You Can Profit from a Monetary Crisis By Harry Browne First published in 1974 Reprinted many times since Copyright © 1974 by Harry Browne Copyright © 2012 (including Introduction and Foreword) by Lipton Financial Services, Inc and Pamela Browne All rights reserved according to International Law No part of this book may be reproduced for public or private use without the written permission of the publisher Introduction by Publisher - Roger Lipton Harry Browne’s first book, How You Can Profit from the Coming Devaluation, was published in 1970 He predicted that President Nixon, advised by Federal Reserve Board Chairman, Arthur Burns, would devalue the U.S Dollar substantially, changing the dollar’s conversion rate into gold, from $35/oz to perhaps $70/oz or even $105/oz This would reduce the value of the dollar relative to gold by 50% to 67% By late 1971, Harry was proven directionally correct, but he underestimated government’s willingness and ability to undermine its currency Nixon and Burns didn’t devalue by just 50% or 67% They eliminated the exchange of dollars for gold, removing the remaining link (and discipline) established by the international Bretton Woods Agreement of 1944 The subsequent numbers tell the tale A dollar of purchasing power in 1971 is worth perhaps sixteen cents in 2012 Going back further, since 1913 when the Federal Reserve Board was established to control inflation, the U.S Dollar has lost ninety five percent of its purchasing power By 1974, when this second book was published, Harry Browne was world famous, a New York Times best selling author, and gold had quadrupled to about $150/oz I was then a young Wall Street institutional research analyst, and invited him to speak at a luncheon meeting for perhaps twenty portfolio managers Amazingly, demand for seats resulted in the rental of Carnegie Hall on the evening of June 27, 1974, with tickets selling for up to $40 (more than $200 in current dollars) The NY Times financial journalist, Robert Metz, reviewed Harry’s presentation by saying: “he came with a message of hope—that his followers would wind up prepared to cope with currency devaluations, monetary collapse, and inflationary or even deflationary expectations… “…in Mr Browne’s lexicon gold is the only real money, while nearly every major economist would disagree.” In 1974, as now, some market mavens no doubt concluded “the bell has rung!” Gold had quadrupled in three years, and the limousines were lined up to hear the latest apostle As it turned out, the gold price quadrupled again by 1979, and peaked briefly at $850/oz in early 1980 I have republished this book because, in this money manager (and part time publisher’s) view, the monetary dangers Harry Browne discussed in the 1970s are an order of magnitude worse today It is worth remembering that in the history of the planet, there has never been a fiat paper (i.e.unbacked) monetary system that has survived It is just a question of time until the politicians of the day dilute the unbacked currency into oblivion Some observers suggest that gold could enter a new bear market today, similar to that from 1980 to 2000, especially considering the current TV commercials praising gold and quite a few books (even some brought back from 1970 and 1974) as well However, there were good reasons for the gold price to stagnate and then decline in the 1980s and 1990s Recall that Paul Volcker had the courage to raise the Fed Funds Rate as high as 20% in late 1980, subsequently backed by Ronald Reagan, tolerating a serious recession which wrung out the inflation of the 1970s This newfound discipline rejuvenated confidence in the U.S.Dollar, in turn reducing the urgency to own gold In comparison today, the annual deficit and accumulated balance sheet debt are 15 times as large; tens of trillions of today’s unfunded entitlements were relatively insignificant in 1980; and Greece, Spain, Portugal, et.al did not need our financial support The 2012 GDP is times larger to be sure, but the obligations are many times the burden relative to the size of the economy that they were in 1980 Gold has “only” tripled, keeping pace with the change in the Consumer Price Index (understated, in our view) I am obviously in the camp that believes that gold is far from representing a "bubble” at its current level of $1650 All this is to say that Harry Browne’s wisdom from the 1970s is still crucial to economic survival and prosperity The monetary lessons he so elegantly presented are still applicable, and always will be He understood the basic laws of supply and demand, as well as human nature Harry Browne loved his country, was trying to make a difference, and wished each reader only the best I feel the same way Last but far from least, Harry would be proud as I am to introduce John Hathaway, a giant in the investment field, who has provided the Foreword for this publication John’s economic understanding, foresight, and investment acumen have led the Tocqueville Gold Fund since its founding in 1998 to one of the best performance records of our generation We have learned not to bet against Harry Browne in 1974 As today’s money managers might put it “I wouldn’t ‘fade’ John Hathaway in 2012” Roger Lipton - April 2012 Roger Lipton is founder of Lipton Financial Services, Inc., a money management firm based in New York City 2012 Foreword by John Hathaway, portfolio manager since 1998 of the Tocqueville Gold Fund * Harry Browne’s simple but elegant message is that sound money makes men free Mankind is enslaved when compensation is based solely on government scrip Freedom is impaired when producers and consumers must abide by legal tender laws which dictate the terms of exchange Gold is the only form of money which government cannot debase Gold currency backing is the enemy of political power because it makes inflation more difficult History repeatedly demonstrates that Inflation is the essence of all government finance It blurs accountability and allows politicians to disguise the true cost of the waste they incur Written as a guide for individuals to navigate the perils of monetary and economic disorder of the 1970’s, Harry Browne’s book is a free market manifesto relevant to all ages The general welfare of society rests exclusively on the desire for economic gain by self-interested individuals Market forces allocate resources in the optimal manner and result in the greatest prosperity possible throughout all layers of society Government intervention invariably undermines social well- being It distorts prices, burdens production through unnecessary regulations, rewards the unproductive, and misallocates resources The net effect of all government activity is detrimental to welfare At best, government is a cost to society, incapable of generating wealth At its worst, it impoverishes citizens by raising costs to consumers, impeding production, and creating shortages Since production is motivated by the desire for gain, the resources utilized including materials, labor, technology, managerial and entrepreneurial, must receive in exchange something which is expected to have durable value Except in the case of barter, that something is money Cash that is issued by governments has invariably lost value over time If government cash is the only compensation possible for the employment of productive resources, any economy will eventually lose vitality Ask for the price of gold on a daily basis and betray your ignorance Trade it at your peril The acquisition and possession of gold is not a speculation on higher prices The profit of which Browne speaks is the peace of mind that comes from understanding the cause of repeated financial crises and the conviction to act accordingly Gold is a strategic component of economic freedom These chapters will provide a glimpse of that reality John Hathaway - April 2012 * Mr Hathaway is a Portfolio Manager of the Tocqueville Gold Fund, Tocqueville Gold Partners and the gold equity strategy Prior to joining Tocqueville in 1997, he was the Chief Investment Officer at Oak Hall Advisors for seven years and in 1986 founded and managed Hudson Capital Advisors Previously he was a Partner at David J Greene and Company and an Equity Analyst with Spencer Trask & Co He has an M.B.A from the University of Virginia and a B.A from Harvard College Original Flaps and Back Cover Monetary crises are here