Eric King:  “Based on what you’ve been communicating to KWN, it appears you firmly believe that the 2008/2009 collapse is nothing compared to what’s in front of us?

Kaye:  “That’s right.  The 2008 collapse was just a warning shot.  That’s all it was.  And the reaction by governments around the world was simply one of panic....

Continue reading the William Kaye interview below...


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“They (the governments) took the easy way out.  Because of that they did not learn any of the lessons that should have been learned. 

If you have a problem which was precipitated by excess leverage, and ultimately the market is dictating that you can’t service that debt, which was going to lead to enormous wealth destruction, ultimately you’ve got to learn to intelligently de-lever.  But instead of doing that, additional layers of debt were piled on everywhere, while policies of financial repression were used to prevent interest rates from causing yet another financial convulsion.

But now we are getting to the point where the authorities are recognizing the fact that there is a major problem, and this cannot go on indefinitely.  Look at the destruction that has already taken place in emerging markets because of the very slight withdrawal of the most extraordinary aspects of quantitative easing.

Now you have China trying to tackle, as best they can, a Leviathan in the shadow banking sector.  Virtually all of the developed nations are trying to deal with the failed policies of the last several years.  The problem with that is they are not going to be able to succeed.  It would be one thing if they (central planners) had a hope in hell of coming to grips with the enormity of the problems they face, but the reality is they don’t.

So, yes, I’m very concerned about the future.  I believe that ultimately the decisions that policymakers are going to be facing either this year or next year, are going to be one of default or debase.  Neither of these sets of outcomes are going to be greeted well by financial markets.  This will mean much lower equity markets, higher interest rates, and a global reset with respect to the existing global financial architecture.  But what you are going to see in the future is going to be unprecedented.  I don’t even think the experience of the Great Depression of the 1930s will properly describe what is in store for people.

My fear is that as social unrest breaks out pretty much everywhere, the governments of the world will use this as an opportunity to increase the ‘Orwellian’ police state.  We have already seen signs of this in many countries, including the United States.  But governments will crack down even further.  So that will mean a further loss of freedoms for ordinary citizens, under the premise of restoring social order.  I view these trends as quite disturbing and leading to a future that is increasingly fascist in my view.”

© 2014 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.

IMPORTANT - KWN will be releasing interviews all day today with William Kaye, Eric Sprott and many others.

The audio interviews with Eric Sprott, Bill Fleckenstein, Egon von Greyerz, Dr. Paul Craig Roberts, Nigel Farage, James Dines, Gerald Celente, Andrew Maguire, Rob Arnott, David Stockman, Art Cashin and Dr. Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf -- to listen CLICK HERE.

Eric King

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© 2014 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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