That is, we’ll have one when they stop buying our debt.
And, there is a compelling argument indicating that there just isn’t enough money in the world to actually buy the debt that must be rolled over in just 2012.
Of course, this isn’t completely true because the printing presses will be turned on to print the money needed to buy the debt, but I think that it’s becoming more and more clear that there’s a limit to just how far this can go.
Now would be a very, very good time to buy some precious metals.
Mac Slavo, March 20th, 2012, SHTFplan.com
In a recent micro-documentary Chris Duane of The Greatest Truth Never Told and Don’t Tread On Me discusses the coming collapse of our debt-based monetary system and provides a simple, yet succinct argument for why it cannot be prevented.
There’s $8 Trillion in global sovereign debt that needs to be rolled over in 2012. This does not include state, local, corporate or personal debt. There’s simply not enough cash in the world to buy all this debt.
What is worse – who would? Who in their right mind would loan cash today for ten years for a guaranteed return of 1.85%. We know inflation is at least running at 10% in the real world, and you’re taxed on the gains you make before inflation, making bonds a very bad choice for anybody.
But, this debt must be funded or our entire way of life ends. What most people do not know is that our money is debt. Every dollar that comes into existence has a dollar of debt and interest attached to it. The only way to pay back this debt and interest in this debt-based monetary system is that we need to create more debt every year in excess of the debt and interest accrued the year before, or we suffer the mother of all margin calls.
When that mother of all margin calls does finally happen – and it will because it is a mathematical inevitability – the paradigm shift that will follow promises to fundamentally alter our entire way of life. We’re not just talking about losing jobs, we’re talking about all of those worst case scenarios you’ve imagined about hyperinflation, no gas, no food, no government safety net, no emergency services and a complete breakdown in the rule of law.