Today the man who has become legendary for his predictions on QE, historic moves in currencies, warned King World News about a total recipe for disaster that will make people’s life savings disappear in the blink of an eye.
Egon von Greyerz: “It is not only paper gold which is Fake. Few investors realise that most of their investments are Fake…
Continue reading the Egon von Greyerz interview below…
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Egon von Greyerz continues: “Fake news and Fake assets are everywhere. Let’s start with social media which dominates major parts of the world. Facebook, for example, has 2 billion active users. WhatsApp has 1.2 billion users and Instagram 700 million. There will obviously be quite a lot of overlap between the various social media. But what it is clear that these three apps reach billions of people and their power is much bigger than that of any other media; Social Media has more impact than newspapers or television and is the only media that 2-3 billion people follow regularly. Most people, and in particular young people, don’t watch television and don’t read the papers. They get all of their “news” from social media.
Social media is instant gratification. You post something or you send a message and you get a message back or a number of likes which generates dopamine and makes you momentarily happy. But as I have experienced from our many grandchildren, social media is a perfect source of Fake news. Many young people using social media will be receivers of Fake News or bullying. Social media is perfect for spreading false rumors which are very often difficult to get rid of. Trump’s Twitter account is another example of alleged Fake News. Trump accuses the papers and television of Fake News and they accuse him of the same. This is the world we live in today – a world with Fake markets, Fake assets, Fake values, Fake money, Fake people and Fake news.
A World Of Electronic Entries
There was recently an interesting example of Fake identity in Sweden. The head of Sweden’s biggest security company, Securitas, had his identity stolen in March. A loan of an undisclosed amount was then taken out by the person who stole the identity. The loan was not repaid and the Fake head of Securitas was declared bankrupt on July 10th. The real head of the company was not aware and has been fighting to reinstate his honor and position.
We are now in a world where everything becomes electronic entries. Real people are no longer important. We are just all electronic entries in a register.
It is the same with money. Money is today totally Fake. Money used to be silver or gold. To make trading easier, it was later replaced by paper money, on a one for one basis. So paper money still represented real value for goods and services. But bankers and governments soon realized that by reducing the amount of precious metal in a coin they could enrich themselves. They didn’t care that this was fraud and debased the value of “real” money. Later the same was done with paper money. When paper money was first introduced, it represented the amount of silver or gold held by the bank. Soon governments and bankers realized that by leveraging the silver and gold they could make a lot more money at the expense of savers and depositors. And so the Ponzi scheme started with Fake Money and Fake Assets.
Today we have a situation when virtually all assets and all liabilities are just electronic entries leveraging the underlying “real”values 10s, 100s or 1,000s of times. Money is leveraged many times, stocks are also leveraged by the issuance of various derivative instruments like ETFs or futures, which supposedly reflect the underlying instrument but which, in effect, is just an electronic entry with nothing behind it. Since the global debt position, including unfunded liabilities and derivatives, amounts to over $2 quadrillion, so should global assets. But global assets are not even a fraction of that. Supposedly, global assets are $250 billion, but these are all bubble valuations that will implode as the debts and liabilities implode.
All Your Money Wiped Out In The Blink Of An Eye
I am spending some time in Sweden currently and experiencing the cashless society. In many places cash is not accepted. Everyone wants credit card or electronic payment. Banks charge a high fee for anyone depositing cash. Nobody realizes that their money is just an electronic entry that can be turned off in a second by the government. This means that their money will be totally gone and will never reappear again. This is what governments and central banks are introducing into most Western countries. People believe that their money is safe in the bank and don’t realize that electronic money is not introduced for convenience but to stop people taking money out when the heavily leveraged and insolvent banks run out of cash. What everyone with a bank account must understand is that one day there will be little or no money left in the bank. ATMs will then be closed and no money will be available. This is an elegant solution to the insolvency of the financial system. No paper money will be available nor any electronic money. Thus, there is no money to be had.
At that point, the government will no longer print money for private individuals, since it can’t be used. Instead they will print coupons to be used in shops and for other expenses. This is already happening in countries like Zimbabwe today. Alternatively, they will allow people to spend a very limited amount of their bank balance every month. There will of course still be massive money printing to save the financial system as all assets implode. But very little of that money will reach ordinary people.
Most people will consider this scenario as totally unrealistic and worse than doomsday. Hopefully it will never happen. But the point I am making is that by handing over assets to the banks, and ultimately to the government, which controls the banks, most people will totally have surrendered control of their assets. It is of course not only cash which would suffer this destiny but all assets which are held within the financial system, whether it is stocks, bonds, or any other security held in electronic form.
World At The Precipice – A Recipe For Total Disaster
We have now reached a stage when the world is no longer at a crossroads, instead it has reached a dead end. But this is not a dead end with a chance of going back. It is a dead end with the only way out being a precipice. And this is where the world could easily be heading next.
The build-up has been the perfect recipe for disaster:
1. Take $18 trillion of debt printed by insolvent central banks, up 300% since 2006.
2. Add other public debt as well as private debt to reach $230 trillion, up 60% since 2006.
3. Add unfunded global liabilities and other commitments of $270 trillion making a total of $500 trillion at a minimum.
4. Just one small bit to add, which is derivatives of $1.5 quadrillion taking us to a total of $2 quadrillion or more.
5. Run budget deficits for over 50 years like the US.
6. Always buy more than you sell, creating trade deficits for over 40 years, again like the US or the UK.
7. Print money to pay for all your government expenses like Japan.
8. Buy your own debt like Japan, USA, the EU, UK, etc.
9. Mismanage your country and currency until the money reaches its intrinsic value of Zero. So far, all major currencies are down 97-99% since 1913.
10. Allow the financial system unlimited leverage to benefit a miniscule minority and burden the masses with debt.
11. Manipulate all markets to totally obscure price discovery.
12. Set interest rates at zero or negative so that governments can borrow unlimited amounts.
13. Suppress the value of gold in order to hide the mismanagement of money and the economy.
14. Set up a system of misinformation and Fake news to mislead the people.
15. Once 1 to 14 has been achieved, start at 1 again and do more of the same.
Protect Yourself Against Biggest Risk In World History
So what is the best recipe for protecting against the biggest risk in world economic history? Hard assets held directly by the investor reduces the risk. This can be anything from property, farmland, forest or mineral assets. For most people it is impractical to hold these types of assets. Instead, the perfect asset to protect against the risks in the financial system is of course physical gold or silver stored safely outside the system and preferably outside your country of residence.
This is the time not to trust Fake news or Fake assets. Only real assets will protect you.”
***KWN has now released the remarkable audio interview with legend Rob Arnott and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: Legend Who Helps Oversee $188 Billion Warns Central Banks Will Prevent Deflation CLICK HERE.
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