The coming collapse

Peter Schiff is above all else a realist.  He tells the world here what he thinks is coming our way in very short order, and it's not pretty.  Anyone having read any of the number of books about currency collapses in earlier times would have to agree with Schiff's prediction about our currency because causes of financial implosions are pretty much the same over and over. Typically, excessive debt creation results in excessive speculation which results in excessive creation of fiat money which results in inflation and currency debasement.  Currency debasement results in the destruction of savings and the middle class.  It appears we are somewhere around the excessive creation of fiat money stage of this cycle, about to be visited by inflation and major currency debasement.  Whether this cycle is too far along to save the day or not, we're about to find out.  A friend has just completed his own careful and exhaustive analysis of our circumstances and concludes with a series of speculative and fundamental questions everyone should at the very least be asking themselves about now.  There may be other questions, but here are his:

1).  What are the odds of muddling through this financial quagmire in Europe and the US?
2).  What are the odds of experiencing a major shock -- default in Spain or a major European country, collapse of the        
       Euro, major bank failure(s) in Europe or the US, Israel invading Iran, etc?
3).  How do we protect ourselves on the downside?
4).  How can we protect our children and grandchildren?
5).  What should we invest in?
6).  Where should we live?