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Dumb question about hyperinflation ... or maybe not
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<p>[QUOTE="Cloudsweeper99, post: 789554, member: 3011"]Thanks. I share what I know. It isn't easy to protect against either. When Germany had their hyperinflation, even things like stocks and real estate lost 80-90% of their inflation-adjusted value and did not recover for a very long time.</p><p><br /></p><p>The classic ways to protect against deflation are to be debt free and invested in secure bonds and cash equivalents. But if the deflation gets severe enough for a national default like Iceland, then even government bond and cash holdings become suspect. Anybody with significant financial assets to protect probably needs to have some of them overseas and denominated in other currencies.</p><p><br /></p><p>Watch what is happening in Iceland. Although it doesn't make the news, whatever works for people there to protect their assets is probably worth considering here. Someone should write a book about it.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 789554, member: 3011"]Thanks. I share what I know. It isn't easy to protect against either. When Germany had their hyperinflation, even things like stocks and real estate lost 80-90% of their inflation-adjusted value and did not recover for a very long time. The classic ways to protect against deflation are to be debt free and invested in secure bonds and cash equivalents. But if the deflation gets severe enough for a national default like Iceland, then even government bond and cash holdings become suspect. Anybody with significant financial assets to protect probably needs to have some of them overseas and denominated in other currencies. Watch what is happening in Iceland. Although it doesn't make the news, whatever works for people there to protect their assets is probably worth considering here. Someone should write a book about it.[/QUOTE]
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Dumb question about hyperinflation ... or maybe not
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