Assume that at some point in the next decade, the US goes through approximately what Greece is going through right now, with investors declining to buy US debt at anything but exhorbitant prices. Assume also that you have money to invest.
What do you expect to be the fallout from this, and what is your investment strategy?
Invest in foreign stocks?
Open an offshore account?
Can you short Government Bonds?
If the US Government defaults on its debt, all bets are off, across the board.
More importantly…
If Spain attacked France from the rear, would Greece help?
(d&r)
Moved to IMHO from GQ at request of OP.
Colibri
General Questions Moderator
It is extremely unlikely that the US will go through what Greece is going through. The Greek government has a very hard time collecting the taxes it is due from non compliance. It has a huge amount of liabilities (pension promises, etc.) and it cannot reduce those by allowing its currency to inflate because it doesn’t have its own currency.
Boy did I have a different image in mind based on the thread title.
It would be a hard-fought fight, depending on how Hungary troops were, but I suspect the question as asked above would end up with no clear winner, with both belligerents in a Thai. 
stock pile gold
Irrelevant to the thread; this thread assumes such an event happens.
If you think that the US would attempt to inflate their way out of such a crisis, fine: what would be your strategy for dealing with hyperinflation?
You don’t need hyperinflation either (that is a continuing rate of high inflation. You need a one time devaluation of the dollar so the real value of the nominal promises is decreased to a tolerable level.
The way to handle that is to be holding real rather than nominal assets. This could be things like gold or stocks or foreign assets. You would not want dollars or bonds or preferred stock – anything that has fixed dollar payments. Which would be best would require much more specific information.
And of course, you’d want to move into those assets before others did and bid up the prices.
Freak out. The shit has hit the fan.
Stock up on a ton of canned food, learn how to garden, secure a source of fresh water (either a natural source or use a filter or chemical packets), a source of seeds, etc. Solar panels would also probably be a good idea. Also learn how to make your own clothes. Carpentry skills would also be useful.
Get dual citizenship in another country like Bermuda. Open a bank account in another country like Bermuda. Do it now do not wait. We will be the last to know. The G2 conference didn’t go as well as planned. China will not pay all our debts.
I cashed out my bonds a few months ago. I think it depends on the bond type?
I do think that the USA will be forced to devalue the dollar, because the national and state governments are generating deficits that are unsustainable.
I’m looking to go heavy into real estate.
Remember the Carter years? Had you bought real estate in the late 1960’s, you would have become a millionaire by the 1980’s-and your obligations would have vanished.
Of course, the Chinese would be foolish to back us into a corener-if they precipitate a run on the dollar, they rish losing trillions (on the debt they hold). They also risk losing their export market for cheap clothing, poisonous foodstuffs, contaminated drywall, etc.
:dubious:
We’re talking economic crisis here, not nuclear war. Having useful a useful trade or a hedge against high energy prices is one thing, but I don’t think the water mains go out if the stock market crashes.