What Does A Business Strategy Consultant Do About Hyperinflation?

Business Strategy Consultant

John Williams of Shadow Stats has updated his report about his prediction for hyperinflation in the US.

John now believes hyperinflation, leading to a great depression, will take place within the next 5 years – previously his forecast was within 8 years.  This latest report was issued before the health care reforms recently voted through that will inevitably add to the US debt load.

John Williams says that hyperinflation could set in at any time, likely sooner than his 5 year prediction.  There are many other people that now think that the US is going to default on it’s debt.

Robert Kiyosaki has also written about the problem in his book ‘Conspiracy of the Rich’ and is cannily using cheap dollar loans to buy up more investment property, particularly as the property market is currently in a state of collapse.

If there is a dollar default, inevitably there will be a huge impact on the global economy and a crisis of confidence in other currencies, particularly those that are also heavily in debt – this includes most of the G7 countries and particularly the UK.

For spare cash, it is time to have at least a proportion invested in wealth preserving assets such as precious metals and agricultural land.  John Williams also suggests, items that can be bartered but don’t reduce in value with age, such as bottles of whisky.

But what does a business strategy consultant advise?

I guess much depends on the type of business you have.  If you have a business that supplies an essential product or service, then clearly in a hyperinflationary period you may be able to adjust your prices with inflation.

However, most businesses supply non-essentials i.e. stuff you don’t need in order to survive, or things that would be cut ‘when the chips are down’.  If you are relying solely on your local market then you might just be ‘toast’.

It makes sense to me that you might want to think about a strategy that finds an export market for your products and services.  Hyperinflation will inevitably mean that our currency will depreciate against stronger economies and currencies – in other words, our products and services will be cheaper in those markets.

Why not formulate a strategy now, whereby a proportion of your income is generated from overseas and thereby spread your business risk and at the same time help the balance of payments?  The internet and high-speed broadband, combined with internet marketing, means that this is easy and cheap to accomplish.

It could also be the difference between business survival and collapse in the hyperinflationary times that seem to be coming.  If John Williams is right about hyperinflation starting anytime within 5 years, time is short.  Why not talk to me about formulating an internet business plan now or, alternatively, keep yourself in the loop by registering for my newsletter in the side-bar of this blog.

In the meantime, you can download John William’s shocking report on hyperinflation-2010 here.  When hyperinflation sets in, it happens quickly and without warning, so don’t be too complacent about this threat.  (You will never hear it from the government, or anyone in authority, because they must maintain confidence in our currency as it is no longer backed by gold or anything else of substance.)

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