The best way to cash in on the debt crisis is to buy gold or gold shares. (All these words are for informational purposes only - its not advice… consult a professional etc)

Australia is facing record debt levels as housing prices reached all time highs in some states a couple of years ago - and they continue to rise in some states such as Western Australia. Like the U.S. housing bubble, when property prices rose, people refinanced so they could buy all kinds of consumer junk.

According to a recent study from the OECD March 2001 to to five years later Australia’s household debt-to-income ratio went rose from 98.2 to 159 per cent. Higher than both the U.S. or New Zealands.

Baby Boomers in Australia are leveraged up to the eyeballs in investment property. Generation Y have been getting student loans and Ipods with credit cards.

With the U.S. dollar on a downward spiral due to massive levels of debt, theres only so much Australian and New Zealand dollars investors can buy before these two currencies also become overvalued.

Australias dollar like New Zealands doesn’t deserve to rise due to the massive debt levels and current account deficits of these countries. The only thing it has in favor over the U.S. is that both the Australian and New Zealand governments have been more prudent in their spending.

Thats when investors and governments like China and Russia will turn to gold. Australia has a lot of good gold companies - although some got caught out with poor hedging strategies when gold started rising again in 1999.

Because of the massive debt binge of most Western countries the worlds central banks have been pumping out cash like never before.

The gold supply has been miniscule compared with the paper cash supply.

Over the last three years for every ounce of gold produced $240,000 has been added to the world money supply.