5 sats \ 14 replies \ @kr OP 17 Mar \ parent \ on: Why Does El Salvador Hold $86M of Gold? bitcoin
strongly disagree here.
if you don’t know what you’re doing you don’t put all eggs in one basket.
“i think diversification and all the stuff they’re teaching at business school today is probably the most misguided concept everywhere”
- Stanley Druckenmiller
“if you want to make a lot of money, resist diversification”
- Jim Rogers
“diversification is a protection against ignorance. it makes very little sense for those who know what they’re doing”
- Warren Buffett
“the idea of excessive diversification is madness”
- Charlie Munger
Yup you nailed it when you have conviction you don’t diversify. Look at the holdings of Berkshire Hathaway. You can’t given them a pass on lack of diversification and then tell us to do it…. Oh unless you collect fees from selling garage investments
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Now extend that idea, its not a targeted EMP attack specific to El Salvador, rather its the results of worldwide event because of world war, asteroid hit, solar activity, etc...
So now there is no "lets rebuild" because there is no one to supply the materials to rebuild....all nations are on their own.
Being a responsible leader means hedging your society against unlikely, but possible catastrophe.
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An EMP hit will be the equivalent of a reboot back to 1700's. Would you consider a country halving gold in 1700 a required attribute for future development?
Not having any gold will only make their situation worse as it will delay jump starting the economy with a solid monetary base.
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i wouldn’t say gold is a required attribute for future development.
the world would temporarily revert to the 1700s without electricity, but the world would not lose its collective understanding that Bitcoin (or something like it) is a better way to store value than gold.
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Gold would be necessary to "bridge the gap".
When you were in the multi-decade stage of having no electricity, no computers, no chip fabs....you would need something as a monetary base to facilitate trade to actually build those things.
What would you suggest they use?
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In particular, if you are an autocratic leader who may need to run away one day :)
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Who was his predecessor ?
Was his predecessor less authoritarian?
If he escaped to USA, would you deny entry?
Except that they are “managing” a country not an investment fund.
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You are right, there are of course risks involved. I originally wanted to write something like that the states should not be making money, that the purpose of governments is to do something else. On the other hand governments are pretty bad in doing what they do, so I quickly realized that actually it would be great if they knew how to and actually did made money themselves and not heavily relied on taxes. I guess their spending habits would changed too.
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