How does one effectively hedge or profit from this?
Assets. Guns, Gold, Property, Animals, etc. Things which have inherent value.
How to avoid the train wreck? Be in thoughtful prayer with God the Father and pray for big things.
as far as I can tell, it is hard to hedge vs. the dollar and have either liquididy OR leverage without paying a crazy time-based premium. As far as I can tell there is no low-capital magic bullet to deal with this, and I work in the financial sector as an independent trader and worry daily about whether I in effect have an ‘inflation hurdle’ to meet on total capital. Obviously 10% annual might only be 0.4% daily bankdays, but on 100k that is 400 *after-tax* bucks every bank day that you have to make just to meet that made-up inflation number, so you can see the concern motive.
currency and gold options are expensive, unfortunately with good reason. If there is a treasury short play here, I don’t understand it enough to do it and given the move in treasuries this year, I don’t think smart money would leave the biggest debt market in the world ungamed. Directly buying assets, such as land or commodities, ties up capital in potentially very illiquid ways.
sell USD & buy real return bonds, or commodity linked assets, i’.e gold, copper, oil. Look to canada to hedge inflationary pressures on the USD. Canada may be a great play for you yanks.
It might be possible to buy another currency. Back a few months ago, a british pound cost $1.36. It’s now over $1.50.
If you’re thinking about traveling to another country in the future, and you want to lock in the exchange rates now, you could, I suppose, change your dollars to the currency where you’re going and put it in the bank over there.
I’m not an expert on these things, but I suppose you could do that or something like that.
And buy lots of ammo because we’re all gonna die.
Depends on your situation. The basic idiom is "Get out of dollar-denominated everything".
Divest yourself of all US-based paper assets (stocks, bonds, even dollars). At this point, I am not even recommending precious metals or commodities.
Land, fungible knowledge, food, weapons. Stuff that, if you have it, makes money irrelevant.
By standing at the end of the pipe that's spewing money, rather than sitting in your own little pool that's going to get sucked dry, like most of us suckers.
"And you may ask yourself, where's my moon?"