if American crashes, my friends, and that is a very distinct possibility now, where does that leave Australia? Think about that.

not quite. We will not crash as heavily as America and most of the rest of the world if we do our housekeeping properly. Don't have massive deficits, save our industries, ACTUALLY MANUFACTURE SOMETHING, and very importantly for individuals - DON'T HAVE DEBT.
These things are what the world has not been doing for a long time, a crash had to come.
The bigger problem is international instability, and the disintegration of old alliances. Australia's greatest ally has been America, and much less so, Britain.  The whole alliance structure will probably need to be restructured. New world coming for sure.

I know you're reading the same stuff as I do, perceptions, so you have a good handle on what is really going on. Scary isn't it.

I am very uncomfortable with "international comparisons". Just because others are basket cases is no justification for us to be on the same track, but lucky enough to have avoided it so far. That isn't good housekeeping by the government. Labor was handed a very healthy surplus and there were 11 surpluses in a row and no adverse social affects as a result. They stuffed that up within one single term and just kept promising more of the same during the election campaign. Labor are profligate with money, always have been, they have no idea at all how to save.

Australia is a major gold producer in the world. Our currency is solid, but floating, so we are the whims and mercies of these wayward economies overseas. Our currency should be a gold-based one, LIKE IT USED TO BE (aka Australian Gold Sovereigns), and a silver based one, that would make us unassailable, and we would not have the obscene levels of inflation that destroys people's savings, disadvantages people trying to buy homes, but allows profligate psychopathic party political governments to spend up big and make themselves look good.
Other countries have gold based currency, most notably these days the Islamic block. Do they know something that we don't? I would think so.
Gold is solid money that can't be counterfeited or inflated away by governments, and it is the people's protection from such con jobs.
Why can't this country ever take the lead, rather than bowing and scraping to other countries?

qikvtec wrote on Aug 26^th, 2010 at 10:58pm:


Almost everyone on the planet has spent a life time living "the current paradigm and they are unlikely to change their ways, without a massive shock to the system.

It would seem unlikely that the status quo will continue on the inflation front.

However, both De-flation & Hyper-in-flation are still in the game!

China are already trying to lessen their US exposure, but it is a very difficult game to play, in the current circumstances and it is more likely that the applecart will be upset at some point and then things get extremely difficult!

I think your strategy was a good one, perceptions. Wise and finger on the pulse. I would be very careful of the U.S dollar though. Apart from that, yes, silver and the commodities. Aus dollar is commodity based so if commodities fall heavily in a crash, maybe a good opportunity to buy back into the aussie at that time. Long in gold and silver though sounds like a good strategy, at least in Australia.

it turned out I was talking to you, saph, but I thought it was perceptions, but actually both really.

If there is an almighty crash as they are saying, then gold (and silver of course) could go into the stratisphere.
I have done pretty much what you have done. There is a high fear factor in the world for a while now and it seems to be getting worse. That's good for gold, but silver hasn't really been affected that much, but there is commentary that it will.

What I read too, is that there is a concern around the world about non physically held gold i.e. gold "in storage" or "certificates", and whether there is actually the physical commodity there to back it up.
Perth Mint seems to be a good alternative, as the only government backed Mint left in the world, but, in the end, is the gold there?
Does the U.S. government really have the gold in storage that it is supposed to have; because if it does not, the price will go ballistic.

Sappho wrote on Aug 28^th, 2010 at 4:32pm:


Well, as I said in another post, "Almost everyone on the planet has spent a life time living "the current paradigm and they are unlikely to change their ways, without a massive shock to the system."

And, what you said here confirms that!

All that I said is factual, but no matter how much is said, people will not believe that anything will really change, because it has "always been this way", which of course it hasn't.

So, no matter what is said, people will not voluntarily make the changes needed, as is shown by acceptance that World War 3 would not be scary, it would be an exiting opportunity.

As I said, people are unlikely to voluntarily change, so either change will be forced &/or there will be a massive shock to the system, by accident or part of that forcing.

I would also caution care with Gold, as in my opinion it would require physical holding, which is costly, but also subject to dangers.

Btw, if you really think WW3, which would be fought with Nuclear weapons, would not destroy every facet of Global human sociey, then I suggest you need to get up to speed on the affects of nuclear war, as a minimum!