The whole purpose of going on a spending spree was to avert the...

The whole purpose of going on a spending spree was to avert the opposite scenario, massive asset devaluation. That is the sole reason why governments around the world stimulated their economies. After all asset devaluation = civil unrest and reduced tax receipts - nasty for a government.

The assumption that this stimulus has placed the ship back on course steady as she goes is complete fiction. As ctindale and others point out, the debt not only remains it has become larger.

So the real root of the problem is productivity per capita AND over-consumption. Both ends of the spectrum are out of whack. Reconciliation requires the debt to be paid off (over-consumption) and improved productivity for what is sustainability consumed.

Governments hav emade matters worse IMO by stimulating the heck out of the economies. It's made the tower taller and we all know what happens to tall things, they fall harder.

Please don't get me wrong, I prefer not to be a dooms dayer, but I cannot see the situation any other way. There is fundamental problems with world consumption/ productivity and sustainability. The human race has not got the balance right and is not adequately addressing the issue.

Gold is merely a safety blanket. Owning it won't hide you from the systemic problems, just help insulate. Believe me, I don't want to experience a depression just to say I was right.

GC