Category: Finance and Investment

Finance and investment-related posts go here

  • Perú Wrap-up, El Salvador Redux

    Perú Wrap-up, El Salvador Redux

    Pretty intense jump from chilly mountains to warm beach…

    This is half-baked, but it’s fresh. Something compels me to get this down before it fades into memory.

    Perú is a fantastic place, and I intend to return there as a dedicated tourist. My current situation is hybrid; I have a day job which I take seriously, but this job allows me a certain amount of bandwidth to explore the world (and escape miserable NYC winters) so I might as well take advantage of it.

    Perú, a country bigger than Alaska and California combined and even more geologically diverse, impressed me and challenged me. I only saw a tiny little bit of it, just a few days in Lima and a couple weeks in Cuzco. Either place deserves a full-spectrum experience. Cuzco (aka “Cusco”), was especially other-worldly, though Lima was a highly enticing tease since it’s such a massive city with so much happening. The little bit I tasted, I liked a lot. Felt like a place worth spending a year or more. Lima felt comfortable, like a place where I could easily make friends and music.

    Cuzco was a totally different story. Like most places in the world that survive on tourism, a cold distance, a cultural void spanning galaxies , made me feel welcome-not-welcome. Oddly, I did connect with a few locals and even met a friend who makes me want to go back. But I could never live there; too damn cold, too far away from “home,” wherever that is.

    Even with a constant sense of not belonging, lingering discomfort from the altitude and cold, I developed a deep respect for the culture and power of the place. The “fashion scene” absolutely blew me away. Baby alpaca wool is the finest fabric in the world, and the clothing produced from it is exquisite. By accident, I ended up learning something about how they produce it. A quechua woman demonstrated with her own hands how they color it with natural plants that grow, impossibly, at 3000+ meters above sea level. Those colors are sublime and unique and muy hermoso.

    The experience of “seeing how it’s done” drove home what I was talking about in the very first post of this version of this blog: No Logo. Quality speaks for itself. The beautiful clothing of Cuzco, with its unique, inimitable style, locally designed and sourced, locally produced, locally sold (at premium prices), is as fine as any apparel in the world. As a matter of fact, I would say that Cuzco is a fashion capital as much as Paris, New York, or Milan… more so, in fact.

    A Gucci label doesn’t say “quality” to me; it says “Insecure sucker who will overpay for mediocrity.” What says “quality” to me is something else. Is it beautiful? Is it natural? Does it serve its purpose (making the wearer both lovely and warm)? Is it unique? Does the soul of its creator live on through the work?

    Yes, yes, yes, yes, and yes? OK, it’s cool. It’s stylish. It’s quality.

    Cuzco was full of that, and I haven’t even gotten started on the ruins and other-worldly sense of civilization. In fact, I’m only going to touch on that; you can visibly see civilization being built on top of civilization for millennia in that place, in real time, in real life. The Inca told the Spanish (and this is documented) that they had built on top of an older, more advanced civilization, just as the Spanish eventually did to the Inca. To this day, nobody knows how the original stone work was done, upon which the cathedrals and elegant, non-corporate-chain hotels (and even the less classy corporate ones, the JW Marriott and whatever) were built. You can still see that stone work right in the center of town. You don’t even need to follow the tourist hordes to Machu Picchu.

    Cuzco stone work
    See how the stones on top are not as big or perfect as the ones on bottom? See how there’s no cement? Top stones are Inca. Bottom, pre-Inca. Not shown — shitty Spanish masonry on top. Civilizations are built on top of civilizations, and for the past 3000 years or so, devolution has been the trend.

    If you want to ride a horse or hike a bit, you can even see what Machu Picchu looked like before it was excavated. It’s mind-blowing. One gets the sense that once upon a time, a much bigger city existed there in the uninhabited heights.

    Even with this sense of wonder, every second I spent in Cuzco, I felt a bit out of place, a bit uncomfortable, except in bed where I slept wonderfully in the cool of night, soothed by the warm embrace of heavy natural bedding.

    Let’s skip to the chase, returning to El Salvador…

    It was a stressful journey. I won’t bore you with the details. I traveled off the beaten path a bit, making a direct beeline from the mountainous chill and light air to the hottest place I’ve ever been, right at sea level: El Salvador.

    As I write this, I’m about 10 feet above the crashing waves, in a bungalow on a cliff rooted in the beach, a cliff that will eventually succumb to the waves and become beach. It’s warm. It was hot this afternoon.

    And, goddamn, it feels good!

    If you’ve been following this blog, you know that my travel in Perú — wonderful and worthwhile as it was — was fraught with stress and peril. El Salvador is a totally different experience. They don’t fingerprint me on my way in (and OUT ?!?) of the country. My accommodations were graciously prepared (and I haven’t even paid for them yet, though I will, of course). The locals are warm and welcoming. I don’t have to put on shoes and socks, let alone a coat and hat.

