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August 14, 2019 | Buenos Aires Stock Exchange (Merval) Down 29%! What Else?

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

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The digital stock exchange over in Argentina is crashing and their currency is declining.The Peso may soon go into oblivion like the Venezuelan Bolivar. This currency could set the tone for a number of weaker currencies as investors seek safe havens and get out of emerging market assets. I sense that a correction in all these digital markets is around the corner. The MERVAL is worth watching as a reference point market!


As I write the U.S. Dow Index is down over 600 points. Yesterday this index was up (during the trading day) over 500 points. The digital markets are now revealing their instability and virtual nature. Gradually, investors will recognize the ephemeral nature of all these digital/virtual currencies and get into various safe havens.


It may be wise to purchase some of your own safe haven insurance at this point in the cycle. My sense is that both silver and gold (in the physical form) will be relatively stable for the next couple of years. All investments are subject to being manipulated, however, and silver and gold are no exception.


But a virtual currency and our virtual stock indices are subject to disappearance as these assets are virtual. Silver coins and gold coins are not going to disappear or vanish. These assets will continue to exist and this makes them great as safe havens and/or insurance. Now is the moment to purchase some of these coins as the prices are rather favorable and they have a ‘value’ which is tradable within a growing marketplace.


What is now happening over in Argentina is what could happen in a host of nations with weak digital currencies. Even our digital dollar could eventually be in trouble. We could witness a RESET of all these digital currencies in the near future. In fact, prophecy suggests that this will happen at some point. Our global banksters will desire a single global currency during this RESET situation. This is what I expect to happen within the next few years.


Now is the time to think ahead and buy yourself some insurance which has physical existence. Silver and gold (coins and bars) have this physical existence. Digital currencies are virtual units and these units have NO physical existence. They work as long as the markets are positive and active. But they disappear and vanish when the power is turned off. They also lose value when confidence wanes within the trading community. This is starting to happen now.


Watch what the IMF does now that Argentina is in trouble with their prior loans. Will the IMF continue to bail-out this country going forward? If not, then all emerging market currencies could be in trouble. As I write, the MERVAL stock exchange is at 29,315 (down some 28.39% in the last five days). I doubt that a recovery will occur. Will Brazil or Columbia be next? Watch your smart phone to discern the trends.


Have a good day! I am:

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August 14th, 2019

Posted In: Kingdom Economics

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