John T. Reed’s hyperinflation/deflation blog

Copyright 2013 John T. ReedThis an idea I just got today. Often when that happens, I overlook something. Please help me identify what I overlooked if anything. Annuitants hurt the worst The people who were hurt worst in past hyperinflations around the world were annuitants. In today’s America, annuitants would be anyone who now receives, or is due to receive in the future, monthly payments of social security or a pension. Lottery winnings, structured settlements, and other monthly payments over an extended period are not annuities per se, but almost. Hyperinflation destroys the dollar The problem with annuities in the...

Copyright 2015 by John T. ReedAn annuity is an amount of money you receive—usually monthly—until you die. Social Security is a classic example of an annuity.When they had their famous hyperinflation in Germany in the early 1920s, and they used wheelbarrows of cash to buy groceries, who was hurt most? Annuitants. Pensioners. People receiving pensions payments. I discuss that in detail in my book How to Protect Your Life Savings from Hyperinflation & Depression, 2nd editionThe problem with an annuity in hyperinflation is that it is a dollar-denominated asset or income stream. Those assets or income streams become worthless during...

Copyright 2015 John T. ReedThe fact that China, with the size of the U.S., the population of Europe plus the entire Western Hemisphere combined, and the second highest GDP in the world, just had a Great-Depression-size market crash—and is reacting in about the worst possible way to it—is a potentially far bigger story. It could lead to a depression and/or a revolution in China and a depression in China would adversely affect all of China’s trading partners. We are their second biggest trading partner after the European Union. Here is some perspective on the matter. Take over the world China...

Copyright John T. Reed 2014I have read a number of books about Americans or Canadians staying abroad for an extended period.I do not recommend moving abroad for Americans, although Canadians may need it at least in winter because of their latitude. I am a native-born American. The only time I lived abroad was during a tour in Vietnam as an Army officer in 1969-70. I did not care for it and it blows my mind that any Vietnam vet would ever go back there. Stinking hot, humid, rainy, impoverished place. One retiring overseas book called it “beautiful Vietnam.” It is...

Copyright 2015 by John T. ReedOn 4/1/15, Chase sent a letter to U.S. customers saying they “agree not to store cash or coins other than those found to have a collectible value.” Executive Order 6102Where does that come from? Executive Order 6102 issued by FDR in 1933 ordered U.S. residents to sell all their bullion gold to the U.S. Federal Reserve by May 1, 1933 for $20.67, the fixed exchange rate since 1792. In 1933, $20.67 was less than market value by a few dollars.Bullion gold means gold that sells for its weight in gold, and no more. Collectibles like...