One Thing We Do Know

04 Mar

One Thing We Do Know

People in Ukraine with gold will be better off than people with Hryvnia!

It is said that the first victim of war is the truth.   The war in Ukraine is no exception.

People in Washington – never the brightest bulbs – have been caught cheering stories that didn’t actually happen… Supposed footage from the fighting that is actually footage from something years ago that happened in another country…. Accounts of heroic deeds that are actually doctored up from old video games… Photos of staged weapons that are really from another place and time. 

You would think politicians would be more careful about being taken in by fake news.

Ukrainian 1000 Hryvnia bills

We, of course, don’t know how things will play out, who will be up and who will be down when the dust settles in Ukraine.  And we don’t mind admitting it.  But because we are specialists in monetary matters, in gold and silver, there is one thing we do know…

People in Ukraine with gold will be better off than people with hryvnia.

What the heck is a hryvnia, you might ask?  Hryvnia is the national currency of Ukraine.  It is an unbacked currency, either printed on paper or created digitally.  In that respect, it is exactly like the US dollar.  There is no fixed redeemability of either the dollar or the hryvnia to some dependable backing like gold.

Some years ago, Senator Marco Rubio tried to put US taxpayers on the hook to guarantee the value of the hryvnia.  Why he would want to do that, especially since no one guarantees the value of our currency, should be a mystery.  After all, Rubio is a US senator.  He represents Americans.  But we suspect the scheme was designed to bail out international banks that had loaned money to Ukraine.  The American people are often victimized that way. 

gold coins

In any case, we think the people in Ukraine should be responsible for the value of their own currency.  They are in charge of their central bank, not you.  They have control over their government’s spending, not you.  They are responsible for doing something about rampant corruption in their government, not you.  If Ukrainians want a valuable and worthy currency, they should do something about it.  We suggest they try gold and silver instead of printed or digitally printed money.

So, to restate what we do know:

We are confident that people in Ukraine who exchanged their hryvnia for gold and silver are better off than those who did not.  Especially since the value of the hryvnia has fallen out of bed since Senator Rubio was pushing his big idea.

From the experience of thousands of years and from around the world, we are also confident that people who exchange their US dollars for gold and silver will be better off for it.  

That is because the Fed can’t just print gold!