Greyerz:  “Eric, the cracks in the world and the world economy are getting greater by the day, and we are soon entering a stage where these cracks will turn into black holes.  One of Portugal’s largest banks is now under real financial pressure.  And in Austria, the Hypo Alpe Bank is finished.  Erste Bank is also under pressure due to major losses on mortgage loans in Swiss francs to Hungary and Romania....

Continue reading the Egon von Greyerz interview below...


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“We’ve been discussing for a while how the European banks are not reflecting their true bad debt situation, and this is not just in countries like Spain, Italy, Portugal, and Greece, but also in France.

In Germany, Deutsche Bank, which has 50-times leverage, is also having problems.  Even in Sweden, whose economy is considered robust, they could not survive a major increase in interest rates.  The Swedes are borrowing more than most European countries in relation to their size.

Mario Draghi is aware of all this and will soon have to pull the trigger on a major support package.  The deflation in Europe is already a major problem since countries are borrowing even more due to the low interest rates.  So debts are rising and so are the risks.  All of this will lead to major bail-ins worldwide, with depositors being liable for the banks losses.

Germany has now approved bail-ins and the same is true for Canada.  We will soon see the return of the 2008-style crisis.  This time it will not be governments that will take the first hit, but bank depositors.  But eventually governments will have to step in since depositors funds will not cover the bank losses as the one quadrillion derivatives bubble explodes.

Stock markets are still at ridiculous levels in many countries.  In the U.S., for example, there are a lot fewer people employed, and the ones who have jobs have not seen a real wage increase for the last 30 years.  The U.S. also has massive debts and deficits, and on top of that GDP is falling.  Is that the sign of a booming economy?  No, certainly not.  And investors will soon find out through painful losses.

As the Fed ends tapering in October and stops buying Treasury bonds, stock markets and credit markets will crash.  But this crash may begin to unfold before October.  One of the key indicators of trouble will be a significant decline in the U.S. dollar.  The dollar is weak both fundamentally and technically.

As the reserve currency of the world, all it has backing it is massive debts.  The FATCA regulations as well as the attack by U.S. authorities on foreign banks will exacerbate the fall of the dollar.  After the U.S. $9 billion fine on the French bank BNP, the U.S. authorities are now looking at taking similar actions with German banks.  Both Deutsche Bank and Commerzbank are now being examined.

Russia, China, India, and many other countries are now turning away from the dollar, and so will many other European countries.  Are we looking at the demise of the dollar?  Well, these trend changes don’t happen overnight but we will soon see the start of this dramatic change.  There will be no reason for foreign investors to hold dollars, and Americans will see their mighty dollar lose value versus all currencies, and mostly against gold.

So, Eric, this time it is different because, as opposed to 2008/2009, investors and depositors will not be saved by printed trillions or quadrillions.  Yes, governments and central banks will print, but this time the dollar and other currencies will collapse.  So printed money will have virtually no effect and will be worthless. 

KWN has done a superb job in explaining to people what is happening in the gold market.  Gold is hated by governments in the West because it reveals their poor economic policies and the destruction in purchasing power of their currencies.  Also, the West has no physical gold left.  Central banks and bullion banks in the West have virtually empty gold vaults.  All this gold has gone to the East, especially China and India.

The West is now going to fight this final battle by issuing unlimited amounts of worthless paper, but this time it will have no effect.  We’ve seen a good rise in gold and silver today, and as we’ve discussed, the final low has already taken place in early June.  I would expect a major move between now and the end of July.  We may then see a pause in August, before the autumn when gold and silver will start their surge to new highs.”

© 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 has many more interviews being released today.

The audio interviews with William Kaye, Dr. Stephen Leeb, Paul Craig Roberts, John Hathaway, Gerald Celente, Grant Williams, Andrew Maguire, Egon von Greyerz, David Stockman, MEP Nigel Farage 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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