An Inflation Moment

[SaraSara]

Argentina’s biggest inflation maker is she has monitized her debt. Printing pesos to service the debt: buy dollars. Her dollar reserves are a product of the printing presses not soy beans. It is a very dicey practice. And the way things are going in the world, currency wars, things are going to get real crazy. A wheel barrow may be the tool of choice when making purchases.

You sound very knowledgeable. Would you elaborate a bit further? In a PM, if you want. I'd like to understand exactly what you mean by "monitizing" debt.

Last week the ATM dispensed only brand new hundred peso bills - in the past that has been a sign of really bad trouble ahead.

 

[perry]

For four years on this forum I have been saying do not keep dollars and buy property or gold and I have been laughed at as well as attacked personally and privately by the likes of Gouchobob and others.

Over time these words have been proven to be correct and anyone who kept dollars in the last years has lost a absolute fortune in buying power.

Since 2008 I have moved 90 percent of all my monies into gold and continue to do so as a mighty monetary crash is coming very soon. Fiat currencies are the biggest risk for all now.

 

[French jurist]

For four years on this forum I have been saying do not keep dollars and buy property or gold and I have been laughed at as well as attacked personally and privately by the likes of Gouchobob and others.

Over time these words have been proven to be correct and anyone who kept dollars in the last years has lost a absolute fortune in buying power.

Since 2008 I have moved 90 percent of all my monies into gold and continue to do so as a mighty monetary crash is coming very soon. Fiat currencies are the biggest risk for all now.

90% seems a lot (but that's your money).
Don't get me wrong, gold could go up to 2500/3000 usd, and I do agree (glad to see I'm not the only one) to a collapse of fiat currencies, or at least severe problems (now that nations themselves are the next to crash in a W shaped crisis).

Problem with gold is that as soon as things will get better, gold price will drop like a rock. Anyway if you bought around 800 you are safe.
Of course, only buy physical gold.

 

[French jurist]

The worst crisis since 1929 and 1870 is yet to come, get prepared.

 

[French jurist]

Too, like 6 months ago I heard that the subprimes had reached the pre-2008 crisis level (about 20% of loans given to people with a credit score of 660 or less. Something like that).
Governments don't learn, but did they have another choice ? (like letting the whole finance crumble down to start building again : it's what is going to happen.. I am afraid)

 

[mini]

90% seems a lot (but that's your money).
Don't get me wrong, gold could go up to 2500/3000 usd, and I do agree (glad to see I'm not the only one) to a collapse of fiat currencies, or at least severe problems (now that nations themselves are the next to crash in a W shaped crisis).

Problem with gold is that as soon as things will get better, gold price will drop like a rock. Anyway if you bought around 800 you are safe.
Of course, only buy physical gold.

The other problem with gold and property is that you are stuck staying where your gold and property is. You are not mobile and can't move to where the jobs are. It's difficult to carry all that gold around with you. In Europe the countries with the highest out right home ownership have been the poorest with the highest unemployment.

 

[SaraSara]

If everyone kept all their savings in solid gold the world economy would come to a screeching halt. Gold may keep its value, but it's a barren investment producing nothing: it generates no jobs, no products -- nothing at all.

Remember King Midas? Try eating gold when all farmers have gone out of business because there are no loans to buy seed.

Probably will to be torn to pieces for this post....

 

[perry]

If everyone kept all their savings in solid gold the world economy would come to a screeching halt. Gold may keep its value, but it's a barren investment producing nothing: it generates no jobs, no products -- nothing at all.

Remember King Midas? Try eating gold when all farmers have gone out of business because there are no loans to buy seed.

Probably will to be torn to pieces for this post....

Gold has been the most valuable commodity for thousands of years . much longer than any fiat currency . Gold has been traded for food since ancient greek times and is accepted in all cultures as the most divine barter from greek, chinese, indian , persian etc etc.

 

[dennisr]

In the perfect world, governments are suppose to pay debt with money that is already in circulation. They do not increase the money supply to service debt. Monetizing debt is when you borrow or print money to make the payments. It is a Ponzi scheme.

"Marco del Pont’s policy of printing pesos to buy dollars and weaken the local currency pushed Argentina’s reserves to a record $51.5 billion this week. As a result of the peso printing, the central bank had to raise the 2010 monetary expansion target in August to 29.4 percent from 19 percent."

 

[SaraSara]

Gold has been the most valuable commodity for thousands of years . much longer than any fiat currency . Gold has been traded for food since ancient greek times and is accepted in all cultures as the most divine barter from greek, chinese, indian , persian etc etc.

If everyone kept 90% of their money in gold there would be almost nothing to barter it for, as productive enterprises would starve without capital to grow and generate goods - not to mention jobs. As I said, a barren investment.