to stay - the latest is not the last This book gives you Harry Browne’s latest advice on how to protect yourself - and even make money - from the shattering events that happen one after another - dollar devaluations the soaring price of gold, prices out of sight, traditional investments failing to keep up with the changes Now, just in time, the man whose controversial 1970 book How You Can Profit from the Coming Devaluation helped many make fortunes goes on from where he left of to tell how he believes You CAN PROFIT FROM A MONETARY CRISIS In 1970, Harry Browne was called a heretic for predicting that the dollar would be devalued, that gold prices would skyrocket, that wage and price controls would not work, and that serious shortages would result And now, as this economic tragedy unfolds, even The Wall Street Journal (page 1, August 20, 1973) has acknowledged the uncanny accuracy of his predictions You Can Profit from a Monetary Crisis isn’t a gloom-and-doom book It’s a hard-nosed evaluation of what the author thinks you can to create security for yourself in the midst of chaos, and profit in the midst of loss Starting with a highly unorthodox but remarkably clear and detailed analysis of the world marketplace and the basic economic problems that will continue to afflict America, Harry Browne offers dozens of alternatives from which to choose, from opening a Swiss bank account (with names and addresses of banks) to setting up an investment program (with fourteen sample programs) to making yourself immune to the coming depression He even gives his recommendations on what to if you think you’re already too late when zero hour arrives Harry Browne lives in Vancouver, British Columbia, enjoying life, and profiting from his investments He is the author of How You Can Profit from the Coming Devaluation and How I Found Freedom in an Unfree World Harry Browne who in 1970 predicted the recent dollar devaluation and the current monetary crises… Tells you why he predicts The dollar’s value will drop much further Retail prices will go much higher Runaway inflation is almost a certainty Shortages of food and other products will get worse We will probably have a serious depression without a crash Gold will rise to $300-$500 per ounce And what he recommends you can about Fourteen different investment plans Detailed guidelines for your own protection plan What to look out for when dealing with Swiss banks How to buy and sell gold (legally), silver, and foreign currencies How to keep your pension from losing value How to make a living during bad times What to if you think you’re too late When to sell the recommended investments and much, much more in… You Can Profit from a Monetary Crisis To Pamela price increases, 140-141 Commodity Exchange, NX , 251, 253, 258, 292 Common Market, 226,227 Communications as prerequisite to recovery, 39, 62, 69 71 Communism, 38, 113 Competition, 18-20, 22-23, 25, 30-31,33,121 Constitutions, 28, 126 Consumer Price Index, 48 Consumption, 15, 172, 173 369 Continentals, 99-101, 103, 380-381 Convertibility of currencies, 57-58 68,87 89,99,109, 113-114, 116,117, 125, 126, 209, 214, 218, 353,369 372, 373 Coolidge, Calvin, 353 Coombs, Charles A., 133 Corske, Mark, 367 Counterfeiting, 44, 45, 244, 372 Courage to take losses, 155-157 Crashes, past stock market, 58, 105, 134 Credit cards, 166, 273 Cuba, 232 Currencies changes in price, 1970-1973, 7, 222-223,376 evaluation of, 212-230 foreign, aid investment, 67, 76, 107, 131, 139 142; 143, 187, 209-233, 306, 312 339 340, 358 formula for converting rates, 110 futures, 118-119, 287, 293-297, 304-305 310, 319-321, 327 gold-backed, 54, 67, 68-69, 142 143, 143, 213-220,249,358 hot and cold, 210-211, 222 how prices established, 55-56, 110 111, 218-222, 371 potential price changes, 218-222, 230, 3389 386 purpose of, 42-43, 56, 357, 370 recommended, 224-230, 306 strong, defined, 123, 209-210 See also Fixed exchange rates; Floating exchange rates; Convertibility; and names of specific currencies Current accounts, 189, 308-309, 314 320,370 Custodial accounts, 190, 341 Danish krone, 217,221,222, 223 Day & Night Safe Deposit Vaults, 334 DeBeers, 173 Debt, 346-347 advisibility of being