As we get ready to kickoff trading at the start of a new week, today the man who has become legendary for his predictions on QE and historic moves in currencies, told King World News that the coming terrifying global collapse will change the world for a very long time.
The Precipice Of Total Breakdown
April 8 (King World News) – Egon von Greyerz: “As the world is standing on the precipice of a total breakdown, an obvious question is: ‘Where is the money coming from to save the world from perdition?’ The same question was asked to Maharishi Mahesh Yogi in the 1970s when he was starting a global spiritual project. Maharishi was the founder of Transcendental Meditation and known as the Guru of groups like the Beatles and Beach Boys. When asked ‘Where is the money coming from?’ he replied ‘from wherever it is now.’…
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Egon von Greyerz continues: “That principle would work well in a system of sound money. Money would flow to sound investments and causes. But the financial system has not been based on sound money for a long time. Instead we have false money – money which is fabricated by central banks and commercial banks. This money has zero value and is backed by nothing, zilch, nada! So governments and individuals have spent money that doesn’t exist. This is why the world is sitting on a debt mountain including derivatives of around $2.5 Quadrillion.
Total Global Breakdown
The world is now facing the risk of a total breakdown of the global economy and the financial system as I outlined in my KWN article last week. The article covers the reasons for the monumental change the world will soon experience.
A miraculous improvement in the world economy, whereby most countries would produce surpluses to the extent to $100s of trillions in the next few years and the debt would be repaid. Fat chance that this will happen. Before that we would see elephants fly. For years the world has had to print and borrow more money just to stand still. We have now reached the point when false money creates a negative real return. And it is self-evident that printed money can never create wealth, but that fact is, sadly, understood by few.
The only other solution is to borrow and print more money in order to repay existing debt. This is what most Keynesians will recommend. What a wonderful system. You borrow more money in order to solve a debt problem. Why don’t we all stop working and just print money. Sounds like a great system. The problem is that the world has reached the point of no return and the current system isn’t working. Thus, there is no acceptable solution.
Massive Fraud And Global Financial Implosion
As the financial system implodes, there will initially be unlimited money printing by central banks, but this time it will have no effect. The world will finally realize that creating wealth by putting ink on pieces of paper, or pressing a button to fabricate trillions of dollars or euros is a massive fraud. This fraud has been going on for most of the last 100 years but ordinary people will soon learn the hard way how governments have ruined their lives along with the world economy.
The current fragile state of the world and the dire consequences of the coming breakdown would never be printed in a newspaper, nor discussed on television. Ordinary people, indoctrinated by governments and the media, are as bullish today as they were in 1929, before the crash. They are also as bullish as they were prior to the crashes of 1973, 1987, 2000 and 2007. Very few human beings understand that the world is facing insurmountable problems that can no longer be repaired by corrupt hocus pocus wizardry. Virtually nobody will be prepared for the imminent collapse. This is because neither the so-called experts, nor ordinary people can see or understand the risks. Then there is also the belief that governments will save the world once more by flooding it with printed money.
So where is the money coming from for:
* Food – There is likely to be major food shortages in the world. Food prices will hyperinflate and many people will not get sufficient food, leading to famine and malnourishment.
* The unemployed – In the US, for example, real unemployment today is not 4%. Instead, it is 23%. And that figure could easily grow to 50% or more. The same could be said about most Western countries.
* Social security – Governments will be insolvent and have no money for social security, unemployment or other benefits.
* Pensions – Most people in the world don’t have a pension today that will provide adequately for their old age. And for the ones who do, most existing pension schemes are severely underfunded. Also, pension funds are mainly invested in stocks, bonds and real estate. These three bubble markets will collapse and pension funds will become insolvent. This will be one of the many disaster areas for the world.
* Medical care – The level of government supported medical care will deteriorate dramatically and many hospitals will close. There will be private care for the ones who can afford it. Payment could be in the form of barter, like food or a bottle of whiskey, and, of course, gold.
* Government – Both central and local governments will run out of money and many departments will close down. Most of that will be beneficial as bureaucracy and waste will disappear. A lot of services that socialist governments have provided will cease to exist.
* Law and order – With hungry and dissatisfied citizens there will be civil unrest. There will not be enough paid policemen so governments will use the army and introduce compulsory conscription. If there is not enough money to pay the army, they will be paid like in Zimbabwe, with food coupons.
* Education – There will be major funding problems for schooling and further education, leading to closure of schools.
This Will Change The World For A Very Long Time
These are just some of the areas that will be affected. Still, the magnitude of the problems is so enormous that it will change the world for a very long time. I wish I were totally wrong in my predictions because if I am right, there could be suffering on a scale that humanity has never encountered before. What is very clear is that all the areas that I mention above will be affected to a greater or smaller degree. It is of course impossible to forecast the exact magnitude and timing of the problems.
