Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News about twin crack-ups that are set to implode the world economy and financial system.
Egon von Greyerz: “Eric, the outcome for Greece could not have been worse, but it was totally predictable as we discussed last week. The troika will now grab a major part of Greece’s assets, and the banks will be controlled by the EU and the ECB….
Continue reading the Egon von Greyerz interview below…
“There will also be massive austerity measures, which will guarantee that Greece has no chance of surviving economically because it will experience a vicious cycle of falling revenues, falling GDP and higher deficits. This will also mean another huge decline in the country's standard of living.
Dominos Will Begin Falling Across The Globe
As history is written in the future, I believe that what has now happened to Greece will be seen as a reason for an implosion of the financial system that the world will experience in coming years. But just as the shot in Sarajevo in 1914 was not the real reason for World War I, Greece will not be the cause of the destruction of the world economy as we know it today. Regardless, starting in the autumn of 2015 we will see the dominoes beginning to fall around the world.
Eric, there are now more problem areas in the world, rather than stable situations. No major nation in the West can repay its debts. The same is true for Japan and most of the emerging markets. Europe is a failed experiment for socialism and deficit spending. China is a massive bubble, in terms of its stock markets, property markets and shadow banking system. Japan is also a basket case and the U.S. is the most indebted country in the world and has lived above its means for over 50 years.
DANGER: Twin Crack-Ups Set To Implode World Economy & Financial System
So we will see twin $200 trillion debt and $1.5 quadrillion derivatives implosions. That will lead to the most historic wealth destruction ever in global stock, with bond and property markets declining at least 75 – 95 percent. World trade will also contract dramatically and we will see massive hardship across the globe.
The dilemma is that the Social Security safety net that people in the West have been used to will disappear. Governments and central banks will not sit idly by while this is happening. We will see the most enormous money printing programs by the Fed, ECB, IMF, Bank of Japan and many other central banks. Eventually the total money printing will be in the hundreds of trillions and possibly even quadrillions of dollars. That will be the final phase of taking the value of today’s paper money to its intrinsic value, which is zero.
Virtually all paper currencies are already down 97 – 99 percent against gold in the last 100 years since the Fed was founded. So there is only 2 – 3 percent left that has yet to disappear. Meanwhile, gold is finishing its four-year correction since the 2011 high. And since the July low, gold has just consolidated along the bottom.
Gold’s weakness has really just been the function of a stronger dollar. In spite of being the most indebted country in the world and despite running deficits for over half a century, the dollar has strengthened temporarily in this final race to the bottom in all global fiat currencies. So it's primarily in dollars that the gold price is weak. In euros, yen and Australian dollars, for example, gold is up over 20 percent in the last couple of years. And even more so against weak currencies such as the ruble.
In coming months and years it will be absolutely critical to hold physical gold outside of the banking system. As the economic problems around the world continue to deteriorate, gold will resume its uptrend in all currencies, including the U.S. dollar. And as money printing accelerates, the value of paper money will evaporate while gold will skyrocket in price.
Bail-Ins Will Be Next – Do Not Hold Gold Or Other Valuables In Banks
The Greek crisis is proof of how important it is to hold a substantial amount of gold outside the banking system. The Greek banks almost collapsed, but because Greece is a relatively small country, its banking system was saved in the short term. But as the problems in the world economy and the financial system worsen, we will see bail-ins of depositors' money in most countries.
Also, as we just saw in Greece, when banks close, whether it’s temporary or permanent, account holders do not get access to their safe deposit boxes. So gold must not be held in any bank. Eric, the turmoil we have seen in Greece is nothing compared to what is still to come, and investors must be safely positioned in physical gold so that their savings of a lifetime are not destroyed in the coming carnage.” ***ALSO JUST RELEASED: Man Who Predicted Riots In Athens Warns All Hell Is Going To Break Loose CLICK HERE.
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The audio interviews with Egon von Greyerz, Nomi Prins, Gerald Celente, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Rick Rule, Bill Fleckenstein, Stephen Leeb, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, John Mauldin, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf and Rick Santelli are available now and you can listen to them by CLICKING HERE.