How many Lehman's would it take to equal Spain? Hmmmmmm........
Oh, and don't forget their good buddy Italy. They won't go solo. They will go down together.
Just my humble opinion.
Of course, in the meantime, the little guys get crushed under inflation and see all their savings turned into so much worthless paper. Even if things collapse into anarchy and rioting (and I certainly hope it never does), it's the little guys who will suffer and die from it all. The central bankers/planners will sit in their ivory towers, safe from all the plebeian noise on the streets below.
So, in the short to medium term, I see the financial giants of the world playing stupid fiat games to perpetuate the 'norm', with the risk-free bullish markets that come with that. In the long term, buy physical metals, and anything else you think might make good bartering material. Whiskey and cigarettes seem like good ideas to me.
And remember, the best hedge against inflation (or currency being devalued into nothingness) is debt.
(Disclaimer: I make no claims that anyone following my words will prosper or end up any better off than they would if they spent all their money on iPad apps and Little Debby oatmeal cookies. Please do your own research, make your own predictions, and brazenly share them somewhere online so your future employers can wonder what the hell you were thinking when you put that on the web.)
Your statement that debt is the best hedge against inflation is brilliant. You might as well use inflation to your advantage if you have to.
Of course, there is good debt management and bad debt management. If someone is seriously thinking of doing this they need to be able to revert to savings quickly when interest rates increases (aka - lower inflation).
Im looking at refinancing right now for the freaking 4th time in 4 years (2 for our old house, now a rental). For those in VA I learned something interesting today.. you can refinance with the same lender as your original loan in VA and avoid paying transfer taxes. If another lender has a better rate then you have to weigh which is better, but it is nice to know.