Today the man who remarkably predicted the collapse of the euro against the Swiss franc warned King World News that we are now living in world of super-bubbles that has the planet headed toward an unprecedented global collapse and, importantly, time is now running out.
Egon von Greyerz: “Eric, we are now at the endgame and this is the biggest economic and financial bubble in history. Virtually every country in the world is under enormous pressure. But one country believes it is immune to all these problems around the world and that is, of course, the United States.
With both U.S. stocks and bonds near the highs and the dollar (recently) surging, it seems that the U.S. is still an invincible superpower. But sadly, Eric, the U.S. will just be the last country to fall and that fall is imminent….
Continue reading the Egon von Greyerz interview below…
The three super-bubbles that I just mentioned — dollars, stocks and bonds — are all in the process of finishing a move. It’s hard to say which one will fall first but it’s the fall of the dollar which will have the biggest impact on the world. The dollar isn’t really strong. It’s been falling for 50 years.
It (the dollar) is currently showing some temporary strength but that’s only because it’s the mirror image of every currency in the world. Gold is the best indicator of what is happening to currencies and all currencies have fallen 97 – 99 percent against gold in the last 100 years. In 2015, virtually every currency in the world has fallen against gold.
Since the world crisis started in 2007 – 2008, global debt has gone up by $60 trillion. But the world can never repay this debt. In 2015, Eric, 23 countries have already lowered interest rates in a futile attempt to stimulate the economy. But pushing on a string has no effect anymore.
Global QE And Debt Explosion
The ECB has now started their QE program and already increased it from 1.1 trillion euros to 1.5 trillion euros. And In Japan, Abe is trying to save the country from bankruptcy with massive money printing but he’s certain to fail. The explosion of debt in China from $2 trillion to $28 trillion this century has put enormous pressure on the Chinese economy, combined with the downturn in world trade.
Governments Run The Ultimate Ponzi Schemes
In my view it’s only a matter of time before the yuan is devalued and China commences QE2. But, Eric, no one should believe that QE in any way helps the people. QE is only there to try to save a bankrupt financial system, as central banks buy their own debt. 90 percent of ECB bond issuances will be monetized and 100 percent of the Japanese issuances. This means that countries first issue their own debt and than buy it. This is, of course, the ultimate of all Ponzi schemes.
Massive Leverage Will Lead To Unprecedented Global Finanancial Destruction
The U.S. just did a stress test on the banking system. They failed Santander and Deutsche Bank. Well, Deutsche Bank has 55 trillion euros in derivatives. Eric, German GDP is only 2.7 trillion euros. So Deutsche Bank is 20-times the Germany economy. That is partly why they failed the (stress) test.
As the (stress) test was carried out in the United States, (of course) all 31 U.S. banks passed. But just look at JP Morgan — their derivatives are around $75 trillion. That is more than 4-times U.S. GDP, with most of these derivatives being worthless.
More Bank Failures On The Way
And in Austria we just had a black swan event, with a regional bank unexpectedly going under. With Swiss franc mortgages and loans by Swiss and Austrian banks to eastern Europe, we are likely to see a lot more failures.
A recent estimate stated that top world banks are 300 billion euros short of safe assets. By the time this is over, Eric, it’s likely to be at least 300 trillion euros, rather than 300 billion, because if every bank valued their assets at market, no bank would be standing today.
Super-Bubbles And Collapse – Time Is Running Out!
Coming back to the three super-bubbles in the U.S. — dollar, stock market and bonds — I would expect two, if not three, to start a major and sustained fall this year. This fall will be the beginning of a long and very hard collapse of the world economy. So, Eric, I see a very difficult time for the world starting in 2015.” Egon von Greyerz's remarkable audio interview has now been released! To listen CLICK HERE OR ON THE IMAGE BELOW. Greyerz discusses the coming global collapse and how this will impact major markets and people around the world.
***ALSO READ: Severe Cracks In The System Warn Devastating Global Panic Is Near CLICK HERE.
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The audio interviews with Egon von Greyerz, Eric Sprott, Robert Arnott, Gerald Celente, Michael Pento, David Stockman, Marc Faber, Felix Zulauf, Andrew Maguire, John Mauldin, Dr. Paul Craig Roberts, Lord Christopher Monckton, Bill Fleckenstein, Dr. Philippa Malmgren, John Embry and Rick Santelli are available now. Other recent KWN interviews include Jim Grant — to listen CLICK HERE.