Egon von Greyerz continues:  

“I’ve said to you that I expect the requirements to be in the tens of trillions of dollars, and that’s just for governments.  If you add to that corporate debt, private debt, mortgage debt, you are talking about sums that are hard to imagine.

S&P estimated that over the next few years, corporate debt refinancing will be roughly $30 trillion.  That’s just corporate refinancing.  If you add in the mortgage markets, the number is extremely high, and that will need to be printed by someone because the money isn’t there.  No one has the money....

Continue reading the Egon von Greyerz interview below...


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“You take even the $25 billion for Spain’s Bankia, they don’t have it.  We will have the same with every country that will need funding.  The money will not be available.  The only way to get it is to print it.

This excludes the derivatives.  The $1.1 quadrillion in derivatives that has been talked about on KWN, that was the reported figure from a few years ago.  It has been increasing.  If you just take JP Morgan, they now say they have $70 trillion outstanding in derivatives.  The actual number JP Morgan has is well over $100 trillion, as properly reported a few years ago.

JP Morgan’s loss is reported to be up to $8 billion on just one of these derivative positions.  Some have said it could be $100 billion.  If the loss is that large, we will never see it.  It will be dealt with behind closed doors and not released.

The tens of trillions of dollars that needs to be printed is without derivatives.  With derivatives, we are talking about hundred of trillions of dollars that may need to be printed.  I think we will get to that stage at some point.

Everything coming up, whether it’s a bank problem or a government problem, there is no money.  Nobody has any money.  Therefore, I think we are very near a QE package now between the Fed and the other central banks.  They have to.  There is no other way.

We are staring into the abyss, and sadly it’s just going to get worse.  I don’t think people understand the effect this will have on the world financial markets and currency markets.  As an example, we will have the most volatile currency markets ever seen going forward. 

I also don’t think we are far from exchange controls in many countries.  You might have seen that Argentina has started with exchange controls.  Everyone who wants to take money out of the country has to apply to the central bank.  They also have to show the money taken out for holiday travel has been declared. 

This is just the beginning.  We will have exchange controls in virtually every country.  I can see this coming to the US in the next year or two also, if not sooner.  The US will have currency controls just like Argentina.  This will happen when the US dollar comes under serious pressure, and that’s absolutely guaranteed at some point.

At the moment, Europeans are moving massive amounts of euros into US dollars and US Treasuries.  This is just going from the frying pan into the fire.  All currencies have fallen against gold about 80% in the last ten years, and they will continue to decline against gold.”

Von Greyerz also added:  “Gold has recently rebounded 3%, but the mining shares rallied 15%.  The value in the mining shares is incredible.  It’s like you are paying option money, but you are buying stocks.  I think the HUI will continue to outperform gold going forward for quite some time.”

© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

The interview with Newmont CEO Richard O’Brien is available now.  Also, be sure to listen to this week’s line-up of other KWN interviews which include John Hathaway, James Turk, Nigel Farage and Don Coxe by CLICKING HERE.

Eric King

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© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

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