Mish asks,

…please explain the need for government to borrow money in the first place. The same question applies to the US, China, Germany, and the rest of the world.

There is no “need”, there is only political expediency of vote-buying promises that cannot be met with money that will never be paid back by inflation or default. This is what happens when there are no fiscal constraints anywhere. This is what happens when currencies are backed by nothing and can be borrowed into existence at will by central banks in response to out-of-control spending by politicians.

At some point, even if there is no default, those 100-year bonds will go for 20 cents on the dollar if not less.

Neither the UK, nor the US, nor anyone else needs 100-year bonds. What we need is sound money, backed by gold, coupled with balanced budget amendments, and an end to fractional reserve lending.

Since that set of needs is highly unlikely barring a global currency crisis, I advise preparing for one. I just cannot tell you when. I can only tell you it’s a wise thing to have some gold in your portfolio for when the inevitable happens.

via Mish’s Global Economic Trend Analysis: I Will Gladly Pay You 100 Years From Now, For a Hamburger Today.

Oh, and at least 2 weeks of water, food and supplies.

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