Egon von Greyerz continues:  

“He (Draghi) also said they will do all they can to preserve the euro and the eurozone.  They also want the IMF to be involved.  So here is the evidence that we are getting near this worldwide package of money printing which I have previously stated is in the works.  But the market is confused as to how they are going to do this without the central banks of the individual countries behind them.

Nevertheless the money printing will come, it’s absolutely guaranteed.  This was just the first step, and notice they used the word ‘unlimited.’  As Draghi indicated, large parts of the euro region are in disequilibrium.....

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“Of course they (large parts of Europe) are (in disequilibrium).  That’s the most massive understatement ever.  They are in a total mess, Eric.  Greece is bankrupt.  Italy will soon need a massive injection of funds, and Spain, of course, is a basket case.

The Spanish bank, which is taking actions that are against the ECB rules, the Spanish Central Bank is lending to the banking system.  Any lending is supposed to be done through the ECB, but the banks will go under if they don’t get the money.

But the Spanish Central Bank cannot do that for long.  So they will need funding from the ECB, and that will come.  The same is true for Greece, Ireland and Portugal, they are all getting funding from their central banks.  But their central banks can’t print that much money.

So a bailout is imminent and the coordinated money printing I have been talking about for a long time is going to happen this autumn.  I can see an autumn with massive storms, Eric.  There will be pressure from one country to the next, and the ECB, European governments, the IMF, and the Fed, they will all be fighting to keep the system together and that will mean printing more money.

I’ve said time and time again that the world is bankrupt economically, financially, and morally.  There is no return to the way things were.  So the few privileged individuals that have assets to protect, they must do everything they can to eliminate counterparty risk because the counterparty risk in the system is massive.

I’ve been saying that assets inside the banking system are exposed to major counterparty risk.  Even gold which is inside the banking system, whether it’s allocated or not, also has counterparty risk.  Even if it is allocated, and we’ve had examples of ‘allocated’ gold that hasn’t been there, but even if it is there, it is likely to be encumbered.

I need to add that we are now seeing a lot of fund managers and investors moving out of gold ETF’s, and taking delivery of physical gold and holding it outside of the banking system.  The reason for this is investors and asset managers are becoming deeply troubled at the thought of a systemic collapse, and the gold being encumbered inside the banking system in that circumstance.

Gold in a safe deposit box in a bank is also not safe because if something happens to the financial system banks will close, and who knows when they will reopen?  You will not have access to your gold.  So I would not keep gold in a safe deposit box.  The bottom line here is that gold and silver stored outside of the banking system is the ultimate way to preserve wealth.”

Greyerz also added:  “This move in gold and silver has barely started.  We will eventually see $100 up-days in gold, and silver will move several dollars in a single trading day.  So we will see an acceleration this autumn.

We will reach these short-term targets of $50 in silver, and roughly $2,000 in gold.  But I would add that I expect gold to reach $4,000 to $5,000, and silver $150, without any major correction.  After that we will have a bigger correction that should emanate from those elevated levels.

Over time we will go to much higher levels than that, but investors need to remember that it’s never a straight line and we have to be prepared for major volatility.”

KWN had an incorrect (old) link for the most recent Dr. Marc Faber interview. This was an incredibly powerful interview with one of the greats.  Dr. Marc Faber discusses everything from gold and silver, to investment allocations, confiscation fears, dangerous trends, protecting oneself, central planners, inflation and much more. The KWN audio with Dr. Marc Faber is available now and you can listen to it by CLICKING HERE.

© 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 interviews with Marc Faber, James Turk, Egon von Greyerz, Art Cashin (UBS $612 billion), Agnico CEO Sean Boyd, John Hathaway and Eric Sprott are available now.  Also, be sure to listen to last week’s line-up of other KWN interviews which included Jean-Marie Eveillard, John Mauldin, and Gerald Celente 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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