America today is like Chile in the 1980s.
"The Chicago Boys persuaded the junta that removing restrictions on the
nation’s banks would free them to attract foreign capital to fund
industrial expansion.
Pinochet sold off the state banks - at a 40% discount from book value -
and they quickly fell into the hands of two conglomerate empires
controlled by speculators Javier Vial and Manuel Cruzat. From their
captive banks, Vial and Cruzat siphoned cash to buy up manufacturers -
then leveraged these assets with loans from foreign investors panting to
get their piece of the state giveaways.
The bank’s reserves filled with hollow securities from connected
enterprises...
By 1982, the pyramid finance game was up. The Vial and Cruzat “Grupos”
defaulted. Industry shut down, private pensions were worthless, the
currency swooned."
And the results were spectacular:
"In 1973, the year General Pinochet brutally seized the government,
Chile’s unemployment rate was 4.3%. In 1983, after ten years of free-
market modernization, unemployment reached 22%. Real wages declined by
40% under military rule.
In 1970, 20% of Chile’s population lived in poverty. By 1990, the
year “President” Pinochet left office, the number of destitute had
doubled to 40%. Quite a miracle."
The US is in for the same thing.
http://civillibertarian.blogspot.com/2006/12/tinker-bell-pinochet-and-fairy-tale.html