Latest / Financial Survival Network / Economic miracle in Argentina - Lobo Tiggre #6072

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Economic miracle in Argentina - Lobo Tiggre #6072 · Financial Survival Network

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And I'm impressed that it's starting to actually have beneficial impacts. So you know
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he's got it. There was it three more or three and a half more
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years. He's got a long way to go, and he's already making a
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difference. In my view, that makes Argentina investible. Since it seems like
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he doesn't have a bullet on his name. There's time to make money on
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Argentina place now. So you are listening to Carrie Lutz's Financial Survival Network where
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you get valuable information you just can't find anywhere else to thrive in today's trying
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Financial Survivalnetwork dot com and get your free newsletter and gift. Financial Survival Network
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now more than ever. Welcome you are listening to watching the Financial Survival Network.
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I'm your host, Carrie Lutz with us now is Lobo Tigra Lobo old
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friend. We've been seeing each other conferences and such for many years, and
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hey, Loba, it's great to have you back on. We finally got
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something to celebrate down south of the border in Argentina. I mean, I
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thought you were gonna say silver breaking north of thirty well that too, I
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mean, but that was a foregone conclusion. It was always never a question
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of if, just a question of when. Hopefully, you know, it'll
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hit fifty before we depart the planet. I have a feeling it's going to
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hit fifty and keep going. You listen at Eric Sprat, he says three
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hundred dollars silver. I find that hard to believe, but then again,
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I never doubt anything that Eric Sprat says. Well, if you inflation adjust
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the nineteen eighty peak, it is triple digits. It's kind of you don't
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even want to say the numbers because it's embarrassing. It sounds like you're wearing
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a tinfoil hat or something. But that's true. I few inflation adjust the
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previous peak. You know, it's kind of amazing, amazing times. But
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you know, let's go south of the border. I mean, go the
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the amazing things going on in Argentina. Sorry, it's not Mexico. Mexico's
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going the wrong direction. It really looks like not only a you know,
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a populist, pandering politician, but an environmentalist is about to take over there.
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And by the way, this has investment consequences. I mean, they're
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talking about banning open pit mining, and people are saying, oh, well,
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underground minds are safe. No, if you've got a government stupid enough
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to ban open pit mining, it is clearly hostile to mining all mining.
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Yeah, and so don't hit yourselves. Mexico's definitely going the wrong direction by
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or beware. But we wanted to talk something good news, right, And
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yes, the Argentina thing, I've never personally met Milay. I have to
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say, you know, it raised my hackles when he hugged Trump, but
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you know what, he raised hackles with Trump as well. He was clearly
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not a huger. I'm not a sauchy feeling kind of guy. Yeah.
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Yeah, but we'll just if nothing else. The idea is the man espouses
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now from the office of president of country, Like, just how many people
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have heard of Hayek and miss now who'd hadn't before and unless they watch that
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that boxing Max. But that's a whole other conversation. Uh, it's just
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that that bully pulpit alone is a good thing for the world to have this
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voice. But he's not just walking the talk. He's walking it and slashing
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government spending left and right. You know, there's there's a lot. He
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can't do that he wants to do because he doesn't have a congressional majority.
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He's just the executive. But the you know, sort of backhanded good news
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here is that in Latin America, the executives have a lot of power,
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so he has been able to unilaterally just slash spending left and right and close
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things down as as everybody's probably known, the cauctin tyne peso. Ironically,
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it's become the best performing currency reson because he's he's slashed infleshing from three hundred
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percent to like single or low double digits. It's just it's it's amazing that
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he even got a chance. But even more amazing is how he's actually doing
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some of these things. And I'm this has besides ideological importance, but let
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me go there first. I think this is tremendous. This is like the
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it can become the shining city on the hill, an example to the world
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if he actually fixes Argentina. They're not out of the woods yet. Like
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he's slashing stuff left and right, he's still administering the harsh medicine. But
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if that medicine actually heals the patient, like the rest of Latin America has
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to sit up and take notice, and really the rest of the world.
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You know, his Davos talk, it's that, you know, he actually
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delivers on the values from that, I think that's fantastic. Any intellectually honest
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person has to sit back and say, well, you know what, maybe
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there's actually something too, you know, limited government and free enterprise and all
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that stuff. I see, I jump in ahead. You know, it's
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what we've always theorized, but never we're in a position to actually demonstrate.
