Hyperinflation is coming closer that ever – in Venezuela, where you need $150 just to buy a dozen eggs.
Tom Cloud writes, “Something interesting is occurring in Venezuela at ground level outside the rise of black markets and government alternative price controls. And that is that physical gold and silver are both superseding the soaring price inflation tied to paper currencies, and according to a missionary who lives and works in Venezuela, a single ounce of silver can buy enough food for a family to last three months, and an ounce of gold can buy you a house.”
This happened very recently in Zimbabwe, but that’s Africa, and who cares about Africa? Most Americans couldn’t find Zimbabwe on a map, let alone spell it, anyway. People there were digging for gold in the hills to buy bread.
The conditions conducive to hyperinflation in Venezuela match those in the United States and many other countries, and there is no reason to believe it cannot or will not happen here. Indeed, it will be a process, beginning with bail-ins, that is the government using your money to bail out the banks, negative interest rates, which means that you will actually have to pay the bank, not only to fund financial transactions, but also to keep your money in the bank.
There is also the possibility that the US will “revalue” the US dollar, in other words cutting the buying power of the US$ by a third or half, creating a new currency, or simply allowing inflation to continue rising by printing more and more money. Prices go up, especially of food and medication, the dollar loses value, people turn to barter and the black market, and gold and silver skyrocket in value. That’s when cigarettes will command huge prices from the nicotine addicts, too. The new money will be food, cigarettes, medication, booze, water, gold and silver.
Stop believing the government lies and propaganda and their media lapdogs. Wake up and realize that it’s better to hope for the best and prepare for the worst than to stick your head in the sand. Chances are good that Hillary Clinton will take over from obama – from atrocious to rotten.
I always say, make sure you have the five essentials in place: God, Guts, Groceries, Gold, and Guns. Reduce your debt as much as possible, have hard cash on hand for when you can only draw small amounts of your own money in cash, as happened in Greece, take your valuables out of the bank “security” boxes, prepare for hard times. Buy silver and gold bullion. Not shares, not stocks – bullion. And prepare your Go Bag.
Robin Elliott LeverageAdvantage.com