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Switzerland will print more money than any other country

Gordon T Long interviews Egon von Greyerz – Dec 16, 2014

“Switzerland will print more money than any other country”

In this video recorded interview with Gordon T Long of the Financial Repression Authority Egon von Greyerz explains that the rejection of the Swiss Gold Initiative will lead to the Swiss National Bank printing more money relatively than any other country, initially to defend the Euro/Franc peg and eventually to save the Swiss Financial system which is the most leveraged in the Western World.”
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Record Low rates and Record Debts = Economic Law?

Written December 12th, 2014 by
Categories: All publications, KWN weekly

KWN weekly – Dec 12, 2014

Greyer: “Eric, we have a world of record low or even negative interest rates and of record debts. This combination of high debts and low interest rates breaks every economic law that exists. We must not believe that this situation will be allowed to last for another 5 years because we will see interest rates at 20 percent in most countries. Higher inflation or even hyperinflation will lead to higher interest rates. At some point asset values will implode and the risk of lending money will then go exponential because lenders will want to be paid for that risk…. Read the rest of this entry »

Derivatives will lead to systemic failure of banks

Written December 11th, 2014 by
Categories: All publications, KWN weekly

KWN weekly – Dec 9, 2014

Greyer: “The derivatives exposure of major European and U.S. Banks are certain to initially lead to massive money printing combined with bail-ins. Eventually it will lead to the failure of a large number of banks….. Read the rest of this entry »

Every Central Bank Will Continue To Print Money

USA Watchdog’s Greg Hunter interviews Egon von Greyerz on latest macro-economic developments

Dec 6 – 2014 (22 minutes)

In this video more about:

  • The aftermath of the Swiss Gold Initiative
  • Pressure in the Eurozone
  • The continued weakness of the Japanese yen leading the race down again.

Egon von Greyerz: “The whole of the elite were against us. Now, we thought the people, the Swiss people, would be on our side because the Swiss people understand the importance of gold. They were clearly influenced by the massive campaign of the government and of the central bank….

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Internes Memo der Nationalbank Von Jomas Thordan, Präsident

Written December 1st, 2014 by
Categories: All publications, Articles (Deutsch)

Die Notiz unten könnte durch Thomas Jordan, Präsident der Schweizerischen Nationalbank geschrieben worden sein:


Internes Memo der Nationalbank
Von Jomas Thordan, Präsident
An den Verwaltungsrat
Datum: 1. Dezember 2014

Ich bin ob des Ergebnisses des Goldinitiative-Referendums besorgt gewesen. Deshalb war ich in den letzten Wochen fast täglich in den Medien. Ich weiß, dass die Nationalbank keine Kampagne während einer Volksabstimmung dieser Art durchführen sollte, aber da es sich um eine Angelegenheit von nationaler Bedeutung handelte, besaß ich keine andere Wahl.

Wie Sie wissen, hatten wir bis zum Jahre 1999 eine Golddeckung von 40% in unserer Bilanz. Zu der Zeit dachte man, dass diese Menge an Gold von entscheidender Bedeutung für die Stabilität der Nationalbank und des Franken war. Aber zum Glück ist es uns gelungen, die Verfassung zu ändern, was es uns ermöglichte, mehr als die Hälfte des Goldes der Nation am Tiefpunkt des Marktes zu verkaufen. Wir hatten verdammtes Glück, dass die Reputation der Bank nach dieser Entscheidung, die unsere Nation 30 Milliarden Franken kostete, intakt blieb. Es war eindeutig inkompetent Pech, das Gold bei den Tiefständen zu verkaufen, aber Market-Timing war noch nie unsere Stärke gewesen.

