tag:blogger.com,1999:blog-8939666320943790100.post2992591644306229867..comments2024-02-11T01:14:21.904-08:00Comments on SURVIVING IN ARGENTINA: Cash and “Digital” money during a CollapseFerFALhttp://www.blogger.com/profile/07578136334334588454noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-8939666320943790100.post-35061782936392773582012-09-01T15:28:49.861-07:002012-09-01T15:28:49.861-07:00Dear Anonymous,
You have some false assumptions; ...Dear Anonymous,<br /><br />You have some false assumptions; one that because the situation in Argentina and current US are different in that we will not face economic hardships like them. We faced the 'Dark Ages' in 2008 and if FED Chairman Bernanke did not act we would be in a situation not unlike Argentina has been for 10 years. Not that it will do any good in the long run as collapse will come, no matter what the Fed does.<br /><br />Two; it is also false that 'gold floats'. Gold does not float, other currencies float in relation to gold. Fed Chairman Bernanke said the gold in Ft. Knox was an asset. Nowadays that is where you store your savings, in gold. Or you should!<br /><br />As for money supply, the Fed will pump it up like it has been for the last 4 years (an more) because all the debts are guaranteed to the hilt. It will never let the money supply be cut off, it will inflate to infinity and beyond. So while ironic, it will never happen that there would be a deflation. The Fed will never allow it. <br /><br />If and when the US Federal Government orders the banks perform corralito, you will need some paper money as cash will be king. That I will grant you. But not for long as the true value, when it is discovered, it will end up being like Confederate or Zimbabwe dollars - a curiosity.<br /><br />Gold on the other hand will not be. Right now Central Banks in EU are accumulating gold as an asset. China is buying gold mines in South Africa and Australia. If you don't have any now there won't be any available when the US public wakes up to worthless dollars and restricted banks. I say keep your paper money and I'll keep my gold, thank you very much.TampaMarkhttps://www.blogger.com/profile/15149751088277081912noreply@blogger.comtag:blogger.com,1999:blog-8939666320943790100.post-80831800943543378882012-08-31T09:29:29.342-07:002012-08-31T09:29:29.342-07:00This just in:
BUENOS AIRES, Argentina (AP) -- Arg...This just in:<br /><br />BUENOS AIRES, Argentina (AP) -- Argentina just made it more expensive for its people to use credit cards outside the country, and more dangerous for cardholders who aren't paying all the taxes they should.<br /><br />One measure published in Friday's official bulletin adds a 15 percent tax every time people make a purchase outside the country using a card issued by an Argentine bank. Another requires the banks to report every credit card purchase - home or abroad - to the tax agency.Larrynoreply@blogger.comtag:blogger.com,1999:blog-8939666320943790100.post-82271721908811123602012-08-30T10:57:16.973-07:002012-08-30T10:57:16.973-07:00"If banks close and/or limit withdrawals, tha..."If banks close and/or limit withdrawals, that does not seem like "inflation" to me." -Anonymous<br /><br />FerFal can correct me if I'm off, but that was only one thing going on at the time in Argentina.<br /><br />- Argentina's credit rating got cut<br /><br />- Argentina wouldn't balance its budget, and as a result<br /><br />- IMF refused to loan any more money to Argentina.<br /><br />This economic uncertainty probably went a long way to hurt the peso's value.<br /><br />The bank runs started when people thought it would be better to have dollars instead of Argentine pesos in the economic crisis they were already in. They started withdrawing pesos to exchange them for dollars -and that helped to devalue the Argentine peso even more.Larrynoreply@blogger.comtag:blogger.com,1999:blog-8939666320943790100.post-36679525702157415132012-08-29T06:26:31.383-07:002012-08-29T06:26:31.383-07:00If banks close and/or limit withdrawals, that does...If banks close and/or limit withdrawals, that does not seem like "inflation" to me.<br /><br />The situation people face today appears different than that faced in Argentina post-2001.<br /><br />Today there are trillions of $USD in claims on assets and cash flows (i.e. DEBT) and this counts today as "money." If those claims turn out to be bogus (and most of them must be), the most likely result should be a money supply collapse and a shortage of $USD. <br /><br />In the US in the 1930's gold was fixed in price (it was legal tender) and so it skyrocketed in value as the quantity of credit collapsed. Today gold floats just like everything else, and the only physically-existent money is stupid little ink-stained pieces of paper.<br /><br />If the quantity of credit collapses because its claims on current and future cash flows prove to be bogus, the most sure way to hold (or grow) purchasing power is to hold paper money. Sadly, until those claims prove bogus, TPTB are creating mountains of them and holders of cash appear to lose a lot of ground each year.<br /><br />How ironic would it be, if people screaming to buy gold here at nearly $1700/oz are totally wrong, and that an ensuing credit collapse deflation in the money supply makes people so desperate for "legal tender" that gold's price collapses 50-90% and the guy with 17 one-hundred-dollar bills is able to scoop up from two to seventeen ounces of gold once the deflation bottoms?Anonymousnoreply@blogger.com