Sunday, 20 December 2015
With no warning (the central bank and government have EVERY reason not to give any warning to the public....for their 'special friends' that's a different matter entirely), so save for the very few citizens who were paying attention, Argentinians woke to a big surprise.
- They went to sleep richer than Poles or Hungarians, but woke up poorer than Equatorial Guinea after a HUGE devaluation of their currency....say 25-30%.
Those who held their wealth and savings in Argentine Pesos took a monstrous 'hit' in return for trusting their currency (which was backed by the full faith and credit of their massively indebted government).
- Does that remind you of anyone? Bueller......Bueller? Anyone?
Precious metals (Gold and Silver) are an insurance policy against a worthless and non-redeemable fiat currency whether you are Argentinian or American, Greek or Cypriot. The list can go much longer, but you get the idea.
Trusting fiat* as a store of wealth and/or for wealth preservation is like trusting a government that talks about how things 'should be' but avoids dealing with how things 'are'.....or trusting in the value of those unicorn options you hold on the COMEX.
*fiat: a claim check on debt.
From Theo Spark at 12:22