Ich freue mich sehr darüber, dass 77% der Wähler mit meiner Propaganda meinen Aussagen übereinstimmten, dass Gold keine Rolle im modernen Bankenwesen spielt. Gold ist ein Relikt der Vergangenheit. Wir können kein Gold drucken, und das ist ein großer Nachteil, wenn wir den Franken und die Finanzmärkte manipulieren managen wollen. Unsere Grundsätze für das Management der Nationalbank werden nun von der Federal Reserve und letztlich Goldman Sachs festgelegt. Wir hier bei der Bank hängen der Erklärung des weisen Mayer Amshel Rotschild an: “Gib mir die Kontrolle über das Geld einer Nation und es ist mir egal, wer die Gesetze macht.”

Zum Glück brauchen wir also kein Gold mehr zu kaufen, und wir sollten wahrscheinlich den Verkauf der 1.000 Tonnen in Betracht ziehen, die wir noch besitzen, da es keinem Zweck dient und keine Rendite einbringt. Das würde uns auch Munition verschaffen, um mehr Euro zu kaufen.

Die einzige Sorge, die ich mit dem Vorstand teilen möchte, ist unsere Währungsposition. Wie Sie wissen, haben wir mehr als 400 Milliarden Franken gedruckt und vor allem Vermögenswerte in Euro gekauft, aber auch in anderen Währungen, um die Anbindung bei über 1,20 zu halten. Wir alle wissen, dass gedruckte Stücke Papier nicht wirklich etwas wert sind, aber da wir eine Nationalbank sind, können wir den Leuten bloß sagen, dass dies echtes Geld ist. Glücklicherweise sind sie dumm klug genug, uns glauben.

Der Grund, warum ich des Referendums wegen so nervös gewesen bin, ist, dass die Bank nun auf der größten spekulativen Währungsposition einer jeden wichtigen Zentralbanken in der Welt sitzt. Unsere Bilanz von 522 Milliarden entspricht mehr als 80% des BIP, was eine extrem gefährliche Position für unser Land ist. Es ist praktisch unmöglich, aus dieser massiven Position ohne Verluste von Milliarden oder von sogar bis zu 100 Milliarden herauszukommen. Offenkundig würden letztlich die Menschen für diese Verlust aufkommen müssen.

Die 1,20-Anbindung ist künstlich und im Laufe der Geschichte hat keine Wechselkursbindung jemals auf längere Sicht gehalten. Im Laufe der Zeit spiegeln Wechselkurse immer die Wirtschafts- und Währungsunterschiede zwischen den Ländern wider. Da unsere Wirtschaft weiterhin stärker als die schwache Eurozone bleiben dürfte, wird der Franken natürlich besser als der Euro abschneiden. Natürlich sind wir sehr dankbar darüber, dass die Wähler sich unsere Propaganda Informationen während der Kampagne anhörten und die Goldinitiative zurückwiesen. Aber leider sind die Probleme der Bank nicht vorüber.

Diese Anbindung war entscheidend zur Rettung der Banker Banken, die große Mengen an Franken hauptsächlich an osteuropäische Banken geliehen hatten. Nunmehr sind wir also völlig mit der Eurozone verbunden, und an einem gewissen Punkt sollten wir vielleicht diskutieren, den Franken dauerhaft in den Euro umzuwandeln. Es gibt natürlich auch Nachteile, an eine sehr schwache Währung gebunden zu sein. Alles, was wir in den Läden kaufen, ist jetzt teurer. Auch könnten wir von Euroland heruntergezogen werden und am Ende in der gleichen wirtschaftlichen Katastrophe wiederfinden, in der sie sind. Aber zum Glück verstehen die Menschen diese großen Nachteile nicht.

Das größte Problem, den Euro als unsere Währung zu nehmen, ist, dass die Bank ihre Fähigkeit einbüßen würde, unverantwortlich unabhängig zu sein. Die EZB übernähme und wir würden alle unsere Macht verlieren, Geld zu drucken.

Daher empfehle ich dem Vorstand, dass wir bleiben, wie wir sind. Aber das bereitet uns immer noch die Kopfschmerzen ob unserer spekulativen Währungsposition von 470 Milliarden. Dies ist eine Zeitbombe und wir wissen, wir werden nie in der Lage sein, da ohne sehr große Verluste rauszukommen. Hoffentlich wird sich der aktuelle Vorstand von der Nationalbank zurückgezogen haben, bevor dies geschieht, damit ein neuer Vorstand dafür verantwortlich gemacht werden kann.

