The Slow But Not Steady Decline
Money is the root of all evil.
Well that depends on how you perceive the world, right?
Well sure you can do a lot of evil things with money that is for sure but that's not what I want to dive into today.
Ever since Covid-19 took the world by storm money has been at the back of my mind more than I care to think, however over the last year or two I've started to realize that things in our country isn't going to change any time soon.
The problem is that leaving the country is likely not an option for me and wont be for the next 10 years, fortunately for me this is something that I know and I've made my terms with it. Now how do you survive in a constantly declining economy?
I'm still working on that by the way so don't come expecting me to give saving answers.
I have this idea in my head to start some sort of "Rags to Riches" series where I can play off a scenario off being a brokey and then slowly and steadily create a steady income from nothing. But that represents it's own set of challenges so I wont dive into that at all.
Nothing But A Slow Decline.
We've had nothing else but a slow decline of our economy and overall state of our nation and infrastructure as a whole. This decline however has sped up dramatically since the Covid-19 pandemic of 2019.
While most countries around the world have already gotten on the fast track to recovery. Things in South Africa have been looking more dire by the day.
We've had the worst currency performance this year since Covid-19 and it's worse now than when Covid-19 hit. To think on the 27th of December 2019 right before Covid our currency was $1 = R14.02 to the dollar. Less than four months later on the 24th of April 2020 we were standing on $1 = R19.03
I'll likely never forget that since I remember betting against my own currency on the Forex markets, made quite a few dollars there too!
Where Does This Leave Me?
This is really throwing me off badly because sometimes you just don't know which way right?
One thing is for sure and that it's not the way of our country, at the current standing of our economy and the fact that nobody is willing to even try and change the situation it would be much more profitable for me to keep my fiat values in anything but the RAND.
At the rate of how fast our currency is declining in value, just simply by converting my money to USD or even EURO I'll get a bigger ROI on that over a span of five years than any bank could have given me and that isn't even including the actual dollar based return I will get. It's very much like a double win.
But is it wise to play the game in such a way?
What I'm getting at is, is it smart not to have any reserves in your national currency? Even if it's a crippling currency. No matter how much I'd like to think so, I don't think it is. I think it would be wiser to at-least have about a six month salary equivalent just in-case things go side ways faster than you expect.
A Short Of The Story, Story.
I don't know how many people out there know of this or might be doing the same. A lot of South African boys and men go over to the Americas to work on farms there. They get paid and well they bring back Dollars instead of Rands. Which is great for them because upon returning to the country they have so much more than they have ever made in their own country. A lot of people become successful by doing this albeit a very small percentage of them who actually knows what to do with those funds.
Okay I'm veering off track now.
Well most of these men have this idea in their heads that when the Rand crashes they instantly have more money. This might be true but it's certainly nothing to get excited about at all? Or am I fucking crazy?
They celebrate the fact that they will now be getting R 110 000 instead of R 100 000 but what they don't seem to be realizing is the fact that they are going back to that failing country. Where they will then in turn pay more for everything. So did they really make a banging buck or did they actually lose?
Fucking dimwits. Don't get me wrong we might be a breed of people that don't sit down when tired, we can really keep on pushing until we fall down. But boy oh boy we have some people who aren't very bright at all.