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I mean, really, you have to go back to like Hong Kong,
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post world, medieval Iceland, Singapore, Iceland, but Iceland's lake. Nobody
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takes Iceland seriously. Argentina you need to take seriously because every ten years or
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less they have a currency collapse, and there was so much turmoil, and
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it was just a classic case of a country being totally mismanaged. Not that
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there's any shortage of that, Lobo, right, but you know you look
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at that and Heeds just say, wow, these guys, Yeah, that's
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absolutely God. So if he can turn this around, you know, you
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talk about things like the shot heard around the world in seventeen seventy six,
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this could literally be something like that the chainsaw herd around the world. You
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know what an amazing thing that would be. So investment implications. I think
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Argentina is becoming more investable, like I I have been out, like I've
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sold all my Argentina plays years ago. The Kirchners were an absolute disaster,
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and then I forgot the guy. You know, there was a brief interlude.
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The previous president, not that, not the one before me, the
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one he was tried to do some market reforms, but it was it was
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half measures, and he wasn't able to really do anything. He didn't have
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the guts Mila has, and he failed, and so the country veered farther
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left got worse. So now, you know, honestly, I I it
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sounds like I'm just trying to do clickbait headlines or something like that, but
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I sincerely thought once he won that there was a very high chance that he
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would get shot like his the medicals removed on this started out there would just
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be intolerable. Yeah, surgically, well, I'm I'm impressed that he's doing
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it. I'm impressed that he's still alive, and I'm impressed that it's starting
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to actually have beneficial impacts. So you know, he's got he's got was
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it three more three and a half more years, He's got a long way
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to go, and he's already making a difference. In my view, that
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makes Argentina investible. Since it seems like he doesn't have a bullet on his
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name. There's time to make money on Argentina place now, So you know,
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I'm looking actively in that direction. Just besides the cutting of the government,
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he cut the regulations to like next to nothing. So we're going to
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find out about the fertile soil for capitalism, for free markets first and and
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my guess is it's good. He's going to replicate hog Kog. Now,
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I don't know if the people are so beat down that they're going to be
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able to take advantage of what probably is a once in a life opportunity that's
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been given to them. I don't know about that. That's kind of what
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concerns me because you kind of had a similar thing happen in Russia after the
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fall of communism and in Germany. East Germany is still lagging so quandered opportunities.
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Yeah, yeah, soquestion is they weren't communists, but they were certainly
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socialists. Have they been so you know, so debased in terms of their
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entrepreneurial outlook that they won't. Nobody knows for sure. We'll have to see,
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but you know, I'm very encouraged that, like I say, there's
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still more pain to go. The harsh medicine has not been all administered.
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It's not all done yet. But he's done a lot, and he's hurt
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a lot. He's a lot of former government employees out there marching in the
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streets. But his popularity rating is still up. So I think there's hope.
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I don't. I don't count it as a sure thing, but I'm
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willing to hope now, which I wasn't before. Hey never estimate the animosity
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of the population towards their petty apparachics, and that that they're happy to see
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them out of having any power over them. Something about South America when the
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when those tyrants get into power, they're worse probably than even the ones in
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the United States. Out of the frying pan into the fire. It's a
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sad story, yeah, really sad. But there is definitely hope now.
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And inflation seems to capture the attention of a population more than any other injustice
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that is wrought upon them because there when you have inflation, and it is
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an injustice. It's really self taxation, all the things we talk about.
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But you know, in the United States you see it happening as well.
