Debt will drown Britain

We here at Goldcoin.org have expressed the opinion that debt will drown economies as indeed it has been so in the cases of Portugal, Ireland, Spain, Italy and Cyprus. The banks have yet to fully acknowledge their off balance sheet losses that they are too scared to mention as the magnitude could certainly lead to several high st bank collapses.

Sovereign debt is also an issue as countries continue to increase their spending partly due to the crippling interets repayments they are already making.

Imagine when we can no longer repay the interest or the debt. Imagine when the country being spoken of is no longer a distant one on the news but the place where you live, work and raise your children.

Well be ready as that country will soon be the UK on Spanish Tvs, Portuguese TVs etc.

Here is an extract from an excellent analysis done by the MoneyWeek team and there is a full and coherent expalanation as well as some home truths about where we are heading and how we got there. Please do click the link and read the full text (or watch the video) – it will wake you up to the facts and maybe action.

“In Britain, interest rates on government borrowing now stand at record lows. If we’re not at rock bottom, then we’re incredibly close.

That means the most important trend of the next twenty years is almost certainly rising interest rates.

Debt has been getting cheaper for thirty years. Now it’s about to start getting much more expensive.

We’re now facing an unprecedented crisis.  As interest rates rise, our record debts will become impossible to bear.

No one can say how quickly things will escalate. Interest rates could rise overnight. Or they could slowly and inevitably push higher, taking years to slowly strangle the economy, the housing market, the stock market… stripping us all of our wealth one day at a time.

What we can say with certainty is that sooner or later interest rates WILL rise. We’re approaching the day when foreign investors realise the scale of our problems, and demand higher interest rates… or stop lending to us altogether.

When that day arrives, we are certain things will get nasty“  ………… read more here

Remember that the effects of debt and crisis ultimately brings inflation/deflation and even hyperinflation very quickly. Your cash currency can lose value in hours such that it becomes worthless paper.

Now you know that the economic storm is coming back with a vengeance what have you done to protect your wealth against the effects of crisis? Nothing? Because your investment is inflation- proof?

You have shares that cannot lose value in volatility or a crash? Hardly as by their nature shares will suffer during recession and crisis.

Whenever there is a bank run or collapse of a currency people immediately rush for anything tangible they can buy in order to rid themself of the paper fiat currency with something of inherent value that may be useful to trade for survival.

We have covered the exact effects on real people in our article on Belarus

“The chaos of a currency collapse”

Basic human nature is very hard to change especially when survival is at stake and as more of us understand the lies and deceit of our upstanding pillars of society and the lengths to which they will go to make more money, the more likely that it will be real people who start the next revolution and not some obese deranged egotistical psycho in the north of Korea.

Crisis insurance is gold – buy some now before it’s too late for the insurance.

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Debt will drown Britain was first posted on April 9, 2013 at 10:34 am.
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