Re: Inflation, deflation, gold and currencies
Posted: Wed Apr 20, 2011 9:27 am
Dear Vince,
as I did.
Nonetheless, when people talk about "fleeing the dollar," they
never seem to answer the question: "Flee the dollar into what?"
If you're going to hypothetically assume 10% inflation in the dollar
currency, then you'd have to assume 10% (or more) inflation in the
euro and other currencies as well, for exactly the same reasons. Gold
and other commodities would skyrocket, so under this hypothetical
scenario, those commodities would be even more risky than the dollar.
As the world reserve currency, the dollar is still the safest
investment for many people. So, flee the dollar into what?
John
I misunderstood what Richard was saying, and shouldn't have respondedvincecate wrote: > John, in the proposed scenario, if inflation is 8% to 14% and
> interest rates are 8%, and the interest on the debt is more than
> the total taxes, and the government is printing money like crazy,
> you would still put your savings in US debt? Really? I am sure no
> country has saved their currency after getting that far gone.
as I did.
Nonetheless, when people talk about "fleeing the dollar," they
never seem to answer the question: "Flee the dollar into what?"
If you're going to hypothetically assume 10% inflation in the dollar
currency, then you'd have to assume 10% (or more) inflation in the
euro and other currencies as well, for exactly the same reasons. Gold
and other commodities would skyrocket, so under this hypothetical
scenario, those commodities would be even more risky than the dollar.
As the world reserve currency, the dollar is still the safest
investment for many people. So, flee the dollar into what?
John