Thursday, September 29, 2011

What about a collapse?

    What if the Sovereign debt levels are too high? What if a collapse eventually is the only thing that can happen? Will it all be bad? Or can there be some good to it?
    Politicians, bankers, and everybody else for that matter are afraid of collapse or default. We all think life will be awful, that we would go back to pre-industrial age living.
   I don't think so. Not any more. Actually, I think it would be better. Debt would be forgiven, "zombie" institutions would be eliminated (no money or credit to support them), a new monetary (hopefully sound money) would be introduced, and the world can get back to producing wealth. Would there be financial pain? Yes. Things are out of balance and people would suffer. The problem now is, these same people are suffering anyway, albeit at a slower, more drawn out way. Inflation is eating away at savings for retirees and Social Security recipients, along with the middle and lower class having a harder time saving and paying bills with devalued money. Clearly things will get worse for them over time.
  We have hard times one way or another. I say let's "reboot" the system and turn things around. Bill Bonner wrote about that recently. His ideas make sense to me.

  Here is his article.  

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Will the dollar (and other fiat currencies) die?

I am concerned with the prospect of not only inflation, but hyperinflation. Ever since the sub prime crisis in 2008 and the remedy by the government of bailing out the big banks, to the tune of trillions of dollars, I wondered how it will play out for us, the little guys. I wanted to know how I can prepare, and what to expect.
Doug Casey is a highly renowned investor and speculator. He has plenty to say on the subject. He has a remarkable insight on not only economics and markets, but philosophy and history as well. Whenever I can read or watch anything from him, I make it a priority to do so.
In this interview, he says that the dollar will die, and how to prepare for it. He also thinks we are in a depression that started in 2007. He calls it "The Greater Depression", and for good reason. The dollar collapse will have a big impact not only in the U.S., but throughout the world because the dollar is the world's primary currency. How can nations conduct trade without it? What will happen?

Here is the link to his interview.

Feel free to comment.