How to Protect Against a Hyperinflationary Depression

There is a very real risk of a Hyperinflationary Depression happening in the U.S. over the next 12 months. In a Hyperinflationary Depression the dollar collapses and you will see events like those in Iceland over the last several weeks and Zimbabwe over the last couple of years.

Here are a couple of ways to protect yourself and your assets:

For Landlords:

Convert your leases to "month to month" rental agreements. This will allow you to raise rents to keep up with the hyperinflation. If it gets really bad, a week to week rental agreement might make sense. If you are locked into a long term lease when a hyperinflation hits, your money coming in could lose up to 50% or more of its' value overnight and even 99% within a matter of months.

For Renters:

Lock yourself into a 2 to 3 year lease if you can. Make sure there is no adjustment for CPI or anything like that. When hyperinflation hits, you can pay a whole month's rent with a single day's pay (assuming you still have a job).

For Homeowners/Debtors:

Make sure your debts are locked in at long-term, fixed-interest rates. Like the renters above, you could, at some point, pay off your mortgage with just a couple week's pay.

For Everyone:

Build up several month's worth of Food Storage because one of the first things you will see is a run on the grocery stores.

Also, immediately withdraw all of your funds from retirement funds, savings, banks, credit unions, CD's, IRA's, etc. Convert these funds to physical gold & silver. Keep about one month's worth of cash on hand and sell a little portion of your gold & silver only as you need it. At some point we might simply go into a barter situation and you could trade your gold/silver and canned goods for other products and services.

If anyone owes you money, consider offering them a discount if they pay you off immediately - especially if you are carrying the note on a long-term, fixed interest rate.

Consider your self-defense and security. Store up on ammunition and get familiar with your firearms (you do own a gun don't you?).

Avoid an ostentatious lifestyle. Ditch the Rolex and the Lexus for something more conservative. There could be a lot of "class angst" and you don't want to be the lightening rod for someone's anger.

Here are a couple of articles worth reading on the likelihood of a Hyperinflationary Depression:

http://www.shadowstats.com/article/292

http://tinyurl.com/6juujd

For an excellent home study course on Economics, and why the economy is the way that it is, we recommend the following:

http://www.freedomschool.org

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