I have been beating the drum that the best position to be in come the currency problems is to be running a business actually selling things. It seems Cyprus is bearing this out:
When preferences for goods increase, as seems certain in Cyprus, the price effect could also be alarming, exacerbated by those capital controls on import payments. A price boom is created, rapidly driving up local prices against supply constraints.
But then comes the advice:
At stake is an eventual loss of confidence in the euro itself, as larger deposits flee for safety. In the short-term the US dollar and Swiss franc should benefit, but that doesn’t get your money out of the banks, because if the eurozone’s banks fail no bank and no paper currency is safe and their depositors might be raided. The only safety is in true money that has stood the test of time: gold and silver.
But hang on, what to do when the gold runs out.... then what? Think you'll have enough to cover a 30 year recovery? But the ability to trade and keep trading is worth more than gold which is an ability to buy for a limited time.
Better to start a business.
Feel free to forward this by email to three of your friends.
When preferences for goods increase, as seems certain in Cyprus, the price effect could also be alarming, exacerbated by those capital controls on import payments. A price boom is created, rapidly driving up local prices against supply constraints.
But then comes the advice:
At stake is an eventual loss of confidence in the euro itself, as larger deposits flee for safety. In the short-term the US dollar and Swiss franc should benefit, but that doesn’t get your money out of the banks, because if the eurozone’s banks fail no bank and no paper currency is safe and their depositors might be raided. The only safety is in true money that has stood the test of time: gold and silver.
But hang on, what to do when the gold runs out.... then what? Think you'll have enough to cover a 30 year recovery? But the ability to trade and keep trading is worth more than gold which is an ability to buy for a limited time.
Better to start a business.
Feel free to forward this by email to three of your friends.
0 comments:
Post a Comment