As the world nervously waits to see what chaos will unfold on the heels of the historic Greek vote to reject more European austerity, the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that we will see massive contagion that will lead to a worldwide financial catastrophe.
Egon von Greyerz: “We are facing colossal problems in the world today. The U.S. is bankrupt, with debts having increased each year since the early 1960s. And in this century debts have gone up exponentially….
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“The U.S. has also had a trade deficit every year since the 1970s. So this is a country that’s been living above its means for half a century.
And what is the U.S. government doing about the fact that they are essentially bankrupt? Are they cutting expenditures? Are they reducing the size of the government? Of course not. Spending is going up continuously, especially on Social Security, Medicare and defense. When an economy is weak it is always good to please the people and increase benefits in order to buy votes.
Will A Desperate U.S. Start World War III?
The other tactic that all governments have used throughout history when under economic pressure is to start wars. Wars are always a perfect excuse for the people to take on even more debt. But the world will eventually reject the U.S. dollar as the reserve currency and this will put an end to this madness."
Eric King: “Egon, your thoughts on what has transpired in Greece. I think the outcome has shocked the world.”
Europe In A Catch-22
Greyerz: “Eric, it has shocked the world and nobody seems to know what to do in the aftermath. Until now, no one has ever before called the bluff of the elites. Europe is in real trouble here. If debt is not forgiven now, Greece will not survive. That is a fact. The IMF wants to forgive debt but Germany is not prepared to forgive debt. And if they forgive debt, that means that Spain, Italy, Spain, Portugal, etc, will have to write-off large loans to Greece and they can’t afford to do that.
Regardless, Greece needs debt forgiveness, otherwise they can’t survive. And if there is debt forgiveness, then you have a massive problem in the European banking system because European banks won’t survive. Also, the European countries that have lent to Greece may not survive. Plus, they will want the same forgiveness for themselves.
Just Like Greece, The ECB Is Bankrupt
The European banks and the ECB have major outstanding lines out to Greece. On top of that, the Fed also has swap lines to the ECB. The ECB is now bankrupt, just as Greece is bankrupt. Greek debt is worth zero and the same is true for Italy, Spain and Portugal.
And if you look at Germany, throughout history (in the last 100 years) Germany has never repaid its debt. So no countries are repaying debt. Therefore, Eric, we have a massive problem in the $100 trillion worldwide bond market. There is no liquidity in this market and this is where we will soon see a problem. We will see the bond market totally seizing up in the next few months. Eric, people simply don’t understand that this is a much bigger problem than Greece.
Expect Massive Contagion That Will Lead To A Worldwide Financial Catastrophe
So we are talking about a worldwide problem, not just a Greek problem. The majority of the $100 trillion bond market is worthless, and of course a ticking time-bomb of over $1 quadrillion worth of derivatives is linked to that. This means that, sadly, we are heading into a major contagion that will lead to financial catastrophe for the world. This will also lead to an implosion of all bubble assets across the globe. So to own physical gold and silver are absolutely essential to ensure against the coming wealth destruction.” ***KWN has now released the incredible interview with the top trends forecaster in the world, Gerald Celente, where he discusses why the global panic is on, what surprises to expect and how it will impact major markets, including gold and silver, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the extraordinary audio interview with Andrew Maguire, where he discusses the gold and silver takedown, why the silver market is poised to skyrocket, the astonishing moves in the gold market by the bullion banks and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
Also, to sign-up for Andrew Maguire's incredible gold and silver trading service CLICK HERE or email King World News for more information.
***ALSO RELEASED: Bill Fleckenstein – "There Is No Time Left" As Greek Crisis Is Poised To Go Global, Plus A Bonus Q&A CLICK HERE.
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The audio interviews with Gerald Celente, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Rick Rule, Nomi Prins, Bill Fleckenstein, Stephen Leeb, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, John Mauldin, Egon von Greyerz, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.
