Economic Collapse

Paul Tustain, founder & CEO of BullionVault.com just put out this talk in writing. He has been touring Asia talking to investment professionals in Tokyo, Singapore and Hong Kong. It’s a very well written talk and gives you a comprehensive overview of what might be coming our way. Download the 12 page PDF here. He talks about US consumers and what an increase in interest rates would entail for the tax burden:

The cost of a $20 trillion national debt costing 5% per annum in interest rates would
be $1 trillion, or $10,000 per annum in taxes per year for every American family, just to
pay the interest, i.e. before a single government service was delivered. That is the cost of
maintaining a $200,000 per family national debt.
The unavoidable conclusion is that, on-plan, the US cannot react appropriately to a
developing inflation problem. The G20 pronouncement that interest rates would stay
low for the foreseeable future was true. There is no alternative to permanently low
interest rates on these budget figures.

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“You cannot establish security on borrowed money.”
- William J. H. Boetcker

Now, as you know, the real debt of the US will be much higher than 20 trillion in 10 years, but the concept “trillion” is nicely explained here.

Also, look at this one: Click the image to zoom.

Comments by Jim Sinclair on the article below:

How the World Will Look in 2012
In the effort to protect you from all contingencies, it appears the writer of this article has come to a perfect summation of the ‘What if it all hits the fan.”
You have the key to everything written by Armstrong. You have Alf’s important pronouncements. Now print out and put on your bulletin board how the world will look in 2012. PLEASE STUDY THIS IMPORTANT ARTICLE.
Respectfully,
Jim

The Worst Case Scenario (Someone Has to Say It)
http://seekingalpha.com/article/134820-the-worst-case-scenario-someone-has-to-say-it

Well worth the time to read.