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John T. Reed’s hyperinflation/deflation blog

Learn from the Venezuelans

Posted by John Reed on

Venezuela today is illustrating what I have warned of in my hyperinflation book. Tens of thousands of Venezuelans are crossing into adjacent Colombia to buy necessities because price controls in Venezuela combined with hyperinflation of the Venezuelan currency causes the store shelves in Venezuela to be empty. A week ago, Venezuelan President Maduro would not let Venezuelans into Colombia. This is what happens in all hyperinflated countries throughout history. Only pedestrians were allowed into Colombia, no vehicles, so most seniors, who are some of the must hurting in Venezuela, can’t even take advantage of this meager window of opportunity.Accordingly, I have...

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My thoughts on the Brexit

Posted by John Reed on

Hooray for the Brits. An AP story stated with the words “U.K. is now entering uncharted waters.” Apparently, they got rid of all writers over about age 30.The EU and its predecessor the Common Market only came into existence in 1993 and 1957 respectively. The Brits got along without them before they met them and they can get along without them now. U.K. was the world leader in the 18th, 19th, and early 20th centuries, all without the EU.The EU and common market started like NAFTA—an agreement to lower trade barriers. But it metastasized to become a government legislating immigration policy,...

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Venezuelan food riots are what you get when you combine hyperinflation and price controls

Posted by John Reed on

The food riots in Venezuela are caused by the combination of hyperinflation and price controls. All countries pass five bad laws when they get hyperinflation: price controls, capital controls, rationing, anti-hoarding, and financial repression laws. Congress passes them in my forthcoming novel The Unelected President. .http://johntreed.com/products/the-unelected-president-novel… .The books shows how a president needs to deal with it. How you as an individual need to prepare for it and deal with it if it happens is another matter. .That is covered in my non-fiction book How to Protect Your Life Savings from Hyperinflation & Depression, 2nd edition. http://johntreed.com/…/how-to-protect-your-life-savings-fro….If and when we get...

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TransferWise for moving money abroad

Posted by John Reed on

When I wrote the second edition of How To Protect Your Life Savings from Hyperinflation & Depression, I learned that the key aspect of that for liquidity and the ability to buy food and other necessities is that you must have foreign currency and that foreign currency must be abroad. I recommend and have mine in savings accounts in Australia, Canada, and New Zealand and the currencies of Denmark, Sweden, and Switzerland in a Canadian safe deposit bank.http://www.johntreed.com/…/how-to-protect-your-life-savings…That, in turn, means you have to know how to move money internationally. I have used SWIFT wires (too expensive at about $50...

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Amending your FBAR Form 114

Posted by John Reed on

A Facebook post below is about amending the FBAR Form 114. Some readers did not understand why I posted it.1. I write books for a living 2. One is titled How to Protect Your Life Savings from Hyperinflation & Depression, 2nd edition. http://www.johntreed.com/…/how-to-protect-your-life-savings… 3. A key piece of advice in that book is to put enough savings into foreign savings accounts or foreign cash in a Canadian safe deposit box to live off for 24 months. I have both and recommend both. The currencies I recommend and have are AUD, CAD, CHF, DKK, NZD, and SEK.4. Foreign financial accounts must be...

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