Will Hyperinflation Ever Occur In Singapore?

[stockb]

The question is if the US is hit with a scenario of hyperinflation, will singapore's currency go bust too with it being pegged to the US dollar?

Thanks!

Originally Posted by stockb

The question is if the US is hit with a scenario of hyperinflation, will singapore's currency go bust too with it being pegged to the US dollar?

Thanks!

Singapore dollar - Wikipedia, the free encyclopedia

Originally Posted by Unregistered

Singapore dollar - Wikipedia, the free encyclopedia

its not pegged to usd

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 ....

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 ....

i checked online, it says that all the money in circulation is backed by "international assets" although i like you have no idea what "international assets" actually means..

International assets can mean foreign reserves, which is the usual central bank policy. In other words, Singapore holds a ton of US Dollars, which is ironic given the poster's concern for hyperinflation.

At the end of the day though, Singapore has nothing to back its currencies with the exception of its gold reserves. Let's say the Singapore government has invested in a number of companies in the US, Brazil, etc and classify those investments as these "international assets", what can Singapore do really if those assets were to be nationalized by its respective countries? Wage a war? Sue in the international court? There's NOTHING Singapore can do. That's just a consequence of being one of the smallest countries in the world. Heck, during the 50-60s and even till now, US investments in Latin American countries are often nationalized and investors can only shrug their shoulders.

Singapore can only hope that years of assisting foreign corrupt dictators (our neighbors in the north and south) will pay some dividends when SHTF, otherwise if hyperinflation were to hit here, we'll all be reduced to either eating grass or each other.

it is a given, singapore foreign exchange asset will have USD, YEN, RMB and EURO in there now.

1. a USA collapse is a given now with its indefinite money printing.
2. Europe PIIGS are still a question now and printing to oblivion is only way to go.
3. Japan have just got a mandate from the people to elect a prime minister today for indefinite money printing.
4. China is in dead fix now to resist appreciate its currency

hyper inflation will hit singapore if these 4 currencies, other than pegging SGD to RMB, there is nothing stopping SHTF now. its a matter of how not when.

get yourself ready and gold peg will not work unless your trading partners are willing to do the same.