Thread: Us dollar dependancy

First off apologies if this is in the wrong place.

So I have been doing a lot of investigation into buying in panama and have been following the current trends in respect to the the US dollar.

And I have to ask this serious question, if the dollar de-valuates as has been predicted, what will countries like Panama do when the currency they base their economy on suddenly hit's rock bottom? Will they ride out the storm, will they rely on their own currency, or some other currency?

I am not trying to incite a flame war here, I am just looking for advice as I see some members already see this trend in action.

Thanks

hi , no this is not in the wrong place , you started a new thread , that is good , i do not know the answer to your question but think many people here would like to know , , that is the only thing that scares me about panama , being tied to that sinking rock , i know i would feel way better if they went back to their own dollar , because when the FED is finished with QE 1,2,3,4,5 etc you are going to need a truck load of loot to buy a loaf of bread .

Originally Posted by legioss

First off apologies if this is in the wrong place.

So I have been doing a lot of investigation into buying in panama and have been following the current trends in respect to the the US dollar.

And I have to ask this serious question, if the dollar de-valuates as has been predicted, what will countries like Panama do when the currency they base their economy on suddenly hit's rock bottom? Will they ride out the storm, will they rely on their own currency, or some other currency?

I am not trying to incite a flame war here, I am just looking for advice as I see some members already see this trend in action.

Thanks

At this point you can forget about Panama reverting back to creating it's own currency. Panama is unable to create it's own license plates for cars let alone money. The price of gas and diesel going so high in price has had probably the single largest effect on food prices in Panama. If you move down here you can purchase physical gold and silver to help offset what is happening with the US dollar. Have no doubt the US and Europe will continue to produce more fiat money.

I agree with what Naked and woohoo has already pointed out. I would add the effects of inflation on imported items. Autos, TV'S, computors, clothing and any imported raw materials. Panama has a small but growing midle class that will be wiped out by what Bernanke and the central banks are doing. Most wealthy and educated people understand what is coming and are taking appropriate precautions. Gold, and silver as woohoo suggested are excellent. Buying a currency that will hold it's value is another, the puzzle is what other currency to hold? Yuan, Krona, Francs et....? This is something you should be preparing for no matter where you live not just Panama. The govt at all levels are bankrupt, the Muni bonds will crash in most major cities, the pension funds are insolvent people just don't know it yet. Social Security is insolvent and the drain from Medicaid and other entitlement programs are breaking the camels back. Manufacturing is gone from America and along with it the jobs. Home prices continue to collapse wiping out people borrowing ability and further suppressing consumer spending. The boom bust cycle of the stock market continue to enrich those who understand it and wipe out people who have their pensions invested in it. Couple all of this with the mounting pressures of civil unrest around the world and the rise in gas prices further exports American wealth. Calls by China, Russia, world Bank, and IMF to do away with the dollar as the world currency does not instill further confidence. Most people will complain as inflation destroys their savings but do nothing to protect themselves from the same.

Excellent comments from everyone.

Personally, I would de-couple the "where to retire" question from "how do I protect against a declining USD" question because there are too many moving parts. Each is important and carries with it different criteria, in my opinion (the former include factors such as the country's political situation, economic prospects, tax rates, etc.)

Certainly, as stated above, the declining dollar would cause imports to be more expensive in the U.S. and Panama (and many other places). It would, however, make U.S. (and Panamanian) exports cheaper relative to other currencies, which is exactly what the U.S. wants. Panamanian exports to the U.S. theoretically would be unaffected (I believe the U.S. is the largest importer of Panamanian goods, but not recalling with complete certainty.) So, some countries believe the cheaper USD provides more benefit than harm. Despite having an ample source of food and being a large exporter of grain, the cost of the imported oil certainly would choke the economy in the U.S.

Personally, I would also back down from the "collapse" scenario of the USD. Keep in mind that currency has to always be viewed in comparison to another currency. Because of soverign debt crisis in Europe, the USD has risen against the EURO in relative value. So, in the eyes of the U.S., the USD just needs to avoid being the ugliest girl in the room. Right now, the EURO is. So long as the EURO is doing what it's doing and unless and until another currency takes its place, the USD is the reserve currency of the world. But, it could be disrupted by any number of events and likely will for quite some time.

