Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News about what has Western central planners so terrified. He also warned that a major panic is coming as the world is rocked by global financial chaos.
Egon von Greyerz: “Eric, the die is cast and the world is now on its way to a secular decline of a magnitude never seen in history. No country and no central bank can stop the inevitable implosion of all the asset and debt bubbles in the last 100 years….
Continue reading the Egon von Greyerz interview below…
“The Fed, which is the central bank that should take the leadership in solving the problem, is the party that has actually caused the mess. The Fed does not have a clue what to do. They believe so much in their own rhetoric and all the phony and manipulated economic figures that they don’t even recognize the economic decline that is happening in front of their eyes.
More Stimulus And More QE Coming As The World Economy Falls Off A Cliff
For quite a while the Fed has led the market to believe that there would have been a rate increase at their meeting this week. But of course that did not happen. So now the guidance is that there will be rate increases at the next two meetings, with the first one in September. But, Eric, soon the data-dependent Fed will realize that there will be no room for rate increases. Instead, there will be more stimulus and more QE, as the U.S., the EU and the rest of the world economy falls off a cliff.
We know that QE is totally ineffective for the general economy. It’s only contributed to making the gap between the rich and the poor even more massive. This is a gap that will lead to more social unrest.
Since the beginning of the Great Financial Crisis, not only has U.S. federal debt doubled, but non-financial debt has gone from $2.6 trillion to $5.8 trillion. Student loans have also doubled to $1.3 trillion. In spite of this massive debt explosion, both real inflation-adjusted GDP and real median wages are declining in the United States. But that is not surprising because how can anyone believe that an exponential explosion of debt can create prosperity?
The World Does Not Believe In U.S. Fairy Tales
Regardless, the world does not believe in the fairy tale of a strong U.S. economy. For example, the dollar has declined 1.5 percent against the euro since the Fed released their statement on Wednesday. In fact, since Nixon abolished the gold backing of the dollar in 1971, the performance of the dollar has been appalling.
Just look at the dollar vs the Swiss franc. Since 1971 the dollar has fallen 80 percent. A fall of that magnitude reveals disastrous economic policies and failed leadership. The dollar is living on borrowed time and so is the U.S. economy.
Eric, you’ve had a number of excellent articles in the last week by people who really understand what is happening. I wish that even more people around the world would read these pieces of wisdom so they would understand what is really happening and what the real risks are. But sadly Western mainstream media propaganda is just a fountain of misinformation.
With everyone watching the tragedy in Greece unfold, one thing is certain — it’s a disaster for the Greek people. And it’s to be followed by Spain, Italy, Portugal and many other countries. The majority of the young, up to the ages of 34, in these countries are living with their parents, and all of them are unemployed. Eric, these young people can’t earn a living to sustain themselves. Who is then going to pay for the old — their pensions and their healthcare? And who is going to pay interest on the increasing debt? And who is going to repay the principal? Nobody.
Western Central Planners Terrified Of A Greek Domino Effect
This is why all these countries are bankrupt as well as Japan, the U.S. and many other nations. At least Greece has admitted it’s bankrupt. But the eurocrats and the IMF will not accept the Greek bankruptcy for face-saving reasons. They are also terrified that the domino effect of a Greek default will make not only the EU house of cards collapse, but also the entire global financial system.
The farce is continuing to play out but the Greeks are no longer accepting the conditions of the eurocrats and the IMF. The Greek debt committee just declared that the Greek debt of 320 billion euros is a direct infringement of the fundamental rights of the Greek people. Therefore the debt is illegal, illegitimate and odious.
So it is clear, Eric, that the Greeks can’t repay any of their debt, nor are they prepared to be subjected to even more austerity. The Greek saga is coming to a sad ending, even if Greece gets a temporary stay of execution.
The Ban On Cash And Big Brother Is Watching You
Eric, as you know the authorities in Western countries are implementing Big Brother tactics in many areas of people’s lives. But while France intends to limit cash withdrawals to 1,000 euros, the Bundesbank chief has just said no to a German cash ban. I find this situation very interesting. It’s only economically weak countries that are trying to ban cash.
It’s the same in Switzerland. There you can withdrawal 100,000 Swiss francs at a time. When a currency is strong, cash has real value. As I mentioned previously, the dollar is down 80 percent vs the Swiss franc since 1971. I believe that the dollar is now starting its next leg down. So I expect the dollar to decline another 50 percent vs the Swiss franc in the next few years.
Coming Moves In Gold And Silver To Shock The World
But I would rather hold gold than any paper currency. It looks like gold is finally starting what should be a dramatic move to new highs. And I agree with John Embry that silver is ridiculously undervalued. The only question now is: Will gold and silver start their moves to new highs now or in the autumn? Either way, the coming move in the metals will shock the world and catch investors completely by surprise. Then the real panic into gold and silver and out of paper assets will begin in earnest.” ***ALSO JUST RELEASED: Gold Surges Above $1,200 As Veteran Warns – "Control Of The Bond Market Is At Stake Here CLICK HERE.
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The audio interviews with Gerald Celente, Bill Fleckenstein, Stephen Leeb, Andrew Maguire, Michael Pento, Dr. Paul Craig Roberts, Eric Sprott, Robert Arnott, David Stockman, Chris Powell, Rick Rule, John Mauldin, Egon von Greyerz, James Turk, Dr. Philippa Malmgren, Marc Faber, Felix Zulauf, John Embry and Rick Santelli are available now and you can listen to them by CLICKING HERE.