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Kerrigan · Mar 8, 2009, 01:41 AM

What currencies do you think are safe from inflation for the next 5-10 years? I ask this because I have been reading some very disconcerting figures:

The US money supply has increased by approx. 270% in the past 5 months.

The Bank of England has literally "printed" £75bn of new money to cover budget costs.

I keep a good deal of my modest savings in the form of US dollars and sterling. But I am expecting significant inflationary pressure and attendant devaluation of these currencies in the next two years (just a hunch).

Where would you put your money? The only currency I am considering at the moment is the Swiss franc.

Big Mac · 01:52 AM

Yeah, the Swiss Franc is what I would recommend being in, aside from gold.

Source for those stats? I want to be able to back up the statements.

Shaddim · Mar 8, 2009, 01:52 AM

Screw currency, get gold and platinum. Even the Swiss Franc is going to take a beating.

waxcrash · Mar 8, 2009, 02:06 AM

Originally Posted by Kerrigan

What currencies do you think are safe from inflation for the next 5-10 years?

None.

Where would you put your money?

Somewhere safe where you aren't going to lose, like CDs or bonds. Even though inflation can erode the value of bonds, with today's economy I'd rather have something with a steady return even if it is small.

Hawkeye_a · Mar 8, 2009, 02:43 AM

Listening to so many world leaders and economists talk about bail outs and stuff got me pretty worried as well. It did sound like they were just 'printing more money' hoping it would 'solve' the problem, which imo is such a terrible idea (devaluation, leading to higher priced imports, and the downward spiral, etc).

From a historical standpoint (to the best of my knowledge), countries that have done this were worse off after 'printing more money', right ?

I know the Euro has taken a hit as well. what are it's prospects ? But yeah, gold is probably the best bet with this level of uncertainty.

Big Mac · 02:57 AM

Originally Posted by waxcrash

Somewhere safe where you aren't going to lose, like CDs or bonds. Even though inflation can erode the value of bonds, with today's economy I'd rather have something with a steady return even if it is small.

Those are still dollar denominated and mostly fixed income assets. They will not protect you from the rampant inflation we're expecting.

Kerrigan · Mar 8, 2009, 02:49 AM

Originally Posted by Big Mac

Yeah, the Swiss Franc is what I would recommend being in, aside from gold.

Source for those stats? I want to be able to back up the statements.

My source for the Bank of England story is this: http://business.timesonline.co.uk/to...cle5854896.ece

My source for the money supply stat is from http://thehill.com/ (a Dick Morris article).

However, while Morris cites the Fed as his source, I cannot find official Fed figures that match his statement. I'm wondering if he just made it up. But notice how this official fed chart of the M2 money supply growth literally goes off the chart for 2009--not encouraging: http://www.newyorkfed.org/research/d.../itable_18.pdf

turtle777 · Mar 8, 2009, 02:52 AM

Originally Posted by Big Mac

Source for those stats? I want to be able to back up the statements.

http://research.stlouisfed.org/fred2/series/BASE

Not sure on the 270% figure, but the money supply has definitely doubled in less than a year.
Perhaps, the 270% takes into account Obummer's future spendings impact.

See also here:

http://forums.macnn.com/95/political...ey-like-crazy/

-t

turtle777 · Mar 8, 2009, 02:55 AM

Originally Posted by Kerrigan

Where would you put your money? The only currency I am considering at the moment is the Swiss franc.

I have my money in EUR, CHF, Gold and Silver.

However, the easiest way to "diversify" is to buy something like the MERK HARD CURRENCY fund.

-t