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Venezuela’s hyperinflation, Japan’s experiment in modern monetary theory (MMT) and China’s rise to global leadership carry ominous lessons for the U.S. and investors in its markets.

I will discuss the following:

  • The U.S. can learn from Venezuela’s mistakes that made a rich country poor while artificially inflating its stock market.
  • Japan is leading the way into uncharted economic waters. The U.S. should not follow too closely.
  • China is threatening the U.S. and on a path to world dominance. Conceding the throne relinquishes benefits.

My readers know that I am concerned about the U.S. economy and stock market. Money printing is slowing economic progress and will cause serious inflation, even hyperinflation. I see a U.S. stock market bubble bursting, with stock prices crashing 50% or more, likely triggered by rises in interest rates.

Some fear a repeat of the economic mistakes of Venezuela, Argentina, Greece and the like. Others cite Japan as proof that profligate spending can go on for a long time without causing inflation. And most see China as the most relevant comparison because it is striving to overtake the U.S. as the dominant economy. Lessons can be learned from those countries. I discuss these lessons in the following.