[quote=kev374]You do get interest on Dollar accounts in India but it is very low… I think currently around 3% which does not make it worth the hassle.
As I said earlier given the virtually zero interest rate environment in the US, and the fact that I strongly believe that interest rates are going to stay very low for the foreseeable future.
By having a high interest bearing account overseas it’s a win-win whether there is deflation or inflation here in the US. If there is deflation the profits are even more amplified, if there is inflation then it’s a hedge against that preseving your capital.
There is no chance for higher interest rates in the US as I strongly believe that if interest rates rise the entire economy will fall apart. We will have a situation like Japan with super low interest rates for a very very long time, perhaps even a decade or more…Japan has had ultra low interest rates for 2 decades!!! There is no reason the same cannot repeat here.
I’ll say it again – the RISK of doing nothing when the government is seriously devaluing the currency can be catastrophic for your future!!! This is true especially if you are a saver like me who has no debt and has most of my savings liquid and not invested in the stock market.
Up until recently money printing and inflation was only a theory, but in the last couple of years I can very SERIOUSLY see huge effects in my day to day life… the cost of everything from my rent, to groceries to eating out at restaurants is seriously going up!! Nobody seems to give a crap but to me the trend is very concerning.[/quote]
Agree with everything you’ve said on this thread, Kev. There is a pool of people who’ve been paying a steep price for this so-called “recovery,” and it’s the savers and fixed-income folks who are on the losing side of this intervention. It totally sucks, but what can you do? Personally, I think the other posters’ suggestions regarding real estate are probably your best bet. Buy a condo that has approximately the same costs as your rental. Even if prices go down, you will hopefully be able to rent it out and cover most/all of your costs that way.
FWIW, I had a number of foreign currency accounts with Everbank. The “best” one was the Icelandic Krona which was paying about 11% interest when I first opened it (yay me!). In case you don’t remember what happened to the Krona…
