and my dollars become worthless? As a laborer? That wouldn’t last long…I couldn’t compete with all the rioting unemployed young people.
4. My income is all denominated in U.S. dollars and comes from U.S. sources. If the dollar collapses, my standard of living will fail no matter where in the world I am.
5. I could buy gold or silver and take it with me, thus having something I could live on (assuming I can take it out of the country and sell it safely). Maybe, but God help me if I run out of my gold/silver. Besides, where would I keep it for safe-keeping? Who can I trust? Fellow ex-pats who may decide that some other country is the best place to run to next?
6. Things change more slowly in the United States than in most parts of the world. It’s taking a lot longer for the U.S. dollar to collapse than I thought it would! I have more time to prepare for the worst in the United States than I would elsewhere. Poorer countries will be hit harder sooner. More Arab Springs anyone?
7. All the currencies in the world are fiat currencies. There is a race to the bottom; i.e., the central banks of the world are trying to cheapen their currencies first and most to improve exports (in exchange for other fiat currencies that will also become worthless). I don’t know which paper currency will be the next internationally recognized reserve currency, but many Americans still remember the silver coins we used to have and could use them instead…most other countries never had silver coins as currency.
8. China and Russia are accumulating gold and some day may have a currency backed by gold (which I sincerely doubt). Should I move to China or Russia where I don’t speak the languages and am not buddies with Putin or whoever the current Chinese communist leader is? I don’t think so.
9. I grew up in the United States…I know the ropes (at least, as they have been and are now)…I know who my friends and enemies are. I know what/whom to take seriously and what/who not to take seriously. I wouldn’t know those things in a foreign country. Of course, that might not do me any good anyway…don’t know. We’ll see.
10. Where else is better? Argentina, where they nationalize things and default on their debts periodically (come to think of it, most of South America nationalizes things)? Kenya? I’m not president Obama. When the U.S. dollar fails, other governments around the world will find themselves short of money (without reserves) and will find ways to seize their citizens’ (and foreigners’) money. Bank bail-ins, anybody? You won’t be an exception.
The problem is that the world is caught in the grip of an idea and it’s called socialism. Most people think it’s ok to take from the haves and give to the have-nots. Perhaps they don’t realize that in a society based on theft, it’s the best thief who gets to the top, or that theft is a violent crime backed up with force and that only the few (and ultimately the one) with the most force (biggest guns) stay in power.
It’s better to have a society where everyone has the same rights (equal protection) before the law and anyone (with enough smarts and ambition) can get ahead by producing more of what his/her fellow consumers want, not what the elected and armed wealth-seizers want. You see, if we elect wealth seizers/distributors to run our country, 99% of us will end up equally poor (see North Korea or Zimbabwe)…like the rest of the world has been for a majority of the past.
My dad thought that the way to change the world was through the dissemination of ideas. That’s why he was a teacher. Perhaps he was right, but I see the wrong ideas running rampant these days and I can’t help but wonder whether they don’t have to run their course before “we the people” wake up to what’s happening and right the wrongs that are consuming our wealth and well-being. Unfortunately, I don’t expect this to happen before we have consumed everything. In the meantime, it’s best to keep a low profile.