For the last 30 years, we have lived totally dependent on the financial world and its exotic products to stay ahead of the herd, it’s over.
Most banks and financial institutions are insolvent, even with the Federal Reserve dumping hundreds of billions of free money on them, their portfolios are filled with worthless and defunct credit default swaps.
Most States are also flat broke, it isn’t only Greece, Ireland, Portugal and Spain, the wave of default coming will engulf the world economy, a little like the panic of 2007 but worse, a lot worse.
A return to planet earth and reality is going to take place, the only remaining question is how?
If it is done in a disorderly manner, and there are plenty of signs it will; due to the incompetence not only in Washington but also in Brussels; it will cause pain like we have not seen in the western world since World War II; bank runs, total credit freeze, staggering inflation and mass unemployment.
Only a worldwide debt restructuring and a new monetary system will save us from total collapse, as it is, we cannot sustain another round of devaluation of the Dollar, it has already lost 40% of its value since 1992, the Euro is on its last leg and China’s economy is now faltering.
My best guess is that precious metals will remain valuable, a return to some sort of gold standard is possible; don’t sell your jewellery in those cash for gold parties, you may need it some day soon.