"Dubai's Debt Woes Signal New Era for Creditors" – Defining fiat – unrepayable debt

While the anti-gold cartel took the news out of Dubai to try to smash gold and silver,  the truth remains that Dubai is actually a clear indicator of why fiat currency will ultimately fail.    Unbacked currencies with the ability to create practically infinite debt are not going to hold up.

The only chance that any of the US and world debt levels could possibly ever have any chance of repayment is with the current debt encumbered currencies at a fraction of their current value.

Dubai goes to prove that massive excesses caused by never ending debt ceilings is a global phenomena and not just limited to the US, Japan and the UK.    If anything,  Dubai is the best indicator of why those who are not in debt need to hold real money, especially when that real money is still deeply depressed in its relative buying power by the very monopoly money makers that caused the problem by going off the gold standard in the first place.

Think about it. Do you want your gold sitting in the vault or represented by a piece of paper or electronic derivative order that is held by the banks that made some of these really bad loans or would you rather have it in your personal vault in the mountains or under your home?

NONE OF THE MAJOR SOVEREIGN DEBT STRAPPED NATIONS IS GOING TO DECLARE IT SELF INSOLVENT. THEY ARE GOING TO BAIL AND PRINT MONEY UNTIL THE DEBT IS PAID IN UNITS AND THE PRICE WILL COME OUT OF THEIR CURRENCIES.

In my opinion, none of the major sovereign debt strapped nations is going to declare bankruptcy. They are going to bail and print money until the debt is paid in unit terms and the way they will do that is with the printing press. Bottom line, make sure you have real money, gold and silver.

Dubai's Debt Woes Signal New Era for Creditors

"…"Bad News for Creditors

After an Abu Dhabi-led bailout of Dubai in February of $10 billion, some investors where convinced that more money would keep flowing.

It is not a matter of whether Abu Dhabi can bailout Dubai but a question of the terms under which they will be willing to do so and what impact this will have on other creditors.

Global banking giants like HSBC [HSBA-LN 706.30 0.70 (+0.1%)] , Citi [C 4.09 -0.08 (-1.92%) ] , Standard Chartered [STAN-LN 1520.00 6.00 (+0.4%)] and Barclays [BARC-LN 297.85 6.75 (+2.32%)] all have significant exposure to the UAE, of which some will be exposed directly to Dubai…."

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