Egon’s Publications

How Long Before Global Financial System Fails?

Moderated April 22nd, 2016 by
Categories: All publications, Egon's Publications
How Long Before Global Financial System Fails?

How Long Before Global Financial System Fails?
By Egon von Greyerz

 

The global economy turned down in earnest already in 2006 but with a massive worldwide printing and lending programme, the world has had a temporary stay of execution. But the effect of this fabricated money has now come to an end. And what else would you expect. To print money that has no value or to lend money that doesn’t exist can never create wealth or save anybody. The downturn will soon start to accelerate and eventually lead to a total failure of the financial system and sovereign defaults. But no one must believe that there will be a sudden implosion or a “reset” that solves or changes everything. Instead, what we will experience is a process with things deteriorating at a fast pace but without one single event that overnight changes everything.

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It is actually happening all around us right now. Let’s just look at some examples of the stresses within the system. The ECB is facing bank failures in almost every member country. An Austrian bank just had to be bailed-in and the whole Italian banking system is on the verge of collapse. The Greek banks are already bankrupt although no one dares to declare it officially. The ECB knows that they only have one tool left to temporarily postpone a breakdown of the European banking system and that is to further increase its money printing programme. Only in the last 15 months, the balance sheet of the ECB has exploded by 45% to Euro 3 trillion. The Bundesbank, the German central bank, is totally aware of the predicament of the European banks. But they also know that they will be on the hook for the majority of the money printed by the ECB and therefore they have indicated that they will sue the ECB if it accelerates money printing.

The Fed is not printing money currently but in my view it is only a matter of time before we see a major QE programme in the US due to a deteriorating economy and a financial system under pressure. US outstanding derivatives are at least $500 trillion and most of that will just implode as counter-party fails. The Fed and the FDIC are concerned about this and that is why they just issued a warning to US banks. They told JP Morgan for example that the bank is unprepared for a crisis and that they have no plans for winding down their derivatives. JP Morgan’s derivatives exposure, properly valued, is probably in excess of $100 trillion.

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Sheila speaks with Egon von Greyerz on global risk

In this video interview, shot in beautiful Catalonia in Spain, Egon talks to Sheila, who is a private investor, with concerns about the safety of the financial system.

Egon outlines the sovereign debt problems with countries from Japan, China, Europe and the USA and emerging markets all being virtually bankrupt.

Sheila asks about the safety of keeping assets in the bank; Egon explains that this risk is now higher than it has ever been in history. Banks are in a much worse position then they were in 2006 when the financial system was on the verge of collapse. Since that time global debt has gone up exponentially.
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World Economy Is Terminally Broken After 50 Years Of Misgovernment

Moderated April 7th, 2016 by
Categories: All publications, Egon's Publications
World Economy Is Terminally Broken After 50 Years Of Misgovernment

World Economy Is Terminally Broken
After 50 Years Of Misgovernment
by Egon von Greyerz

 

In a world of manipulated economic figures and markets, it is not always easy to maintain your sanity. The world economy is now based on fantasy and hope and has very little to do with reality. But the problem is that virtually nobody understands this. Whether it is a bank analyst or a Nobel Prize winner in economics, they are all spreading the same false message. The Western press and news media are just reporting what governments and the elite are telling them. There is no analysis and no attempt to find the truth in anything. This is why we are now in an era of indoctrination and total brainwashing of the masses. Most people are totally apathetic and incapable of realising that they are being led down a path, both morally and economically, that will make life on earth a lot more difficult not just for the present generation but probably for several generations to come.

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Your Money In The Bank Will Be Gone

Moderated March 17th, 2016 by
Categories: All publications, Egon's Publications, King World News
Your Money In The Bank Will Be Gone

Your Money In The Bank Will Be Gone
By Egon von Greyerz

 

For anyone who has money in the bank today, it is virtually guaranteed that in the next 5-7 years either the bank will be gone or the money will be worthless, or probably both.

Governments and Central Banks are now supreme experts in the total destruction of your money.

They are constantly adding new methods so let’s just look at a few of them:

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Protect Your Wealth – Buy Gold Before It Reaches $2,000

Moderated March 11th, 2016 by
Categories: All publications, Egon's Publications, King World News
Protect Your Wealth – Buy Gold Before It Reaches $2,000

Protect Your Wealth –
Buy Gold Before It Reaches $2,000
By Egon von Greyerz

 

Gold is in a hurry and is unlikely to wait for investors to acquire it at anywhere near these prices. We could now see a quick move to $1,400 and if gold doesn’t stay too long at that level, the acceleration is likely to continue towards the previous high of $1,900.

