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I did a quick search - I thought what they've been talking about in Zimbabwe was fascinating: http://www.newzimbabwe.com/pages/markets14.17028.html.

The basic idea if you believe that a hyperinflationary environment is coming, you borrow money to invest in hard assets and selected stocks. Hyperinflation will cause the value of the currency to fall dramatically, driving up the value of assets relative to that currency. This is why whenever you see countries devalue their currency to reflect rampant inflation (e.g. most recently Venezuela), people run out to buy whatever they can including TVs, disposable goods because these hold value better than cash.

Of course, if you're wrong and the opposite happens (e.g. deflation where currency rises in value but assets fall), you lose money. That said, I'd agree with the general fundamentals Evans-Pritchard describes - but also as he describes, it's basically unknowable when the crash will happen.

(By way of warning, when it comes to applying theory to practice, be careful when playing between various currencies - e.g. http://www.moneyweek.com/investments/what-is-the-carry-trade... - which is basically what happened when the markets started unravelling in North America)




I'd do that, since I want to buy an apartment in Tokyo. But the problem is, I also believe an earthquake is coming ...




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