John T. Reed’s hyperinflation/deflation blog
A financial Berlin wall is going up and you are on the wrong side of it
Posted by John Reed on
Copyright 2012 by John T. Reed U.S. politicians are destroying the U.S. dollar and bankrupting the U.S. government. Our debt-to-GDP ratio is 107% and climbing like a rocket. Guidelines like the euro convergence criteria say you must not let your debt-to-GDP ratio go above 60%. My book How to Protect Your Life Savings from Hyperinflation & Depression, 2nd edition has a chapter titled “Government and institutional reaction to inflation/deflation.” It says that we can easily predict what governments and institutions like banks, stock exchanges, insurance companies, etc., will do when the value of the dollar plummets because of “printing” too many...
Australia now requires in-person visit to open bank acount
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A reader told me, and I confirmed, that you now have to go to Australia in person to open an account. New Australian law I believe. When I went there in 2013, the trip cost $1,390 (round trip SFO to Auckland NZ). Not sure what the current cost US to Australia is, but probably in that range. Is having the account there worth the trip? It get’s you diversification and accounts are more usable than Australian cash in a Canadian safe deposit box. You have to go to a box in person for everything. With an account in Australia, you...
The day the dollar dies
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Copyright 2021 by John T. Reed It now appears clear that the U.S. government has chosen to totally ignore the risk of hyperinflation. They even have a fig leaf of intellectual cover for this reckless course: Modern Monetary Theory or MMT. Most economists joke that MMT stands for Magic Money Tree. There is no Magic Money Tree. When will it happen? Impossible to say precisely. It depends on whether the rest of the world keeps scaring their own citizens into putting money into the US. Ultimately, it is like a building avalanche. With each passing day that the national debt goes...
The benefits gold bugs ascribe to gold are more true of the U.S. nickel
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Copyright 2013 by John T. Reed Gold bugs claim gold is a great inflation hedge. Bull! I explain why in my book How to Protect Your Life Savings from Hyperinflation & Depression, 2nd edition and more briefly at my disadvantages of gold as an inflation hedge article. When I listen to gold bugs extol the virtues of gold as an inflation hedge, I think, These morons are giving a better description of the U.S. nickel than they are of gold, yet they contemptuously dismiss my discussion of the nickel. Which weighs more: a pound of feathers or a pound of...
Advantages of U.S. real estate near international borders
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Copyright 2012 by John T. Reed I have spent a lot of time thinking about, researching, and writing about leaving the U.S. to escape various intolerable situations like hyperinflation and a bunch of related laws that make it impossible to get food or other necessities. In the course of my research, I came across a number of references to border areas in past hyperinflations around the world. Interesting. Three long U.S. borders America has three long land borders—Alaska-Canada, continental U.S.-Canada, and Mexico-U.S.—and a water border between the U.S. and British Virgin Islands. If the conditions and laws are about the...