George Soros is a smart man. I don’t mean that to say that I admire him because I certainly don’t agree with him about his stated political beliefs. But, I have to admit that he is very intelligent and very shrewd.
How else does a person make a fortune setting up a situation for a nation’s currency to collapse so that you can make a fortune on that collapse? That is exactly what Soros has done, multiple times.
Why should you care? Because, this time he’s betting against the world economy, including the United States.
The Wall Street Journal notes,
“Worried about the outlook for the global economy and concerned that large market shifts may be at hand, the billionaire hedge-fund founder and philanthropist recently directed a series of big, bearish investments, according to people close to the matter.
Soros Fund Management LLC, which manages $30 billion for Mr. Soros and his family, sold stocks and bought gold and shares of gold miners, anticipating weakness in various markets. Investors often view gold as a haven during times of turmoil.”
To put this is non-academic language: Soros is getting rid of stocks and buying gold and and partial ownership of gold mines. He is doing exactly what I would recommend that you do: put your money into items that have value in and of themselves instead of into things that get their value from people thinking that the item is worth something (like a stock) which means that value can disappear. Gold will always have value. Stocks, not so much.
It sounds suspiciously like Mr. Soros is betting that economic conditions worldwide are going to get worse, and, maybe, we should take a page from his book, and start to prepare for situations in which paper U.S. dollars have no value. It’s happened before, both in the Weimar Republic in Germany and, more recently, in Zimbabwe.
In those situations, people have been known to literally have to carry a wheel-barrow-full of paper money to pay for a loaf of bread. This is not the kind of situation in which you want to be dependent on the government and their currency for your survival.
Our advice? Get prepared now by both having assets that aren’t tied into paper money or stocks and also by having the skills to survive when money has no value.
How would you prepare for an economic collapse? Tell us below.