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what do you guys think of deflation?
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<p>[QUOTE="Cloudsweeper99, post: 947255, member: 3011"]They are safe because they can't default. A $1000 note is denominated in terms of itself. The money is the debt and the debt is the money. It is liquid because it is a huge market with many players seeking an asset that cannot default. Hyperinflation is a very low probability event despite what you read on the internet. If it was considered probable, interest rates wouldn't be so low. A "simple" solution if you are worried about a currency collapse is to not hold currency. Own stocks, real estate, coins, bullion, food and a lifetime supply of toilet paper. Hold only enough currency to pay your bills and live your life. When you think about it, money isn't wealth. Money is the stuff you use to buy the things that represent wealth.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 947255, member: 3011"]They are safe because they can't default. A $1000 note is denominated in terms of itself. The money is the debt and the debt is the money. It is liquid because it is a huge market with many players seeking an asset that cannot default. Hyperinflation is a very low probability event despite what you read on the internet. If it was considered probable, interest rates wouldn't be so low. A "simple" solution if you are worried about a currency collapse is to not hold currency. Own stocks, real estate, coins, bullion, food and a lifetime supply of toilet paper. Hold only enough currency to pay your bills and live your life. When you think about it, money isn't wealth. Money is the stuff you use to buy the things that represent wealth.[/QUOTE]
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