Will the problems in Greece, Portugal, etc. put my savings at risk?

[UFC]

Now that there is talk of the ECB printing money to buy soverign debt, I'm assuming this means there will be mass inflation in the EU and in effect my savings will lose a lot of their value.

What can I do to protect myself from this? For example, if I moved my euros to a Swiss Frank account, could I protect the value of my savings?

Any thoughts on this appreciated.

Thanks.

 

[IsleOfMan]

I assume you mean that you would purchase Swiss Francs using your Euro and hold an account in Swiss Francs? But you would be purchasing Swiss francs using a devalued Euro. Have a look at www.xe.com to see historical Swiss Franc v Euro rate charts.

Lodging Euro in a bank in Switzerland and keeping it in a Euro account is the same as lodging Euro in any bank anywhere. It is still Euro.

 

[UFC]

I assume you mean that you would purchase Swiss Francs using your Euro and hold an account in Swiss Francs? But you would be purchasing Swiss francs using a devalued Euro. Have a look at www.xe.com to see historical Swiss Franc v Euro rate charts.

Yes, this is what I mean.

My worry isn't the value of the euro now, it is the value of the euro in three months.

 

[IsleOfMan]

It is an interesting question. I would assume most people won't feel the value of their Euro dropping if they stay within the Euro Zone.
Because oil is paid for in U.S. dollars I can see the knock on effect on goods and services though. Other imports and services where a currency other than Euro is used will also mean a price increase. Other than that a holiday in Switzerland or Sweden or the U.K. will only effect people's pocket when they have to use local currency.
Whether to open an account in a foreign currency other than Euro will involve banking and foreign exchange spreads and charges when putting the money in and taking the money out.
Worth investigating though.

 

[Chris]

Now that there is talk of the ECB printing money to buy soverign debt, I'm assuming this means there will be mass inflation in the EU and in effect my savings will lose a lot of their value.

What can I do to protect myself from this? For example, if I moved my euros to a Swiss Frank account, could I protect the value of my savings?

Any thoughts on this appreciated.

Thanks.

There are some suggestions on this topic here: http://www.askaboutmoney.com/showthread.php?t=137468

It is an interesting question. I would assume most people won't feel the value of their Euro dropping if they stay within the Euro Zone.

When the Euro loses value due to inflation then everyone in the Euro zone will feel this loss in purchasing power. Contrary to what the media and politicians feed the public. inflation is not the rise in prices, this is merely the consequence of inflation. The only way prices can rise across the board is when the supply of money is increased, which is exactly what the ECB is planning to do by buying junk bonds with newly created money.