Today a 42-year market veteran told King World News that the powers that be have frozen the money intended for the Swiss Gold Initiative. This is a stunning event. Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this extraordinary interview.
Greyerz: “Eric, there was a time when central bankers were independent and free thinking individuals. But now they are all part of the system. They are more investment bankers than central bankers. Alan Greenspan wrote in 1966, ‘In the absence of a gold standard there is no way to prevent savings from confiscation through inflation.’….
Continue reading the Egon von Greyerz interview below…
“Before joining the Fed, Alan Greenspan was totally in favor of owning gold. But by 1987 he was busy at the Fed. Later he was manipulating markets and printing money as U.S. debt levels skyrocketed. But today Greenspan is free from constraints, so he is once again saying that gold is a good place to be because it’s not possible for the Fed to end its easy money policies.
And if we look at Switzerland, before 1999 Switzerland kept 40 percent gold in the Swiss National Bank’s balance sheet. This was a requirement. But the central planners snuck something into the Constitution that changed that requirement and the amount of gold plunged from 40 percent in 1999, down to 19 percent in 2009. But then Switzerland really started printing money and so now there is only 7 percent gold in the Swiss National Bank’s balance sheet, which is one of the lowest of all the European countries.
As you know, Eric, I have been involved in the Swiss Gold Initiative. The Swiss National Bank is opposing this initiative. They have admitted that it stops their ability to manipulate markets. The campaign is going well. The public has generously donated because of KWN and other sites. But that came to a stop two days ago when Paypal closed the account for donations and they froze the funds that were in that account without any warning.
So unfortunately the campaign cannot receive some of those donations which were just frozen. Paypal will not even answer the questions we are asking them, but I assume the money will be returned to the donors. Clearly the powers that be did not want the campaign to receive this money. We will keep on fighting for this campaign because gold will always have an advantage over worthless printed pieces of paper that governments and central banks create at will in order to manipulate markets.”
Greyerz added: “But coming back to the Fed, Eric, they will never be able to permanently stop QE. It’s not that QE is a solution, it’s just that if they stop it rates will go up and there will be no chance to refinance the massive U.S. debt load or the Fed’s own balance sheet. The system cannot survive with higher rates.
So I believe there will continue to be some type of ongoing secret QE done through foreign central banks or some type of Plunge Protection Team. But eventually the system will require massive worldwide money printing. This is because the problems from the 2008 collapse are still present in the system.
But regardless, the public will continue to suffer with high unemployment, high personal debt loads, and falling real wages. 90 percent of Americans are poorer today than they were in 1987. 58 percent of the population is now earning below $28,000. We also just saw a 19-year low in mortgage applications, which shows that the problem in the real economy is massive.
But we will also see more QE in Japan, where there are huge problems. And China’s property market is now in a real bubble. This will affect China’s banking and shadow banking system. French unemployment is also at a record high now, and Germany’s Business Confidence is at a 6-month low.
If you look at the stress tests in Europe, 25 banks failed. But the stress test was devised in such a way that most banks passed. Virtually all of them would have failed a normal stress test. But even the banks which did not pass the test won’t have to take measures to pass at a later stage. The bad debt in Europe is now over $1 trillion euros. This will eventually mean even more massive money printing in Europe.
So people need to be patient and focus on the fundamentals as the Western central planners push the gold and silver prices around one last time in their game of psychological warfare against hard asset investors. Before this is over, Eric, the people invested in gold and silver will see the prices of the only true money the world has ever seen skyrocket.”
UPDATE – KWN has more interviews being released today.
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The audio interviews with Bill Fleckenstein, Rick Santelli, Rick Rule, Michael Pento, Paul Craig Roberts, Andrew Huszar, Andrew Maguire, MEP Nigel Farage, John Mauldin, Egon von Greyerz, Michael Belkin, and Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf — to listen CLICK HERE.