from Wealth Cycles:
“The ruble-dollar exchange rate went from 6:1 to 30:1 overnight,” said Dimitri, from Moscow. We spoke with him last Saturday. “It was really bad, everybody lost so much.” A heartbreaking move: Dimitri’s loss was typical of the widespread pain experienced by Russians when the ruble was devalued in 1998–just as the dollar was devalued in 1934 by then U.S. President Franklin D. Roosevelt.
Is another devaluation of one or more major national currencies coming soon?
Sadly, Dimitri’s fate is common the world round, as time and again fiat currencies ultimately fail. But the fate of those who held Russian rubles can be avoided, if one follows the lead of central banks today–that is, become a net buyer of gold and silver, avoiding the dramatic loss of purchasing power, and possibly even prospering as a result.
Deflation (falling prices!), such as we are experiencing in the U.S. today prompts re-inflation (printing) or a more dramatic devaluation. Either such decision results in a dramatic theft of personal wealth. We highlighted the topic in yesterday’s piece, Wild Silver Returns? Gold Zooms Higher on Inflation or Deflation. Today we consider a few of the recent devaluations to hit citizens.