Lafazar
Member
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?
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?
