"I have directed the Secretary of the Treasury to take the action necessary, to defend the dollar against the speculators". In 1971, Nixon severed the dollar from its backing with gold. "Backed by nothing except government promises" as James Turk, director of GoldMoney Foundation describes, this once temporary 'fiat currency' has allowed limitless spending by the US government. They have run a deficit ever since, functioning on ever-growing loans in a snowballing 'Ponzi scheme' invested in by other countries.

"Remember when a chocolate bar cost a quarter? When you could fill up your car for $5 and feed a family of six for $35 a week?" The common complaints of those feeling the pinch on their pockets are just the beginning of problems yet to come. Skewed inflation figures allow governments to pay out less, yet the real rates of inflation are truly concerning. As Peter Schiff warns, this is no ordinary recession: "I think this is the end game... an absolute failure, not only for America, but for the entire world".

How will the economy extricate itself from this mess? Teetering on the edge of a disaster, the world is in danger of falling deep into a crevice of hyperinflation, with no knowing what lies beneath. As Schiff predicts, "everybody has tethered their ships to the titanic of currencies, and so we're all going to go down". Is the only solution a return to a gold standard? And will anybody be able to hold onto prosperity? One thing seems likely; before it is to be rebuilt, this house of cards will have to collapse.

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