Personally, I think a longer term perspective does show that the USD has fallen in value for years against the Swiss Franc (CHF) and, until PIIGS became known as the debt-strapped countries of Europe, even the EURO. The value of the USD against the EURO is still high compared to past years as well as against the CHF. I do think though that if things ever "settle down" again, the USD will resume its downward value relative to both the CHF and EUR.

An excellent way to invest in foreign currencies is through EverBank. www.everbank.com In addition to great currency resources (where you can chart the USD historically against other currencies) you can invest in foreign currency CDs and other products. No, I am not affiliated with them in any way. Again, you may find this makes sense no matter where you live.

So, the falling dollar affects imports, but the counterpart / fuel to devalued currency is inflation. Traditionally, real estate is a good investment in times of inflation, the simple reason being that the cost to duplicate (construction) rises due to increases in wages and materials. Certainly, this would not be the case if you believe that a country's economy will be so bad and/or inflation so great that the demand for real estate falls too much.

two other good base metals to invest in are brass and lead . it can in a very bad case of hyperinflation get you everything you need to live or protect you from others getting your stach . living in a area that will grow food all year is very important . anywhere you need a furnace you can not afford to retire , that is why panama makes a very affordable choice. it has been proven many times that money does not feed you , owning dirt is a very good idea . gold is very good to protect large sums of wealth , silver is a good day to day barginning chip , during the great depression most people did ok as they either owned dirt or a friend or family member did , today that is a very different story , lots of city folks would not know a farm if they saw one , read a story once about kids in large cities like LA that have never seen the ocean as they dont leave the hood , damn scary place to be when the SHTF . even today with everyone that lives in panama city , most have family that lives outside the city area , just be in the interior on a holiday and that will confirm that for you . so if the dollar goes to zero or hyperinflation hits like it did in germany before the second world war i think that everyone in panama will fair much better than most in the states . so back to the orginal question , i guess it depends on what you were thinking of buying in panama ? dirt or place in the interior or a condo on the 50th floor , which the later will be one hell of a walkup when the condo assoc can not afford the power bill , and the balcony is not really big enough for your garden .

Balabeacher you make some excellent points. What concerns me most about the dollar is the rapid inflation of it. Trillions more debt piled onto mountains of existing debt. Tax revenues have fallen off a cliff due to high unemployment and corporations fleeing America. The fed is trapped in it's own Pandora's box of monetization, conveniently called Quanatative easing. Demand for U.S. Teasuries continues to fall. Bernanke buys them through secondary purchasers so there won't be the appearance of "failed Treasury Auctions". The debt is so high that even a 1% increase in interest rates puts over 100 billion new interest on the national debt. Bernanke must also keep interest rates low due to the collapsing housing market. Mean while savers and pensioners get no return on their dollar and instead watch as their purchasing power is eroded. How long can this vicious circle continue until the world loses confidence and dumps the dollar for something else? Enter the chinese!! They are very smart and have been building massive gold reserves. They no longer export the gold they mine and have been accumulating hundreds of tons of the precious metal. They have entered into trade agreements all over Africa and Latin America as well as the rest of the world. They are growing new markets to replace the U.S market. China has made recent financial commitments to support the piigs and by proxy the Euro. I forsee when the time is right they will back their currency with gold. The world will be hungry for a solid currency and will flock to it. Further strengthing their currency. The counter argument to this is that a strong chinese currency hurts their exports. With the new found purchasing power of the average Chinese citizen due to the rise in their purchasing power makes china the new consumers. Imagine billions of people who become wealthy overnight. The Chinese standard of living will rise while that of the west falls. China with no regard for the enviroment will be mining and consuming resources worldwide, buying them cheaply with their strong currency. Dynasties fall and new ones rise, it is as old as time itself....

