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No one expects it to hold 100% of value, but even 10% of say $50k could be very helpful to live through the few months of the turmoil. Or to get to that foreign
by alexey-salmin 2y ago
No one expects it to hold 100% of value, but even 10% of say $50k could be very helpful to live through the few months of the turmoil. Or to get to that foreign real estate which people recommend buying in comments on HN.
- JumpCrisscross 2y ago> even 10% of say $50k could be very helpful to live through the few months of the turmoil. Or to get to that foreign real estate Genuinely curious for a single example of a collapsing country's fiat currency being useful for extradition. If this is actually your fail case, hold foreign currency.
- alexey-salmin 2y agoWell it's one of the tail cases, so all things considered both local currency and foreign currencies are useful, each in it's own quality. So is a foreign currency in a foreign bank.
- JumpCrisscross 2y ago> it's one of the tail cases, so all things considered both local currency and foreign currencies are useful, each in it's own quality Not really. If U.S. cash is useful, so are dollars in a bank. Not in the very short term. But over a timeline of more than a week. Storing tens of thousands of dollars of cash for an emergency is stupid, because almost every emergency that takes out the banking system renders that currency worthless. You’re better off having hard supplies or forex you can trade for exfiltration.
- alexey-salmin 2y ago> If U.S. cash is useful, so are dollars in a bank. This is a strong assumption. So far I've experienced three cases of loosing access to my money in the bank for various reasons and I also witnessed one more case with my parents 25 years ago. In all four cases the cash was still useful, losing between 0% and 70% of the value. None of that was in US of course, but I still think that your range of scenarios is too narrow.