and again...

I said, "The good news is we will all be millionaires this year!" to all my trading contacts in early 2018. Then I said, "Bad news is what to do with a million pesos and an unusable blockchain called bitcoin."

This one came true, in that, the local currency hit nearly 43 to 1 against the dollar. That means anyone with us$23,250 in hand was effectively a millionaire. That's less than half a year's salary in the U.S. Most of the traders that I deal with have that amount on hand.

The more public prediction I made just before New Year's Eve a year ago, was that "2018 would be the year everyone finds out what a bitcoin is." and there are very few who don't know what one of those is now.

Two for two.

Here is a screen shot of the above linked post which, of course, has a deleted You Tube video in it. Alphabet (google) is turning the internet into Swiss cheese with all the broken links and deleted accounts they are creating. Not to mention, all search results need to be searched Ctrl-F to find the words your originally searched for ! What a piece of crap company.

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see full post Dec. 23, 2017

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So what good is a million pesos in Buenos Aires?
When I got here it was the same as a million dollars.

A bus ride was ten cents. Now it is $19.00 in devalued paper. (pesos)
Milk went from thirty cents to $39.00 in pesos
Rent was $300, now it's $18,000 in pesos

We are going the way of Venezuela.

New prediction

My prediction is that this year everyone will learn what money is and they will find out just how worthless a rectangle debt paper really is, albeit a dollar, peso, euro or ruble. The gold hording has begun.

I carry a 1923 Morgan dollar with me everywhere. It does not matter how old it gets. It never needs Scotch tape. It is always worth a 1960 dollar.

I use it to explain the following, quickly and easily.

Example:

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The house at 123 Main Street cost $ 22,000 in 1960
The same one on Main St. sold for $ 80,000 in 1990 (and seller paid tax on gains)
The same one on Main St. sold for $100,000 in 1994 (and I paid tax in gains)
The same one on Main St. sold for $145,000 in 1996 with some refurbishments. (flipped)
The same one on Main St. sells for $230,000 today.

This is the house I grew up in. The above values are paper dollars or 'debt notes'

Today $22,000 Morgan dollars could buy the house, and furnish it.

The melt value of $22,000 silver dollars turns them into $355,300 paper debt notes, commonly referred to as dollars.

Which is worth less? Paper? or Silver?

It is very sad that invariable people who hear this ask, "Can you take it to any store and buy things with it?"

Yes. You can buy a one dollar Coke with this coin, and the owner of the store can go buy 16 new bottles of Coke with it. Then sell those to the next sucker. Yes, it works as a dollar.

I choose to save them up for the day that paper does not work. Then go get a truck load of supplies for three silver dollars.

My prediction, the paper currency will be worth less.

Until it is worthless.

Paper has always gone to the same value.

zero

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