Nakedguy is onto something important, the "have nots" will definately start looking for the "haves". A huge plus about Panama is it's low population based on Geographic size. Most people are concentrated in the city. The average Panamanian does not have a car and depends on Public transportation. If you live 5 hours outside the city and there is a collapse or violence most people will be stuck in the city under martial law, unlike the U.S. where everyone hops in to their car to flee. In terms of growing food that requires a skill set most people don't have as Nakedguy correctly pointed out. What will be the availabilty of seed and fertilizer and pesticide post collapse? A great resource site is run by a ex army Colonel. www.survivalblog.com really down to earth observations and practical advice.

Hey legioss, you may also want read through the real estate thread starting from the beginning. It started several years ago and you can follow everybody's thoughts and opinions and compare it to reality since 2007: http://www.panamaforum.com/real-esta...te-panama.html (Real Estate in Panama)

Originally Posted by fleeted

Balabeacher you make some excellent points. What concerns me most about the dollar is the rapid inflation of it. Trillions more debt piled onto mountains of existing debt. Tax revenues have fallen off a cliff due to high unemployment and corporations fleeing America. The fed is trapped in it's own Pandora's box of monetization, conveniently called Quanatative easing. Demand for U.S. Teasuries continues to fall. Bernanke buys them through secondary purchasers so there won't be the appearance of "failed Treasury Auctions". The debt is so high that even a 1% increase in interest rates puts over 100 billion new interest on the national debt. Bernanke must also keep interest rates low due to the collapsing housing market. Mean while savers and pensioners get no return on their dollar and instead watch as their purchasing power is eroded. How long can this vicious circle continue until the world loses confidence and dumps the dollar for something else? Enter the chinese!! They are very smart and have been building massive gold reserves. They no longer export the gold they mine and have been accumulating hundreds of tons of the precious metal. They have entered into trade agreements all over Africa and Latin America as well as the rest of the world. They are growing new markets to replace the U.S market. China has made recent financial commitments to support the piigs and by proxy the Euro. I forsee when the time is right they will back their currency with gold. The world will be hungry for a solid currency and will flock to it. Further strengthing their currency. The counter argument to this is that a strong chinese currency hurts their exports. With the new found purchasing power of the average Chinese citizen due to the rise in their purchasing power makes china the new consumers. Imagine billions of people who become wealthy overnight. The Chinese standard of living will rise while that of the west falls. China with no regard for the enviroment will be mining and consuming resources worldwide, buying them cheaply with their strong currency. Dynasties fall and new ones rise, it is as old as time itself....

I agree with your description of the predicament the U.S. (and much of Europe) faces and further believe that the political will to change does not exist in the U.S.--yet. When over 50% of people receive some form of government benefit and do not pay any income tax, it's easy to see why selfish politicians won't shrink spending to the degree many feel is necessary and lower the risk of what you're describing from happening. Thank you for pointing out a very key victim -- the guy trying to live on the 1% interest rate on their savings!

In terms of potential for Chinese influence to increase, I think the transition is well under way. Whether its fiscal policy or monetary policy, it all keeps going back to China, doesn't it? Are we really able to pick a fight with our banker? Can we blame them for the problems we created? I don't think so, therefore, I don't believe we should whine about them being cool towards trying to fix our problems. Doesn't the U.S. (through QE) manipulate its currency, yet we complain theirs is undervalued? I don't hear China telling us increase government spending (or not cut the deficit). In fact, both of these would greatly increase the value of the U.S. debt they hold, wouldn't it?

I also agree that even though the U.S. is a vital market for the Chinese, I think they'd love to see us flop around on the ground like we're doing for a decade or so while they grow their influence. As you point out, the projected growth in their own domestic demand has the potential to dwarf the few hundred million American consumers.

