There is no peacetime precedent for the recent speed and scale of public debt accumulation. And the biggest increases are in the rich nations of the world- Spain,Ireland,Iceland,Japan,the US,and the UK.
So what does this mean? It means that many rich countries may go bankrupt through sovereign-debt default. And it means they cannot afford to pay the interest, much less the principal on their debt, so they must print money to pay for it.
Today, even rich countries, such as the US,Britain, and Japan, are on the edge of bankruptcy. Unfortunately, due to lack of financial awareness, most people don't even know that a sovereign nation can go bankrupt. Most people don't know that Russia went bankrupt only a few years ago. Most people expect their political leaders to save them.
If these rich countries start to cut back and stop spending money, the world financial crisis will worsen. If they keep spending money the way they are, the world financial crisis will also worsen. In other words, "We're toast."
Prepare for bad times and you will only know good times.
In the near future, only the strong will survive and thrive due to less competition. Unfortunately, this will mean more suffering for the weak or naive.