    It feels so good to be barefoot again, roasting in the sun, calmed by the rolling waves. I feel so clean, having spent some time frolicking in the salty sea. My neighbors are friendly. Oh, and I can breathe. Honestly, it wouldn’t surprise me if I’ve already lost weight; exercise at 3100m above sea level is… burdensome.

    Yeah, I’m more of a beach bum than a mountain boy, for sure. Just 24 hours ago I was gasping for breath, chasing down my ride to the airport. Now I’m chillin’ like Bob Dylan, enjoying the mating calls of geckos as a percussive enhancement to the infinite melody of waves, warm and happy as a clam. Another day, another timeline jump…

    It’s not just the warmth and thick, oxygenated air that I like about El Salvador; it’s the sense of participating in history.

    Not sure if I’ve mentioned that one of the more uncomfortable moments in Perú was having a cajero gobble up — for no apparent reason — my suitably funded Fidelity debit card. By the way, if you’re traveling internationally, I recommend getting that card as it waives all ATM fees and foreign transaction charges. Of course I had a backup debit card from my shitty (hint) bank. The magnetic strip on that old card had given out. It worked as tap-to-pay but wouldn’t give me cash. That kind of sucked, not having access to cash.

    Since I’ll be here for the next several weeks, I thought, “Well, I’ll have Fidelity send me a replacement card.”

    Then I went to the supermarket, and the moment of epiphany hit. A big, modern supermarket had a sign on the checkout line, “Aquí puede pargar con Bitcoin.”

    As it turns out, I have a bit of Bitcoin dust in a wallet on my phone. I put a couple hundred bucks worth there a few years ago as an emergency measure. Turns out, it’s… uh… more than a couple hundred bucks now. I thought, “What the heck, let’s see how this works.”

    It was so easy. It was so quick. It didn’t involve any bank or intermediary, just me paying the store directly, as if with cash.

    Fix the money, fix the world -- Bitcoin
    Fix the money, fix the world. Yup.

    At some point I realized that they have Bitcoin ATMs here. I can just get some cash with my phone, directly, without need for a bank. Suffice to say, I will wait until I return to ‘Mairka to get a replacement for the inexplicably devoured Fidelity debit card. Bitcoin works here, and I have a bit, as it turns out.

    That got me thinking about Bukele and El Salvador (“The Savior”). It wouldn’t surprise me if El Salvador ended up being the Singapore of the Americas. It’s a very similar situation.

    If you look at Singapore today, you would never believe that just 75 years ago it was a poor, crime-ridden backwater. Now it is a clean, modern, multi-cultural powerhouse, a great innovator in finance, a beacon of prosperity.

    Why? Lee Kwon Yoo. He cleaned up the crime, made bold moves in terms of commercial/financial innovation, and turned Singapore into what it is today. He was called a despot and a dictator by The New York Slimes and all the usual suspects, but the proof’s in the puddin’, darlin’. Results speak for themselves, not unlike quality.

    Don’t get me wrong. I’m not talking about cosmetics, here. I hope that El Salvador doesn’t go so far as making chewing gum illegal.

    There is a lot of hope here, and if Bukele plays his cards right, El Salvador could become a small-but-mighty beacon of prosperity in the Americas, as is Singapore to our eastern counterparts.

    I know that el Presidente has more important things to do than read this blog, but if I were to advise Bukele, I would say the key is in education and continued innovation. Of course the bankers will apply pressure to kill Bitcoin and other substantial financial evolution. Play their game a little bit but not too much. Most importantly, invest in education. A small country’s greatest resource is its people.

    There are plenty of folks like me who share a vision of peace and prosperity, a lot more of us than there are of “them,” the criminal parasites who once had their boots on the neck of the little nation in which I currently find myself.

    OK. That’s enough. I’m tired of staring at this screen. Time to watch the full moon rise and enjoy the splendor of nature.

    I really love El Salvador and wish the greatest success upon her and the world, and I hope to return to Perú one day as a full-time tourist.

    Peace,
    Chuck

    bungalow in El Salvador
    I’ll take this bungalow over just about any mansion in the US
  • What the F%(# Is Going on With Silver?!?

    What the F%(# Is Going on With Silver?!?

    Is silver the new Bitcoin in terms of building generational wealth in a matter of years?

    Disclaimer: I am not qualified or allowed to answer that question because I don’t have a piece of paper from the government licensing me to give financial advice. What follows is not financial advice, just one man’s opinion.