Desperate measures by the ECB

The ECB confirmed yesterday that they are extremely concerned about the European economy as well as the fragile banking system. They lowered the negative rate to 0.4% and increased Q.E. or money printing by more than the market expected. I am quite certain that this is still just the beginning of the stimulus required to “save” Europe. But however many trillions that Draghi throws at the bankrupt banks and European economies it will make no difference. It is just not possible to solve a problem by the same means that caused it in the first place. So adding debt to excessive debt will just make the final collapse that much bigger.

But the ECB is not the only bank which will print money. All major central banks, including the Fed, will join the ECB in more Q.E. and more negative rates until the world drowns in worthless money.

Technical picture for gold

There are now many who believe that the technical picture for gold is bearish, especially due to the big net short position of the commercial traders. Conventional wisdom says that the commercials are never wrong. Well, maybe this time it is only conventional without the wisdom because the likelihood is that the commercials will soon have to bail out of their shorts. And if that is the case, gold will surge even faster.

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How Long Before US Inflation Equals Argentina’s?

How Long Before US Inflation Equals Argentina’s?

How Long Before
US Inflation Equals Argentina’s?
By Egon von Greyerz

 

The US and Argentina have a lot in common. Both are beautiful countries with a major land mass and an abundance of natural resources and agricultural land. Both had very strong economies around the turn of the last century. Political and economic problems have gradually caused Argentina to grow at a much slower rate than the US. The US has had the major advantage of having the dollar as the reserve currency of the world. This has meant that the US in the last hundred years never had to default like Argentina but could just borrow and print more money. Argentina on the other hand has gone through several periods of default as well as high inflation or hyperinflation since WWII.

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Central Bankers’ Bogus Wand Will Have No Effect

Moderated February 24th, 2016 by
Categories: All publications, Egon's Publications
Central Bankers’ Bogus Wand Will Have No Effect

Central Bankers’ Bogus Wand Will Have No Effect
by Egon von Greyerz

 

Central Bank heads believe they are magicians who can wave their magic wand to create whatever economic conditions they desire. But the problem is that they are consistently wrong in their assessment of the economy so they don’t know what to do with the wand. Also, the wand is not magic but just bogus. And this is the dilemma of all central banks. They are given unlimited powers to manipulate monetary policy and to print money.
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The House Of Cards Is Coming Down

Moderated February 12th, 2016 by
Categories: All publications, Egon's Publications, King World News
The House Of Cards Is Coming Down

The House Of Cards Is Coming Down
by Egon von Greyerz

 

Deutsche Bank is bankrupt. China’s $30 trillion credit bubble will implode. Most banks will not survive. Banks stocks are down 20-50% this year and credit default swaps are surging in price. Hedge funds and speculators are losing fortunes on a surging yen. Short Yen was a guaranteed winner. But that carry trade is leading to massive market losses with the Yen gaining 10% in 12 days.

Yellen is now worried about interest rates. Well, we told her so in December. More countries are lowering rates to negative. Sweden just cut another 15 basis points to minus 0.5%. Crude oil is making new lows at $26. Stock are crashing around the world.

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Risk Is Now Reaching Dangerous Levels

Moderated February 9th, 2016 by
Categories: All publications, Egon's Publications, King World News
Risk Is Now Reaching Dangerous Levels

Risk Is Now Reaching Dangerous Levels
by Egon von Greyerz

 

In my KWN interview on 31 January 2016 I stressed how the global domino’s are starting to fall with desperate governments applying the few tools they have left to avoid a total collapse.

Japan has desperately tried to save their bankrupt economy with over 20 years of zero interest rate and money printing. Now they have also resorted to negative interest rates like 13 other nations.

The US has three massive credit problems looming with student, car and energy loans likely to soon lead to another subprime crisis.

And the major problems in the debt laden, energy producing emerging markets like Azerbaijan, Nigeria, Venezuela, Ecuador, Saudi Arabia and many more.

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Hyperinflation is here

Moderated January 23rd, 2016 by
Categories: All publications, Egon's Publications, King World News

HYPERINFLATION IS HERE
by Egon von Greyerz

Last week I wrote an article for King World News which showed that hyperinflation is on its way in many emerging markets. Soon it will also reach the US, Europe, Japan, China and many other countries.

Hyperinflation has nothing to do with demand but is the effect of economic mismanagement leading to money printing and currency collapse. This trend started over 100 years ago with the creation of the Fed. Since then all major currencies have declined 97-99% in real terms. The best way to measure inflation over time is in gold. For 5,000 years, gold is the only currency that has survived. All other currencies have been printed to death.

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