If the USD collapses, I don't fancy the chances of the other major currencies, but in the first day or two the speeds of fall might differ significantly. Which isn't to say that moving into any paper would be safe or even sensible. But they say never to let a crisis go to wasteMy response was almost 100% serious. A US default would be bad, but wouldn't lead to a collapse of the USD (as a reserve currency). Whereas a collapse of the USD itself would lead to sheep, chicken etc. scenario
But there is virtually ZERO chance of a default for the simple reason all US debt is denominated in the reserve currency, which happens to be US dollars. They don't need to export one single extra barrel of oil or ask for special terms. They just invent more money. It really is as simple as that. More debt at the press of a key.
When they do do that, I imagine the dollar will likely surge across all other majors.
I'd be scared of going into CHF given the weight of banking in the Swiss economy.CHF, NOK, and currencies like that. Def not EUR.
Zimbabwe shows the way forward?My Z$2c.
I didn't answer the OP question first time, so as well as the other suggestions, consider USD index futures, along with gold and oil (both will still be priced in USD for the foreseeable, even under default conditions).
Gold has been influenced quite a bit by fed intervention, once the optionWith oil, the foreseeable may not be very long, if the US stops being able to pay its servicemen and military contractors. Gold may be good; common sense says so, but I'm not sure how to read the scale of the rise since Lehman's; haven't lots of small and unwise investors moved in, e.g. in places like India?
I've always had at the back of my mind, over the last few years, of buying a bit of gold just in case the politicians allow everything to collapse. The hyper-inflation in Germany and Zimbabwe wasn't all that long ago. But knowing my own failings I am likely to buy too little too late.
Which raises the question of - in what form should one keep it ? Gold coins under the bed or what ?
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