Here are my thoughts, all potentially very wrong. I'm commenting from an Australian/AUD perspective. 1. GFC2 will happen eventually. This month's stock and commodity bubble deflation could even mark its commencement (but probably does not). 2. Once GFC2 is underway the initial reaction will be similar to GFC1 because people will deleverage. 3. Gold will initially go down but it's very unlikely to drop as fast as the AUD. If the AUD gets under USD0.70 this might be a good time to start taking profits on gold. 4. Silver could easily drop faster than the AUD. There should be many future opportunities to buy at under $30. Incredulous comments welcomed.
That's an invitation for me to post GFC2 will happen as engineered. I'm guessing sometime this year, my gut feeling is within the next 2 months. Anyone leveraged will hit the earths core, and those with cash will buy them up at discount prices (especially those who missed out on the buying spree the last GFC - partly the reason GFC2 is being engineered). This time, we're all out of surplus, and other countries are out of escape routes. If it's not managed properly, we'll end up in a depression and by the time we get out of it, our "Western" life style (you know, the one all 3rd world countries aspire to achieve) will be gone. If a depression hits, it will be the one which ensures a completely globalised world. Everyone everywhere will live in similar conditions, which are not as good as the current ones here but better than the current ones in developing countries. Somewhere in the middle. I can't hope for Australia to opt for isolation and become self sufficient (which is totally possible considering the size of our population and in-house skill/talent). We are too interested in playing with the big boys on the global market and are blind to the fact we have no chance of winning this game.
It's the USA who are mis-managing their economy the worst. If they go down, sure, consumer confidence will drop and stock markets around the world will plummet. But the world doesn't stop spinning. People still produce, items are still bought. I don't buy into the end of the world theory. Life will go on, wealth will be transferred. People are idiots
End of the world is BS when it comes to the economy. The economy is MAN made and can be man fixed (it isn't like a natural occurrence created by GOD or whatever you believe) so I think there will be no end of the world as a result of economic collapse. On the other hand I still believe america's economy crashing will effect the world in ways we probably never experienced ... its a long argument and debate as to what will happen so lets just wait and see ...
Think Aussi will be very hard hit.Huge debt and most overblown housing market in the world. 3rd world countries are already on the breadline and are adapted to that. Mainly primitive technology that will keep going and supply what is necessary for life. They have their support groupings already in place,family,etc. Aussi has now mainly adopted the American dog eat dog system of social interaction. Dependant on high tech , high energy systems. One break in the line and nothing comes out the other end. Food grown hundreds of miles from the cities. No spares kept for emergencies breakdowns. Every thing dependant on everything else. Population far from sustainable. Reliant on toys and ease. Generally specialised to the point where they are not self reliant or practical. Hard to know how they will react to hardship and want.
