Back in the year 2008 the US big banks or investors loaned money to subprime housing borrowers under the false assumptions that "Housing market is rock solid - Borrowers will always be able to pay their mortgages. Although many borrowers don’t have adequate income to pay back their mortgages, the banks still approve housing loans". This assumption is proven false due to very poor lending practice which then creates a GFC. [Info: http://news.bbc.co.uk/2/hi/business/7073131.stm] Nowadays investors buy the government bonds of subprime governments (including the US) based on the assumption that "governments always pay their debts." In the US, the total amount of government debt(USD $ 19.4 trillion, Source: U.S. National Debt Clock : Real Time) is now approximately almost half size of the subprime housing debt and growing (USD $33 to $47 trillion as of November 200, Source: Subprime mortgage crisis - Wikipedia, the free encyclopedia). What make it worst is 30% of these Gov bonds are now on negative yield. Meaning investors are actually paying interest to the Government for buying negative yield bonds. So the big question is: Can OR Will US Government Default since the US can Print unlimited amount of fiat money? [More Info: http://www.investopedia.com/terms/f/fiatmoney.asp] How long can it be sustained? This will end badly and Alan Greenspan has said recently that High Inflation will come. Source: Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard | Zero Hedge Yes, government default may create a massive depression (government and central banks worst nightmare). So the only way to avoid government default is to continue creating government bonds/debt and printing money (Quantitative Easing) until the market & investors lose confidence/trust hoping that they will stop buying government bonds. What would you do to prepare when this happened? Any comments would be greatly appreciated.