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Where Is The Best Palce To Put Cash?

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i sold up at the end of feb, and have some reasonable amount of cash. getting worried by mr brown and the boe,simply avoiding the obvious, and think that the markets might punish them soon.

where is a good place to put cash to cover oneself against deliberate inflation etc.

have thought about buying dollars (unlike many i firmly hold that the usa is as sound bet.)

or the euro, as they(the germans and french) dont care much for the suffering of their populations, but they hate inflation.

any opinions?

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I think the best advice I've ever heard on here is "... to double your money, fold it in half and stick it back in your pocket!" Not the answer you were after, I'm sure, but in these uncertain times perhaps one of the best options? Personally, I've got a bit of cash in stocks and shares, but they're down as soon as they're up, and I'm not sure how it'll work out in the end!

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i sold up at the end of feb, and have some reasonable amount of cash. getting worried by mr brown and the boe,simply avoiding the obvious, and think that the markets might punish them soon.

where is a good place to put cash to cover oneself against deliberate inflation etc.

have thought about buying dollars (unlike many i firmly hold that the usa is as sound bet.)

or the euro, as they(the germans and french) dont care much for the suffering of their populations, but they hate inflation.

any opinions?

With all the rampant printing of money going on all over the world, gold may be a good bet. I am not an investor however, this is based on what I have read.

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I have some in a Euro savings account (sterling likely to fall); some in a treasury fixed interest account offering 4% (you can probably get higher); some in a spread of investment funds and I'm thinking of putting some in commodities like precious metals. If you're not planning to hold for more than a year, I'd probably keep most in a high-interest savings account.

Edited by othello

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You could argue that EUR and USD are good bets simply on the basis that their money supply figures are running at 8 / 9% annually whereas GBP is 12%. I am a little bit skeptical about USD though coz of their deficit problems. People are going to look at that debt and a lot of them will bet on the debt being monetized by increased money supply.

Also, Euroland and the USA have had recessions in the last 5 years (which means there is room for new growth). UK has now gone almost 15 years without a recession, which sounds good on the surface, but I can't help wondering that this means a big one is due.

So EUR a good bet in the short to medium term I reckon. Also possible is CAD, JPY and CHF.

frugalista

You could argue that EUR and USD are good bets simply on the basis that their money supply figures are running at 8 / 9% annually whereas GBP is 12%. I am a little bit skeptical about USD though coz of their deficit problems. People are going to look at that debt and a lot of them will bet on the debt being monetized by increased money supply.

Also, Euroland and the USA have had recessions in the last 5 years (which means there is room for new growth). UK has now gone almost 15 years without a recession, which sounds good on the surface, but I can't help wondering that this means a big one is due.

So EUR a good bet in the short to medium term I reckon. Also possible is CAD, JPY and CHF.

frugalista

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Most of my assets are in US $ because I was living there for a number of years. I have decided to keep my house fund in $ because I have no confidence in Gordon Brown or sterling. The Currency traders are issuing warning signals about the pound and when it goes it tends to go very quickly and very hard.

I believe the $ will not tank as many have suggested because if it does it drags everyone down with it so equilibrium will be reached and the relative values will remain the same. A short while ago the dollar started to drop hard against the Euro and complaints started rising about how the Eurozone economy would suffer and recession would follow. Back went the dollar.

IMO, the Eurozone is highly unstable because of the imbalances. Germany has very little inflation and no HPI. IR and SP, on the other hand, have rampant inflation problems in their property markets and massive debt loads. There is not much consensus in the area of the proposed Euro Constitution either and a falling out over IR or other financial measures can easily erupt and cause Germany to do its own thing and bring back the DM. Italy has also recently threatened to go back to the Lira. Look at Europe's history--unity is fleeting and always ends in tears. Further, Europe is becoming too dependent on unstable fuels supplies from Russia and does not have the same clout as the US, or the UK for that matter, in the oil world.

I believe sterling should be back to its historical average over the past decade--around 1.60ish to the US $. With a recession overdue and likely due to rising unemployment in all sectors, growing deficits, overwhelming personal debt, grossly inflated house prices, less NS oil to balance the trade deficit and no protection against the world wide trend in rising IR, there is no reason for the pound to go anywhere but down.

If you are in US $ you can buy 3 month CDs at around 5% or more liquid money market funds for just under that.

The latest on the pound:

http://today.reuters.co.uk/investing/finan...RLING-CLOSE.XML

Sterling hits 2-month low vs dollar on rate view

Fri Jun 23, 2006 3:36 PM BST

LONDON, June 23 (Reuters) - Sterling hit a two-month low against the dollar on Friday on diminishing expectations of a near-term UK rate hike and a growing view that U.S. rates are on the up.

Sterling was under pressure following news on Thursday of the unexpected death of David Walton, the only Bank of England Monetary Policy Committee member to vote at the last two meetings for a rise in rates from the current 4.5 percent.

At the same time speculation is growing that the U.S. Federal Reserve will raise rates next week by 50 basis points from the current 5 percent.

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Do your own research and do a lot. I would suggest going to financial sense and the motley fool websites. Read what Dr Bubb has had to say on here and green energy investors.

My observations/predictions:

1. The western world is going into a great depression, so maybe stocks are not the place to be. However if there were to be a stockmarket crash then that might be the time to buy. This time the Fed will print money in order to prevent deflation.

2. The world is reaching Peak oil. This would suggest that oil prices may rise to $200 a barrel at some stage. Some smaller oil stocks who have found oil may find their prices going to the moon.

3. Contrary to Common Belief the role of Central Banks and Governments is to cause as much inflation as possible without people noticing it and then tax you on the "capital Gains" of your savings. At least this cannot be done with Gold, which is real money that cannot be printed easily.

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Cash is king in a recession-

Come late August: Gold will be the new cash.

This argument developed HERE

ITYAR. Short term outlook for stocks does not look good. Global IR hikes are going to make cash the safe haven. My IR on house fund looks like going to 5% in the next few days and if the Fed hike by .50% it will be a nice bump up.

Gold is just too dramatic for me as I have never cared for roller coasters. What are we today--$586, $720 a few weeks ago and $???? next month :o

Something to diversify into maybe but to place all your house fund??? :o

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Yen anyone?

http://news.moneycentral.msn.com/provider/...&ID=5821589

June 23, 2006 09:01 PM ETJapan's Debt Tops 827 Trillion Yen
All Associated Press NewsTOKYO (AP) - Japan's public debt reached a record high of 827.48 trillion yen (US$7.12 trillion; euro5.7 trillion) as of March 31, up 45.93 trillion yen from a year earlier, the Finance Ministry said.
Of that total, government bonds increased 44.22 trillion yen (US$380.6 billion; euro304.43 billion) to 670.58 trillion yen (US$5.77 trillion; euro4.62 trillion), the ministry said in a statement released Friday.
Japan has long relied on government bond issues to make up for falling tax revenues, turning it into one of the world's most indebted countries.
Japan's public debt makes up about 160 percent of its GDP, the highest ratio in the industrial world.

Now, how are the Japs going to curb all that spending? :lol::lol::lol:

Houses are a place I would NOT want to be in the coming few years.

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i have a euros account. IR is only 2% but to me it seems a safer bet that the pound. having seen first hand just how real inflation is being hidden, i know it will arrive one day with a bang. id like to be out of sterling by then. if the BoE cant manage lending without going on some crazy speculative bubble, i cant see when paying it back will make it easier. plus euro economy seems more realistic. this is a fake UK boom - not a real one. you know that. i know that, but the lending people dont know that yet. when they do there will be trouble.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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