Bonds are without a doubt the most important asset class to grasp in this particular crisis.
"An important thing to understand is that whenever we had high annual deficits, we had a relatively low debt-to-GDP ratio. And when we had a high debt-to-GDP ratio, we had relatively low deficits. Well now we have high annual deficits and a high debt-to-GDP ratio. So economic pundits who claim that our debt-to-GDP ratio has been this high before so there is nothing to worry about are only telling you half the story. Either they are flat-out lying or they don’t know what the hell they’re talking about. I personally tend to favor the latter.
"It’s funny because 99.99% of countries in recorded human history have defaulted on their debt. The only thing to consider is when we will default. Gold right now is a clear buy, I don’t care if it falls to $1300 from here- there is just too much risk of Europe falling apart for you to sit on your hands. I’m warning you to get your money out of banks and into tangible assets. If and when the banking system freezes, it will happen suddenly."