Economist Dr. Philippa Malmgren articulates my views in a far more accessible manner than I ever could. The short version goes something like this.
There’s entirely too much debt in the world today and most of it will never be repaid. The consequences of those massive defaults will involve destabilizing levels of economic pain for ordinary people. This will constitute a break in the social contract and result in political revolts as well as international conflict.
Paper instruments will continue to lose value while hard assets become increasingly vital and expensive. After a period of time (call it twenty years, give or take) the old institutions will be reformed or replaced with ones that conform to external reality.
None of us as individuals has any control over the large scale transitions that are coming. But we all have the ability to reorganize our own affairs to benefit from these shifts ahead of the curve. This is a good time to disinvest from abstractions, get out of debt, and make a personal transition toward a more local, tangible, and direct economy in our own communities.