The Argentina peso currently is 1.7 cents to the dollar, a fraction of most of its former value over the years. Argentines use the peso for so called ‘basic transactions,’ still, but the dollar is the real value, and people store them under mattresses and in savings accounts. The Argentina problem began with former dictator Juan Peron. He was discharged from the military in 1930, after being stationed in Italy, where he became entranced with socialist Mussolini’s Italy and its fascism (socialism), telling his superiors that it was, “An organized state for a perfectly structured community, for a perfectly structured population.” He became the national labor secretary in 1943, creating health pensions, low cost housing, and enforced labor laws. He quickly became president and did exactly what Venezuela’s president did decades later, nationalizing utilities, transportation, and anything he could get his hands on. As usual with socialism, stealing from the rich, giving to the poor, and endless spending with huge deficits, killed the economy, and most citizens became poor. The poor and uneducated, still shout their approval of Peron! Peron totally disrupted the economy, and it has continued so to this day. Peron’s disastrous actions have stuck to Argentina like glue, and ‘Peronistas’ continue to run for office and often times make it.
Economists have described Argentina, as under a ‘perpetual mismanagement,’ with the average inflation rate in recent history being 230%. Argentina has a population of 44 million, and is heading to a default of $115 billion in foreign currency bonds, and owes an additional $44 billion to the International Monetary fund. It has received close to 30 IMF aid packages over the past 60 years, and has not obeyed the packages’ instructions to enact strict austerity. Argentina has routinely spent more than it receives in taxes every year since 1950. Sound familiar?
The U.S. government had a deficit of 3.9% of GDP last year, compared with Argentina’s 5%, and according to the Congressional Budget Office, this year’s U.S. deficit may grow to 4.9%. Why then, hasn’t the U.S. economy crashed, and if not, will it? Venezuela’s economy and money is worthless, thanks to socialism, why not ours? Easy. America is not a socialistic nation, has not nationalized industry, operates under free markets, and has the world’s reserve currency. We are smart, and have invented most of what has been invented in the last 200 years, and our history is based on capitalism, not socialism. We are energy independent and export lots of it. We are the result of the Founders’ intent to make America a small government republic, but of course since FDR, and all succeeding presidents, probably since Donald Trump, have led America gradually into a socialistic state, whose ultimate end may be equal to Venezuela’s or Argentina’s. We’re a long way from that, but our wealth, freedom, and hopefully free elections, may ward this off for generations, and by that time, the rest of the world may be in ashes anyway. Be glad you live in America, but do not store your surplus assets in dollars like the Argentineans do, but in real money in the form of gold and silver, which are real money in all nations, at all times, and in all situations.
An old client called me yesterday, and asked if she wanted to sell any of her metals, how should she do it? She didn’t want to sell, but was curious. I told her to either call me or my kids, and tell them she bought from me, and there would be no charge other than $25, and she would have to ship it. She began buying silver from me in 2002, and for years, she bought many thousands of ounces of silver at between $5 and $8 per ounce. Later purchases were higher and a few at higher than current prices, but she isn’t worried, as it will easily go that high again and go higher. She’ll leave it to her kids probably, or sell a bit on occasion to maintain her nice lifestyle, but she realizes that she has done extremely well, as have 95% of my clients, and that 5% will do fine in the future. Since she is 70, I told her about Humana Health Care Policies, which have no premiums to pay and microscopic charges if you need a doctor or any health related problems. It costs me $30 for a doctor’s visit, and Humana has saved us tens of thousands of dollars over the years. If you’re older, like me, call a Humana agent and find out for yourself.
I bought, at a yard sale, a hardcover book by Michael Savage, titled “Trump’s War,” and I love it. It was written in 2017 after Trump was elected, and a few of his initial cabinet appointments are a bit outdated, but the book, to me, is a must read. Amazon has them for $12.95, and I strongly suggest you obtain one. don@coloradogold.com