The main problem is the debts and the unfunded liabilities. They either have to be paid off or defaulted on.

If you default, that's the end, i.e. currency collapses and with US$ being the world's reserve currency that means the whole financial system collapses, economy devastated, energy and the military can't be paid for, end of superpower status etc. This is simply not going to be allowed to happen.

The alternative is to pay them off. Now we could all knuckle down and work like ants for the next 20 years and slowly munch our way through the debt mountain but I don't think we have the energy (Peak Oil), youthful labour force or the backbone to do this. However, we can pay the debts off with depreciated paper and that is what I think will happen.

They're getting ready for the great inflation by hammering down hard assets to a lower base. If you print enough money and give it to people they will spend it on something, particularly as it is being rendered worthless before their very eyes. The clever ones will buy hard assets like gold and silver early on in the process.

I've been buying more shares today; YRI, SSO, SVM, KBR, MFL & TDC. My timing could be off short term but in the long run I've cashed in my paper for something real. This will be all the rage at some point, everyone will be doing it. Just got to sit tight now and watch it all unfold.