in, 180 moratorium on, 63 owed to you, 132,135,138,141,179 See also Mortgages Definitions of words, 369-374 Deflation, 58-59 63, 104, 127, 134, 141, 218, 370 Del Mar, Alexander, 382 Demand deposits, 46,84,213,216-217, 370 Demand, no shortage of, 17, 25, 39, 176-177 Democracy, 27-28, 91 Department of Housing & Urban Development, U.S., 385 Deposit accounts, 189-190, 309, 311, 315-319 Deposit insurance, 164-165 Depression, 60-64, 68, 88-89, 93, 372 causes of, 36-39, 60, 67, 68, 358 defined, 60, 1399 370 effects upon investments, 133-139, 260 government’s prolongation of, 39,6264, 105-106, 358 how could be brief, 39, 61-62 inflationary, 68, 134, 135-139, 174, 372 next, 64,125,126-128,133-1399 359 of 1873, 102 of 1929, 63, 104-106, 134, 3170, 344, 379-380, 383 possibility of, 108-109, 125 protection against, 4, 133-139, 260, 358 Desires, 17-19, 25-27, 30, 39 Devaluation, 125, 126, 131, 218 by several nations, 339 defined, 370 effects of, 112, 117 explanation of, 58-59 specific devaluations, 105, 116, 117, 131, 352-353 Diamonds, 173-174 Differences between businesses, 22-23,25,31,75 between individuals, 25, 27-28, 157, 159 ignored by government, 27-28, 75 Direction in investments, 154-155 Dirty float, 116, 133, 370 Diversification, 204, 312, 314, 322 Dividends on gold stocks, 244, 246-247, 248, 311, 317 Double Eagles, U.S., 241-243, 372 Dow Jones Industrial Averages, 9, 135, 298 Dow Jones Spot Commodity Index, 140 Dutch guilder, 8, 116, 117, 197, 206, 207, 216, 221, 223, 224, 225, 226, 230, 294, 306-310, 314-320, 322 Eastman Kodak, 258, 259 Economic principles, importance of, 910, 28, 129, 147, 153-154, 370 Economic Research Corp., 331 Economic Research Counselors, 326, 329, 330 Economics, defined, 12 Economics of Inflation, The (Bresciani-Turroni), 142, 380 Einzig, Paul, 382 Eisenhower, Dwight D., 107 Ellis, Charles, 108, 378 Emotions, recognizing your own, 157 159, 307, 321 Employment, 31, 75 in a depression, 39, 60-63 protecting your own, 5, 176-178, 181, 343 English pound, 206, 207, 217, 221, 223, 224 Eurocurrency contracts, 206, 207, 3063 11, 317, 371 Exchange controls, 58, 127, 138, 203204, 208, 232-233, 322, 343, 349, 351, 371 Exchange rates See Currencies Exports, 86-87, 118-119, 121-122, 369 affected by currency changes, 56, 121-122, 130-131 Federal Deposit Insurance Corp., 164,165 Federal Home Loan Bank Board Journal, 165 Federal Reserve System, 45, 104, 105, 127, 132-133 Federal Savings & Loan Insurance Corp., 166 Fehrenbach, Thomas R., 376 Fiat money, 99-100, 371, 380 Financial Times, London, gold mining shares index, 7, 246, 386 Financier The Finances of the American Revolution, The (Sumner), 101, 380 First Safe Deposit Co., 334 Fixed deposit accounts, 190, 317, 371 Fixed dollar investments, 135, 141, 143, 163-168 Fixed exchange rates, 56-57, 110-122, 210, 225, 226, 227, 371 Flexibility See Liquidity Floating exchange rates, 59, 115, 116, 117-122, 125, 218, 371 Food companies, 275, 334 Food shortages, 69, 100, 274-275 Ford, Henry, 26 Foreign aia, 106-107, 112-113, 126, 227, 229, 361-362 Foreign Commerce Bank, 326 Foreign countries as retreats, 277 Foreign currencies See Currencies Foreign ownership of property, 93 Foreign trade, 31, 55-58, 130-131, 369 Forward contracts, 263, 284, 286 Fractional reserve banking, 371 Free markets, 371 French franc, 118-119, 215, 216, 221, 223 French Revolution, 99, 271, 380 French words translated, 194-195 Friedman, Milton, 382 FSP Foods, 334 Futures contracts, 310 currency, 118-119, 293-297, 304,305, 319-321, 327 explanation of, 118-119, 288-297, 369, 371 gold, 293, 320-321 silver, 288-293, 320-321 silver coins, 293, 320-321 Galèmbos, Andrew J., 367 Gambling, 150-152, 153, 170, 297, 299 General Market explanation of, 21-28, 357, 371, 373 resistance to government, 28, 34-35, 38-39, 51-54, 79, 108, 144, 357, 370 supremacy of, 28, 71, 79, 117, 144, 235, 268, 358 General Motors, 45 General price level, 48-47, 50-51, 63, 66-68, 72-73, 371 General welfare, 30, 32, 33, 37, 77-79, 106 Geneva Life Insurance Go., 333 German mark analysis of, 227-228, 230, 308-310, 322 futures contracts, 294 gold backing, 215,216 in investment programs, 316, 317, 322 interest rates available, 206-207, 227 