As investors await the outcome of tomorrow’s election, a former associate of George Soros just warned King World News about what is going “to send the world into total chaos.”
Victor Sperandeo manages over $3 billion, has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below is what Sperandeo had to say.
Victor Sperandeo: “The days of low interest rates are over. This is very important for people to understand, Eric. There will be no more lowering of interest rates and QEs…
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Victor Sperandeo continues: “There is still some leftover QE. England and the EU still have some but once that is over, that’s it. That game is finished. It didn’t work. So they are now going to fiscal policy and infrastructure spending because they believe this will keep them in power.
With that said, last week Larry Summers said the Fed has to give up their independence. He said the Treasury has to effectively sell to the Fed and the Fed will print the money and return it to the Treasury. And so he backed up what Rosenberg was saying about the multi-trillion dollar scheme. Eric, this is pure printing of money, but the theory is that because people don’t directly get that money, it won’t create hyperinflation. But when this begins, this will be the beginning of when serious inflation will come back.
The Beginning Of The End Of The U.S. Dollar
I don’t believe this will work in the United States if Trump wins. If Hillary wins it is 100 percent guaranteed that it is going to be implemented. If this does happen you will get a huge amount of government spending that is going to juice the economy. But it will be the prelude to hyperinflation. So that is going to be the coming world event that will be the beginning of the end for the U.S. dollar.
And if you remember, gold was the hedge against serious inflation in the 1970s (see remarkable chart below).
In fact, from 1970 to 1980 gold compounded at a staggering 31.5 percent a year! I have never seen anything compound over a 10-year period at that rate. That’s astronomical. Just to put that in perspective, if gold went to $10,000 today it would only have compounded 22 percent over that same time frame.
A World In Total Chaos
And yet when you look at what is happening today, we have a global depression with the banking system blowing up. Look at Deutsche Bank, it has $46 trillion in derivatives and the bank is only valued at $18 billion. That is insane (laughter). Regardless, gold will act as a hedge and the price of gold will skyrocket because paper will be printed to the point where it’s worthless. And as the hyperinflation unfolds, it will send the world into total chaos and people need to be prepared for that.”
***KWN has now released the extraordinary audio interview with Egon von Greyerz, where he gives KWN listeners a look what is really happening behind the scenes globally and in the gold market, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: Look At What Is Unfolding In China And Other Key Regions Right Now CLICK HERE.
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