The post you are reporting:
As I mentioned on another thread the real crisis facing this country, in fact the whole global economy, is the current debt crisis.
The US Federal Authorities are oiling and cranking up the presses to print more dollars, yet have little or nothing to back it with, the Euro is crumbling as we watch and optimistically has less than 6 months to live in its current incarnation, even Sterling is under pressure. The resulting flight to physical commodities and those companies that mine, extract and sell them seeing huge appreciation in value with Gold hitting USD1600 per oz the highest it has been since the mid 1980s; mining stocks up (whilst banks are crashing) etc.
The US is in danger of default, along with Italy, Spain, Portugal again, Greece again, possibly Ireland. The UK, France and Germany are under significant pressure as in reality the ECB stress test of banks was a face saving exercise and if even 2 of the Euro countries mentioned default many banks will be in danger of collapse.
Of course one could print more money, but this is what in many ways started the problem, as printing money creates debt (there is nothing but government bonds to back it) or we could hope that there will be significant devaluation of floating currencies (USD, GBP in particular), but this has its own cost and damage to our economy. Without solid, real backing fiat currencies suddenly start to look like a busted flush in the face of a global debt mountain that is rapidly becoming unserviceable.
If fiat currencies fail, what happens to your wages, pension, your business?
The major corporations will survive as they have either built up commodity reserves, piled into Swiss Francs, or fobbed their debt off on the state, however nation states will be under serious risk of default and what then?
