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mikieb Offline OP
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What happens to your ownership of a stock... or a group of stocks, in your investment account ( say, Vanguard or Charles Schwab account) when the dollar collapse as a fiat currency ?

If you own an EFT or Mutual fund, will it still have value and will you still own it, if we go into a collapse of the dollar as a fiat currency....

Are all of us smart 401k savers just waiting on the edge of doom ?


Well... we have come to the point.... where... the parasites are killing the host. It's only a matter of time now.

They only win.... when they cheat.
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A stock is a stock is a stock. Is not money.

If the world comes to an end and the dollar is worthless, CocaCola and Ford and Home Depot and all the other companies with stocks will be bankrupt, and their stocks will be worthless. But you’ll still own the same portion of those companies.

There’s no “end of the world” plan, short of stockpiling bottled water and bullets.


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WW3 probably

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If the dollar would collapse, we would have to pay 10 times in dollar amount what we do now. My Son In Law grew up in Beirut, Lebanon . Their dollar collapsed , even though it is not in dollars. They go on but no one outside the country wants their money so imports are likely very rare. The funny thing with a collapsed currency is people spend all their money cause next week it will only be worth less. It sounds familiar to America and I do the same thing because I will likely never get another raise so when oil, filters and clothes go up it does cost more. If I had been getting raises , it's not so bad. Consumer staples are gold in a collapsed economy.. Toilet paper, soap, food and clothes. As for stocks, they would be worthless for the most part but like Dutch said, it is not money. It's a certificate of ownership.


But the fruits of the spirit is love, joy, peace, patience, kindness, goodness,faithfulness, Gentleness and self control. Against such things there is no law. Galations 5: 22&23
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Stand by, we will see what happens. It has already started.


Patriotism (and religion) is the last refuge of a scoundrel.
Jesus: "Take heed that no man deceive you."
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Originally Posted by Dutch
A stock is a stock is a stock. Is not money.

If the world comes to an end and the dollar is worthless, CocaCola and Ford and Home Depot and all the other companies with stocks will be bankrupt, and their stocks will be worthless. But you’ll still own the same portion of those companies.

Originally Posted by ihookem
Consumer staples are gold in a collapsed economy.. Toilet paper, soap, food and clothes. As for stocks, they would be worthless for the most part but like Dutch said, it is not money. It's a certificate of ownership.

Assuming that the world does not come to an end, because in that case nothing matters, why would stocks be worthless and companies bankrupted just because the dollar became worthless? You still own companies with assets that have value. In a hyper-inflation scenario, stocks could get repriced upward every day just like everything else. Certain industries could be bankrupted like lenders whose borrowers pay their loans with inflated, worthless dollars, but that should strengthen the balance sheets of the borrower companies. Consumer discretionary businesses could be in for a rough patch. But, the companies that make and/or sell goods and services that people need or want should be fine as soon as they can figure out what they are willing to exchange for their goods and services. There may be some lag time, stoppages and ugliness while things get sorted out, and there may be a need for new types of warehousing, transportation, accounting and valuation services to deal with bartered goods. I also can see how crypto currencies could come into play. I do not see why sophisticated businesses would not be able to figure it out.

I'd rather take my chances with the stock of companies that make stuff people need or want than actually filling up the house with that stuff and trying to get rid of it myself. Even big, smart retailers get stuck with excess inventory when they guess the consumer market wrong.


"Don't believe everything you see on the Internet" - Abraham Lincoln
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I think you're getting into a "how many angels can dance on the head of a pin" argument. If we go to hyperinflation, the economy will collapse for a large extent. It might be Argentina bad, it might be Venezuela bad, it may go all the way to Weimar bad. Yes, better to own stock than cash, but not all that much better. Most companies won't survive.

In any such scenario, your financial transactions will be limited to whatever the "powers in charge" deem appropriate. Which means, you can't buy and sell anything without express government approval.

People have already forgotten that it was less than 50 years ago there were prohibitions on foreign currency exchange, less than 75 years ago there were price controls, wage limits, prohibitions of public ownership of gold.

All forms of wealth are only yours until the whimsy of the population votes it to be no longer your wealth.


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I cannot believe the governments of the world will allow an alternative private currency. Is not that the selling point of crypto? I believe it will be banned as use in payments.

Isn't crypto fake money just like federal reserve notes but without the protection of government and a central bank?


Patriotism (and religion) is the last refuge of a scoundrel.
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Originally Posted by Dutch
All forms of wealth are only yours until the whimsy of the population votes it to be no longer your wealth.

That’s a risk whether the dollar collapses or not.


"Don't believe everything you see on the Internet" - Abraham Lincoln
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Wow, planning for a failure of the financial system is.....making my head hurt. I agree with Dutch, your money, stocks, 401K, and all your stuff is only yours until the government says it aint. That includes your water, gold bars and bullets. Fingers crossed is the best I got.

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[Linked Image from farmdocdaily.illinois.edu]

from farmdocdaily

My stock market and real-estate assets have increased at 16% compounded annually over the last 10 years.


There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self. -Ernest Hemingway
The man who makes no mistakes does not usually make anything.-- Edward John Phelps

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