All Fiat currencies eventually die.
Sounds like you hang around at Financial Sense Newshour a bit.
I tend to agree the USA and Europe have no way to pay down debt.
Ignorant slothful electorates with an entitlement mentality will vote out govts that try to deprive them of their 'stuff'.....
edit: Obamarama promised more stuff
Some points on my mind.
Yes precious metals will move as USD and US bonds lose favored status as primary defensive position.
But commodities should move as well, in which case, leveraging into blue chips with divs and some gold mining interests, would be reasonable considering timing uncertainty.
And commodities can only move if demand is sustained. I believe the USA and Europe are in for a long period of low interest rates, ergo low gdp growth.....and therefore little growth in their demand for commodities. That then puts the onus on the ability of emerging economies to decouple and sustainably grow domestic consumption. From an animal spirits perspective, China seems to have the most fire in the belly, and discipline. Over the next 10 years, hopefully the misallocation of capital via centralist socialists will decline and their domestic consumption will trend up.
And if commodities are going to move, it is fair to say commodity currencies will retain favored status, as will their mining sectors.
At the end of the day, it is uncertain where future global economic growth will occur most. But if there is to be any growth at all, demand for commodities will be healthy. And Australia, Canada, Brazil should fair well.
Further, it is hard to imagine the whole globe could have sustained zero growth. So in the short to medium term, yes we might be in for a considerably bumpy or flat ride, but in the long run, my latest musings are things are optimistic for Australia in a comparative sense.
Finally, we'd be foolish to miss the opportunity to retain commodity cash flows and up investment in value adds such as pharmaceuticals, robotics, IT, solar energy, and telecommunications. Not doing so ensures we'll have a two speed economy, with ever more social unrest.
And my perspective on property accommodates a two speed economy. For growth with some defensiveness, I think it's reasonable to have exposure to
- commercial in selected regional mining centres
- health sector commercial in Brisbane metro
- top 20% Res A within 7km of Brisbane cbd.
I am also trading gold and examining every which way via TA, hoping to foresee a break out.