foreign currency

[pa1000]

Would it be worth it to have foreign cash on hand, by taking some of my money and going to a exchange to get a foreign currency? what currencies would people here recommend that would be safe in the event of a US depression?

 

[LibertyEagle]

If you're looking for something you can trade with if there is a complete crash, gold or silver are better bets.

 

[schiffstudent]

Would it be worth it to have foreign cash on hand, by taking some of my money and going to a exchange to get a foreign currency? what currencies would people here recommend that would be safe in the event of a US depression?

It's hard to pin point that right now but I would say the Euro is next in line to be the next universal currency. I would say get some Gold, that's tangible, but also something the government can legally confiscate it times of a "national disaster". I've bought a good amount of Gold bullion this year, but to be honest I'm scared to buy anymore until I leave the country later this summer. Then I could take it to a bank abroad and store it there.

 

[DFF]

I agree owning gold/silver right now is smart...but it's not wise to have all your eggs in one basket....even ones as (currently) solid as precious metals. It's not a certainty that the U.S. dollar is going to crash...but the odds of high inflation are near 100%....so what I'd do is diversify and open an offshore, multi-currency account with a repudable bank...like Zürcher Kantonalbank in Switzerland. There are many outstanding banks in Jersey, and the Isle of Man, that I'd also consider as well.

 

[danberkeley]

gold and silver: the international currencies

 

[pa1000]

isn't physical gold hard to buy now though?

 

[schiffstudent]

It's not a certainty that the U.S. dollar is going to crash

Give me a scenario in which it doesn't crash and the rest of the world doesn't start to dump it because we can't pay back the money we've borrowed.

 

[micahnelson]

Physical Dollars will be a safe bet for the awkward time between crash and hyperinflation.

Stores will probably jack up checkbook money prices or reduce physical cash prices, or some combination of the two. Remember-the inflation isn't printed, its digital.

Physical Currency will hold its worth until the banks collapse and they have that two week bank holiday where the FDIC prints enough to cover accounts.

Then we are Zimbabwe. I would imagine in those weeks your cnotes would go far. After that... commodity money until someone opens and honest bank.

 

[DFF]

Give me a scenario in which it doesn't crash and the rest of the world doesn't start to dump it because we can't pay back the money we've borrowed.

OK.

China to U.S.: "The People's Republic Of China has elected to unload it's reserves of U.S. dollars.

U.S. to China: "We have 7, B-2 Stealth Bombers, each with payloads of 16, 500 megaton, GPS guided, nuclear missiles flying over your country right now.

China to U.S.: "Ehhhh...actually what we meant to say was....

 

[schiffstudent]

OK.

China to U.S.: "The People's Republic Of China has elected to unload it's reserves of U.S. dollars.

U.S. to China: "We have 7, B-2 Stealth Bombers, each with payloads of 16, 500 megaton, GPS guided, nuclear missiles flying over your country right now.

China to U.S.: "Ehhhh...actually what we meant to say was....

ha! entertaining scenario, not realistic though considering that mutually assured destruction thing. Also by the time this is all over we'll need all the friends we can get, starting another war over something not at all illegal (unloading the dollar) wouldn't really warrant support from any country I think. There's no international law against cashing in your chips.

 

[DFF]

1)There's no MAD with China. We could destroy them before they ever uncorked their first ICBM (which on the by and by they've only got 16 nukes - compare that to our + or - 20,000) 2)No, it's not illegal, but since when have technicalities like "the law" ever stopped us? lol

 

[pa1000]

would Canadian dollars be good to have, how will their dollar be compared to ours? what about the peso? would it be a good idea to open a bank account in either of these countries in their currency?

 

[schiffstudent]

would Canadian dollars be good to have, how will their dollar be compared to ours? what about the peso? would it be a good idea to open a bank account in either of these countries in their currency?

Depends, do you plan on living in the country of the currency where you'd put it?

 

[wd4freedom]

I have a small stash of euros and yen to provide emergency exiting purposes for my family members if needed.

 

[schiffstudent]

I have a small stash of euros and yen to provide emergency exiting purposes for my family members if needed.

Smart, however my only fear is that a "state of emergency" or martial law imposed would prevent us from getting out.