Here are the latest items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. And it bears mention that most of these items are from the “tangibles heavy” contrarian perspective of JWR. (SurvivalBlog’s Founder and Senior Editor.) Today’s focus is on Hyperinflation in Venezuela. (See the Economy and Finance section.)
First off, over at Zero Hedge: Gold ETF Holdings Surge To 4-Year Highs Ahead Of Lunar New Year
Just as I have been warning you for several years in this column: It’ll be another weak year for the US dollar, Goldman Sachs predicts. It is wise to hedge into foreign currencies. For stability over the next several years, the Swiss Franc is still my favorite.
Economy and Finance:
Reader Chris F. sent this dire news: ‘We loot or we die of hunger’: food shortages fuel unrest in Venezuela. Hyperinflation isn’t just some conjecture from speculative novels, like mine. This is grim reality, folks.
The inflation rate in Venezuela presently around 7,000%, annually. Ten years ago, a 20 Bolivar note would have bought you a nice lunch. Today, they’re being used for kindling. (Their exchange value is about one one-hundreth of a cent.)
For further reading:
This article dates back 11 years and was directed to a British audience, but it is still sound advice: How to Make a Killing from First Editions
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And finally, this at Bloomberg: This Rare Bear Who Called the Crash Warns Housing Is Too Hot Again
At FoxNews: California Dems propose surcharge on businesses to fund social programs. JWR’s Comments: In the next decade, after a good portion of the productive and tax-paying people have left California, the State will surely go bankrupt. It will be like the Detroit Experience, but on a grand scale. The liberal hand-wringers will then probably ask: “How could this have happened?”
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Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who particularly watch individual markets. And due to their diligence and focus, we benefit from fresh “on target” investing news. We often “get the scoop” on economic and investing news that is probably ignored (or reported late) by mainstream American news outlets. Thanks!