Take Cover Now With Gold, Or Live To Regret It
This from the most recent Delaire Report.

The recent global sell-off in equities and commodities may help to illustrate a point that I have been writing about for years. And, that is, the worlds’ monetary system is faltering and that the two main currencies, the US dollar and the euro are both looking increasingly precarious. Some analysts are even suggesting that the US dollar will ultimately collapse. Some say that it will either be an outright default as the increasing interest on the debt becomes too large to pay the minimum or the more likely scenario, the US will pay its’ debts by debasing their money thus causing hyperinflation. If this should happen, every aspect of every person’s life will be dramatically effected as paper assets become less valuable. Wealth will be transferred from paper assets to tangible assets.

According to Chris Duane, “Understanding that the collapse is going to happen and that it will be the single largest event in human history leaves you with a choice; denial or prepare.”

While my take on the overall situation is not as dramatic, I do believe that things are going to get worse before they get better. It is therefore prudent to take appropriate action as we will see a paradigm shift from paper assets to tangible assets. As I have mentioned countless times, Keynesian economics consisting of paper wealth works in a peaceful, growing economy. But, when things slow down, ultimately we get to the point where everything starts falling apart and people fail to keep their promises. It seems that we are getting to this point. Politicians, bankers and financial officials lie as they can’t keep their promises. This can be all be covered up for a while by bailouts and money printing, but eventually that leads to the collapse of the currency as a store of value and that takes down all other paper assets.