ARE YOU READY FOR AN INFLATIONARY DEPRESSION?
By Tom Chatham
We are heading into a new depression. We have 20 trillion in debt, over 200 trillion in unfunded liabilities and over a quadrillion in derivatives held by the banks. Our GDP is only about 17 trillion a year and world GDP is only about 60 trillion. It does not take a math whiz to realize that even if we are not paying any interest on this massive debt, there is no way to ever pay it all back short of some type of default.
Depressions wipe out all of the misallocation of resources and bad debt and provide a reset for the economy. The amount of debt, brought on by decades of unrestricted credit creation, is the largest in history. That means we are in for a very bad ride in the near future.
The inflationary depression will end with the currency collapsing and people losing everything they have that is not fully owned. Eventually we will see deflation as prices fall due to the destruction of the monetary system. At this point most people will be financially devastated. Those that make it to this point with their wealth intact will be the new wealthy class. This is why having resources, real physical goods, put away now will allow you to thrive when the system fails. You only have one shot and that requires you to finalize your preparations now while you still can make a difference.