2020 Potential Economic Collapse

[pseudonym]

Playing "Shove a Penny" with the wife at the moment using gold sovereigns and one ounce Britannias'

A 5kg silver ingot makes a great door stop.

Youngster, In my day it was a Hapenny (Half Penny)

[peejay]

I know we are all focused on the C19 virus at the moment, rightly so, but please dont be distracted from the absolute carnage and meltdown that is going on in financial markets and global economies. If the virus wasn't happening this forum would have 20 topics and hundreds of posts on the subject, it would be all consuming.

If you have prepped for economic turmoil you have one less thing to worry about. If you haven't maybe try and do what you can asap IMO.

I wholeheartedly agree! I'm trying to make sense of the financial situation, trying to think what to do next to protect myself & I just can't find a sensible option right now.

I'm far from rich though compared to some I could be I guess. I have a contractors "war-chest" in my ltd company that would, ordinarily, last me probably 6 months under NORMAL circumstances, possibly 8 if gov gives temp tax breaks but it's in the company's coffers right now & pulling it out would attract income tax.

In some ways it's handy because it's at least a second financial institution (i.e. separate from my personal bank account that just keeps monthly running amounts) so should we get any banking collapses then it's slightly spread out but I'm seriously concerned with the prospect of hyperinflation etc.

My first thought's when all this started kicking off was to have the company buy some gold to store the value in but that's all over the shop as well!

I watched Barclays (where my business funds are) share price drop from a recent high of £192 to just £72 this week - All I could think of was Lehmans!

Apparently the dollar has been increasing in value but that's a bad thing as it creates a lot of imbalance!

The finance situation has me far more worried than the virus - if it comes down to it I can lock myself in the house for months to hide from the virus - financial situation however is entirely out of my control!

[preppergb]

I think that once this Corona virus passes we are going to have hell to pay, The Country is spending BILLIONS it does not have and its going to want to clear that debt with interest. I expect massive tax rises in the coming years. People simply do not grasp the fact that the government does not have any money of its own, it only has what it takes in from us in taxes or what it borrows. Indeed I'll go further and say not only only will taxes go through the roof in time, but I also think they will be the mother of all recessions.

[peejay]

I'm trying not to be a doomsayer but all the evidence points towards a coming depression that would make the 1929 depression look like someone getting upset at losing a £20 note....

[Plymtom]

I think that once this Corona virus passes we are going to have hell to pay, The Country is spending BILLIONS it does not have and its going to want to clear that debt with interest. I expect massive tax rises in the coming years. People simply do not grasp the fact that the government does not have any money of its own, it only has what it takes in from us in taxes or what it borrows. Indeed I'll go further and say not only only will taxes go through the roof in time, but I also think they will be the mother of all recessions.

Most of the world is in the same boat, and most of my life we were paying debt from WW2 so we'll be paying for this for the rest of it we still have to live though.

[Arwen Thebard]

I'm trying not to be a doomsayer but all the evidence points towards a coming depression that would make the 1929 depression look like someone getting upset at losing a £20 note....

Heres a graphic showing the speed and depth of the current downturn..... so far ;

[Arwen Thebard]

I think that once this Corona virus passes we are going to have hell to pay, The Country is spending BILLIONS it does not have and its going to want to clear that debt with interest. I expect massive tax rises in the coming years. People simply do not grasp the fact that the government does not have any money of its own, it only has what it takes in from us in taxes or what it borrows. Indeed I'll go further and say not only only will taxes go through the roof in time, but I also think they will be the mother of all recessions.

Most of the world is in the same boat, and most of my life we were paying debt from WW2 so we'll be paying for this for the rest of it we still have to live though.

Good points. It will be our great - great - grand kids paying off this amount of debt

[Arwen Thebard]

Some people are choosing not to pay some of their bills at the moment, as those companies will likely be gone soon anyway and they can always catch up later. Better to keep the cash in their pocket for a few months rather than in a bank or a failing companies account.

Cant say I disagree.

[peejay]

I can't help but wonder if the situation might be different this time around. Because just about EVERY country is having (or will have) the same financial meltdowns I wonder if "they" can vanish debt just the same way they can make money "appear" out of thin air? If it's 90% make-believe money anyway then surely it's make-believe debt too - hell, just knock a couple of zeros off the debt burden would be a good start!

[itsybitsy]

Some people are choosing not to pay some of their bills at the moment, as those companies will likely be gone soon anyway and they can always catch up later. Better to keep the cash in their pocket for a few months rather than in a bank or a failing companies account.

Cant say I disagree.

I am pondering that myself! I could save a nice lump if I decided not to pay gas/leccy/water and council tax!