1. What is the best way to ensure my economic stability assume the USD falls to nothing and we default on every debt to China, Japan, etc.? This is assuming I'm worth like $100,000 (just picking a random, easy number) and around 30 years old. So I already have a bit of wealth in this situation. I could truthfully live with barely anything, but I just want to make sure for my children when I'm older that I don't work a ton and then the USD and my savings are worth zero.
2. Since I'm only 20 years old and have barely no money aside from what I spend day-by-day, would I have no problem if the USD fell to nothing? I'm kind of confused regarding where the treasury's/Fed's gold would go, even though we aren't on the gold standard anymore.
Any suggested links or explanations so I can understand this all better?
1. If the USD falls to nothing, then all your dollars will be worth nothing. So if they are in a bank, or in your wallet, in Treasuries and bonds of any kind, they will be worthless and useless.
If you own stocks in companies that make their money selling to Americans, they may go bankrupt from lack of business. On the other hand, maybe you should hold on to those stocks, because when some new money is introduced, maybe gold standard "new dollars", they may get back on their feet. Obviously it's a risky gamble, buying them in the first place.
If you have Social Security or other fixed income, your monthly check won't buy you a stick of gum. If you have a job, you better run to the stores right away, cause those shelves will empty fast by other buyers. Not to mention that China won't be replenishing Walamrt's shelves any time soon, as they have enough wothless dollars already; they don't need more and will stop selling us everything.
2. All buying and selling in dollars will end. For a while, who knows how long, people will buy and sell in exchange for tangible things only. Cigarettes, beer, silver coins, probably all of the above. Who knows what else? In parts of Iraq they use bottled water for money.
So if you are poor buy non perishable goods now, when they cost a dollar instead of a million dollars. If you are rich, buy non dollar stuff, like gold and silver and foreign stocks [from creditor as opposed to debtor countries] and commodities. If you don't know how to buy these, find a reliable person to help you.
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I don't have any sources on hand, but you should read accounts of what has historically occurred in areas suffering from extreme hyperinflation. The effects and people's reponses in order to continue trading would be the same as your hypothetical.
The effects and people's reponses in order to continue trading would be the same as your hypothetical.
Simple. Use a different currency.
How do I use a different currency while living/working in the United States?
And, assuming I can do that somehow, would the best alternative currency be the Swiss franc?
I'm going by what has happened in areas recently during hyperinflation. Such as in Mexico when the Peso crashed. They tried to use dollars (by black market exchange). I can't predict what or how many different things would end up being used in any future scenario.