How to grow your wealth during the coming collapse?

(Martin Jones) #1
THIRTY-FIVE FREQUENTLY ASKED QUESTIONS ANSWERED 251



  1. Is there another country where a person could
    open a savings account that would be safe to hold funds?
    I do like the Swiss banking system. The problem is you’re
    not going to be off the radar screen. I don’t, obviously, counsel
    any kind of tax evasion. But if you’re a U.S. citizen and you
    have a foreign bank account, you have to check a box on your
    U.S. tax return, and that would certainly attract the interest of
    the U.S. tax authorities.
    From a safety and soundness point of view, however, I like
    Switzerland because I think they have a well run banking sys-
    tem and well run economy. But don’t think that that’s going to
    get you off the radar screen because it will not.




  2. In the coming bad period is it good to be a lender, a
    borrower, or neither? Should investors pay off their mort-
    gages now, for instance?
    That’s really asking whether inflation or deflation is going to
    prevail. If inflation is going to prevail, you really don’t want to
    pay off your debts, at least not accelerate the payments, because
    those debts could be worth a lot less in an inflationary world.
    But right now, I see deflationary forces prevailing. My ad-
    vice would be, if you have a legitimate reason to borrow, such
    as to finance a house or something like that, and you can
    afford it and you’re not overleveraged, that’s fine. I wouldn’t
    necessarily run out to prepay a mortgage, though.
    I would not be going out and borrowing a lot of money right
    now to lever up. That’s a strategy that does work in inflation —
    but the inflation might not come right away. We might be facing
    prolonged deflation. My approach is to have a balance of hard
    assets and cash. The hard assets protect you in inflation. The
    cash protects you in deflation and reduces volatility. It’s hard to
    know which one we’re in for, so I like to prepare for both.




  3. When you say ’hold cash’, do you mean banknotes?
    If so, what currency?”



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