What has happened to Iceland (bankruptcy) is what
naturally happens when any country lives beyond
its means, and creates a debt pyramid.
The only reason it hasn’t happened as yet in the
larger countries is because the debt pyramid is
being expanded to delay the evil day.
How? It’s being expanded by using more debt to
solve the problem of too much debt already. And
if you’re confused by this truism, then sit back
and relax – your “leaders” really do know what
they are doing. NOT.
But just ask yourself – if banks need more capital
(which in any rational world means savings), how
can injecting debt or more paper money solve their
problem, when such injections are clearly not
However, it’s entirely possible the worst case
“Iceland” scenario will not happen in the USA,
Canada, UK, Australia, New Zealand and the EURO
zone – at least not at this time. The current
policy of “recapitalising” banks with non-existent
money may just forestall the final reckoning to
The debt pyramid system has hobbled along now
for some time – by simply injecting more debt.
And the magic trick of “confidence” may just
pull off another delay in the inevitable.
Which gives us an opportunity – an opportunity
to actually find a long term solution. Doom-saying
and panic will not solve anything. So if MORE
debt is not the solution to an over-indebted
global economy – what is?
A good start would be to read this article
by Lew Rockwell:
“How to Fix Our Depreciating Money”
Then get yourself this book – “Good Money”
by George Selgin:
What is most important to know and act on is the
fact that government FIAT money is money by decree.
It’s only as good as the faith people have in it.
That’s why through most of history people have
used either gold or silver as money – something
which con-artists (governments most definitely
included) cannot manufacture at will.
Zimbabwe is a good example of government fiat money
being inflated to worthlessness. The best use for
it is probably toilet paper!
In the absence of any competition in currencies –
i.e. that you are limited to legal tender in your
own country – a good personal strategy is to start
owning gold. Gold as potential future money.
My recommended ways to own gold (or silver) are
via the services below:
BullionVault allows you to buy, sell and trade
gold in a live market. You can have your gold
stored in Zurich, London or New York – and can
buy and sell in seconds. You get a free gram of
gold for opening a new account.
GoldMoney also allows you to purchase gold AND
silver, as well as transacting with other GoldMoney
account holders. In this way gold (and silver) can
act as money, and as a means of exchange.
Both services require full ID and proof of address
to activate an account – but it will be well worth
the effort to start storing some of YOUR money
in there – just in case!