miscellaneous, 306-310, 322 potential for, 221 publicity given to, 211 recent history, 115-117, 131, 222, 223 upvaluations, 115, 117 use of, to avoid negative interest, 197-198, 224, 227, 230, 322 German words translated, 194-195 Germany, West economy, 107, 227, 361-362 runaway inflation, 141-142, 169-170, 380 support of dollar, 1973, 133 Gnomes of Zurich, 119-120, 377 Go-for-broke investments, 319-320 Gold advantages of as money, 41-43, 54, 249, 357 as an investment, 4, 7, 8, 67, 76, 107, 139, 142, 143, 209, 210, 237-249, 358, 375-376 backing of currencies, 53, 64, 213, 218, 386 bullion, 238-239, 248-249, 286, 293, 299, 306-310, 315-320, 338, 369, 371 commercial uses of, 42 conversion of weights, 239 futures, 293, 310, 320-321 jewelry, 237 margin accounts, 286-287, 318-321, 340 markets, 120-121, 225, 226 ownership laws, 105, 127, 138, 224, 225, 229, 238, 240-242,293,315 Pool, 235-236 potential for, 212, 234, 249, 338, 339, 342, 359 price history, 7, 124, 133, 234-237, 243,246 prices, how set, 120-121 reserves, loss of, 104, 107, 112-113, 235 reserves of nations, 53, 58, 109, 122, 126, 139, 213-218 stocks, 3-4, 7, 192, 244-249, 287, 306-311, 317-320, 329, 375-376 “two-tier” price system, 235-236 unrefined, 237 Gold coins as investment, 174, 238, 240-244, 248-249, 286-287, 306, 308-310 business reserves, for, 179 definitions concerning, 369, 372, 373 futures, 293 how to buy, 240-244, 286-287, 328, 349 in sample programs, 315-320 margin accounts, 286-287 potentials for, 308-310, 338 runaway inflation, protection for, 142, 270-272, 307, 312, 340, 343, 344 value of as money, 42, 82 weights and premiums, 241-243, 373 Government businesses, 31, 126, 165 collapse of, 69, 141-143, 361-362 defined, 372 effects of intervention, 32-34, 36-39, 45-54, 60-64, 100, 102, 361-363 efforts to fight depression, 62-64, 105-106, 125 enforces conformity, 31 future intervention, 64, 138, 171, 213, 244, 262, 265, 271, 298, 309, 322, 340, 348 ineffectiveness of, 15, 28, 36-39, 43, 70-71, 77-79, 91-92, 105-106, 108, 235, 268 methods of financing, 44-45, 78, 165, 357 national defense, 90-92 overrules desires of people, 26, 28, 30-32, 33-34, 77-79 regulation, 24, 30-32, 33, 101-102, 104, 126-127 subsidies, 26, 30-34, 36-39, 51-52, 63, 78, 105, 122, 126, 250-254, 374 types of intex ention, 30-32, 36-39, 101-102, 122, 250-254, 370 uses coercion, 30-32, 33, 45, 372 withdrawal from marketplace, 126-127 Grant, Bob, 353 Grant, Ulysses S., 103 Great Britain See English pound Greek drachma, 216, 221, 223 Greenbacks, U.S., 102, 383 Gresham’s Law, 129 Grin 6- Bear It, 128, 175, 181, 233 Gross National Product, 16, 39, 48 Handy & Harman, 257 Happiness, as motivation, 15 Harper, F A., 114 Hazlitt, Henry, 367, 378, 379 Herald Tribune, 133 Holland See Dutch guilder Home ownership, 172 Hong Kong, 214 Hoover, Herbert, 105, 107, 383 Hoppe, Donald J., 375 Housing, 30, 34, 362 How I Found Freedom in an Unfree World (Browne), 35, 178, 381, 387 How You Can Profit from the Coming Devaluation (Browne), 3-4, 8, 10, 43, 124, 215, 333, 359, 360, 367, 378, 387 Humility, 147-148 Hyper-inflation See Runaway inflation IBM, 259 Ilké, Max, 377 Illegal activities See Laws Imports, 31, 55-59, 86-87, 118-119, 121-122, 130, 369 Income from investments, 131, 206, 207, 244, 246-247, 248, 307, 309, 311, 317, 372 Income protection, 304-305, 307, 321, 346 Inconvertibility See Convertibility Individuality of investment decisions,157-159, 306-312, 313, 321, 322, 324, 335 Industrial revolution, 106 Inflation, 44-54, 78, 357 cause of, 44-46, 50-51 consequences of, 46-54, 56-59, 6061, 65-71, 73-73, 100, 105, 111, 209/-210, 357-358 defined, 44, 50, 357, 372 during a depression, 68, 135-139 exporting, 114 extent of 53, 64 methods of, 45-46 self-perpetuating, 65-68, 103, 108 See also Runaway inflation Inflation the Investor, 142, 380 Inflationary depression See Depression Insecurity See Security Interest differential, 290, 291-292, 294, 296, 372 Interest Equalization Tax, 247, 287 Interest rates, 132 earned on various investments, 189-190, 206-207, 227, 311, 322 for margin accounts, 282, 284, 285, 286,287 for Swiss bank accounts, 189-190, 191, 205, 206, 207, 311, 322 International Monetary Fund, 123, 229, 