Hyperinflation Around The Corner – Look At Your Self Directed IRA

We’ve recently seen the data that supports that the economy is not recovering, and in fact appears to be sinking back into recession. We’ve also seen that the Fed is going to continue to engage in operation twist, but as we’ve pointed out that’s likely to have little to no impact.

There is a confluence of factors that are coming into play that are pointing to potential hyperinflation in the near future. In fact that near future could be in the 2014 time frame. If this is the case, then you will want to re-evaluate all of your investments and look at how you should be best utilizing your self directed IRA in order to weather this coming storm.

The following are some of these factors or drivers that may be leading to hyperinflation:

Economic Deterioration – The economy is far weaker than the politician know or will tell you. The US economy has never recovered from the 2006/2007-to-2009 crashes.

Deterioration of the budget deficit – The US budget deficit is not getting better and in fact, the unfunded liabilities are clearing getting worse and the the government has not done one, single positive thing in three to four years to even stop the bleeding. The ObamaCare program could drive $10 Trillion in unfunded debt. That may not come about. That, plus consideration of accounting for Freddie Mac and Fannie Mae and otherwise normal annual transactions, could push the reporting of total  U.S. obligations from $80 trillion in 2011, into the $120 trillion range for 2012, which would be roughly eight-times the level of U.S. GDP.

Renewed printing and support of the financial system – Operation twist will continue. The real concern is that if the system continues teetering, the Fed will be forced to monetize more debt in order to prop up the banking system. This is more fuel for the fire, and this will have the effect of pushing people/countries away from the US dollar. This would lead to a much weaker dollar.

The loss of the US Dollar as the reserve currency for the world – Despite the recent influx of countries grabbing US Dollars, the long term movement has and is away from using the dollar as the worlds reserve currency. This will continue to erode the dollar over time and depending on other events that can come sooner rather than later.

The actions  taken by the Fed and the  government in 2007 and after, and the impact from the economic downturn, the movement away from dollar selling along dollar debasement have created the perfect storm. We were already facing inflation in the future, but our circumstances have likely moved timing for a U.S. hyperinflation to 2014 from 2018.

For those living in a U.S. dollar-denominated world, physical gold remains the primary hedge against the ultimate dollar crisis, along with physical silver and assets outside the U.S. dollar and in stronger major currencies such as the Swiss franc, Australian dollar and Canadian dollar.

With this in mind, you should consider reviewing your self directed IRA investments and making sure that you position yourself accordingly.


The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.