John T. Reed’s hyperinflation/deflation blog
Paying your USD bills out of BMO in Canada
Posted by John Reed on
Copyright 2013 John T. ReedI have urged readers to put not only their rainy-day savings cash in Canadian savings accounts, but also their current bill-paying cash there.Your rainy-day savings goes into a normal Canadian savings account denominated in Canadian dollar (CAD). In the event of U.S. hyperinflation, this money would not lose purchasing power because of U.S. dollar (USD) hyperinflation. I use Bank of Montreal for that purpose. I also now use BMO to hold USD in a checking account out of which I pay many of my U.S. bills.Since it is USD, it is not currently protected from USD...
Better to be a year early than a minute late in risk management—when protection is cheap and low risk
Posted by John Reed on
Copyright 2013 John T. ReedToday’s International Man email has this sentence with regard to preparing for hyperinflation: “It’s always better to be a year early than a minute late.” ‘Always’ is rarely correct The “always” part of that sentence is incorrect. We actually focused on that issue somewhat at Harvard Business School. For example, the whole idea of “just-in-time” inventory levels is that it is better to be a minute early than a year early. Whether you want just-in-time inventory levels is a function of your product margins and inventory carrying costs (the amount of interest you lose out on because...
Bankruptcy planning is wise especially if you do not expect to ever need it
Posted by John Reed on
Asset protection is a hot topic these days. Because it is, I have tried to research it a number of times to write about it. Generally, I found that most popular methods of protecting assets were of dubious ethical, moral, and legal standing. Two methods, however, have stood out as ironclad: pensions in some states going bankrupt in states with unlimited homestead exemptions O.J. An 8/28/97 CNN story said that Fred Goldman had decided not to seek money from O.J. Simpson’s pension funds. Goldman was the father of Ron Goldman whom the civil jury found O.J. had wrongfully killed.Fred was...
AUD and CAD now certified as reserve currencies
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Copyright 2012 by John T. ReedA reader has apprised me that the Australian and Canadian dollars are now officially certified by the International Monetary Fund as reserve currencies. This a bit technical but as the article I link to below says, it has both practical and symbolic significance. The article is NEWS ANALYSIS: Australian, Canadian dollars get IMF status as reserve currency.I point it out because those are two of the four currencies I recommend you move your rainy-day savings to if you are currently a holder of U.S. dollars. The other two are Swiss francs, which was already an...
Visit to Australia and New Zealand
Posted by John Reed on
Copyright 2013 by John T. ReedIn March, my wife and I went to Australia and New Zealand for 16 days. I was unable to update my web articles during that period, so I posted a bunch of Facebook posts about it. Here they are in chronological order because many of you are either non-Facebook users or Facebook haters.March 5, 2013I am in New Zealand. Nice people which is really the main issue as far as hyperinflation is concerned. Nice as in not spending trillions more dollars than they have and nice in confirming observations from afar that they are honest,...