245, 374 Investment Bulletin, 331 Investment counselors, 330-331 Investment programs, 377-378 principles of, 147-160, 306-312, 322 sample programs, 313-322 Investment savings accounts, 190 Investors Financial Services, 329 Irish pound, 217, 221, 223 Israel, 228 Israeli pound, 217, 221, 223, 352 Italian lira, 216, 221, 223 Janeway, Eliot, 353 Japanese yen, 211, 215, 217, 221, 222, 223, 361-362 Jewelry, 237 Jobs See Employment Kaffir Chart Service, 332, 386 Keith, N., 272, 380 Kennedy, John F., 107 Kolko, Gabriel, 104, 381 Labor unions, 50, 176-178 Land, 6, 58 Laws, 165, 287 considerations in obeying, 192, 238, 343-344, 350 ineffectiveness of, 15, 36, 74-76, 107, 111 Lebanese banks, 229, 296, 327 Lebanese pound, 215, 216, 221, 223, 224, 226-229, 230, 296, 306-310, 327 LeFevre, Robert, 367 Legal tender laws, 43, 371, 372 Leverage, 151, 279-297, 372 Lichty, George, 128, 175, 181, 233 Life insurance, 132, 166-167, 301-304, 307, 311, 374 Lincoln, Abraham, 102 Liquidity, 119, 138-139, 171, 176-181, 191, 308-309, 372 Lockheed, 108 Long, 289, 372 Long term vs short term See Short term Los Angeles Times, 352 Losses, willingness to take, 155-157 Lowi, Alvin, 367 Lusitania, The (Simpson), 104, 382 Luxembourg, 226 Margain, Hugo, 352 Margin accounts, 200, 279-287, 288, 297, 318-321, 372 Margin calls, 281, 283, 286, 294, 30s 373 Market Perspective, 331 “Market stampede,” 152-154 Marketplace See General Market Markets, 16-17, 21, 373 Materialism, 94-95 McCracken, Paul W., 352 Mercantile Exchange, Chicago, 294 Mercantile Exchange, New York, 293, 329 Mexican 50-peso pieces, 241-243, 287, 338, 372 Mexican peso, 132, 217, 220, 221, 223, 352 Mexico City News, 352 Minimum wage laws, 31, 78, 127 Missouri Safe Deposit Co., 333 Mitchell, Wesley C, 383 Mobility, 39, 62, 69, 71, 273, 307 Moderation in investments, 148-150 Money, 40-43, 70 books on, 378, 381, 382-383 defined, 41, 95, 357, 373 history, 381, 382-383 origin of, 41-43, 70 receipts, 42-43, 44, $4, 209, 373 substitutes, 42-43, 44, 216-217, 369, 373 supply defined, 213, 373 warehouses, 42, 44, 81, 87-88 Monopolies, 31, 101 Montagu, Samuel, & Co., 257 Mortgages, 132, 141, 166 Mutual funds Swiss, 205-206 U.S., 46, 134, 138, 143, 169-171, 237-238, 298-299, 318 National Banking Act, 102, 104 National defense, 90-92 “Natural government of man,” 27, 30 Nazi Germany, 74, 90, 381 Negative interest taxes, 117, 196-198, 206, 207, 226-228, 322 repealed, 322 Netherlands See Dutch guilder Nevada Coin Exchange, 334 New Zealand dollar, 217, 221, 222, 223 Newsletters, investment, 211, 331 Nixon, Richard M., 116, 353 Nonessentials in investments, 154-155, 244-245, 248, 260-261 Norwegian krone, 217, 221, 222, 223 Numismatics, 173, 240, 241, 266, 271 Opportunities during crises, 5, 8, 11, 137, 362-363 Pacific Coast Coin Exchange, 242, 243, 267, 328, 329 Panic, Peter, 3-4 Paper money, 43, 44-54, 67, 106, 212, 343,373 Part-time investors, 153, 211, 297, 373 Patriotism, 58, 79, 231-232, 350, 361-363 Peace of mind, 11-12, 142-143, 144, 159, 273, 277-278, 306, 312, 358 Penn Central Railroad, 108 Pensions, 48, 132, 166-167, 304-305, 321 Pick, Franz, 215, 330, 367, 375, 376, 382, 386 Pick’s Currency Reports, 376, 386 Pick’s Currency Yearbook, 224, 376, 386 Portuguese escudo, 216, 221, 223, 224 Potentials for recommended investments, 338-339 Prayer, 95 Premiums on coins, 240-243, 248-249, 264-267, 373 Price controls, 32, 51, 63, 64, 72-76, 100, 110-117, 235, 262, 381 cause extreme price changes, 75-76 create investment opportunities, 76, 131, 235, 250 how evaded, 74, 381 Prices as affected by inflation, 4, 5, 46-52, 65, 66-68, 72-73, 100, 103 causes of recent increases, 59, 130-131, 140 how determined, 17-20, 21-26 increases initiated by consumers, 1820, 46-47, 50, 73-74 and a runaway inflation, 66-68, 140 use of for resource allocation, 21-28, 32-33, 34, 49 Privacy, 187-188, 196, 204, 228, 348-350 Production purpose of, 15-16, 41, 43, 76, 107, 337, 357, 373 usefulness of, 16, 23 Progress, cause of, 49 Public interest, 32 Purchasing power, 4, 5, 59, 70, 163164, 170, 174, 220, 304-305, 307, 311, 312, 359 Railroads Regulation (Kolko), 104, 381 Raising money, 345-347 Rasnake, Donna, 367 Read, Leonard, 379 Real estate, 4, 