The world has had many crises of various degrees in the past, be it the Black Death in the mid 1300s where an estimated 75 million to 200 million people died in Europe and Asia. Around 50% of Europe’s population is estimated to have perished. In WWI around 20 million people died and in WWII around 60-80 million. So major catastrophes are part of history and the coming one could also see a major reduction in world population be it from famine, disease, social unrest or war.
From the mid 1800s to today, world population has grown from 1 billion to 7.6 billion. If we look at the graph it is a straight spike up in the last 170 years (see below).
From a technical perspective, spikes up are always corrected by a spike down. We can’t tell when exactly that spike down will come but it is likely to be connected to the coming collapse of the financial system. A reduction in global population of 3-4 billion in the next few decades is a real possibility.
All this might sound very pessimistic and it would of course be the biggest disaster that the world has experienced. I am certainly not a pessimist by nature. All I am doing is analyzing the facts and the risks and these clearly point to a major change in the world in coming years.
Once Every 200,000 – 300,000 Years
Another risk which will materialize at some point is the change in polarity of the North and South Poles. This normally happens every once every 200,000 to 300,000 years but the last time was 780,000 years ago. The earth’s magnetic field has weakened 15% in the last 200 years and that is a strong indication that a flip is due. Recent satellite data from the European Space Agency also indicates that a flip is imminent. The problem with a flip is that it would make some areas of the world inhabitable by knocking out the power grids. People would also die from much higher radiation.
That was a lot of ‘bad news’ in one interview, but it is no use worrying about things we can’t do anything about. Nobody can fix the broken world economy — it is much too late for that. And nobody can stop the polarity flip. But what we can do is to take some steps in our little micro worlds. For the fortunate ones who have some savings, there is still time to protect against the unprecedented economic risks.
The trends that I have been forecasting for a while in my interviews are still in tact:
* Stocks have topped
* Dollar will crash together with other currencies
* Interest rates will go a lot higher
* Gold and silver stocks are an incredible bargain
* Physical gold and silver are ready to move a lot higher
US Dollar Index Will Plunge To 80!
Gold & Silver Mining Stocks Set To Explode Higher!
Price Of Gold Headed To New All-Time Highs!
Get Out Of Stocks, Dollars, Debt And Buy Mining Stocks
So get out of stocks, dollars and debt. Buy precious metals mining stocks. But remember that they are held within the financial system (if you don’t go for direct registration). Thus you are subject to custodial and counterparty risk. But the best form of wealth preservation is physical gold and silver stored outside the banking system. There is no better way to protect your wealth against the coming chaos and eventual collapse of the financial system.”
Regarding The Gold Market…
Eric King: “Matthew, I have been buying more shares of your company’s stock today and have now purchased a total of 1,500,000 shares because I believe it is one of the great gold opportunities of 2018.”
The Next Great Canadian Gold Story
Matthew, CEO of Maple Gold: “Right now we are sitting on the next great Canadian gold story. We have one of the best teams on the planet leading the exploration program in arguably the best jurisdiction in the world, with a 3.2 million ounce head start. In the middle of a rising gold market we have now secured the strongest Quebec funds to back the company, and I’ve announced a closing with them at 24 cents a share, without any warrants, with a lengthy hold period. The point is, Eric, they are looking at this as a long-term investment. This is the same group that financed Osisko from $20 million to a $4 billion market cap. And I’ve been to Asia many times looking for strategic partners and negotiations have progressed to the advanced stage. Any such investment would take place at a significant premium to the current market price.
Stock Set To Skyrocket With 8 Drills Turning!
Investors also need to understand that unlike many juniors, who no longer have drills turning, we have 8 drill rigs simultaneously attacking a variety of different targets. We have also now submitted nearly 5,000 assay samples to the lab and that number will continue to grow as we push for 20,000 meters in the current winter drilling program. We expect drill results to hit the market for three consecutive months, in April, May and June of this year. So the fundamentals of this company continue to expand at an exponential rate, providing a spectacular opportunity for investors to take advantage of the current market capitalization, which we be believe is extraordinarily discounted. Meaning, in my opinion anyone not buying the stock today will deeply regret not doing so, and anyone selling this stock before it surges to $1.50 – $2.50, will have even deeper regrets.
Insiders Buying More Stock
Eric, I know you have been aggressively buying shares of our company’s stock because you understand that when you look at the junior complex, finding companies with our type of upside, jurisdiction, partners, world class team, management, and 3+ million ounces of gold, with more to come, are extremely difficult to find. Meaning, it’s almost impossible to find another company that is this attractive. If I could buy more stock at this time I would. Unfortunately I am blacked out. And, Eric, just to give you an idea, a majority of the board of directors are participating in the offering at .24 a share, which as you know is higher than the current share price. Regardless, the stock is dirt cheap and I don’t believe it will be for long.” For those of you who have not yet acquired a stake in this high-quality company, now is the time. Maple Gold stock symbol MGMLF in the US and MGM in Canada.
***ALSO JUST RELEASED: MAJOR ALERT: Bullion Banks Again Most Bullish OnSilver In Histgory! Cover Gold & Silver Shorts! CLICK HERE TO READ.
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