It is clear to me that you have a firm grasp of the problems facing us. History shows us that less than 1% of the population will recognize and take prudent steps to protect themselves. I talk to lots of my customers at my resort who have figured out that something is gravely wrong this time around. people are feeling the symptoms but are unable to diagnose or treat the disease. Like good sheeple they will tune into the talking heads on television for updates on how our leaders are saving us from what certainly would have been worse. Remember "summer of recovery" LOL ? A must read book to help people understand what is coming is "When Money Dies" by Adam Fergussen. It recounts the demise of Weimar Germany and the parallels between what transpired then and what is transpiring now are eye opening. Those who recognize what is happening there are great opportunities to become wealthy like the Vanderbilts and Balls did in the last collapse. Whomever can preserve their purchasing power can step in and clean up. When there is blood in the streets and things look their worst is the time to buy. My strategy is to buy across whole industries that will lead the country out of darkness. Textiles, chemicals, mining etc.. you never know which companies will survive but as cheap as the stocks will be it really won't matter so buy them all. Things will get better eventually and you will be positioned to ride the wave up.

Originally Posted by fleeted

It is clear to me that you have a firm grasp of the problems facing us. History shows us that less than 1% of the population will recognize and take prudent steps to protect themselves. I talk to lots of my customers at my resort who have figured out that something is gravely wrong this time around. people are feeling the symptoms but are unable to diagnose or treat the disease. Like good sheeple they will tune into the talking heads on television for updates on how our leaders are saving us from what certainly would have been worse. Remember "summer of recovery" LOL ? A must read book to help people understand what is coming is "When Money Dies" by Adam Fergussen. It recounts the demise of Weimar Germany and the parallels between what transpired then and what is transpiring now are eye opening. Those who recognize what is happening there are great opportunities to become wealthy like the Vanderbilts and Balls did in the last collapse. Whomever can preserve their purchasing power can step in and clean up. When there is blood in the streets and things look their worst is the time to buy. My strategy is to buy across whole industries that will lead the country out of darkness. Textiles, chemicals, mining etc.. you never know which companies will survive but as cheap as the stocks will be it really won't matter so buy them all. Things will get better eventually and you will be positioned to ride the wave up.

Thanks for the recommendation.

Wow, this has become and insightful thread so far. Thanks to all that have responded so far.

I have one more question to add to the mix. Do you think Canada will be able to keep it's economy afloat when the US dollar collapses, or will it be dragged down with it? The one thing I am becoming very interested in as of late is the HREE's here in Canada and looking to offset precious metals investment in HREE's.

Thanks again to all.

Some people reading these posts may believe that we are driven strictly by greed, they would be wrong. After any monetary collapse it takes private investment and wealth to rebuild. Hopefully we will be able to provide that. Having the ability to care for and provide for our families and neighbors is also a major motivation. Your community as a whole will also benefit from your wealth preservation. Making significant donations to local food banks, purchasing scarce medication for hospitals, helping schools and even police depts to restore order benefits everyone and makes your little corner of the world bounce back that much quicker. Your generosity will pay untold dividends down the road as the monetary crisis abates. The old adage "no man is an island" will take on new significance as you will depend on your trusted neighbors and their skill sets as much as they depend on yours.

Originally Posted by legioss

Wow, this has become and insightful thread so far. Thanks to all that have responded so far.

I have one more question to add to the mix. Do you think Canada will be able to keep it's economy afloat when the US dollar collapses, or will it be dragged down with it? The one thing I am becoming very interested in as of late is the HREE's here in Canada and looking to offset precious metals investment in HREE's.

Thanks again to all.

I think we can all imagine scenarios where no currency would be safe, but based on the "less drastic" scenarios such as what we've gone through the past few years, my research shows the CAD has appreciated relative to the USD -- and seems to be on an upward streak at the moment. Some data points: In December 2008, 1 CAD = .80 USD (You'd get $.80 for every Canadian Dollar). In August 2010, 1 CAD = .95 USD. Today, 1 CAD = 1.02 USD. So, the CAD has certainly appreciated against the USD.

Originally Posted by legioss

Wow, this has become and insightful thread so far. Thanks to all that have responded so far.

I have one more question to add to the mix. Do you think Canada will be able to keep it's economy afloat when the US dollar collapses, or will it be dragged down with it? The one thing I am becoming very interested in as of late is the HREE's here in Canada and looking to offset precious metals investment in HREE's.