6, 134, 138, 143, 171, 172,179, 298-299, 318, 343 Recessions, 37-39, 65, 66 Redemption See Convertibility Reimann, Guenter, 74, 381 Renting vs owning, 172, 179, 346 Reporting of foreign bank accounts, 350 of foreign transmissions, 203, 232, 349 Residency in foreign countries, 382 Resources, 373 allocation of, 12, 21-28, 30, 32-33, 34, 36-37, 47-49, 51-52, 60-61, 63, 74, 75, 77, 78 are limited, 17, 25-27, 46 types of, 17, 373 Restraint in investments, 150-152 Retirement plans, 132, 166-167, 346, Retreat, 142, 143, 274-278, 307-312, 314-319, 334, 343, 377 Revaluation See Upvaluation Rhinegold, 80-96 Rhodesia, 214 Riegel, E C, 27,30, 379 Risks, 150-152, 158, 210, 229, 237, 297, 299-300, 307-312, 313-322 Rockefeller, John D., 84 Roosevelt, Franklin D., 105, 107 Rossiter, Clinton, 102, 383 Rothbard, Murray N., 105, 367, 378, 379 Rumors, 154, 269, 351 Runaway inflation, 65-71, 139-143, 380 causes of, 65-66 defined, 374 effects upon investments, 141-142, 170, 172 possibility of, 5, 76, 109, 125, 139-141, 270 protection against, 4, 140, 141-143, 260, 270-273, 307, 309, 339 recommended actions during, 270, 309, 341 results of, 68-71, 139 sequence leading to and during, 66-70 Safe deposit boxes, 272-273, 312, 314-319, 333-334 Safe Deposit Co of New York, 333 Safety, 169-171, 209, 231-233, 237, 270-273, 279, 308-312, 313-318, 320 Sales of recommended investments, 245, 336-341 Sam Andy, 334 Sanity, 152-154 Sapir, Pinhas, 352 Savings accounts, 131-132, 141, 164166, 189-190, 230, 310, 317 Savings & loan associations, 164-166 Schultz, Harry D., 382 Schwartz, Anna Jacobson, 382 Second Crash, The (Ellis), 108, 378 Secrecy See Privacy Security, 11-12, 52, 176-178, 180-181, 362 Sédillot, Reneé, 382 Seedtime of the Republic (Rossiter), 102, 383 Self-interest, 15, 20, 23-24, 28, 34, 36, 76, 90, 129, 235, 357-358 Selfishness, 15, 361-363 Short selling, 289-291, 298, 374 Short term vs long term, 148-150, 153-154, 156, 179, 205, 211, 212, 237, 249, 260, 292, 297, 308310 Shortages, 34, 71, 72-73, 76, 100, 106, 122,125, 131, 307, 359, 369 Silver, 53, 54 as an investment, 7, 8, 67, 76, 107, 134, 142, 143, 209, 210, 259-269, 284-286, 358, 376 bullion, 261-264, 267, 268, 284-285, 292-293, 306-310, 329, 338, 369, 371 claims account, 263, 284 consumption, 251, 254, 253, 257, 358-259 dollars, 253, 264-263 forward contracts, 263, 284 futures, 264, 310, 320-321 industrial uses of, 251, 252, 253, 254, 355, 357, 259 margin accounts, 279-286, 318-321 nationalization possibility, 251, 253, 262, 265 366, 271 potential for, 250,259-262, 273 338, 339-340, 342 price history, 7, 149, 250-254, 266, 367, 360, 376 production, 252, 254, 256-259 purchases at Swiss bank, 261-263, 266-267, 284, 285 purchases in U.S., 261-262, 264, 266-267, 284, 285 ratio with gold price, 269 Silver coins as investment, 264-268, 306, 308-310, 314-316, 318-320 business reserves, for, 179 definitions concerning, 369, 371, 373 futures, 293 how to buy, 264-266, 268, 285-286, 293, 328-329, 349 in sample programs, 314-316, 318-320 margin accounts, 285-286 melting of, 254 potential for, 273, 308-310, 338-339, 342 reasons for shortage of, 83-84, 253 recent price history, 3-4, 266, 267 runaway inflation protection, for, 70, 142, 270-272, 273, 275, 307, 312, 314-316, 318-319 343, 344 Sliver Profits in the Seventies (Jerome Smith), 250, 257, 376 Simpson Colin, 104, 382 “Smith, Adam,” 108, 377 Smith, Jerome F., 250, 257, 367 Smuggling, 208, 232, 343 Social Security, 64, 78, 167-168 South Africa gold stocks, 3-4, 192, 344-249, 287, 306-311, 317-320, 329 government, 121 KrugerRand, 240-242 raud, 2,6, 29-224 Reserve Bank, 245-246 Space projects, 49 Spanish peseta, 217, 221, 222, 223 Special Drawing Rights (SDRs), 123, 314, 374 Speculations, 150, 210,211, 228-229, 230, 244-246, 379-300, 307-313, 318-321 Speculators, 118-121, 251, 258 Standard Safe Deposit Co., 333 Statements by public officials, 66, 79, 116, 249 369, 351-053, 380 Stephens, Don & Barbie, 334, 377 “Sticker principle,” 164-163 Stock market as investment, 4, 6, 134, 135-138, M3 155 169-171 398-299, 318 crash, possibility of, 58, 108, 134, 135, 174, 398, 359, 377-378 during runaway inflation, 141-142 record, 1960-1973, 3-4, 6, 169 Swiss, 205-206 