King World News

Humpty Dumpty Had a Big Fall

KWN – July 31, 2015

 

Humpty Dumpty Had a Big Fall

 

With the IMF refusing to take part in the Greek rescue, Greece can’t be put together again and nor can the rest of the world. The Troika can’t even agree what to do with little Greece so what hope is there for all the other bankrupt nations?

But it is not just the EU which has problems. Even Switzerland which used to be a bastion of stability and sound banking has a Central Bank which no longer understands what prudence and and conservatism mean. The Swiss National Bank (SNB) is the biggest hedge fund in the world with currency positions of $ 500 billion.  I forecast last autumn, both on Swiss Television and in articles, in connection with the Swiss Gold Referendum, that the SNB would lose CHF 10s of billions and maybe CHF 100 billion. Well this is now happening. The SNB just announced the results for the first six months of 2015 which shows a loss of CHF 50 billion.  Read the rest of this entry »

Absurdities in the World will end Badly

Moderated July 29th, 2015 by
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KWN – July 28, 2015

 

Absurdities in the World will End Badly

 

Normality is rare in today’s world. We have excesses in debts, asset values, consumer goods and many other areas. Most overvalued are of course stock and bond markets. They have reached extremes which are totally absurd and bear no resemblance to reality.

China is now showing the way what is going to happen to all the bubble markets in the rest of the world. The Chinese stock market topped in mid June at a 70 p/e ratio. This is of course a totally absurd valuation driven by a massive credit expansion. As is always the case in speculative moves, the public comes into the market in the final stages driving the market to dizzy heights supported by colossal margin debt. Since the peak 6 weeks ago, the Chinese market is now down over 25%. The Chinese authorities are clearly concerned about the consequences of this both for credit markets as well as the danger of public uproar. Like for the rest of the world, the Chinese authorities realise that only rising stocks is good for the country so when stocks fall, all kinds of intervention and manipulation is required – even in a communist country. Thus a number of restrictions have been implemented including prosecution of short sellers.

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China official Gold holdings ‘just a little’ understated

Moderated July 19th, 2015 by
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KWN – July 19, 2015
Maguire, Leeb and von Greyerz comment on China’s gold news.

“On the heels of China telling the world that they only have 1,658 tonnes of gold, Andrew Maguire, Egon von Greyerz and Stephen Leeb told King World News that today’s release by China is a “joke” and that the announcement was “ludicrous,” which is a polite way of calling it bullsh*t.

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Dominos will fall after the Troika killed off Greece

Moderated July 17th, 2015 by
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King World News weekly – July 17, 2015
Dominos will fall after the Troika killed off Greece

Egon von Greyerz: “The ECB and the EU are now in control of the Greek economy, banks and national assets. There is absolutely no chance for Greece to recover as part of the EU. And what happened to Greece will be the model for the next set of weak countries such as Italy, Spain, Portugal and France. They will all fall as dominos before too long….

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The Elite is leading Greece and the World to Perdition

KWN weekly – July 12, 2015

Podcast interview (10 min)

The Elite is leading Greece and the World to Perdition

In my King World News interview published on July 12, I stated that the Troika and the US will do whatever they can to keep Greece in the EU. To let Greece leave would be the final nail in the European Union coffin. That would start the dominoes of Italy, Spain, Portugal and France falling as well as the European banks. And it would prove that this artificial political and monetary union is a total travesty which was doomed to fail even before it was created.

The proposal now being put to the Greek government and parliament is a lot worse than the one which was voted down by the Greek people last Sunday. The package on offer involves another €85 billion of loans in addition to the existing €320bn. On top of that there will be short term bridge financing of €12bn plus potentially another €35bn for job creation. So the insolvent Troika is raising another €135bn to lend to a bankrupt nation that cannot even afford to pay the interest on the debt. This is really the bankrupt leading the bankrupt to perdition. Read the rest of this entry »

Will A Desperate U.S. Start World War III?

Moderated July 8th, 2015 by
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Greece update – Europe in Catch 22

King World News weekly – July 8, 2015
Massive Contagion Will Lead To A Worldwide Financial Catastrophe

Egon von Greyerz: “We are facing colossal problems in the world today. The U.S. is bankrupt, with debts having increased each year since the early 1960s. And in this century debts have gone up exponentially. The U.S. has also had a trade deficit every year since the 1970s. So this is a country that’s been living above its means for half a century.

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Will the EU mess trigger a Gold & Silver Derivatives Default?

Moderated July 6th, 2015 by
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King World News weekly – July 6, 2015

Egon von Greyerz: “The derivative position of US banks for Q1 2015 has just been published and the reading is more frightening than ever. The top 5 US banks have total a derivative exposure of $247 trillion. This is 3.5 times world GDP. Total derivatives for all banks in the world are just over $600 trillion. But these figures are less than half of the real exposure. A few years ago the BIS in Basel changed the basis of valuation of derivatives to “Value to Maturity”…

Update Greece and Europe to be posted soon.

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Gold will reign in splendour as asset bubbles burst

Moderated June 28th, 2015 by
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King World News weekly – June 26, 2015

Egon von Greyerz: “Greece is a country that is an example of not just the problems in the EU and the eurozone but also the problems in the world. Since 2006 Greek debt is up by 50 percent to 320 billion euros. During the same time, Greek GDP has fallen by over 20 percent. Greece should never have joined the EU and certainly not the eurozone with the euro as their currency. Historically, culturally, economically, Greece does not belong in the same group as say Germany. The result of this unhappy union has created a financial wreck that’s been kept from sinking by the troika

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A domino effect can start with Greece

Moderated June 19th, 2015 by
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King World News weekly – June 19, 2015

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 year. 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…..

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Will the coming bust turn 175 quadrillion dollars into 5 dollars

Moderated June 13th, 2015 by
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A global bust will be very destructive

King World News weekly – June 13 , 2015

Egon von Greyerz: “Between 1997 and 2007 Gordon Brown was Chancellor of the Exchequer (Treasury Secretary) in the United Kingdom. When he presented his annual budget in parliament he would brag that through his policies he had abolished the normal cycles of booms and busts. But then in 2007 he had the misfortune to become prime minister just as the great financial crisis started, and his magic of creating a consistent boom suddenly vanished……

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