Euro, yes. USD, no. There’s simply too much cash floating around for both the EU and the USD to tank. CDN and AUS won’t be able to soak it all up.
Commodities? Sure, but there’s actually decline on the demand pressure. This has me really nervous. Sure people are stocking up, but there comes a point when everyone who is stocked up has enough and they don’t need anymore.
Sure China can spike commodities prices, but that will hurt them more than anybody else because they are the largest consumer outside the US. If they dump all their holdings in USD, the Chinese consumer is going to break.
Basically there are no scenarios where the result is anything better than awful.
Think of a game of musical chairs. The music has just stopped, and the players are scrambling to find a seat. Many won’t.
Deflation is possible - look at home prices in the US and many other countries. But I think we will see currency deflation in AUS and CDN dollar, plus yuan and rouble, but gold/oil/food spikes in euros and USD. Yen and pound are currencies likely to hit trouble, as their debt is higher than eurodebt or US Treasury debt. Try to see what the smart bankers are doing. Pimco is dumping Treasuries, but TLT has been up ever since that was announced. Of course, Pimco can get even better prices, but so can the Chinese and Japanese, and why wouldn’t they?