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Like you and I, we've lived through inflationary times before, so it's like
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just something you get through. But to these other people with the entitlement mentality,
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they've been raised with the younger folk, and now they see the value
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of their dollar dissipating by the day. This is leading to a backlash in
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the United States that I didn't believe was going to happen. I thought we
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were just all frogs boiling and off till we were extinct. But evidently they
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proved us wrong, didn't they. Well, you know, I've tried that,
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and the frog won't actually stay in the water. At some point he
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gets uncomfortable and he hops out, and so turned up you turned up the
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heat too quickly. When have you ever seen the frog sleeping anyway? All
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right, So, but taking the metaphor to the real world, you know,
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you turn up the heat and at some point it's actually uncomfortable, and
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so people are going to the store. What will be really interesting Carrie,
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as you say, the younger generations, they just don't have any experience with
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this. They've never really know. They weren't there in the seventies literally,
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so they don't know how bad it can be. Let alone other countries where
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they chopped zeros off their currency unit periodically. They just don't understand how bad
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this can be. They're starting to get it, and you know, you
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have sticker shock when you go into the supermarket. I was just reading today
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that I don't know when this will be posted, but as you and I
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are recording, there was news that Target and Aldi, which is already a
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low cost food store, are cutting prices on certain items, on basic items
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because people are racking up credit card debt to buy groceries. Grocery debt.
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Okay, it's one thing to use a credit card at a supermarket because you
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want to get airline miles or whatever. It's another thing to rack up debt
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just to feed your family. Like this is. This can't end well.
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And you know you've got Team Biden out there saying, oh, We've got
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the greatest economy in the world. You know what's wrong with people? Why
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don't they Why doesn't Joe get any credit for this, but just go to
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the store. And it's not anecdotal when large chains like that are responding to
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Really, what is it a measure of desperation or an act of desperation to
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be charging up your cards to the hill to buy groceries. That's that's good.
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It's very unsustainable, and it's happening right now while we have the greatest
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economy in the world. So how could that. I think inflation is just
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one of those things that it it. You know, many other things are
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theoretical or philosophical, or maybe even religious, but this reaches right into your
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wallet or purse and it steals from and it pisses people off. So maybe
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good call. Maybe we'll have a learning opportunity here. I remember, you
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know, back in the seventies there was a McDonald's commercial and this little kid
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goes, daddy, what's inflation? And I cannot find this, by the
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way, anywhere on the internet. It's been scrubbed. And he goes,
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son, that's when the price of everything goes up and your father's pay stays
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the same. It's like the best the definition of inflation ever from a McDonald's
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commercial. No less right, Yeah, well, we had a cartoon I
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posted on my Twitter feed I think last week or maybe two weeks ago now
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of just like that. You know, it's like nineteen thirties cartoon. And
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this this monopoly board type guy with you know, top hat, lots of
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wheelbarrow full of money goes in the story and he comes out with a barrels
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on straps because the guy inside the store is literally jacking up the prices like
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he has jacks it used to lift an old car, and he's jacking up
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the prices. But oh yes, so this will be an interesting learning experience
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and the backlash. But what strikes me is really interesting, Carrie. And
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I'm a gold bug and I you know, I like fart assets old in
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my hand. But the younger generations have already had a lesson about fiat currencies
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from the crypto crowd. Now you add inflation to that, it goes from
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theoretical like fiat can be printed, you know, governments can print it to
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an experiential thing and to a point where it actually creates discomfort in your life.
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This could be a watershed moment that actually changes is not just economic behavior,
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but voting behavior for younger generations. You know, maybe. And I'm
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not a Republican. I'm a libertarian, so I'm not trying to take sides
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between the GOP and the Dems. But I can imagine people, young people
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who have thought, oh, the Dems are the nice guys, and suddenly
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having this understanding that they're being stolen from and say, you know, that's
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not nice. Like maybe there's something too this free enterprise approach and you know,
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letting people keep the money they earn stuff. You know, maybe we'll
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have a little bit of a of an awakening there. I'm an optimist.
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I'm not predicting this. I'm just saying maybe there's some hope there too.
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Maybe Hey, I hope you're right, of course, and we all do.
