What happens to the money of people when a monetary unit collapse?

[Killuminati]

Hi,

We all know that Europe is in big financial crisis and we all starting to read that its possible in short time that the monetary unit Euro can collapse. But what will happen to the savings of the people after the Euro collapse?

Edit:

Ohh sorry didnt know this categorie economic did belong to Pakistan only

 

[Killuminati]

But still does nobody has knowledge about this?

 

[ahfatzia]

The smart( big ) money already left and the small ( people's) money will disappear through depreciation when the shyte hit the fan because for most people they have nowhere to move the money.

 

[Imran Khan]

same here i always scared and think what will happen when paper currency and gold lose their power and become worthless can anybody please answer me seriously what will happen ? what backup is being made by economists ? what will happen to world when major currencies collapse ? how people will live their life and purchase .what will happen to our savings ? these are few simple questions in my mind always .

 

[Killuminati]

Yes man.. do people now must buy gold or what? Because if euro getting zero, you can not trade the savings (euro unit) to something else?

 

[ahfatzia]

same here i always scared and think what will happen when paper currency and gold lose their power and become worthless can anybody please answer me seriously what will happen ? what backup is being made by economists ? what will happen to world when major currencies collapse ? how people will live their life and purchase .what will happen to our savings ? these are few simple questions in my mind always .

When Argentina defaulted on her bonds more than a decade ago, her Peso, which was pegged to the dollar as 1 on 1, tanked overnight and inflation sky rocketed. A person with a million peso, which was a millionaire in dollar term, now only worth $5,000.
A loaf of bread used to cost $1 still cost $1 but now it cost 100 Pesos. The worst hit came from people and corporations, which meant most of them, who borrowed in US currencies. Now their income was based in Peso which worth nothing as to the dollar and they had to pay the loans off in dollar. They all declared bankruptcies.

The smart money, by that I mean big money, usually have the wherewithal to diversify their holing in gold, properties, stocks or foreign currency or bond deposits, but the little guys usually get stuck.