What Investments Will Survive The Collapse Of The ££ And The $$?

[Bricolage]

It seems pretty clear to me that the world (ie China) is not going to carry on extending credit to the USA for ever. For me, the collapse of the dollar is a only matter of "when" not "if".

With the UK's level of increasing government dept, it seems inevitable that the pound is going to fall drastically in value - again, the only question is when the collapse will happen.

Other than disks of shiny yellow metal, how should someone invest to survive the collapse of the pound and the dollar (and the economic chaos that will accompany their collapse)?

Thanks for any suggestions.

Martin

[porca misèria]

Quick! Buy houses!

[principa]

Quick! Buy houses!

You should buy tangible assets. however, first and foremost you will need a gun (and know how to use it). :-)

[Bricolage]

You should buy tangible assets. however, first and foremost you will need a gun (and know how to use it). :-)

Thanks. Interestingly enough a friend suggested there are two things that in ten years time will prove to have been excellent investments: gold coins and shotgun cartridges.

[nobody777]

Spend it now. Investments other than gold can be old coins stamps anything small that can be exported lets say to China cheap.

houses are stuck in the country they are in and subject to local government abuse.

In any hard asset carries a high risk/reward but small things can be easily traded on ebay to the world and big things are limited to the local market.

Regard to investments their is no point being succesful if you never spend it and looking at government debts taxes are going one way which means higher prices and more ofshoring of jobs and this is the best outcome the worst is the title.

The odds of being a good invester in anything and making real wealth creation are a lot less the losing money in the short or longterm.

Spending it now is a good bet in a losing game.

Invest wisly in Bear fags and rock n roll then spend on small trading hard assets of your choice.

I was a fool worked hard lived within my means and saved for hard times I became wise and realised such policies is a financial crime in the UK to be punished hard via council tax loss of benifits.

I am still being punished for my crimes learn from my mistake and spend it.

A financial adviser wouldnt advice go on a holiday now as pirices will soar more than your investments they wouldnt get a fee think about it.

[subspace]

It seems pretty clear to me that the world (ie China) is not going to carry on extending credit to the USA for ever. For me, the collapse of the dollar is a only matter of "when" not "if".

China would screw itself if it did this, as it holds nearly 1 trillion dollars in US government debt.

Plus if they screw the US then who is going to buy all their cheap consumer goods.

Edited September 10, 2009 by subspace

[Bricolage]

China would screw itself if it did this, as it holds nearly 1 trillion dollars in US government debt.

Plus if they screw the US then who is going to buy all their cheap consumer goods.

The US govt's Bank of PRC credit card is pretty well maxed out. The Chinese are showing distinct signs of nervousness and are not at all keen on raising the US's credit limit still further.

There will come a point where it becomes clear that the dollar's collapse is well and truly underway. Like anyone else with dollars in their pocket, at that point they will cut their losses and bail out, accelerating the collapse. The whole thing may well happen pretty much overnight.

There will be some painful readjustments, but they'll be far better off consuming their products themselves than shipping them to Walmart and getting paid in nothing but promises from the US govt.

[DrGUID]

Off to China to see my lady friend next month, so I'll be able to see first hand what's going on. From what she tells me though, things are slow over there, much as they are over here.

The place is changing fast though - she has a very middle class job, loves the Internet, and her parents drink red wine.

[Guest_ringledman_*]

Hold foreign shares i.e in-

- Emerging Markets

- The safer havens of Aus/Canada/Singapore/HK/Norway

- Japan (as it is dirt cheap)

Then hope for currency gains as well as any dividend/capital appreciation.

Basically diversify well into the new world order (i.e. own little in US or UK assets).

As the pound and dollar crash your foreign investments should rise or hold their value.

Peter Schiff in 'Crash Proof' and 'Bull Moves in Bear Markets' sets out a good strategy for US citizens. I believe the same can be applied to UK citizens as the pound crashes.

And of course own gold and silver in particular!

[Beginner]

If you own gold then try ot choose things that will increase in value to the Chinese. They are very superstitious so choose sovereigns with lucky dates or sets of coins with the number of coins coinciding with a lucky number. (is it 7?).

Just a thought. That way you may be able to gamble on future numismatic increases in china whilst still buying at bullion prices over here.

[DrGUID]

8 is lucky for the Chinese.

If you think the currencies will collapse, then buy stuff (houses, gold etc.). Although if the currency collapses then pretty much everything would be worthless apart from food.

[scrappycocco]

Numbskull question, the flu has reduced my brain function to zero today. When is the best time to buy into a currency? HSBC do a fixed deposit 2.5% account in australian dollars and I'm wondering when is the best time to jump in, the pound at the moment is something like $1.81AUD but 2 weeks ago it was around $1.93AUD.