Thanks again to all.

Sorry for my non-responsive answer, but in my opinion you're sitting well for two reasons: Your CAD will buy more USD all the time. So, American imports are cheaper and when you go to Panama its USD-based real estate and goods will be cheaper, all other factors unchanged. (Do you remember the feeding frenzy in Panama in 2007? Europeans were coming to Panama and getting $1.50 for every EUR in their wallet and there appeared to be no end in the year-after-year of appreciation against the USD.) Second, your country exports a lot of its natural resources to Asia, not the U.S., and their appetite for such natural resources does not seem to be slowing. So, who cares about the USD.

Legios I can't profess to know a whole lot about Canada's debt and monetary relationships beyond what useful information provided by balabeacher. In terms of holding physical precious metals please know the chines are pumping out thousand of fake coins. They first started turning up as gold but now fake silver morgans are flooding the market. I personally check all of my purchases using the Fisch anti counterfiet device and highly reccomend it. Here are some links worthy od perusal.
Sherrie Questioning All: **ALERT** FAKE Silver Coins/Bars/Ingots ARE on the market in U.S.!
Don’t buy fake gold coins. Get the Fisch. Protect your gold investment.

Originally Posted by BalaBeacher

Sorry for my non-responsive answer, but in my opinion you're sitting well for two reasons: Your CAD will buy more USD all the time. So, American imports are cheaper and when you go to Panama its USD-based real estate and goods will be cheaper, all other factors unchanged. (Do you remember the feeding frenzy in Panama in 2007? Europeans were coming to Panama and getting $1.50 for every EUR in their wallet and there appeared to be no end in the year-after-year of appreciation against the USD.) Second, your country exports a lot of its natural resources to Asia, not the U.S., and their appetite for such natural resources does not seem to be slowing. So, who cares about the USD.

The Chinese have been interested in the Canadian oil sands for some time now.

Originally Posted by BalaBeacher

I think we can all imagine scenarios where no currency would be safe, but based on the "less drastic" scenarios such as what we've gone through the past few years, my research shows the CAD has appreciated relative to the USD -- and seems to be on an upward streak at the moment. Some data points: In December 2008, 1 CAD = .80 USD (You'd get $.80 for every Canadian Dollar). In August 2010, 1 CAD = .95 USD. Today, 1 CAD = 1.02 USD. So, the CAD has certainly appreciated against the USD.

but there is a difference between the canadian dollar going up , or is it the USD is dropping against all other currency . i belive it is the later , canada did fair alot better than the states as we did not get into the subprime mess ,

Originally Posted by nakedguydb

but there is a difference between the canadian dollar going up , or is it the USD is dropping against all other currency . i belive it is the later , canada did fair alot better than the states as we did not get into the subprime mess ,

Here's a link. https://www.everbank.com/personal/canadian-dollar.aspx

Yeah, the CAD has gone up against many yet fallen relative to Austrailian Dollar (AUD), Swiss Franc (CHF) and Japenese Yen over the past year and has fluctuated up and down against most others in a modest range. Who knows why.

Originally Posted by BalaBeacher

Here's a link. https://www.everbank.com/personal/canadian-dollar.aspx

Yeah, the CAD has gone up against many yet fallen relative to Austrailian Dollar (AUD), Swiss Franc (CHF) and Japenese Yen over the past year and has fluctuated up and down against most others in a modest range. Who knows why.