Stop loss orders, 151-152 Straddle programs, 299, 318 Subsidies See Government Sumner, William Graham, 101, 380 Sundry accounts, 202-203, 207 Sunshine Mining Co., 154-155 Supemoney (“Adam Smithȝ), 108, 377 Suppliers for recommended investments, 333-335 Swaps, 133, 374 Swedish krona, 216, 221, 223 Swiss attorneys, 327-328 Swiss Bank Corporation, 198, 326 Swiss banks, 3, 165, 179, 299, 312, 314-320, 353 as speculators, 119-120 attitude toward U.S laws, 188, 196, 239 bankruptcy provisions, 190, 191 explanation of, 186-208, 349, 376-377 interest rates, 189-190, 191, 205, 206, 207, 227 investment capabilities, 186-187,346, 284-287, 294-296, 302-303, 309 names of, 324-326 negative interest tax, 196-198, 206, 207, 322 numbered accounts, 196, 349-350 privacy laws, 187-188, 196, 200 procedure to open account, 198-200, 201-203, 207-208 standards for choosing, 201, 207 statements, 193-195, 325 types of accounts, 189-190, 204-207, 281 types of banks, 198-200 withholding tax, 191-192, 205, 206, 207, 248-247 Swiss Credit Bank, 198, 326 Swiss franc annuities, 301-304 as an investment, 209, 224-225, 230, 229, 306-311, 314-322 business reserves, for, 179 futures contracts, 294-296 gold backing for, 215, 216, 218 interest rates for, 189-190, 191, 206, 207 life insurance, 301-304 margin loans, not advisable for, 282-283 miscellaneous references to, 110, 111, 118-119 negative interest tax, 196-198, 206, 207, 228, 322 negative interest tax repealed, 322 potential for, 8, 209, 210, 219-221, 238, 342 recent history, 4, 7, 116, 117, 124, 131, 170, 210, 211, 215, 223, 234-235 Swiss government, 203, 225, 229 Swiss Life Insurance Co., 333 Swiss Volksbank, 199 Tax considerations of investments, 137, 167, 187, 191-19, 305, 206, 207, 246-247, 363, 287, 350351 Taxes, 31, 33, 33-34, 39, 44-45, 53, 78, 138, 177, 351, 374 Technology, 26-27, 31, 38, 49, 106 Time deposits, 84-85, 87, 374 Timing of investments, 129, 133, 143144, 148-150, 174-175, 210-211, 232-233, 248-249, 296-297, 336-341, 359-360 Tips, 148, 154, 331 Tokens, 82-84, 371, 374 Toronto Star, 78 Treasury bills, U.S., 163 Triumph of Conservatism, The (Kolko), 104, 381 Trueblue, Tom, 3-4 Trust accounts, 120, 204-205 Turkish lira, 216, 221, 223 28 Days (Colt and Keith), 272, 380 Underpricing, 18-20 Unemployment, 31, 39, 53, 60-63, 106 Union Bank of Switzerland, 198, 326 Union causes weakness, 123 United Kingdom See English pound United Nations, 229 United States economy, 128 government, 101-109, 163 history, 99-109, 376, 379-381, 382, 383 Notes, 102, 383 Treasury Dept, 57, 165, 251-254 United States dollar, 56-58, 106, 130133, 198, 206, 207, 217, 273, 297 decline in recent years, 4, 131, 223 drops in panic, 116, 117, 133, 232, 296-297 for margin accounts, 282-283, 286 potential decline, 132, 218-222, 297 protection against decline, 4, 130-133, 173 replacement of currency, 351 Unknowns, existence of, 147-148, 151 Unselfishness, 15 Upvaluation, 115, 373, 374 specific upvaluations, 115, 116, 117, 120 Vampire Economy, The (Reimann), 74, 381 Violence, 69, 273, 274, 275-276 Volkswagen, 131 Wage controls, 51, 63, 64, 74-75, 100 how evaded, 74, 75 Wall Street Journal, The, 193, 222, 339, 346, 263, 296, 304, 311, 332, 385,386 Wars, 63, 89, 90-92, 93, 99-101, 102, 104, 106, 382 Wealth, 16, 33, 374 Webb, Walter Prescott, 383 Weber, John H., 329 West Coast Commodity Exchange, 293 White Andrew Dickson, 380 Williams, Jack, 367 Williams, Robert P., 383 Winnipeg Commodity Exchange, 293 Wisenberger Services, Inc., 385 Withholding tax See Swiss Banks Worden’s Weekly Reports, 352 World currencies, 123 Yugoslavian dinar, 217, 221, 223 ... uncanny accuracy of his predictions You Can Profit from a Monetary Crisis isn’t a gloom-and-doom book It’s a hard-nosed evaluation of what the author thinks you can to create security for yourself... produced that satisfy the real needs and desires of consumers Real wealth consists of (1) what you have that you can use for a purpose enjoyable to you, and (2) what you have that you can exchange... Equity Analyst with Spencer Trask & Co He has an M.B .A from the University of Virginia and a B .A from Harvard College Original Flaps and Back Cover Monetary crises are here to stay - the latest