• Why gold and silver may be the worst hedges against inflation
• The simple federal budget arithmetic that proves we have to default or inflate, because there is no political will to make the 40% across-the-board spending cuts that are necessary
•? How hyperinflation wipes out some millionaires and enriches some poor people and how you can avoid the wipe out
• How deflation wipes out some millionaires but leaves others unscathed
• Why you need to quietly get up and leave the crowded “theater” before the crowd realizes it’s on ‘flation “fire” and the exits are jammed
• Why Treasury Inflation Protected securities (TIPs) are about as useful as an abortion clinic with a ten-month waiting list when it comes to protecting you against high inflation
• Why the cost-of-living clauses in long-term leases and other contracts and in the income tax code and government pensions, including Social Security, are pathetically inadequate during high inflation
• There is no grown-up in Washington or on Wall Street looking out for you. You have to be your own grown-up.
• Is the stock market a hedge against inflation? Well, the last time it tried to be, BusinessWeek was inspired to publish its famous August 1979 cover story “The Death of Equities: How Inflation is Destroying the Stock Market”
• Why investing in non-U.S. currencies or foreign countries is jumping out of the frying pan into the fire
• How dollar-denominated assets like bank accounts, certificates of deposits, bonds and annuities become worthless, not worth [space] less, during hyperinflation
•? Why it’s wrong to assume that all dollar-denominated assets always provide liquidity
• Which hard assets not only protect you from inflation but are also relatively liquid
• Why you have to be both wealthy and liquid to stay wealthy
• Why you must pay off or pay down all recourse debts before deflation
This book gives you a summary of 2,000 years of financial crisis history. See how many times governments around the world, including here in the U.S., have reneged on financial promises or resorted to “printing” money and inflation to pay their bills.
Government response to inflation and deflation is so predictable, it would be comical if it were not so financially painful. First, government tries to outlaw the offending prices. Prices too high? They’ll impose wage and price controls, which are disastrously harmful. Wages and crop prices too low? No problem. The government will order them back up with minimum-wage laws, more unionization, and crop price supports. They too are disastrous or at least they were when tried during the Great Depression. Actually, government does far more things than just those. Read all about them. Forewarned is forearmed.
…investors, who emitted a haunting moan as their life savings evaporated.
Observed on Wall Street on October 24, 1929
…middle-class families who were experiencing impoverishment for the first time. Great Depression
It was horrible. Horrible! Like lightning it struck. No one was prepared. You cannot imagine the rapidity…
Friedrich Kessler, German hyperinflation survivor
• What to sell right now before everyone else does
• What to buy right now before everyone else drives up its price
• Which debts to pay off first
• Who ya gonna call? The right type of lawyer to consult now
• Liquidity killers to avoid like the plague
• Who can you trust? Be very careful!