Topher Bear Posted February 18, 2010 Share Posted February 18, 2010 What happens when ...? Faith in all main currencies is shot. Normally when investors lose faith in a currency they transfer to another one. We rate our currencies against other currencies, but now where do investors turn? To gold I undertand, but how can the value of all major currencies fall against each other at the same time? What benchmark measures it? If its the value of gold, then the man in the street won't see it when he changes his holiday money. I hope you can see what i'm asking, and how will this effect economy and house prices? Quote Link to comment Share on other sites More sharing options...
Topher Bear Posted February 18, 2010 Author Share Posted February 18, 2010 What happens when ...? Faith in all main currencies is shot. Normally when investors lose faith in a currency they transfer to another one. We rate our currencies against other currencies, but now where do investors turn? To gold I undertand, but how can the value of all major currencies fall against each other at the same time? What benchmark measures it? If its the value of gold, then the man in the street won't see it when he changes his holiday money. I hope you can see what i'm asking, and how will this effect economy and house prices? Quote Link to comment Share on other sites More sharing options...
Timm Posted February 18, 2010 Share Posted February 18, 2010 (edited) Against petrol? Rice? Houses? Edited February 18, 2010 by Timm Quote Link to comment Share on other sites More sharing options...
Topher Bear Posted February 18, 2010 Author Share Posted February 18, 2010 What happens when ...? Faith in all main currencies is shot. Normally when investors lose faith in a currency they transfer to another one. We rate our currencies against other currencies, but now where do investors turn? To gold I undertand, but how can the value of all major currencies fall against each other at the same time? What benchmark measures it? If its the value of gold, then the man in the street won't see it when he changes his holiday money. I hope you can see what i'm asking, and how will this effect economy and house prices? Quote Link to comment Share on other sites More sharing options...
Goat Posted February 18, 2010 Share Posted February 18, 2010 (edited) What happens when ... Faith in all main currencies is shot. Edited February 18, 2010 by Goat Quote Link to comment Share on other sites More sharing options...
Selling up Posted February 18, 2010 Share Posted February 18, 2010 how can the value of all major currencies fall against each other at the same time? It can't. But as Timm rightly points out it, currency can fall against non-currency stuff. Which is what we call inflation. Quote Link to comment Share on other sites More sharing options...
Topher Bear Posted February 18, 2010 Author Share Posted February 18, 2010 What happens when ...? Faith in all main currencies is shot. Normally when investors lose faith in a currency they transfer to another one. We rate our currencies against other currencies, but now where do investors turn? To gold I undertand, but how can the value of all major currencies fall against each other at the same time? What benchmark measures it? If its the value of gold, then the man in the street won't see it when he changes his holiday money. I hope you can see what i'm asking, and how will this effect economy and house prices? Quote Link to comment Share on other sites More sharing options...
TwoWolves Posted February 18, 2010 Share Posted February 18, 2010 When faith in the major currencies fail investors usually divest into Commodities, Precious Metals, Property/Land and Fine Art. So a good indication that this process is underway is sharply rising commodities and precious metal prices. Another aspect often overlooked is fungibility. Should the worst happen its quite important that what it is you hold can be converted readily into what you need - ie. food. Hence the popularity of the first two on my list. The economic consequences would be dire and house prices would suddenly rise before crashing to near worthless unless it was (1) defensible or (2) contained a lot of land. Quote Link to comment Share on other sites More sharing options...
scottbeard Posted February 18, 2010 Share Posted February 18, 2010 What happens when ...? Faith in all main currencies is shot. Normally when investors lose faith in a currency they transfer to another one. We rate our currencies against other currencies, but now where do investors turn? To gold I undertand, but how can the value of all major currencies fall against each other at the same time? What benchmark measures it? If its the value of gold, then the man in the street won't see it when he changes his holiday money. He will when he gets to the Costa del Sol and a beer is 100 Euros. Quote Link to comment Share on other sites More sharing options...
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