John T. Reed’s hyperinflation/deflation blog

Copyright 2013 John T. ReedBecause of hyperinflation risk, I recommend that take put as much of your money as possible out of the US dollar (USD) and USD-denominated assets and it into hard assets and selected foreign currencies. Perhaps the first hard asset you should buy is food. Some would be normal stuff that you buy in the grocery store. Generally, that stuff has relatively short “best by” dates. If those dates are dates after which the food becomes inedible, you need to rotate that food to make sure you et it before it goes bad. However, with regard to...

Copyright 2013 John T. ReedMany readers have IRAs with a lot of money in them. I urge them to get that money into foreign currencies in foreign countries. I did that. I simply withdrew the money and sent it abroad to the foreign banks. As one who is over age 59.5, I did not have to pay the 10% penalty for early withdrawal, but I did have to pay tax on the withdrawals at ordinary income rates. Ouch! But as I repeatedly point out, you have to pay tax in the IRA money whenever you withdraw it. So the fact...

Copyright 2014 John T. ReedIf you were alive in 1933 and old enough to carry change in your pocket, you regret not buying as many $20 gold pieces as you could. They cost $20. By May1st of that year, they all had to be old to the federal government for $20.67 per ounce, the same price they had been since 1832. If you were alive in 1964 and old enough to carry change in your pocket, you regret not buying as many dimes, quarters, and half-dollars as you could. They were made of silver and only cost 10¢, 25¢, and...

Copyright 2013 John T. ReedDuring my recent exploration of the Canadian border around the Vancouver-Bellingham area, I learned of a number of books about that border. I have been reading them one-by-one. I recently wrote about Point Roberts, USA (http://www.johntreed.net/northwest-washington-state-towns-as-hyperinflation-refuges.html) and The Border (http://www.johntreed.net/predicting-Canadian-border-situation-during-US-hyperinflation.html). This article is about the book Borderlands. Biker Author Lundy rode along the Mexican and Canadian borders with the continental U.S. on a motorcycle.I have never read a book by a motorcycle person. I have always thought riding a motor cycle on roads with four-wheeled vehicles was so stupid as to be suicidal and that the...

Copyright 2011 by John T. ReedI and others have repeatedly warned that the bond market will eventually stop buying U.S. bonds. The reason is simple. The U.S. government is borrowing and spending as if there were a prize for borrowing as much as possible before the inevitable federal bankruptcy. The laws of economics say that, absent being forced at gun point, bond buyers only buy bonds if they believe two things:1. the principal and interest will be paid to the bond owner on schedule as promised2. the inflation rate for the U.S. dollar will be less than the interest rate...