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Ask HN: When or if do you think the dollar will collapse?

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Re: Ask HN: When or if do you think the dollar will collapse?

#4

Post by nostrademons »

I can't predict when. I think it will, at some point, but I can't tell whether it'll be a gradual slide or a catastrophic panic.

As for what to do about it - own assets that generate continual revenue streams denominated in foreign currencies. International bonds are the obvious ones, but stocks of companies that make most of their revenue abroad also work well. Paradoxically, that means the S&P 500 is a pretty good bet: most of the top American companies make most of their money outside of the U.S.

Re: Ask HN: When or if do you think the dollar will collapse?

#5

Post by yannis »

It can have a catastrophic effect on the web. Javascript validation would not be able to handle all the digits. I wonder how the Zimbabweans handled it?

Seriously don't worry. It will have to adjust sometimes to reflect the real economy and the deficit. I lived in South Africa for quite a few years. At one stage the Rand halved its value almost overnight. (Big changes happen overnight) and lost more gradually over the years. It did not affect the 'buying power' in the country though. So unless you want to get up and go to Europe keep your money invested in the US. It is a great country and the economy has a tendency to re-adjust quickly. (By the way in Europe they worry similarly about the Euro).

If you have a lot of dollars under your pillow change some to Chinese Money. At worse you can go for a holiday there!

Re: Ask HN: When or if do you think the dollar will collapse?

#7

Post by newacc »

i guess gold and silver are the best bet.. though i dont know its a right time to buy right now as prices has shot in last couple of years... dollar crash may also result in to stock-crash and someone who can predict this can also buy 'short' ETFs. Dollar crash will also create demand in Oil which in-turn will increase the oil price. all these factors can help anyone to shield from now. Also one can start investing in forex, many smart immigrants have started investing in their home countries so that there is some risk mitigation.

Interested readers can also read "10 Bubbles in the making" @

http://www.businessinsider.com/bubbles-in-the-making-2009-9#...

Re: Ask HN: When or if do you think the dollar will collapse?

#9

Post by rphlx »

yannis wrote: post #5

It can have a catastrophic effect on the web. Javascript validation would not be able to handle all the digits. I wonder how the Zimbabweans handled it? Seriously don't worry. It will have to adjust sometimes to reflect the real economy and the deficit. I lived in South Africa for quite a few years. At one stage the Rand halved its value almost overnight. (Big changes happen overnight) and lost more gradually over th…

The US is perhaps the most import-dependent nation on Earth. If the dollar drops in half, prices for many physical goods will basically double soon after, reducing buying power within the country, unless credit simultaneously expands 2X (which is what's been happening since ~2001 to maintain our illusion of wealth).
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