89.3 The Real Reason El Salvador went Crypto

———Ep 89.3 Summary———
El Salvador announced its crypto intentions seemingly out of the blue. But a closer look reveals the nation had run dangerously short of (euro)dollars in early 2021. It went to the IMF for a bailout. Now it heads to the crypto world for one. Just like people did in the 14th-century. Wait, what?!

———See It———

Twitter: https://twitter.com/JeffSnider_AIP
Twitter: https://twitter.com/EmilKalinowski
Alhambra YouTube: https://bit.ly/2Xp3roy
Emil YouTube: https://bit.ly/310yisL
Art: https://davidparkins.com/

———Hear It———

Vurbl: https://bit.ly/3rq4dPn
Apple: https://apple.co/3czMcWN
Deezer: https://bit.ly/3ndoVPE
iHeart: https://ihr.fm/31jq7cI
TuneIn: http://tun.in/pjT2Z
Castro: https://bit.ly/30DMYza
Google: https://bit.ly/3e2Z48M
Spotify: https://spoti.fi/3arP8mY
Pandora: https://pdora.co/2GQL3Qg
Breaker: https://bit.ly/2CpHAFO
Castbox: https://bit.ly/3fJR5xQ
Podbean: https://bit.ly/2QpaDgh
Stitcher: https://bit.ly/2C1M1GB
PlayerFM: https://bit.ly/3piLtjV
Podchaser: https://bit.ly/3oFCrwN
PocketCast: https://pca.st/encarkdt
SoundCloud: https://bit.ly/3l0yFfK
ListenNotes: https://bit.ly/38xY7pb
AmazonMusic: https://amzn.to/2UpEk2P
PodcastAddict: https://bit.ly/2V39Xjr

———Ep 89.3 Topics———

01:39 El Salvador may be the first nation to accept bitcoin as one of its official monies – why?
02:07 Three months prior to the bitcoin announcement the nation was asking the IMF for money.
04:50 El Salvador dollarized (accepting the US dollar locally) in 2000 because of globalization.
08:12 El Salvador dropped below the IMF’s red line for foreign obligations in March/April 2021.
09:46 Throughout history money shortages are a regular occurrence: 14th, 19-21st centuries.
11:49 Cryptocurrencies are a modern ledger money, like in the 14th century with ghost money.
17:50 There is a dollar shortage because private banks have restricted credit growth.
18:45 Concluding thoughts on crypto and its fundamental value versus its bubble value.

———Ep 89.3 References———

Bitcoin, El Salvador, And…The Eurodollar’s Ghost: https://bit.ly/3hIom0b
Alhambra Investments Blog: https://bit.ly/2VIC2wW
RealClear Markets Essays: https://bit.ly/38tL5a7


Jeff Snider, Head of Global Investment Research for Alhambra Investments and Emil Kalinowski. Art by David Parkins.