Originally Posted by Unregistered

Hard to say. The question is really: what's backing all those paper that the Singapore government has issued? Even if there's a hyperinflation in the US, it reflects a loss of confidence in the system more than anything else. The US itself is still going to be a very rich country in perpetual. They have lots of land, agriculture, etc with tonnes of talented people.

The advantage of Singapore though is that the amount of currency in circulation is relatively small. In theory, if worse come to worse, Singapore can simply switch to the gold standard with no problems whatsoever, but it does mean that economic contraction when (not if) it happens will result in prolonged suffering for its citizens.

All of these are just conjectures and speculations though. Can it happen? Sure, as I said, what's behind Singapore's currency? There's no agriculture here, the armed forces is laughable in a real world situation i.e. there's simply no hard assets here.

One other thing that can protect Singapore is that many corruptors from around the world have their money here, just like how Switzerland serves this purpose in Europe, so ....