    The most telling thing about silver’s recent explosive rise in value compared to the U.S. dollar is the mainstream media’s complete silence on the issue. It’s almost like they’re being told to shut up about it by the entities that own them. I’m speaking, of course, of BlackRock, State Street, Vanguard and a couple others who own, basically, every large company in America and have de facto operational control over such companies through their ability to control those companies’ boards of directors.

    As an aside, the companies above own each other, and because they’re not publicly traded, nobody knows who really owns them. It’s really crazy to think about. Every company is owned by, considering cross-ownership of the holding companies/hedge funds above, one entity whose identity is unknown. Is it the Vatican? Israel? The Illuminati? Lizards from outer space? Not only do we not know, we’re not allowed to know, and that makes me want to adjust the fit of my tin foil hat.

    In the interest of economizing words, we will refer to the above entity that owns everything as “BlackStreetGuard” hereafter in this article.

    If a stonk in your portfolio had risen 300% in a year, the mainstream media puppets of BlackStreetGuard would be screaming it from the rooftops like they do with the AI stuff, the EV stuff, and whatever other bullcrap they want you to buy. Apparently, they don’t want you to buy silver. Here’s why:

    Without silver, AI doesn’t work. Bombs don’t work. Solar panels don’t work. Most electronics don’t work. For this reason, BlackStreetGuard, with the help of a few of its large banks and the CME/CBOE, have been actively suppressing the price of silver for well over a decade, maybe even a century. They do this by issuing paper contracts at ridiculously low prices with the gentleman’s agreement that nobody ever demands physical delivery.

    In 2023, a couple JP Morgan silver market manipulators were actually sentenced to prison for silver market manipulation. Funny coincidence that silver’s rise began not long thereafter. (JPM and all banks are fully owned subsidiaries of BlackStreetGuard, for the record.)

    The problem with the bankster scam — and this is far broader than just silver — is that things have to happen in the real world for wealth to be created. Money is not wealth; it is a claim on wealth. They can print all the money they want, print it to infinity, in fact, but if the actual wealth in the real world does not rise to match the increased money supply, all that happens is that larger amounts of money are required for the same claims to wealth (inflation).

    If your name is something like Rockefeller, this means the market cap of your companies goes up. If your name is Smith or Jones, it means you pay more for your claims on wealth; you know, the roof over your head, your education and trifling little things like that.

    In the “good old days,” a bank lent money to a business. The business created products/services (and jobs) and increased economic activity in the real world. This can work as long as the money is being used for the purpose of generating actual wealth in the real world.

    Since the late 1990s, money creation has not resulted in tangible increases in wealth. Oh sure, we got smartphones and AI, but have either of these resulted in an enhanced standard of living? If anything, they have diminished our quality of life; where we used to hang out and talk about things, now we hunch over and ask AI to spoon-feed us all the answers, mostly in solitude.

    Your iPhone is a distraction (and Apple is, of course, owned by BlackStreetGuard) designed to keep you wrapped up in AI slop, oblivious to what is really going on in the world, which is this:

    Actual wealth is diminishing while money creation chases infinity.

    Remember, money is a claim on wealth, not wealth itself. What has been happening in orgiastic proportions since the near-collapse of 2008 is that money (claims on wealth) has been conjured into existence in amounts so large that it might as well be infinite. Those who stand next to the money printer and had existing claims on wealth (those with names like Rockefeller) have done quite well. Those who need money to claim “wealth” just to survive, working slobs like you and me… have not done so well.

    So… what does this have to do with the recent (and I believe, only beginning) rise in the price of silver?

    Silver is one of those things that “they” need to keep their AI data centers going, to keep iPhones in the hands of the plebes. As long as they could get it cheaply, todo bien. The problem is that the physical supply of silver is finite; infinite money creation does nothing to change this basic fact.

    What is happening is that physical delivery is, in reality, required. By selling silver cheap for so long, BlackStreetGuard has completely fucked itself. If I sell you silver for $30/oz. in a paper contract, and you demand delivery, I have to honor that. If I don’t have the silver, I have to scramble for it.

    Essentially, what is happening is a bank run. Governments, companies, and individuals are demanding their “deposits,” but the “bankers” don’t have said deposits.

    In the real world, this means things have to become expensive, including capital inputs like data centers and bombs. There are physical limits on the pipe dreams of BlackStreetGuard, as it turns out. God seems to have a sense of humor about letting hubris send the devil’s minions to Hell, balancing the scales without lifting a finger, letting them dig their own graves, etc.

    I’m not recommending that anyone buy physical silver as a middle finger to our would-be slave masters, but I will leave you with this:

    There is not enough silver in the world for every person to own even one ounce.

    Do with that information what you will.

    Hi ho, Silver! Awaaaaay!

    Peace,

    Chuck