This might be of interest -- discusses the future of the USD as the "reserve currency". Oh yeah, some folks are buying the EUR! I don't think anyone can honestly present a reliable predictive model for currency values!
investors-are-seeking-safety-in-new-harbors: Personal Finance News from Yahoo! Finance=

Originally Posted by BalaBeacher

This might be of interest -- discusses the future of the USD as the "reserve currency". Oh yeah, some folks are buying the EUR! I don't think anyone can honestly present a reliable predictive model for currency values!
investors-are-seeking-safety-in-new-harbors: Personal Finance News from Yahoo! Finance=

Thanks for the link! Most people just assume the US dollar will always be the world reserve currency. The demand for US Treasuries will continue to fall as the socialist protestors move from the middle east to American cities. When gas and food are so expensive and people's children are going hungry because of a weak dollar, People will beg for a new currency. Don't worry one will be ready and waiting in the wings. The death of the dollar is inevitable, the debt is swelling by the day with no end in sight. The Republicans will make a great pose and talk allot about it, but in the end they will fail to implement the changes needed at the Federal level. Some States like New Jersey finally has a guy who understands it and is righting their ship. The best thing people can do is take steps to protect their family now because dependence and faith on the government will leave them in a world of misery.

Originally Posted by fleeted

Thanks for the link! Most people just assume the US dollar will always be the world reserve currency. The demand for US Treasuries will continue to fall as the socialist protestors move from the middle east to American cities. When gas and food are so expensive and people's children are going hungry because of a weak dollar, People will beg for a new currency. Don't worry one will be ready and waiting in the wings. The death of the dollar is inevitable, the debt is swelling by the day with no end in sight. The Republicans will make a great pose and talk allot about it, but in the end they will fail to implement the changes needed at the Federal level. Some States like New Jersey finally has a guy who understands it and is righting their ship. The best thing people can do is take steps to protect their family now because dependence and faith on the government will leave them in a world of misery.

well fleeted . most people do not have time to prepare for what is happening because Dancing With The Stars is on . LOL

"When it arrives, the Federal Reserve and its defenders will call it “cost-push” inflation and blame it on economic growth, the weather, Arab sheiks, China, and perhaps greedy companies and labor unions." - Source:Higher Inflation is on the Way

Nakedguy you are spot on, the average person is preoccupied with the circus being provided by hoolywood and the 24 hr media. Woohoo's post does a great job of pointing out the efect of inflation in regards to a depreciating dollar. The average person has no idea or understanding what is happening. Economics is not manadatory and not even offered at most US high schools. It is an elective in college and focuses mainly on keynsian economics at the expense of Austrian economic principles. I have well off friends who feel they can weather inflation and that it is a problem for the average guy more so than them. This would be correct with nominal inflation but with the holocaust that we face they will go they way of everyone else holding their wealth in devalued dollars. Like I mentioned in a previous post the middle class Panamanian business owner will see their savings destroyed holding it in the dollar. The orchestrated days of rage that are toppling countries in the middle east are supposed to spread to Saudia Arabia next week. If oil is disrupted all bets are off and the tipping point may be this year. The common expression on the lips of pundits and news broadcasters is that "Capitalism has failed", so now Socialism will be tried in America to the detriment of most.

I agree that there is a very good chance we will see some hyper-like inflation in our near future. In the context of moving to Panama-what does this mean? I am meeting more and more people who are interested in moving to Panama that have nothing but Social Security and high hopes. Or, they may have that and maybe a moderate amount of savings. What can a person like that do to prepare for this impending problem? In my opinion that person needs to find a modest home to buy here in Panama that is right near or in a town. Pay cash for the house. Use locally made products to furnish the home. Reduce your needs as much as possible. Stay out of debt. Learn to stay out of debt. Walk and ride the bicycle, etc. Now, if you have the resources to buy gold or precious metals that is not a bad idea. Where would you store this precious metal? It won't do you much good if you can't access it in small enough quantities to trade with. And, it won't be safe in your home. If you can reduce your needs you can weather the storm. And, in Panama that is not so hard to do. But, it is a huge lifestyle change that most Xpats have a hard time swallowing. Panamanians have been living this way for eons. Not so bad actually.

