If the US has another Depression?

Question

Will the dollar be worthless?

Also is investing in precious metals a good idea?

that wat i can trade silver and gold for food ect.

Answer 1

I dont think the dollar will become totally worthless. However its possible that it will go down alot more from where it is today. The fact is that today unlike the past the US is the worlds largest debtor nation not the worlds largest creditor nation. There is no question about it that we are going to have hard times. I would submit that we are in a depression already. We are in the beginning stages of it. We are currently going through a deflation. Up untill about 5 months ago we were going through inflation. That changed with the bailouts of Bear Sterns, Fannie Mae, Freddie Mac, and the opening of the Federal Reserve discount window to organizations that are not part of the banking system. Once this credit contraction with the banks is complete I expect the cycle to reverse and we will see massive inflation. I have been buying silver and will continue to do so even though its going down. I just recently ran across the banking freeze speech by FDR and its very interesting. Listen to it and see if you reconize anything today. Just keep in mind that the banking system is based totally on credit and there are no reserves backing the US dollar. http://www.knology.net/~bilrum/fdrgoldau...

also read my post here that explains a little more about the events of the Great Depression and what is happening today. http://answers.yahoo.com/question/index;...

Im prepared for both a recovery and a major depression either way. Its good to save and invest in all areas. That is one thing most people dont do today is save. Very few have any savings. I believe this alone will be the #1 factor in the depression we are currently in. The banks arent lending. They are contracting credit as they did in 1929. This is repeating 1929 all over again except the debt evels we are talking about are in the Trillions of dollars.  

Answer 2

The US has long had its shares of depressions but if you look at the chart for the past 100 years its always up the fact is depressions are like bottoms its your time to buybuy buy every stock you can because they will be cheap ! and for metals "gold" is the best because its always been going up and its always going to simple supply and demand and as the population increases there will be more demand.

Answer 3

depression is worse than recession, the most recent one is the 1929 depression.

Precious metal is the investment of choice during this period.  Dollar can devalue but then again if US is in depression then expect the whole world will get suck into it.  For contrarian approach you can indeed invest in stocks.

Answer 4

no and no