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> Cash will def be great then. In case of the banking system collapsing in a modern developed country? That’s such an extreme situation I’m not sure if holding
by krisoft 5y ago
> Cash will def be great then.
In case of the banking system collapsing in a modern developed country? That’s such an extreme situation I’m not sure if holding cash would be the right hedge against it. That sounds more like a canned food and flour bags kind of time.
If a bank fails, the deposit insurance also fails and the government can’t step in either that will undercut the trust in all other banks too. I would expect a chain reaction of follow-on bank collapses and hyper-inflation.
- skinnymuch 5y agoYes you’re right. I didn’t think through how of course cash will not mean much. Thanks for helping shape up my thinking about this.