King World News

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.

The trend of currency debasement is now accelerating in the periphery. For example, in Russian Rubles and Brazilian Real gold is up 1,300% in 16 years and in Argentine Pesos gold is up 6,000% since 1999. Also, gold now buys more oil than it has ever done in history.

The chart below shows the effect that collapsing commodity prices have had on a resource economy like South Africa with gold up 1,200% against the Rand.

KWN-III-1112015

Central banks around the world will soon start their futile attempts to prevent the credit bubble to implode and their chosen bet is massive money printing.

Sprott’s John Embry quoted me in his King World News on January 19:

“I would encourage all KWN readers and listeners to ignore the predictable and ludicrous price action currently going on in today’s market.  And rather, go back and re-read the words of Egon von Greyerz’s this past weekend. Seldom have I ever read such a succinct and brilliant analysis of the true state of the world and the global markets.  The many people out there who have their heads buried in the sand should take heed of Egon’s words or they are going to be in for a very uncomfortable comeuppance.”

In his interview he was very generous and a bit too complementary about my last KWN article.
But I do agree with him that it is critical for investors to understand what the likely outcome will be of the world’s economic problems.

To read my KWN article please follow this link

Egon von Greyerz
Matterhorn Asset Management
GoldSwitzerland

Wars and currency collapse will get brutal

Moderated January 12th, 2016 by
Categories: All publications, King World News, Video & Podcast
Wars and currency collapse will get brutal

Wars and currency collapse will get brutal


King World News interview January 12, 2015

 

In this week’s KWN interview Egon von Greyerz talks about the two trends that are guaranteed to create major problems for the world namely wars, social unrest as well as continued debasement of all currencies.

Egon also discusses the turn in all stock markets that started at the beginning of 2016 with China down over 14% and most other markets down 6- 10%. He says that coming years will be brutal and that we are now seeing a resumption of the 2008 downtrend that eventually will lead to 90% falls in markets.

Egon also talks about gold being the strongest performing asset this century in spite of the last few years’ correction. He sees stock markets falling another 95% against gold in coming years.

Finally Egon covers the physical gold market with dwindling stocks in Comex and Bullion Banks combined with massive uncovered paper claims in gold.

Click on this link to read an extract from the interview and to listen to the audio

Are We Seeing The Beginning Of A 90% Fall In Stocks?

Are We Seeing The Beginning Of A 90% Fall In Stocks?

Markets can remain irrational for a very long time

by Egon von Greyerz

We ended 2015 as yet another year when most investors felt safe with their stocks, bonds, property and other investments. But sentiment can change very quickly and since the year end the Chinese market is down 14%, the S&P down 6% and most global markets down 6-10%.

Most investors had been hoping that the investment Shangri-La would continue for another year? Little do they realise that current values in no way reflects real values or risk. As we know, markets can remain irrational for a very long time. The risks that one day will bring the world economy down have been with us for quite a few years. In 2007-9 world financial markets were on the verge of collapse but a Central Bank programme of money printing and guarantees amounting to $25 trillion kicked the can down the road yet another time. It is too early to tell if the very strong falls in world stock markets so far in 2016 are the beginning of the biggest bear market since 1929. But is is not unlikely that this is the start of a bear market which will see falls of up to 90% just like the Dow in 1929-32. Fundamentals today are considerably worse than at the beginning of the Great Depression.

The world has seen an acceleration in credit creation since the Fed was founded in 1913 but the real acceleration started on 15 August 1971 when Nixon abandoned the gold backing of the dollar. The 1987 stock market crash and the property bubble in many Western countries in the early 1990s started the final phase of easy money, led by Alan Greenspan’s irresponsible monetary manipulations. But he was of course loved by politicians and investors since he created another investment bubble leading to the 2000 crash. With more easy money the world reached the next bubble and crisis in 2007-9. With the help of Bernanke who was the most productive person ever in American history we have now reached the super bubble era. Remember that Bernanke during his 8 years doubled US debt from $8 trillion to over $17 trillion. It took the US government over 100 years to go from zero to $6 trillion, a feat that Bernanke managed in a fraction (3/100th ) of the time.

usadebt1900-2015-sustainable

To be fair, it is not just US debt which has ballooned. Global debt in the mid-1990s was around $20 trillion and today it is $225 trillion. This is an incredible 10 times increase in world debt in 20 years. And just since 2008, global debt has increased by 50%. It should be clear to most observers that this exponential growth in credit will not have a good ending.

