Last June, 2017, Argentina was able to raise $2.75 billion by selling bonds of 100 year maturity. The country has defaulted twice just in the last twenty years, and 8 times since its independence in 1816. So the chances that Argentina DOESN’T default within the next century (or even the next decade) is slim to none.

Investors have begun to realize that Argentina doesn’t actually have any money  and that inflation is more than 25%. The Argentine government has asked the International Monetary Fund (IMF) for an emergency $30 billion credit line to remain solvent.

Now, you might be thinking, “I’m not dumb enough to buy Argentina’s bonds, or invest in loser companies.” Great. Nevertheless that’s probably true.

Due to the interconnectedness of our modern financial system, even if you’re not DIRECTLY buying a toxic asset, you’re probably exposed to someone else who is. Your life insurance company. Your pension fund. Your bank. The fixed-income mutual fund where you invested your retirement savings.

Ever heard about JP Morgan? They loaned money to Argentina. Or some company that you might have invested in, like Lehman Brothers or AIG. (Lehman went bankrupt, and AIG has never recovered from its losses.). Due to the incredible lack of transparency in the banking system, the truth is, you will NEVER know if you’re exposed to these risks.

The reality is, you are exposed to this stupidity whether you realize it or not because you’re probably exposed to someone else who’s invested in this financial lunacy. That is one of the reasons I’m holding so much cash outside of this complex, interconnected system.

Another example. Sanctions against Russia. Russia is not the Soviet Union. The y world is Globalized. Russians capitalists, or better known as oligarchs, are succeed and present in Global Economy. What happens when Donald Trump has a bad day? Day after, Russian capitalists orders trucks to line up around some factory or business they have around the World. It there is a risk of confiscation, why not save the most valuable machines? And your kinsmen will loose their jobs. And then their loaned house…

Do you not like what you read about Putin? Seriously, not your business, you are out, you have nothing to do about Vladimir Putin style of government. Did not the Russians proof they can make a revolution themselves? Such sturdy government can make themselves so insufficient, they will just fall down and die like dinosaurs.

Take care. Check surroundings, If some of your parents are working in a Russian owned industry, even localized in the West, he can loose his job after American-British- Europe Union sanctions. The World is Globalized and the Russian are part of it, Friend or foe, that is the destiny, So, better be friends, tell it in your country, tell your friends.