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If you believe 'The currency is in collapse,' then I suggest you take out as much leverage as you can have to your name (Maybe even raise capital from instituti

by RC_ITR 5y ago

If you believe 'The currency is in collapse,' then I suggest you take out as much leverage as you can have to your name (Maybe even raise capital from institutions using your above diligence) and do a Soros-Style short. Here's the playbook: https://theeconreview.com/2018/10/16/how-soros-broke-the-british-pound/ https://theeconreview.com/2018/10/16/how-soros-broke-the-bri... Good luck.

missedthecue 5y ago
If you are of the persuasion that western currencies are collapsing, what would you pair the canadian dollar with for your trade? Soros paired the GBP with USD because the bank of England was having a difficult time defending the pound. The USD was not also at risk. It was completely unrelated to the situation happening in England. But if both the GBP and USD fell, Soros would not have made a profit.
- RC_ITR 5y ago
  Lol whichever currency/asset you plan to use to measure your wealth in the future. You're right, Soros borrowed pounds and sold them for dollars because he wanted more dollars. If you think CAD and USD are both going to collapse, then maybe think about the joys of your day-to-day life (coffee, heat, clean water) and use that as the other side. It is very unlikely that USD collapses on a human life-scale without major disruptions in those supply chains.
ameminator 5y ago
I actually do believe the Canadian currency is in collapse and it absolutely changed my behavior (bought assets/stock in other countries, got a mortgage at 5% down, vs 20% down, other hard assets)
- RC_ITR 5y ago
  I'm telling you if you have that much conviction, then you can profit it off that WAY more than you currently are with some simple financial instruments. But as always this is not investment advice, because I disagree with the premise.
  - ameminator 5y ago
    It's possible to have conviction but recognize the possibility being wrong or that outside events can have an impact. With financial instruments, it's also possible to run into market-timing issues and outsized risk to reward. On the other hand, it's easy to bet on hard assets (like real estate) and taking on debt when inflation is so high and rates are so low. It has the added benefit of not being sophisticated, requiring neither a finance nor an accounting degree.
    - RC_ITR 5y ago
      Conviction is literally 'firmly holding a belief or opinion.' If you firmly believe that currency is collapsing and your response is to buy a home, then you're leaving a bunch of money on the table and potentially not profiting from that at all. If you think that interest rates are low and housing has a lot of reasons to inflate going forward, then I think we agree you're acting rationally, but that has almost nothing to do with 'currency collapse.'
pydry 5y ago
Raising interest rates wont be far off if it is in collapse.
- sleepingadmin 5y ago
  >Raising interest rates wont be far off if it is in collapse. All I can do is point to the failed mandate. https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/interest-rate https://tradingeconomics.com/canada/interest-rate
sleepingadmin 5y ago
>If you believe 'The currency is in collapse,' then I suggest you take out as much leverage as you can have to your name (Maybe even raise capital from institutions using your above diligence) and do a Soros-Style short. Literally everyone I know is doing this. Crazy mortgages and all money into inflationary resistant assets. Gold, Crypto, etc.
- RC_ITR 5y ago
  1) Wow you have really hardcore friends, I love it. 2) I hope they realize that in Jan-22, Bitcoin's inflation rate was like 30%+

by RC_ITR 5y ago

missedthecue 5y ago

If you are of the persuasion that western currencies are collapsing, what would you pair the canadian dollar with for your trade? Soros paired the GBP with USD because the bank of England was having a difficult time defending the pound. The USD was not also at risk. It was completely unrelated to the situation happening in England. But if both the GBP and USD fell, Soros would not have made a profit.

RC_ITR 5y ago
Lol whichever currency/asset you plan to use to measure your wealth in the future. You're right, Soros borrowed pounds and sold them for dollars because he wanted more dollars. If you think CAD and USD are both going to collapse, then maybe think about the joys of your day-to-day life (coffee, heat, clean water) and use that as the other side. It is very unlikely that USD collapses on a human life-scale without major disruptions in those supply chains.

ameminator 5y ago

I actually do believe the Canadian currency is in collapse and it absolutely changed my behavior (bought assets/stock in other countries, got a mortgage at 5% down, vs 20% down, other hard assets)

RC_ITR 5y ago
I'm telling you if you have that much conviction, then you can profit it off that WAY more than you currently are with some simple financial instruments. But as always this is not investment advice, because I disagree with the premise.
- ameminator 5y ago
  It's possible to have conviction but recognize the possibility being wrong or that outside events can have an impact. With financial instruments, it's also possible to run into market-timing issues and outsized risk to reward. On the other hand, it's easy to bet on hard assets (like real estate) and taking on debt when inflation is so high and rates are so low. It has the added benefit of not being sophisticated, requiring neither a finance nor an accounting degree.
  - RC_ITR 5y ago
    Conviction is literally 'firmly holding a belief or opinion.' If you firmly believe that currency is collapsing and your response is to buy a home, then you're leaving a bunch of money on the table and potentially not profiting from that at all. If you think that interest rates are low and housing has a lot of reasons to inflate going forward, then I think we agree you're acting rationally, but that has almost nothing to do with 'currency collapse.'

pydry 5y ago

Raising interest rates wont be far off if it is in collapse.

sleepingadmin 5y ago
>Raising interest rates wont be far off if it is in collapse. All I can do is point to the failed mandate. https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/inflation-cpi https://tradingeconomics.com/canada/interest-rate https://tradingeconomics.com/canada/interest-rate

sleepingadmin 5y ago

>If you believe 'The currency is in collapse,' then I suggest you take out as much leverage as you can have to your name (Maybe even raise capital from institutions using your above diligence) and do a Soros-Style short. Literally everyone I know is doing this. Crazy mortgages and all money into inflationary resistant assets. Gold, Crypto, etc.

RC_ITR 5y ago
1) Wow you have really hardcore friends, I love it. 2) I hope they realize that in Jan-22, Bitcoin's inflation rate was like 30%+