How will a global hyperinflationary depression affect us?

is there any safe harbour from this other than accumulate gold and fix loans if you can? if the US for example goes into hyperinflation, what will the monetary impact for oz be?

the essence of my question is, if the rest of the world goes so pear shaped is there any repsite for us, or should we all be bunkering down?
 
For us noddies out here Ausprop who haven't got a clue what you are on about - can you ask your question again in English ??
 
no shed is a coccoon Dazz... global events do effect us and western economies are shot. they are likely t run the printing press to try and appease the people whilst diminishing their federal debts. inflation would then go thru the roof during a period of depression.

oz is an island tho and our books are in pretty good shape and we have a lot of minerals tucked under the red dirt. can we remain imune is the question?
 
is there any safe harbour from this other than accumulate gold and fix loans if you can? if the US for example goes into hyperinflation, what will the monetary impact for oz be?

the essence of my question is, if the rest of the world goes so pear shaped is there any repsite for us, or should we all be bunkering down?
Just don't worry about it,if gold goes above 2k,and you see a lot of Greek
people in fishing boats off WA then start to worry..willair..
 
no shed is a coccoon Dazz...

Oh I dunno Ausprop....big stable companies pumping out stuff that other folk need regardless of what happens "out there", secured on long leases and just chugging along....I reckon it gives me a nice warm blanket against the chills, if not a coccoon.


More to the point, the Banks leave you alone to do what you do, hence I take no interest in the big economic picture. When I get a alot bigger and own some substantial properties, then maybe I might have to take notice. Until then, I'm far too small to have to worry about such stuff.
 
Oh I dunno Ausprop....big stable companies pumping out stuff that other folk need regardless of what happens "out there", secured on long leases and just chugging along....I reckon it gives me a nice warm blanket against the chills, if not a coccoon.


More to the point, the Banks leave you alone to do what you do, hence I take no interest in the big economic picture. When I get a alot bigger and own some substantial properties, then maybe I might have to take notice. Until then, I'm far too small to have to worry about such stuff.

The Great Depression of the 1930s was an economic catastrophe that severely affected most nations of the world, and Australia was not immune. In fact, Australia, with its extreme dependence on exports, particularly primary products such as wool and wheat[1], is thought to have been one of the hardest-hit countries in the Western world along with Canada and Germany. Unemployment reached a record high of 29% in 1932[2], (although 32% has also been quoted[3] and gross domestic product declined by 10% between 1929 and 1931[4]). There were also incidents of civil unrest, particularly in Australia's largest city, Sydney[5].

http://en.wikipedia.org/wiki/Great_Depression_in_Australia

worth reading lots of interesting stuff
 
if the world goes to hell in a handbasket it'll just be 2008/09 all over again.

seriosuly doubt that BC. for one,there was a budget surplus to go on a plasma spree. secondly, we didn't even have a recession. a lot of my mates don't even know what the fuss was about, their houses have gone up in value and petrol got cheaper, bring on another GFC they say
 
seriosuly doubt that BC. for one,there was a budget surplus to go on a plasma spree. secondly, we didn't even have a recession. a lot of my mates don't even know what the fuss was about, their houses have gone up in value and petrol got cheaper, bring on another GFC they say

there was a budget surplus, i forgot about that in my haste to reply.

well then, i'd say buy baked beans and gas masks.
 
is there any safe harbour from this other than accumulate gold

I always liked the quote along the lines of "If it gets bad enough that Gold is a good investment your more likely to need lead".

If hyperinflation really takes off then having assets that will inflate with it and not much debt is best. I don't see why gold would rise in value since it isn't actually very useful and the gold miners have massive stockpiles to keep the price up.
 
I always liked the quote along the lines of "If it gets bad enough that Gold is a good investment your more likely to need lead".

If hyperinflation really takes off then having assets that will inflate with it and not much debt is best. I don't see why gold would rise in value since it isn't actually very useful and the gold miners have massive stockpiles to keep the price up.

think you should go and do some reading about gold , gold mining and economics

here is a good read about the relationship of gold and inflation

http://www.commodityonline.com/news/Why-gold-is-currency-and-inflation-hedge-24636-3-1.html
 
the essence of my question is, if the rest of the world goes so pear shaped is there any repsite for us, or should we all be bunkering down?

Hi Ausprop

To me you have mixed two questions there.

1 Is the world going to go pear shaped?
2 Should we all be bunkering down?

IMO the answer to 2 is yes if 1 is correct. The problem is knowing whether 1 is correct or if we are in a "bear trap". Don't know the answer to that!

So the question for me is:

- Given the current global uncertainty, what should we be doing?

To which my response would be:

- Acquire sources of positive cashflow that are as strong and secure as possible and give the opportunity to fix IRs at a moment's notice.

Eerily similar to the strategy for less uncertain times.... :)
 
yep nice response. the problem I have personally, with my over exposure to resi, is that the b grade lenders i have dont offer fixed rates and those that do insist on full loan reassessments and my lvr's are all up the creek,so i stay away from them
 
In Zimbabwe in 2008, prices of everything were doubling in a day. In Germany in 1923, prices were doubling in 4 days.

What happened to people with debt?
Wouldn't this mean the debt disappeared to nothing in a short while?
Or did interest rates take off even quicker?
Or did banks call in the loans? Why would a bank call in a loan? They wouldn't want the cash, they'd rather own the asset. Maybe they just take over the asset? But banks would bust first wouldn't they.

No idea really?:confused:



If things went really really bad, say global trade stopped, protectionism, oil embargo. I'd reckon barter would take over from cash. So you would trade stuff. No one would want cash, so people would barter trade instead. Hardest hit would be the cities. Rural areas would be way better off, as they were in the great depression.

Hardest hit people would be some of those highest paid now, company CEO's, IT jobs, lawyers, financial services, etc jobs with no use or worth in a barter system. Tradies would at least have something of value to trade with, they could build and fix things. People with land could grow food. The further from the city the more civilised it would get. Out in rural areas everyone would be trading cattle and sheep and horses and chooks, grinding wheat to make flour, and malting barley and brewing beer and wine, making biodiesel, Cutting fire wood.


See ya's.
 
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