Some nice comforting doom

[DimPrawn]

http://www.moneyweek.com/investments...den-94908.aspx

Paper money isn't going to be worth the paper it is printed on.

Maybe property is a bargain after all.

[DiscoStu]

So eventually the US and the UK are going to default.

What then?

[OwlHoot]

Interesting article

When governments go bankrupt, it's called a "default". Currency speculators figured out how to accurately predict when a country would default. Two well-known economists – Alan Greenspan and Pablo Guidotti – published the secret formula in a 1999 academic paper. The formula is called the Greenspan-Guidotti rule.

The rule states: To avoid a default, countries should maintain hard currency reserves equal to at least 100% of their short-term foreign debt maturities. The world's largest money-management firm, PIMCO, explains the rule this way: "The minimum benchmark of reserves equal to at least 100% of short-term external debt is known as the Greenspan-Guidotti rule. Greenspan-Guidotti is perhaps the single concept of reserve adequacy that has the most adherents and empirical support."

The principle behind the rule is simple. If you can't pay off all of your foreign debts in the next 12 months, you're a terrible credit risk. Speculators are going to target your bonds and your currency, making it impossible to refinance your debts. A default is assured.

So how does America rank on the Greenspan-Guidotti scale?

It's a guaranteed default.

[DimPrawn]

So eventually the US and the UK are going to default.

What then?

We'll all vote Labour and sign on to some top benefits and spend all day posting on CUK.

[TimberWolf]

And an advert off that page links to a report where they say UK property prices will fall 50%.

If you haven't taken steps to protect yourself from the coming devaluation – like owning gold and silver bullion, foreign real estate, and farmland – make sure you do it soon. The dollar rout is coming.

Hmm.

[TimberWolf]

We need a (sticky) thread for putting tips on where to shift Sterling to safer places, e.g. gold, shares, property, foreign currency accounts.

[Platypus]

Interesting article

Very interesting. Although amusing that the author talks about the "secret" formula, then explains it!

[Spacecadet]

We need a (sticky) thread for putting tips on where to shift Sterling to safer places, e.g. gold, shares, property, foreign currency accounts.

I bought some land on the moon, was told that the prices will only ever go up

[DimPrawn]

We need a (sticky) thread for putting tips on where to shift Sterling to safer places, e.g. gold, shares, property, foreign currency accounts.

I reckon if you can buy the right place in the UK as a BTL, at a bit of a discount, now is a good time to buy.

The price might not go up for 10 years, but at least it's better than owning paper sterling and you get the rental income.

http://www.telegraph.co.uk/finance/p...e-in-2010.html

[threaded]

I reckon if you can buy the right place in the UK as a BTL, at a bit of a discount, now is a good time to buy.

The price might not go up for 10 years, but at least it's better than owning paper sterling and you get the rental income.

http://www.telegraph.co.uk/finance/p...e-in-2010.html

Not really. When Labour win the next election, they're going to go after the HIMOs as. well, they're the only ones that can't exactly shift their money offshore easily.