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the greatest denial at present is the belief that this crisis is limited to the US, its a global crisis, money printing and credit expansion has been used by all the central banks to xpand the credit component of GDP growth. Debt is bad everywhere , Australian hold more private debt vs income than the Americans. Yet those in denial continually point the finger at the US ignoring all the factors in common most other countries have and try and convince themselves its a USD crisis.

People ignore China's money printing at the rate of 24% per annum. Australia has been printing at 13-14% a year for a decade. Australia over the next 5 years is likely to experience the greatest rise in private bankrupty's in our history.

Think of it in your own household terms, imagine if your outgoings were higher than your income every month. So every month you borrow money to get through . At the start its not big deal because you have heaps of income and low debt but after a decade your paying out 45% of your income in debt repayments and you are still borrowing. Imagine everyone in your suburb is in the same boat. Then one day it becomes to hard to surface you not only borrow to get by but you borrow to pay the payments.

Eventually, logically you have to stop borrowing, you or the bank decide you cant afford to borrow anymore. Everyone in your street is the same , everyone stops borrowing at the same time and then forced through desperation some people start to sell their houses. Then everyone starts is forced to sell their houses at the same time.

This is the nonsense of hyper inflation, the hyper bit has already occurred, people tell us to expect rising prices after a decade where oil rose from $15 to $150 . Yet we believe the governments statistics that inflation is rising at 3-4% per year. Houses double and triple in price, our average personal debt levels rises to historical highs. Yet we have people (in denial) tell us that prices are about to rise like Germany in the 20s, all these people who are in debt up to their eyeballs are about to pay $10-20-30-50 for a loaf of bread, bottle of milk or for a litre of petrol ????. People who havent a cent left to spare in their money expenses are about to pay double or triple the price for things they need?

Here we have central banks blowing bubble after bubble yet the people claim that prices will rise like crazy when its obvious there is zero room to be able to achieve this. People make ridiculous claims that the US will try and cheat their bankers by printing money to pay them back , would your bank lend you any more money if you tried to cheat them? Every input commodity has risen like crazy for decades yet people believe the "official" inflation figures. Houses double in price yet the inflation rate is 3-4%? Is housing your biggest expense? yet if bread and milk rise in price its called inflation , when housing does its not even counted.... is there something wrong here? Money printing is happening on a global scale by all the central banks for decades yet people salivate over Fed money printing? Why as Australians do we care more about the USD being debased than we do our own currency? (especially since AUD printing is happening at twice the rate of USD)

People are hypnotized by American propaganda to the point they dont even look in their own bag yard. We are so mesmerized by American culture we can see are sitting in a deep pool of pooh than they are. Australians are so Americanised by US media that they have given up think for themselves, they have given up looking at things with any level of commonsense.

I put USD haters and lovers in the same boat. They have both attached themselves to the US culture as either admirers or haters, its two sides of the same coin. The haters keep chanting that the US is going to lose reserve currency status, its the end of the empire, that the Chinese are taking over, that gold will become the currency of choice, the US will go bankrupt, that the US will collapse.
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Wake up folks the entire world is about to collapse. Australia is in as bad shape as any of the others. This idea we are on some enchanted island that will escape whats coming is delusional. Commodities will crash, RE will crash, AUD will crash. Money markets will fall under government control, capital controls will be invoked . Gold will be controlled , the grand experiment of a global economy is about to unravel and yet people sit here pondering the most unlikely scenario of all. A scenario where the world forges ahead as the empire of the US collapses.