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ALERT: The Next Global Crisis And Collapse Has Just Been Ignited

Moderated December 21st, 2015 by
Categories: All publications, King World News
ALERT: The Next Global Crisis And Collapse Has Just Been Ignited

ALERT: The Next Global Crisis And Collapse Has Just Been Ignited

King World News with Egon von Greyerz

December 21 2015

Egon von Greyerz: “Eric, as expected, the Fed is making a real mess of monetary policy. For face saving reasons they had to increase. Without that markets would have totally lost confidence in the Fed and this would have caused panic worldwide. So although an increase was not justified the Fed had no choice. But as I suspected before the raise, this became a buy the rumour sell the fact event with the Dow down 620 points in the last two days. Remember that this rate increase was expected by……”
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How will the Fed explain away No Rate Increase?

Moderated December 15th, 2015 by
Categories: All publications, Egon's Publications, King World News
How will the Fed explain away No Rate Increase?

How will the Fed explain away No Rate Increase?

Egon von Greyerz

December 14 2015

For face saving reasons the Fed definitely must increase interest rates on the 16th.
This is what the Fed has led the market to believe and any deviation from this would give the Fed a vote of no confidence from the investment world.
Still, it is difficult to comprehend how anyone could have confidence in the Fed. They have no strategy, no policy but are just reacting to events. They even admit this themselves by declaring that their decision is data driven.
But even when the data and events stare them in the face like in 2007-8 they did not recognise the crisis as it was unfolding.
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Gold could jump hundreds of dollars in a matter of days

Moderated December 3rd, 2015 by
Categories: All publications, King World News
Gold could jump hundreds of dollars in a matter of days

Gold could jump hundreds of dollars in a matter of days
King World News with Egon von Greyerz

In this interview with King World News Egon von Greyerz discusses what will happen to gold once the current correction is over.

Among other things, Egon also discusses the global economic problems and the risk of major geopolitical conflict.

To read the interview and to listen to the audio please follow this link

The Most Gigantic Wealth Destruction

Moderated December 1st, 2015 by
Categories: All publications, King World News
The Most Gigantic Wealth Destruction

The Most Gigantic Wealth Destruction
King World News with Egon von Greyerz

November 27 2015

In a King World News article of November 27, Egon covers the following topics:

Stock markets worldwide are now in the final stages of a secular bull market. Bulls of this magnitude are not killed off easily, especially when they are being fed with paper. Thus we could see the current strong trend in markets continue for yet a few weeks. But once the bear trend starts in earnest stocks could fall 75-95% in real terms over the next few years.

At the same time gold will resume its long term uptrend in 2016. Thus in order to preserve wealth for coming years, investors should exit the stock market and hold gold and some silver. Gold could easily gain 1,000% in the next few years as stock crash.

Desperate central banks will try to save the world by printing unlimited amounts of paper but they will fail.

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“Will the Fed make another irrational decision?”

Moderated November 25th, 2015 by
Categories: All publications, King World News
“Will the Fed make another irrational decision?”

“Will the Fed make another irrational decision?”
King World News with Egon von Greyerz

November 23 2015

In last week’s KWN Egon discussed the Fed decision on December 16th and the likelihood of an interest rate hike.

Also covered  is the $ 500 trillion time bomb in the US as well as the fate of the dollar, gold and the coming hyperinflation.

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Paper Gold Doesn’t Glitter

Paper Gold Doesn’t Glitter

PAPER GOLD DOESN’T GLITTER

by Egon von Greyerz

Today when gold in US dollars is making a new correction low, the paper shorts are elated. They believe they can win this game of frightening every gold investor to sell their holding. But this elation is likely to soon turn to desperation.

Supply tight in gold and silver

As I have discussed many times, the physical market in gold and silver is very tight. Bullion banks have low stock levels and central banks have leased or sold a major part of their gold. But since they refuse to be properly audited they are desperately trying to hide the real position. China and India are continuing to buy more than the annual production of gold by the miners. And the supply situation from the refiners is tight with delivery delays for bigger orders.

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Collapsing Global Trade is an Ominous Sign

Moderated November 10th, 2015 by
Categories: All publications, King World News
Collapsing Global Trade is an Ominous Sign

The World Is Now On The Edge Of Total Collapse
King World News with Egon von Greyerz

November 09 2015

As Ludwig von Mises said: “There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”

An illusion of prosperity

Between “American Idol” and Fox News, no one will ever understand what is really happening. But sadly that is all most people in the West are exposed to. Neither ordinary people nor the better-off understand that the world is living on borrowed time. For a hundred years the world economy has lived on a lie and a corrupt financial system based on few real values but instead on printed money and a fractional-reserve banking system. The synthesis of these two elements has created a perceived prosperity unprecedented in history. Little do people understand that the false wealth and high standard of living have not been produced with honest work or investment but with printed money and credit that have created the illusion of prosperity…

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