According to John Williams’ Shadow Government Statistics October 26 Flash Update, year-to-year
Monetary Base is up 38%. Expansion of the money supply creates inflation and debases the wealth of people holding U.S. Dollars.
The lesson? Don’t hold U.S. Dollars. Seems kind of tough if you live in the U.S. though, doesn’t it?
Foreign bank accounts have been used for decades as a means to hide income and assets from taxation… sometimes legally, sometimes illegally. I believe the coming hyperinflation will foster a whole new flight of capital into foreign bank accounts for a different reason: wealth preservation.
There’s nothing illegal about owning a foreign bank account. In fact there’s an IRS form to fill out to declare all foreign bank accounts holding $10,000 or more. This new wave of foreign banking won’t be in an effort to hide money from the IRS – it will instead be to simply sidestep a loss of wealth stemming from hyperinflation.
Many people talk about this “economic meltdown” as if it is a natural disaster that snuck up on us in a matter of days like a hurricane. In reality, there are many people who predicted this downturn to a “T” based on basic economics. Many people also talk about the future of our economy as if it is anybody’s guess. Again, in reality, it will follow simple economics. Trillions of dollars are being created, partially behind closed doors at the Fed and partially openly in the course of our bailout. This monetary expansion will bring our outrageous inflation (now 12%) to more dangerous levels.
If you don’t know how to consistently get a 38% return on investment, perhaps you should consider alternatives to holding your reserves in U.S. currency or assets exposed to U.S. currency.
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