I don't think Russia expected it.
Now they know.
Your foreign exchange and gold reserves held at other people's banks can be frozen one!?
Then again, its not entirely new.
The Taliban last year discovered it too. But who cares right? Its so far away and does not concern most other countries.
Today's Russians have discovered what the Greeks, Cypriots, and Icelanders have faced in the past when they go to their ATMs to withdraw cash during times of distress.
Sure, money under the mattress is often ridiculed as money rotting away not earning a yield. You know, the Buffett definition of what's an "asset".
Then again, there's a reason why the Indians and Chinese are big buyers of gold jewelleries.
Both have similar 5,000 years history of wars, famines, and plagues. Regimes and empires come and go...
Got some "wealth" on our bodies and physically at home rotting away is like buying health or life insurance - just in case...
Think twice of cashless and digital currency economy! :-)
ReplyDeleteCW,
DeleteThere are always consequences and "terms and conditions" for everything in life.
When somebody "pushes" or "cheerlead" the adoption of something, it usually meant it benefits them first and foremost ;)
Smol,
ReplyDeleteI feel it whenever I go shopping with wifey...
Where's the top secret ultra-discreet offshore tax haven trust fund when you need it?? Lol.
Spur,
DeleteThat's the price of, "If you want it, put a ring on it!"
LOL!
Try hiding your stash in your shoes?
Then again, I wouldn't want to be the cashier taking cash from you...
"Sir, would you like to pay with Nets or Credit instead?"
Hi SmOl,
ReplyDeleteBut then again, unless u have a vault at home, how much of your wealth can u "insured" by having physical gold or likewise valuable e.g. cash
I think even if u keep some, it will be less than 5 percent ... Guess little is better than nothing. But I hardly think it will matter too much.
Those Ukrainian that flee the country, I doubt many of them carry gold and cash.
I stand corrected thou... A lot of external circumstances matter more.
Maybe some dried food and winter clothes too?
Sillyinvestor,
DeleteYou think why gangsters wear gold Rolex watches?
My ex-colleague who have a family pawnshop once told me Rolex watches can retain 80% of their value.
Then there's rings and necklaces. Wink.
For women can include ear rings and ankle bands.
If everyone is rushing to climb to the last boat or plane, some wealth on our bodies can make a difference!
Of course for the better off and financially savvy, there's offshore banking accounts. Wink.
How else can Thaksin live in exile comfortably all these years?
Those of us who have studied or worked overseas may have overseas banking accounts. Not a lot, but can tide us for a year or two?