I'm not really that clued up on the workings of world economics but reading different opinions on the state of the economy, I have a question. Is the British pound safe, what is the worst than can happen to it? Hyperinflation? Will the UK join the Euro?

From a selfish point of view, I have some savings in the bank that we've worked really hard for and I'll be damned if I'm going to lose it just because banks and governments have been reckless. Should I open a Euro bank account, or is the Euro likely to be as badly affected as the Pound?

I'm interested to hear your opinions and apologies if this is a stupid question!

Going from the pound to the Euro is like jumping ship from a badly leaking vessel to another, which is also leaking. Inflation is not contained and is a now a global phenomenon. If inflation concerns you, get into something real like monetary metals.

oh dear...and there was me thinking there might be an easy way out. In how much danger is the pound and/or euro then? Are there any currencies that are safe or is the whole financial system under threat? Surely they won't let that 'the system' collapse?

You are really hoping that someone has all of this under control aren't you?

I'm a bit naive, can't help it. I still think that those serious looking suits know what they are doing. I should know better, I'm in my mid 30s now and am fairly senior in business and am always amazed how many dimwits are working on senior, well-paid positions. They are always more pre-occupied with their own egos and securing their own (financial) positions rather than what is in the best interest of the future of the company.

I suppose it is no different in economics on a global scale...

Does this mean I should be preparing for impending doom and fill up my basement with canned food?!?

I have a small amount of savings in GBP, am stocking up on tinned foods and am preparing to use my wits to ther full potential... If the fiat money system f**cks up then stocks of food, fuel, etc will become the most important worry in peoples lives.

Are you serious?? Do you actually think the money systems is going to collapse? I simply refuse to believe that.

For goodness sake alwightchav! , recessions come and recessions go. O.K. oil may gradually become prohibitively expensive, but transportation will adapt/become more fuel-efficient or based on alternatives. Even if there is another major war (and we're not on the losing side) the monetary system isn't just going to 'collapse'.

If the current situation becomes a very serious and long-lived recession, the value of Sterling against other currencies will fall. Imported goods will price inflate. Earnings probably won't keep pace with domestic inflation and therefore purchasing power will diminish. Standard of living [as measured by no. of foreign holidays, expensive cars, electronic devices etc) will decline but.........
..........life will go on. The Four Horsemen of the Apocalypse will not be rining through the streets of Guildford, or Hackney or Liverpool or Newcastle or Edinburgh or.....................get the picture ?

Being realistic I would recommend the following:-

1) reduce personal debt as much as reasonable (pay off loans, credit cards, reduce mortgage if poss.) but
2) keep a few month's worth of living costs in easily accessible interest bearing Sterling cash savings
3) by all means if you have a lot of cash, place some of it in foreign currencies e.g. the Euro, Canadian Dollar, Swiss Franc etc but be prepared for much
lower savings interest
4) try and protect the purchasing power of any other savings by a) utilising high interest, tax free or RPI linked savings maybe some PM gold & silver ?
c) invest in equities but spread across those which historically hold value well or increase during recession (e.g. consumption of certain foods like
chocolate increases !!, generally more basic foodstuffs always have to be purchased and Giffen goods do better when incomes fall).
5) You could also buy some Premium bonds (chance of a large win :-) )
6) Say your prayers at night before going to sleep

edited: spelling

Thanks Zadkiel, that's sounds like some sound advice! Glad not everyone is thinking the world as we know it will be coming to an end. Like you, I think we will have some rough years and everyone has to learn to curb their spending a bit. Just when I was a child really, it was quite normal back then and I remember being very happy and it not mattering one bit. Maybe people start focusing a bit more on eachother rather than the latest handbag, car or whatever the latest fad is.

I'm in a pretty good position for a recession as we have paid off our mortgage and have a some money in the bank. Which is just as well as my husband has been made redundant and I don't think it will be long before I will follow his fate!

We are indeed going to put some money in Premium Bonds as we fancy the idea of some 'safe' gambling. Then I thought we just put the rest in savings accounts, possibly a bit of it in a Euro account.

Lots of people are mentioning buying gold or silver. How safe is that really? And excuse my ignorance but how and where do you purchase it?

Adv, sorry to hear of the actual and possible redundancy - best wishes for finding suitable employment asap.


If you have no income for a while, try and calculate carefully how much of your investments need to be liquid so you can convert back t oSterling quickly & cheaply.

Re. buying PM (Physical Metals) or indeed ETF's or shares, this is a contentious area. Some people are very pro purchase (aka Gold Bugs,) who think it will significantly gain in value, some anti who think in real terms it loses value over the longer term, and many fall between the two. Some financial professionals suggest one hold at least some Gold and Silver in a portfolio as a small contra to currencies.

Suggest, if you have time you read the many views on the gold & Precious Metals section.


http://www.housepricecrash.co.uk/forum/ind...hp?showforum=50

Personally (and it varies a bit as the market fluctuates) I have approx 10% of my investments in physical Gold & Silver in the ratio of 1oz Gold to 50 oz's Silver.

Buying PM in person or via mail order you can try:

http://www.goldline.co.uk/bullionCoinsPage.page
http://www.taxfreegold.co.uk
ATS bullion, forget the url but they are next to the Savoy hotel.

Suggest you watch market prices for a while before deciding to buy (and if you do, store it safely !!!)

http://www.taxfreegold.co.uk/goldpricesall.html
http://www.goldline.co.uk/metalPricesPage.page

I stocked up with tinned food a few months ago, it's performed, eg tinned sardine in vege oil at Netto 29p few months back now 35p, its a strategy recommeded by Mrs Thatcher in the 70's inflation. BTW ignore best before dates most tinned food is perfectly edible at 15 years old, best before means best before not unsafe to eat after.

I am stocking up on everything I use that keeps - inflation is coming and no bank account interest especially after tax will keep up with rising prices IMO.

If you trust the government put it in Indexed Bonds at NS&I - I don't trust the government.

All exponential systems are doomed when they start, it amazes me the fiat money system has had the legs to go this far!

Those serious looking suits are very scared little men at the moment. In my mind they can only postpone the inevitable. What is the inevitable? Not the end of the world, just a nasty recession or perhaps a good old fashioned depression.

The Anglo countries have had their day in the sun, the Eastern countries will have theirs, nothing too terrible about that. The main thing is to protect your assets and learn to live frugally. And buy gold... I would say that cos I am a gold bug.

I saw a HPC user in the supermarket the other day, he had a trolley full of tinned baked beans

Gold and silver is the best way to preserve your wealth, silver will make the better investment though.