What is the most secure currency in the world? (and not the dollar)

The context is in the fact that we might be entering a period like the
1970, with high inflation, high interest rates and devaluation of the
dollar. With the US budget deficit and trade deficit looming, what
currency would be considered the safest currency to invest in if the
dollar was expected to take a sharp dive?

an article in the times spruured this question:
http://www.nytimes.com/2004/11/16/business/16dollar.html?incamp=article_popular_4

The Swiss franc is considered to be quite stable.

Here's my vote for the Swiss Franc.

'Is it possible,' you may ask yourself 'That the mighty Pinkfreud
could ever be wrong?'

But I am now very worried that Pink's endorsement of the SFr will lead
to an unprecedented run on the US Dollar.

Watch the markets!

The only answer I have is the only answer you will not allow us to give.

Hailstorm ... 

You have only succeeded in multiplying our concerns ... You are
regarded by me and many of your other disciples as the best, the
wisest and the most far-seeing of pundits ...

Who, for some reason, ALWAYS manages to get things MEGA WRONG.

You are a beacon and an oracle but however much you beam and whatever
you ordain, we always take contrary action ...

And we ALWAYS come out on top, SMILING.

Come Hail or Storm, we need you.

Being in the UK, and having watched this cycle before, if I had any
serious wonga I would park it in USD

In my view GBP is seriously overvalued in commodity arbitrage terms
(like the price of a McDonalds vomit burger) the EUR zone is bleating
- and at some time the hordes of mindless FOREX traders will descend
on both those currencies - with tacit encouragement from the
respective central banks.

I'm not convinced that we will have (in the near future) a period of
hyperinflation (1970 ?) like the later 1970s.

Things have changed, production has got global, and there is a new
economic kid on the block - China. (Anyone noticed the trade deals
going down between South America and China ... very interesting)

I do reckon that interest rates will rise, they have been absurdly low
for some time - however that does not matter very much, as any
individual or corporation that is 'sitting on the margin of viability'
is best perfused.

what is wonga?  I googled this term and gather it comes from Down Unda
. . . cowrie shells?

I personally think the most secure currencies in the world are
comprised of knowledge and skill.

if I had some serious wonga I would choose where I wanted to live for
the rest of my life and pour money into creating a strong local and
self sufficient economy.  Yes, folks, I'm coming out of the closet:
I'm an unabashed beleiver that someting global's gonna give, between
climate change and an energy crisis, and the head-in-the-sand dipsh*ts
running the most powerful nation on the planet, I don't have a lotta
confidence in monatary currencies . . . . my 2 sense.

ts

TimeSpacette,

'Wonga' is slang for cash - interesting that it appears to come from
cowrie shells - and that figures.

I'm inclined to agree with your pessimism, plague, biological or
nuclear accidents, just natural events are all too possible - and the
antics of our 'muppets' make crises (plural intended) all too likely.

Probably the safest bet is to spread things around geographically.

However Mark Twain wrote:
  'Some people say keep your eggs in different baskets, but I say keep
them in one basket - and watch that darn basket.'

On a historical note SFR bank accounts have not been much use to the
people who could not get at them.

try the Euro :)  or indeed the CHR

Can I change my vote?

After studying all the Comments, I am now on strongly in favour of the
COSH (Cowrie Shells) as the preferred currency.

The COSH is more tangible than magnetic images or pieces of paper with
fancy printing.

I also suspect that now frde and the Timely One have opted for the
COSH it will soon replace all those intangible and highly volatile
currencies in circulation.

Bring back the COSH!

It worked for the Cavemen, so it has stood the Test of Time.

probo,

it certainly would shift the global economy . . . toward Africa . . .

see: http://purpleplanetmedia.com/bhp/pages/cowrie.shtml

probonopublico,

You definitely should NOT, under any circumstances, coat yourself in
honey and climb into your local zoo's bear exhibit to get real-life
experience in the concept of "Survival of the Fittest".

in periods of inflation surely it is better to invest precious metals
rather than cowrie shells, unless of course you can find some way to
corner the market in them

The Australian dollar has gone from 48 cents USA to 60 cents a year
back and now very quickly rising in last few months to near 78 cents
USA. Expectation is very strong that Aus dollar will  go over 80 cents
and perhaps hit 85 in near fututre with some saying almost certainly.

 On this basis would seem a good currency to get into

The best answer is the Chinese yuan which is currently pegged to the
dollar.  This one particular link is the most likely to break, with
the dollar dropping relative to the yuan.

Well, Besides the one you dont want to mention, i would place money on
the Euro and the japanese yen. As my economics professer states: "In
the next generation, there will only be three currencies in the world,
the US $, the Euro and the Japanese Yen". Say what you may but I think
this is a very probable claim.

Hey, C'mon, Mkapoor ...

Economics professors change their minds at least once a year.

I prefer Gypsy Fortune Tellers with their Crystal Balls.

I think your economics professor is deluded.

There are substantial advantages in running ones own currency