I may be right, I may be wrong what is important is the positioning one takes now if such an event does happen... I have been waiting for a catastrophic reset for a very long time, 20 years and counting. I have come to accept that It may not happen in my lifetime but it will one day. The maths is just too compelling. No one owns 22Kg of gold and even more of silver (roughly 10% of net worth in liquid portable form) without seeing the worst case scenario here...
I bought my first bullion ounces of gold in the early 2000s. I really thought the system would reset during a bunch of liquidity events happening in quick succession; tech bubble bursting, Asian Financial crises, liquidity crisis caused by LTCM fallout and a few more localised events during that era in emerging economies. This all happened in quick succession in a space of 2 or so years. South America (Brazil hit the hardest), Asia (Japan, S Korea, Thailand, Hong Kong) and Eastern Europe (Russia and former USSR states suffered the Russian Ruble devaluation...) was in a grip of a dire liquidity crisis during this era, with Australia still in the early recovery of the "recession we had to have". I bet big against CBs losing control and must admit I was wrong to do so... My positioning in gold was correct but my timing was off because I expected it to happen in a catastrophic event. So did Ray Dalio, Peter Lynch and a few other big names out there by the way... I suffered 5 years worth of downturn in that position but I'm now enjoying the fruit of all that pain and hard work today. The gold and silver miners I bought during that period fared much better. I had massive returns in a now legendary gold miner Normandy (thanks to Alan Bond and AngloGold) and a little know Silver Miner (among other metals) Zinifex. Needless to say I was well and truly hooked on precious metal miners since then... Let's hope my largest holding EVN comes up with the goods this time around too
So the point is... there is no telling when a reset will happen and there is definitely no telling how. It will happen one day and the majority of the world population will yawn at the news. Similar to the now infamous Nixon address in 1971. But everyone should position now regardless. Gold, Silver and their Miners (at least some) and other hard value accretive assets you personally have a taste for (art, wine, antiques...). You will be glad to do so as a devaluation hedge. The worst one can do at this point is wait for a Reset by holding on to cash because the first response of every CB when a crises hits is they create more of it. This makes every $ you already hold worth less instantly.
As a side note: I only hold 2% of my net worth in cash. If you have a less substantial net worth then it is prudent to have that at a higher figure.
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