Reply #6: Currency collapse? [View All]

[RM33]

If by currency collapse you mean hyper inflation, then we might be close to it.

A recent article in Forbes talks about this. Our current deficit is financed by low interest rates. We have trouble selling debt now. If rates start to climb, we will need even more money to finance the debt. But the market is not buying. For example, China has their own problems and they are spending their money on China, not US debt. If the government can't sell debt, they will monetize it.

We might just be in for a heavy dose of inflation. So forget the war chest. Maybe invest in gold? :-)

Regards

http://www.forbes.com/2010/05/18/federal-budget-deficit-personal-finance-inflation-yield.html?boxes=Homepagelighttop