Originally Posted by Pollerkeeper

I agree that there is a very good chance we will see some hyper-like inflation in our near future. In the context of moving to Panama-what does this mean? I am meeting more and more people who are interested in moving to Panama that have nothing but Social Security and high hopes. Or, they may have that and maybe a moderate amount of savings. What can a person like that do to prepare for this impending problem? In my opinion that person needs to find a modest home to buy here in Panama that is right near or in a town. Pay cash for the house. Use locally made products to furnish the home. Reduce your needs as much as possible. Stay out of debt. Learn to stay out of debt. Walk and ride the bicycle, etc. Now, if you have the resources to buy gold or precious metals that is not a bad idea. Where would you store this precious metal? It won't do you much good if you can't access it in small enough quantities to trade with. And, it won't be safe in your home. If you can reduce your needs you can weather the storm. And, in Panama that is not so hard to do. But, it is a huge lifestyle change that most Xpats have a hard time swallowing. Panamanians have been living this way for eons. Not so bad actually.

Pollerkeeper you make some excellent observations. Your strategy would work well. Without going into to much detail there are plenty of clever ways to hide precious metals. PM me and will be happy to share what I know! Silver coins would be most useful in Panama for daily purchases and as a store of wealth during a collapse. 1/10 and 1/4 oz gold coins would be more practical for use and could be traded for silver coins and then to whatever paper currency is being used. Having a fully stocked larder and pre purchasing items that you currently use would be a good strategy. Advertising wealth by living in a McMansion is sure to draw unwanted attention. Living like you suggest not flashing money and making the locals believe you are just average helps eliminate you from being a target. You also have the benefit of developing friendships with locals that could prove helpful. Just drawing a Social Security check makes you wealthy in most Panamanian eyes. Living frugal is going to become the new Chic so you are just a little ahead of your time.

Originally Posted by Pollerkeeper

I agree that there is a very good chance we will see some hyper-like inflation in our near future. In the context of moving to Panama-what does this mean? I am meeting more and more people who are interested in moving to Panama that have nothing but Social Security and high hopes. Or, they may have that and maybe a moderate amount of savings. What can a person like that do to prepare for this impending problem? In my opinion that person needs to find a modest home to buy here in Panama that is right near or in a town. Pay cash for the house. Use locally made products to furnish the home. Reduce your needs as much as possible. Stay out of debt. Learn to stay out of debt. Walk and ride the bicycle, etc. Now, if you have the resources to buy gold or precious metals that is not a bad idea. Where would you store this precious metal? It won't do you much good if you can't access it in small enough quantities to trade with. And, it won't be safe in your home. If you can reduce your needs you can weather the storm. And, in Panama that is not so hard to do. But, it is a huge lifestyle change that most Xpats have a hard time swallowing. Panamanians have been living this way for eons. Not so bad actually.

I feel that the retired baby-boomer demographic will be looking to the interior of Panama because of the continued and upcoming economic issues.

Originally Posted by MRWOOHOO

I feel that the retired baby-boomer demographic will be looking to the interior of Panama because of the continued and upcoming economic issues.

It is possible Panama could have allot of financial refugess as people on the fence make a break fro Panama when the SHTF. Panama could react negativly by placing a moratorium on immigration or cueing people up for years in a long immigration process. I agree that many will seek the value and safety that the interior of Panama offers.

boy am i glad i have no money , not having to buy gold and silver etc ,which leaves it more to buying and stocking canned food , even though it is not good food , it is something to eat until the garden comes in . i agree that the rich will weather the storm better than the poor , but it will mentally crush them , as most rich , well at least the ones i know , love money , they could have 20 million in the bank and are thinking how to make more , they never have enough , even though they will never run short in their lifetime , , and they rely on their money to do everything , most rich are brain smart ,but not many are lifeskills smart , just hire help , wereas the poorer group has more ideas about doing everyday tasks , growing food , fixing things etc . i just feel sorry for people in hirises and in any country that is not warm enough to grow food year round , we can count our lucky stars to be here in panama . and as poller said many are on their SS income , what happens when the US goverment can not make that cheque good ? so i believe if you are rich , buy gold/silver , if you are not rich , buy food before hyperinflation makes it so expensive that you can not buy it , . for example beans , a $1 a can = with $ 1000 you eat for 3 years , when hyper hits and its $10 a can you eat for 100 days , big difference . just my thoughts .