REAL WAR IDIOT”S ! https://www.youtube.com/watch?v=eoKcWSMe15Y

I NOTE FORE SELL ! OK IDIOT’S FEED THE DOLLAR MACINE !!!!!!!!!!!!!!!! https://www.youtube.com/watch?v=l7YSsbK7L04&index=68&list=WL

Sorry Joseph, no filth.

Thanks Cory. Great read. I think the key point in the article is that the credit expansion we have been seeing is indeed global and risk is now heightened as bubbles form in different locales at different times.

It means systemic risk is now apparent from jurisdictions across the world and we have all become more vulnerable. I feel a certainty that the unraveling will come about due to sovereigns defaulting just as it did during the past major economic crisis periods of which the Great Depression was amongst the worst.

At that time no less than 30 nations defaulted in a period of just a few years. It was an epic resetting of the financial system that washed away billions upon billions of national liabilities and bankrupted scores of countries, banks, brokers, insurance companies, private business and individuals in its wake.

Wealth simply vanished in the collapse that followed proving the old adage that paper wealth was only worth its face amount if it had been converted to cash beforehand. We are now working on another systemic default.

This one will be worse than even the South Seas Bubble bust as it now encompasses virtually every single country on the planet. We should not be surprised that the period of repair takes longer than even two decades as asset values are ultimately crushed and the match between them and the debts created no longer align.

And that is just one of the reasons why it is now imperative to keep solvency levels high, to remain debt free and hold a higher than usual cash position in a currency you believe will survive the coming meltdown.

It is why we must think seriously about dealing in securities subject to counter party risks. Why we should think twice about being too heavily laden with derivatives which happen to include ETF’s and ETN’s. And why holding stock certificates directly is probably more prudent than ever while eschewing Mutual Funds and other managed products that might come under intense restrictions during a period of economic upheaval.

I do not look forward to the coming period of defaults but I think most of us will be happy that we are residents of countries with good resource bases. When debt unwinds the very meaning of what is money comes into question. You might only need ask yourself if you would prefer to be in Egypt which has almost no real resources to trade or in the US which is soon to be the worlds number one oil producer.

In the same way that fears of a credit collapse send some investors fleeing to gold for security we see that nations themselves will rely upon their physical commodities and resources on hand to maintain stability and preserve trade as money itself comes into doubt.

Quote….”In the same way that fears of a credit collapse send some investors fleeing to gold for security we see that nations themselves will rely upon their physical commodities and resources on hand to maintain stability and preserve trade as money itself comes into doubt.”…

It will be interesting to see which (or indeed if) countries then “nationalize” their resources, be it gold mines, oil fields, etc & what will/would happen to shareholders if they governments go down that route.