How to protect the savings of your hyperinflation and depression life, by John T Reed

How to protect the savings of your hyperinflation and depression life is a book by John T reed in which it explains that due to the economic policies of the US government the US could go to a period of hyperinflation or economic depression equivalent to hyperinflationthat ravaged Germany at the beginning of the 20th century (and Austria and Hungary) or the economic depression of the great depression of 1929.

Although the author's biases do not stop being seen (the book is 2010, updated in 2012, and blames the Obama administration) and is written from the perspective of an American (making the book little useful for the rest of the countries), it isIt is true that there is very little bibliography designed for personal finances in extreme situations, such as hyperinflation or strong economic depression (such as the one that we are likely to live due to COVID 19).

The book is basically composed of two parts, one in which it describes as a strong economic crisis style depressions or hyperinflation in the style of the Weimar Republic (or more recently the examples lived in Venezuela, Zimbabue or Argentina) and aSecond half dedicated to explaining the different types of assets with which we could find ourselves in a situation of hyperinflation or deflation as well as how to survive an equivalent situation.

It could happen tomorrow

The argument of the book is that the high level of indebtedness of the US (and other countries) with respect to GDP could cause a bankruptcy of the United States (and possibly other countries), which, although we have not seen many recently, are not so uncommonIn history from the Roman Empire.Even countries like Argentina that were among the richest in the world in terms of GDP per capita have ended up causing sovereign debt or hyperinflation crisis later.With which, the hypothesis from which the book starts is that both the US and other countries (in which it includes a good part of the euro zone) would be destined to a crisis in which investors stop lending to the US government.Something that is also feared that can happen to us in Europe.

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In this situation a government would have no choice but to take two paths.One would be to make cuts or even impgo in their sovereign debt or combination of both that involved a strong economic crisis with deflation.The other option would be to print money as Germany, Austria and Hungary did between the first and Second World War, or have done many other countries such as Venezuela or Zimbabue more recently.

Although many serious economies such as the US or the euro zone have many provisions to prevent money from without control (as recommended by the current consumer minister), it is true that at present due to the quantitative easing policies of the Fed andLtro of the ECB has increased the monetary mass much by the central banks.

In these situations governments tend to act so that they usually harm the population.There is also a strong impact on many aspects of our daily lives, such as food or taxes.In fact, an interesting phrase is that to survive the law ends up skipping, since this prevents doing the things that are necessary (accumulating, having foreign currency or gold ...) Finally in this first part recommends to follow the different existing inflation indices, as well as its adjustment to our consumption.Even monitor and build one to adjust it to our needs.

In the second part, the author comments on the different assets that can be had in case of a situation of hyperinflation and economic depression, recommended some and recommending getting rid of others before an extreme situation in the economy could come.

Not recommended assets

Recommended assets

In summary, a book that deals with an event that could be unlikely, but also tries to give solutions at the level of our family economy.Something that is not usual, given that most personal finance books are usually focused on normal situations and books that deal with extraordinary situations do not usually go down to personal finance level.

Ask readers, do you think there may be a situation of hyperinflation or economic depression soon?How do you think they should protect themselves about it?