Thursday, September 05, 2013

Could collapse as dollar as world "reserve currency" wipe out retiree's assets?

Should retirees fret over Porter Stansberry’s theory that most US financial assets (cash, stocks and bonds) – retirement savings – could implode suddenly (like overnight) if the rest of the world no longer accepts the dollar as a reserve currency?  Stansberry says that this can happen because the US continues to print money, Weimar-like, to cover up its debts which are even larger than what politicians will admit to.
I discussed this on the Issues blog Aug. 30 and the “cf” blog Sept. 1.   But the current flack over the debt ceiling, which could crash down in mid October, seems to make his ideas relevant again.
I don’t see why such an event would stop the domestic economy, but it could make overseas goods and services much more expensive overnight.
Stansberry seems to favor owning gold and silver, overseas and offshore assets, and even barter (he’s vague – you have to buy a “discounted” subscription to his e-newsletter).  There certainly is a push to consider living overseas, particularly in Central America, especially Belize or Panama.  Real estate is said to be reasonable there, as is health care.  A local Arlington VA church sends its teens to Belize on a mission for ten days every summer. 

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