Comment: The economy will not collapse

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The economy will not collapse

The economy will not collapse because of gold, although that may very well be an excuse the MSM will give when the fiat bubble bursts.

The economy will collapse because the US dollar is a paper/digital promise that cannot be paid. Our "leaders" have made 16 trillion promises they can't keep and are increasing this at an exponential rate. As RP said, we are well beyond the fiscal cliff, there is no going back.

"We can guarnatee cash payments as far out as needed, but we cannot guarantee their purchasing power." -alan greenspan on social security.

The bubble we are in now, is the dollar bubble, the fiat currency bubble. Everyone is forced to use it, everyone has it, and because more promises for it have been made than can be filled by those who administer it, the only solution is to type more promises into the computer. In the Great Depression, no one had money. In the coming Greatest Depression, everyone will have currency but it won't be worth anything.

I can't time this because the timing is dependent on when people wake up to the worthlessness of their "money". When this happens, its over.

The next paradigm will value physical assents and productive assets, once the current paradigm of financialization and phoney wealth ends.