1,000,000,000,000 that's a trillion !, page-33

My advice is to focus on the whole world not just one country

Yes the US debt is high but they are like the healthiest cancer patient in the ward

Yen is in much worse shape, they have much worse demographics and are likely to collapse in the next 24 months

RMB is surprisingly similar, while everyone focuses on US debt China has been printing and expanding debt at 25-35% since 2008, that +7% growth that everyone focuses on is really just debt based expansion. Eventual write offs (debt that will never be paid back) is about 25% of GDP so in reality China isnt growing at all. If you hate money printing then China is much worse than USD

AUD is dependent on our two biggest trading partners, Japan and China, the chart for money printing of any currency looks pretty worrisome, AUD have had to print in step with the rest of the world, so when China and Japan fall flat on their face thet will land on the commodity currencies Brazil, Canada and Australia. Each currency has its own weakness, in Australia is reliance on Chinas growth and private debt, our combined debt (govt and private) is about the same as the US (and our income is a lot more fragile)

Euro is a basket case and measurably worse than all the rest

So at some point we face a global collapse . Its not just about the fed and USD, all the central banking clowns have followed the same formula, in some respects the US is in a stronger position than most in that it holds reserve currency status (gives you options that place like Australia dont have)

Gold (physical) is a about safety and wealth preservation not getting rich, its simply going to be to risky in a collapse to invest in gold miners

Gold is leveraged just like everything else, the best result you might get is gold simply holds its value and everything else falls

Ironically and counter intuitively the USD might rise in a collapse, it wont do so forever but a debt deflation type collapse puts the currency that most debt is denominated in demand.

Then it gets unpredictable, I lean toward Hugh Hendrys point of view , he believes the central banks will panic in a deflationary collapse and create the type of hyper inflation that a lot of folks are predicting

This scenario is a debt deflationary panic that forces the central banks globally to step in and catch all the failing banks, this would create monetary stimulus x10 times we've seen since 2008

They either do this or 75% of the banks in the world will fail, so its a good bet that they will do it.

This type of scenario is many times worse than the USD crash that a lot here predict.

Think about commodities in the context of Australia, in 2001 we exported about 1.8B in iron ore . these days its around $68B, 60% of which goes to China. What would happen if China and Japan collapsed knocking out about 80% of demand ? Now project that across all resources eg coal, copper etc

What do you do ? IMO You buy physical gold, you keep some USD to trade when it spikes (just before it plummets again) , you keep some cash in government insured deposits and you buy some gold miners at the bottom with spare change

Expect +15% unemployment
+50% Property crash
AUD at 50c or less
Gold might go as low as $700

Good luck

Ctindale