Zum Schluss möchte ich dem Vorstand für die Unterstützung meiner Handlungen danken. Die Bank hat nun insgesamt die “Kontrolle über das Geld der Nation” inne, was beruhigend ist.

Jomas Thordan
Präsident

PS: Das obige ist eine fiktive Darstellung von Ereignissen und die Verbindung zu einer realen Situation ist rein zufällig.

 

 

Internal Memo from Jomas Thordan, President of the National Bank

Written December 1st, 2014 by
Categories: All publications, Egon's Publications

The below memo could have been written by Thomas Jordan, president of the SNB.

Internal Memo National Bank

From: Jomas Thordan, President

To: The Board of Directors

Date: December 1, 2014

I have been quite concerned about the outcome of the Gold Initiative referendum. That is why I have been in the media virtually every day for the last few weeks. I know that the National Bank should not conduct a campaign during a referendum of this kind but since it was a matter of national importance I had no other choice.

As you know, until 1999 we had over 40% gold backing in our balance sheet. At the time it was thought that this amount of gold was critical for the stability of the National Bank and our national currency. But fortunately we managed to change the constitution which allowed us to sell more than half of the nation’s gold at the bottom of the market. We have been bloody lucky fortunate that the Bank’s reputation was intact after this decision which cost our nation 30 Billion. It was clearly incompetent unlucky to sell the gold at the lows but market timing has never been our strong point.

I am extremely pleased that 77% of the voters agreed with my propaganda statements that gold plays no role in modern banking. Gold is a relic of the past. We can’t print gold and that is a major disadvantage when we want to manipulate manage our currency and financial markets. Our principles for managing the National Bank are now laid down by the Federal Reserve and ultimately Goldman Sachs. Here at the Bank we fully subscribe to the statement of the wise Mayer Amshel Rotschild: “Give me control of a nation’s money and I care not who make its laws.”

So fortunately we don’t have to buy any more gold and we should probably consider selling the 1,000 tons we may still own since it serves no purpose and has no yield. That would also give us ammunition to buy more euros.

The one concern that I would like to share with the board is our currency position. As you are well aware, we have printed over 400 billion and bought mainly assets in euros but also in other currencies in order to hold the peg above 1.20. We are all aware that printed pieces of paper are not really worth anything but since we are a national bank, we can just tell the people that it is real money. Fortunately they are foolish wise enough to believe us.

The reason I have been so nervous about the referendum is that the Bank is now sitting on the biggest speculative currency position of any major central bank in the world. Our balance sheet of 522 Billion is over 80% of GDP which is an extremely dangerous position for our country. It is virtually impossible to get out of this massive position without a loss of 10s of Billions or even as much as 100 Billion. Obviously the people would ultimately pay for this loss.

The 1.20 peg is artificial and throughout history no currency peg has ever held in the longer term. Over time currency rates always reflect economic and monetary differences between countries. Since our economy, for a while at least, is likely to continue to be stronger than the weak eurozone, our home currency will naturally outperform the euro. We are of course extremely grateful that the voters listened to our propaganda information during the campaign and rejected the Gold Initiative. But sadly the Bank’s problems are not over.

This peg was critical to save the bankers banks that had lent massive amounts of our national currency to mainly Eastern European banks. So now we are totally linked with the eurozone and at some point we should perhaps discuss to make this permanent. There are of course disadvantages to be tied to a very weak currency. Everything we buy in the shops is now more expensive. Also, we could be dragged down by euroland and end up with the same economic disaster they are in. But fortunately the people don’t understand these major drawbacks.

But the biggest problem with taking the euro as our currency is that the Bank would lose its ability to be irresponsible independent. The ECB would take over and we would lose all our power to print money.

