KWN – August 24, 2015
Gold is the ultimate protection against the Great Financial Catastrophe
by Egon von Greyerz
What is currently happening in markets should be no surprise to investors who understand sound money and have been following our risk warnings in the last few years.
The world has been living in cloud cuckoo land for so long that unlimited credit at zero percent, hundreds of trillions of dollars of new credit and quadrillions in derivatives were all believed to be real money and assets and part of normality. In the last couple of days we can see how quickly euphoria changes to fear. The Dow went down over 500 points on Friday and started down over 1,000 points on Monday, the biggest one day fall ever. The Plunge Protection Team then managed to buy the Dow back up a loss of a hundred points. But they failed to hold it so the market fell almost 600 points by the close.