A question for you FOREX traders out there.
Assuming an inflationary global depression, all currencies would be worth less, but not at the same percentage. If all currencies weakend at the same percentage, inflation would have no impact. I've been wrangling with this for a while now, and I'm not sure what to look for. At first I though debt-holders would be a good choice, but China is the biggest debt holder and is tied to the dollar. Most debt-holders are net exporters, but import staples, most notably water. Of the emerging economies, China and Russia are likely to see civil unrest in a depression. I'm sure there are some fundamentals. But I'm not able to think this through.
I'll be totally in precious metals if the worst occurred, but I'm assuming that the country with the strongest currency would rebound faster. Would the volatility in currencies increase enough to make sure that there weren't any winners? Assuming that larger countries shun free trade in that scenario, does that allow their currency to rebound faster or does that allow countries trading globaly to rebound faster in a free market?
Any advice or links would be appreciated.