Hyperinflation, recession how bad can it get

Discussion in 'Financial Planning' started by Bean27, 16th Mar, 2020.

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  1. Bean27

    Bean27 Well-Known Member

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    Interested to here peoples opinions on how bad things can get. Should I have listened to that guy on youtube 4 years ago and bought gold and silver. Should I withdraw all my cash out of the bank in case it collapses. So many Doomsday scenarios out there at the moment
     
    Bean27, 16th Mar, 2020
    #1
  2. Brady

    Brady Well-Known Member

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    Yes take all cash out, but cash it dirty so I'll be good bloke... keep it safe for you.
     
    Brady, 16th Mar, 2020
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  3. Bean27

    Bean27 Well-Known Member

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    what was you hoping to achieve out of that response? Its a valid discussion
     
    Bean27, 16th Mar, 2020
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  4. willair

    willair Well-Known Member Premium Member

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    Your money is covered by the government so don't worry about that part and decades before the creation of social media there were and always were doomsday outlooks but they never had the instant information systems and connected databases platforms like to day ..

    I have never ever bought gold silver to form a cover level for times like this ,black opal yes..
     
    willair, 16th Mar, 2020
    #4
  5. Brady

    Brady Well-Known Member

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    Ok which bank do you have your money with? Is it >$250k?
    If so take it out spread $250k across each ADI.
     
    Brady, 16th Mar, 2020
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  6. Bean27

    Bean27 Well-Known Member

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    Ok I just read about that, we are insured up to 250 k. I was unaware
     
    Bean27, 16th Mar, 2020
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  7. paulF

    paulF Well-Known Member

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    Does this mean that if a bank collapses, the government will pay back each depositor the money back?
     
    paulF, 16th Mar, 2020
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  8. spludgey

    spludgey Well-Known Member

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    Why would this lead to hyperinflation?
     
    spludgey, 16th Mar, 2020
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  9. Brady

    Brady Well-Known Member

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    Brady, 16th Mar, 2020
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  10. Bean27

    Bean27 Well-Known Member

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    What if they freeze accounts? It could happen if people panic and withdraw all cash
     
    Bean27, 16th Mar, 2020
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  11. paulF

    paulF Well-Known Member

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    I'm drawing out some cash now just in case.
     
    paulF, 16th Mar, 2020
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  12. The Y-man

    The Y-man Moderator Staff Member

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    If we go to hyperinflation, you cash would be worthless (a la the Zimbabwe example).

    In that case it is better to own a business that will be unaffected by the inflation / recession, or a property that has a tenant that is relatively immune (sorry, pun not intended) to the two.

    The Y-man
     
    The Y-man, 16th Mar, 2020
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  13. The Y-man

    The Y-man Moderator Staff Member

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    I am unaware of the video, but I bought gold before the GFC (as a result of going to an investment seminar of all things!) - Gokd saved my backside during the GFC, and I bought back again in good times. I recently sold to buy some shares, and still hold some in reserve.

    So I suggest once we come through this (and prices come down), have a serious look at getting some.

    The Y-man
     
    The Y-man, 16th Mar, 2020
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  14. Bean27

    Bean27 Well-Known Member

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    mike maloney his name is
     
    Bean27, 16th Mar, 2020
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  15. Trainee

    Trainee Well-Known Member

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    You cant analyse every scenario equally. What if there is a nuclear war? Aliens? you have to apply probability to each scenario.
     
    Trainee, 16th Mar, 2020
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  16. Bean27

    Bean27 Well-Known Member

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    Fair point, but answer me this. In your opinion what is the most probable scenario at the moment?
     
    Bean27, 16th Mar, 2020
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  17. The Y-man

    The Y-man Moderator Staff Member

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    FYI @Bean27 my actions in the past few weeks HAS been to take money out of my offset accounts and dumping them into an unlisted commercial property trust with mainly government tenancies.

    It wasn't really planned as an "emergency manoeuvre" and was purely coincidental in timing as I wanted my money to work harder in these low interest times.

    Even given hindsight, I am happy with the decision (so much so that I added more into the trust last night). If my government tenants go bust - then I think money will be the last thing we need to worry about, and I better hope the vegies I am growing out back will feed us....

    The Y-man
     
    The Y-man, 16th Mar, 2020
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  18. Trainee

    Trainee Well-Known Member

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    Most probable? recession. Shares fall another 25%. In time there will be a vaccine or treatment. Almighty rebound in shares even if there is a recession.

    5, 7, 10 years from now everyone will say it was so obvious the sharemarket was a buy.
     
    Trainee, 16th Mar, 2020
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  19. The Y-man

    The Y-man Moderator Staff Member

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    Prepare for the worst. Hope for the best.

    My broker @Peter_Tersteeg takes it to the next level however - he is practising his archery skills to hunt for animals (and self defence????) as well as having all the gear necessary to collect shellfish and other seafood..... o_O

    The Y-man
     
    The Y-man, 16th Mar, 2020
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  20. Trainee

    Trainee Well-Known Member

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    Btw i can also give you a totally PLAUSIBLE scenario where the market collapses and we get hyperinflation and go back to gold.

    problem is when people think just because its plausible, its more probable.
     
    Trainee, 16th Mar, 2020
    #20
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