When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Sunday, March 2, 2014

Dollars, Euros, Gold

Currency has two primary purposes -- medium of exchange, and store of value -- when it loses either, you better have a viable option:

Argentina’s black market for hard cash: Buenos Aires deliverymen will bring the currency you need.: " . . . This year extreme inflation has sparked the country’s latest economic crisis, and locals are increasingly desperate to acquire foreign currencies. “Three things are stable here—dollars, euros, and gold,” Miguel Figueira, a Buenos Aires bank auditor, tells me. This isn’t the first time the peso has gone wobbly—in fact, many Argentines say they’re used to financial crises, which seem to occur like clockwork every 10 to 15 years. The most recent was in 2002, when the country defaulted on billions of dollars in debt. Hyperinflation saw the peso’s value slashed in half. Banks froze citizens’ savings accounts to prevent them from taking out their money, which had been deposited in dollars. Unemployment and poverty skyrocketed; the recovery took years. . . ." (read more at the link above)

When is the last time you heard the Fed concerned about the Dollar as medium of exchange or store of value?


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects