A few days ago, the Texarkana Business and Professional chapter of the John Birch Society hosted Victor Sperandeo, aka “Trader Vic.” Sperandeo is a professional trader, index developer, and financial market commentator based in Dallas, Texas, with over 40 years experience trading numerous markets. He is widely regarded as an expert in commodities, particularly in the Energy and Metals sectors. His market crash prediction during an interview in September 1987 earned him great recognition and highlighted his deep understanding of financial markets. In recent years, Sperandeo has been best known for developing indexes and trading strategies that are designed to benefit from futures price trends, and has appeared frequently on CNBC, CNN, Fox and other networks, and has been included on the list of top 100 Wall Streeters. His presentation was “Hyperinflation: A Statistical Inevitability.” Here are some highlights:
- Don’t trust the government’s numbers or statistics. They are designed to fool the people and the press. Do your own research.
- Hyperinflation occurs when the people lose confidence in their nation’s ability to repay debt.
- Once hyperinflation occurs, it is irreparable. The old currency system will be scrapped, and a new one will take its place.
- The US Government is, indeed, bankrupt.
- US debt is growing roughly five times faster than GDP.
- All cases of hyperinflation have been connected to huge budget deficits.
- There is simple data that shows Keynes was wrong – government spending lowers economic growth.
His ultimate advice, for those that believe hyperinflation (or just really bad inflation) is a real concern: Convert at least 5% of your net worth to gold and silver. The dollar will lose value, but gold and silver won’t.
Below is a video of the same presentation, given recently at a JBS chapter in Dallas, with a PDF copy of his slide show.
Mr. Sperandeo also mentions a free e-book: Fiat Money Inflation in France
Hyperinflation: A Statistical Inevitability (PDF of slide show)