Would A Currency Collapse Threaten The Project?


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Lafazar

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I am growing increasingly concerned that there is a possibility for a major currency collapse in 2009.

Threatened are especially those currencies which are governed by states with large foreign debt relative to their GDP, since their bonds will become unattractive in the long run (and as a consequence the government might be tempted to print lots of money to pay off the debt, effectively making the currency worthless, the keyword here is hyperinflation).

Some analysts go so far and predict the bond market to be the next bubble. This is only speculation at this point, but the possibility for this scenario is very very real and I see more and more signs pointing to that outcome (the latest being China trying to establish the yuan as an international trading currency instead of the dollar).

This concerns mainly (but definitely not only) the USA and the UK since both their foreign debt and money creation have reached historic levels. Since the Pandora Project is centered around Craig and thus the UK I wanted to discuss precautions that could be taken to protect the Pandora project from this worst case scenario.

Personally I have bought a little Gold to preserve my savings should it really come to the worst, but that is most impractical for a business like the Pandora where fluid cash is needed. The worst case scenario I foresee is that the money paid to Craig&Co would become worthless overnight, leaving them without the purchasing power to get the necessary parts (screens etc) but with an obligation to deliver the finished devices.

Does anyone have an idea how to prepare for this scenario?
 
Well, where I live buying gold is pointless, as any gold purchases will be affected by full VAT and thus you lose a big portion of the value up front.

That been said, I'm not particularly worried about a currency collapse.
 
Almost all of the parts for the first batch are already paid for according to the Pandora team. Other than the case and the battery, I'm not aware of anything that they either don't have or is being shipped as we speak. This collapse will have to happen very soon to completely shut down this project.
 
With all due respect, if there really is a global currency collapse as some "experts" have predicted, getting my hands on a Pandora will be the least of my concerns.
 
WizardStan said:
With all due respect, if there really is a global currency collapse as some "experts" have predicted, getting my hands on a Pandora will be the least of my concerns.
That's _exactly_ what I was going to say. But I don't see the odds of that happening being very high. However, I suspect that the dollar will gradually lose its status as the world's reserve currency thereby reducing the ability of the US to spend more than it has via loans from other countries. As a result, the standard of living in the US will decrease.
 
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WizardStan said:
With all due respect, if there really is a global currency collapse as some "experts" have predicted, getting my hands on a Pandora will be the least of my concerns.
Ditto. Essentials like "food", "water", and "heat" come to mind.

Plus it's been repeatedly stated that short of comets falling on the factories nothing can stop the Pandora's release now. Too lazy to link a source though.
 
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As above. Ill be worrying about finding enough rats and corpses to eat and THEN thinking about playing fire ant.
 
Lafazar said:
Personally I have bought a little Gold to preserve my savings should it really come to the worst, but that is most impractical for a business like the Pandora where fluid cash is needed. The worst case scenario I foresee is that the money paid to Craig&Co would become worthless overnight, leaving them without the purchasing power to get the necessary parts (screens etc) but with an obligation to deliver the finished devices.
You know, if that actually transpired the way you describe, not getting a Pandora would be the least of our issues. And, keep in mind, the gold will sort-of keep it's valuation, but you'll have a hell of a time using it and the moment you do, you're going to have people wanting to take it all FROM you if we're in that sort of situation.

QUOTE

Does anyone have an idea how to prepare for this scenario?



For me personally, I have what I need, save for a few edge case things that would be nice, but don't keep me alive and healthy- so if I don't have them handled before an implosion it'll be fine. If things go that south, you're going to be worrying about clean water, properly edible food, etc.
 
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Ah, a fellow Austrian economics follower. I'm too poor to be able to afford gold myself but I'll be working on a silver savings soon enough.
 
ignatz said:
As above. Ill be worrying about finding enough rats and corpses to eat and THEN thinking about playing fire ant.
Mmmmm...rat burgers...uhhgggggg!!!

That'll suck when Taco Bell is the only restaurant that survives the economic crisis. :)



If you didn't get that joke, watch Demolition Man (and the Simpsons for the mmmm...uhhgggg part).
 
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I bought 12 months of gold but only have about 10 left. Will this be enough to make it through tough times? What if I lose my power?
 
The Bible says that people are going to be throwing their Gold in the streets. (So I put my trust in God not heaven's pavement) :p
 
I guess people need to learn to fish. People need to learn to get fresh water from salt water. People need to learn to start a fire. People need to lea

People need to learn the following to survive during a crisis.

1. Learn to fish if there is a water source nearby.
2. Learn to get fresh water from salt water/dirty water.
3. Learn to start a fire from scratch without matches and lighters. (Easiest way, wood and shoe strings)
4. Carry a knife. A real knife.
5. Read the damned Army Survival Manual.


Currency collapse is the least of my worries. Dying from the panicked is more worrisome.

Noisome
 
Exactly... my small concern is the people with their shotguns trying to steal our food, or even forcing me to fish for them! (good thing we live on a lake though... we can always eat fish!
 
Even then... you can still code your own stuff for it. I plan on getting (or making) a usb solar charger... I mean hey! My dad works at a solar company... shouldn't be that hard to make! (I will not die with a dead iPod or Pandora :D )
 
HackModford said:
Exactly... my small concern is the people with their shotguns trying to steal our food, or even forcing me to fish for them! (good thing we live on a lake though... we can always eat fish!
and thats one of the pros
of not living in america, fewer idiots like that

(not saying all americans are idiots, just theres more of them == more idiots)
 
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quote 'MarkoeZ'
It's quite probable that when i have my pandora and this kind of s#!t happens, i'm hardly going to notice it.(until internet dies :p )




No internet!! Arrrrrrrrrrrrrrrrrrrrrrggggggggggggggggggggggggggg :eek:
 
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