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But you know, hey, time time will tell for sure. So
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gold and silver, how high can they go here? Well, you know
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that I don't like to make price predictions, but we aren't. And I'm
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pretty sure maybe two interviews ago we talked about this looking forward to twenty twenty
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four, and I said gold could easily go up ten twenty percent without any
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fireworks or anything strange happening, which from about two thousand would imply twenty four
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hundred. Well, here we are a couple months in, we're already at
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twenty four hundred, and none of the things that I thought would push gold
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higher, recession money, helicopters, that sort of thing, none of this
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has really happened yet. So there's a couple of things you could say,
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well, one night was wrong, okay, two. But if that outbook
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is still right, if your audience agrees with me that the United States is
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not going to escape the consequences of these rapid rating increases and the money printing
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and all, you know, all this stuff, then that upside is still
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ahead of us. So it's if we're looking at ten or twenty percent higher,
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but from twenty four instead of two thousand, you know, do the
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math, we're closer to three than two. And it's pretty exciting. No,
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I don't even want to put the number out there because that people are
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saying, oh, no, but you said it's going to three thousand,
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it's not, or whatever. All I'm saying is that an Austrian or fundamental
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view of the economic scenario is very bullish for gold. The new buying from
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central banks and other deep pocketed institutions. I think it's not the sort of
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thing that just goes away. You know, the central banks of the global
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South don't just suddenly decide that, hey, we're best friends with the Fed.
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Now, that's just that buying doesn't go away. You know. The
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people that are the deep pockets that are hedging with gold now not just because
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they see the inflationary writing on the wall. I think the two hot wars
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that we have, either of which could literally turn into wars rate are the
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kind of thing that makee people, you know, not just want to hedge
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their portfolios, but maybe hedge it with something physical that works when the Internet
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doesn't. Right, So, you know, I just don't see that going
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away. I don't see that buying drying up and blowing away in the dawn
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breeze. It could, it'll go, it'll come. You know, nothing
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goes up forever in a straight line. But the reasons for that buying,
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I just don't see it going away. And then on top of that,
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we still have the money helicopters in the economic yeah push you know, gold
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always does well in a recession, and silver is happily tracking gold again.
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So yeah, I don't want to sound like Kramer was one of those big
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red bye bye by buttons, and there'll be correction before it goes up again.
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Sure, you know it's it's gone up pretty fast already. Some correction
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and consolidation would actually be pretty normal here. But by the end of this
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year, I think we're looking at a much higher gold dollar exchange rate.
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I do see gold as money, so I see it as a FOR'X question,
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not a commodities price. And I do think silver will track gold.
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It's at least the data right now is telling us that silver has stopped tracking
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copper more than gold recently and is back tracking gold more tightly again. And
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that makes me very optimistic for both this year. And copper has been doing
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bad either we had you no, no, don't know, five dollars copper,
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Sure, no, no copper. And then again, to be perfectly
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frank, I completely missed this run up to record prices in copper. I've
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been concerned about the recession that has kept me from allocating money in that space.
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I didn't make money on this one. Sorry, but you know what,
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I'm done fine with with with gold and silver. Can't kiss all the
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girls. I'm okay with that. And if I had said yeah, by
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all the all the medals, and then we got that recession sooner than expected,
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they would be negative. So I don't ret the call. Given the
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same information, I would make the same call again in the you know,
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the I guess the so wide or the takeaway from that is, if you
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think I'm right about undeniable recession in the United States this year as those long
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and variable lags finally kick in, then you really want to think about how
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much copper or any industrial mineral you are exposed to in your investment portfolio.
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Hey, and we got election instability. Who knows what the US is going
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to look like after the election. Hey, we got crazy civil unrest all
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over the place. All these things mitigate or militate for a higher gold and
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silver price. Yeah, you know what a what a world where it's not
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just libertarian tinfoil hat types like us. But it's Ray Dalio saying there's a
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forty percent chance of civil war in the United States. Like, wow,
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it's it's not what he said, it's who said it. Yeah, that
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is really a sign of the times. Yep, Hey, agreed, Well,
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interesting things. Talk about Libo tell us where we find you, how
19:41
do we subscribe? Well, thank you very much. It's independent Speculator dot
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com. I'm traveling, so I don't have the better over my head.
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Wake sales pitches really easy. Sign up for my free letter. See if
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Same here, all right. If you've got a question for Lobo myself,
20:07
shoot me an email kl at Carrie LUTs dot com and hey, you'll find
20:12
a link to his site in the show notes to this interview on Financial Survival
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Network dot com. While you're there, sign up for your free newsletter.
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Lobo been a pleasure, and I'm sure we'll have more to talk about next
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time. Interesting times, I'm sure we will. Thanks for listening to Carrie
20:29
Letz's Financial Survival Network, your solution to today's trying times. For the latest,
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go to Financial Survivalnetwork dot com. Financial Survival Network now more than ever,