Therefore I recommend to the Board that we stay as we are. But that still gives us the headache of our 470 billion speculative currency position. This is a timebomb and we know we will never be able to extract from it without very major losses. Hopefully the current board will have retired from the National Bank before this happens so a new board can be blamed for it.

Finally I would like to thank the Board for their support of my actions. The Bank now retains total “control of the Nation’s money” which is comforting.

Jomas Thordan

President

 

P.S. The above is a fictional account of events and any connection to a real situation is purely coincidental.

 

 

Turk and von Greyerz on European concerns

Written November 26th, 2014 by
Categories: All publications, KWN weekly

KWN weekly – Nov 25, 2014

Turk: “But it’s not just countries that are nervous about whether they are going to get their metal back. There are also major entities out there who are owed significant amounts of gold, and they are getting very nervous about whether they will ever see their physical gold again. So I think this squeeze that we are seeing for physical metal is going to continue at least through year end.

Greyerz: “The outcome of this vote is still of course very uncertain. There have been so many undecided voters and they will ultimately be the deciding factor. Meanwhile the Swiss National Bank (SNB) and the government have conducted a massive propaganda campaign against the initiative….. Read the rest of this entry »

Gold is a belief – Grant Williams

THE MATTERHORN INTERVIEW – November 2014: Grant Williams

“Gold is a belief”

I gives me particular pleasure to welcome Grant Williams to this month’s interview. Grant has a great grasp of markets and always explains complex matters so that we all can understand them. He also is a wonderful individual and a good friend. This interview on the gold market is fascinating and really worth listening to.

Egon von Greyerz

Podcast interview: This month financial journalist Lars Schall talked with highly respected Singapore-based fund manager Grant Williams about, inter alia: the philosophy of gold and money; gold as “power money”; the bad effects of central bank interventions; the Swiss Goldinitiative; and the question whether gold will become the ultimate bubble in the future after the bubbles in bonds and equities will have popped.

By Lars Schall

The article that Grant Williams refers to in the above interview is “Deus ex machina”.

Grant Williams is the author of the widely-read financial letter, Things That Make You Go Hmmm… (www.ttmygh.com) the founder of Real Vision Television (www.realvisiontv.com) and portfolio and strategy advisor to Vulpes Investment Management in Singapore.

Grant has almost 30 years of experience in finance on the Asian, Australian, European and US markets and has held senior positions at several international investment houses.

Gold Repatriation – USA has no more gold

Written November 22nd, 2014 by
Categories: All publications, KWN weekly

KWN weekly – Nov 21, 2014

Greyerz: “Until recently the Dutch Central Bank (DNB) had only 11% of its gold in Holland. But today we have learnt that they have brought 122 tons back from the US which means that they now have only 69% abroad and most of it in the US.

Our sources told us already in October that this was happening in Holland and we did send out a note to subscribers on Oct 23, without mentioning the country. http://goldswitzerland.com/breaking-european-central-banks-repatriate-gold-from-usa/

So why has Holland left 69% of its gold abroad? They should be concerned after Germany were told by the Fed that they could only have a few tons back of the 680 tons they wanted. Germany was told by the Fed that they could have the rest back in 2020. This the clearest evidence ever that the Fed does not have the German gold…. Read the rest of this entry »

Billions in fines – No one blinks an eye

Written November 15th, 2014 by
Categories: All publications, KWN weekly

KWN weekly – Nov 14, 2014

Greyerz: “Eric, I’m looking at the latest round of rigging of markets by banks around the world. This has now led to fines of over $4 billion for rigging the Forex markets. You have banks like Citi and JP Morgan paying $1 billion each. UBS is paying $800 million and HSBC a bit less. But that’s just the latest Forex rigging and it’s probably only scratching the surface. We have also seen another $6 billion of fines for LIBOR rigging. So far in 2014 we have seen $56 billion of fines by U.S. regulators against the banks. It seems incredible that these enormous sums can be paid by the banks without the banks going under… Read the rest of this entry »