“Nigel Farage – This EU is Power without Limits” Take your money out of the Eurozone before they come for you
17 April 2013
Today the UKIP leader and MEP Nigel Farage told the European Parliament that the Troika (European Commission, ECB and IMF) are common criminals stealing money from people’s bank accounts. He warns depositors to get their money out of the Eurozone. He calls the EU the New Communism having Power without Limits.
This is a powerful speech by Farage. Getting the money out of the Eurozone is of course not enough. Investors must get their money out of the banking system worldwide. See my recent piece “Get Your Assets out of the Banks – NOW”
The situation in the banking system is critical not only in the EU but also in the USA, Japan and China. The headline in the Financial Times today is “Warning on “out of control” China debt”.
In a bankrupt financial system it is critical to preserve wealth by holding gold outside the system.
Egon von Greyerz Founder & Managing Partner Matterhorn Asset Management / GoldSwitzerland
Tragedy, Panic & The Greatest Short Squeeze KWN interview April 14, 2013
Dear Investor,
We have seen massive manipulation in the paper gold market in the last few days and weeks. Please read my latest KWN interview which explains that this is nothing to be concerned about since the problems in the world economy are getting worse by the day. So far, into this morning, we have seen a correction in gold of 27% since the $1,920 top in September 2011. Remember that in 2008 gold corrected 34% from $1,032 to $681. From the $681 low, gold then went up almost 3 times in just 34 months.
This correction could last a bit longer, but once gold turns, we should see a very strong rebound which will reflect the deteriorating economic situation worldwide, as outlined in my KWN interview. Since the paper market will have to cover their shorts at that time, we are likely to see a very fast move in the second half of 2013.
The next target is still $3,500-5,000 and much higher over the next few years.
Remember gold (and silver) is held for wealth preservation purposes. It is therefore critical that investors hold on to their physical gold and silver and if possible add at these very low levels.
Desperate countries to accelerate private wealth destruction KWN interview April 4, 2013
Today Egon von Greyerz told King World News that desperate countries will accelerate the amount of wealth destruction they inflict on their citizens going forward.
Greyerz: “Eric, gold is down and investors are nervous. We have to ask ourselves, have any of the fundamentals changed? The answer is no, they haven’t. Government deficits are still increasing at an alarming rate, and world debt is at $220 trillion. In fact, world debt has tripled in the last 10 years.
The US is the biggest debtor and the debt is still increasing by $4 billion each day, or $1.5 trillion each year. Since Bernanke has become Chairman of the Fed, the federal debt has gone up by a staggering $10 trillion. That’s $10 trillion in just 7 years.
From 1980 to 2006, when Bernanke became Chairman of the Fed, the US debt went from $1 trillion to $7 trillion. But think about the fact that he has overseen the debt increase of $10 trillion in just 7 years….
CLICK HERE to read the entire interview on the King World News blog.
What We Are Now Seeing Is Unprecedented In World History KWN Easter interview, March 28, 2013
Eric King: “Clearly the banks have reopened in Cyprus, your thoughts in the aftermath of all of this?”
Egon von Greyerz: “Eric, they have opened, but the problem is still there. Banks still don’t have enough money. The package which has been put forward by the Troika is not going to last. If they ever, which they might not, lift the exchange controls and restrictions on Cyprus banks, then we will see a run on the banks again.
Therefore, I think this problem will be a permanent one, and it will also be a model for future problems. As this accelerates and moves into Slovenia and Italy, the aid and the package which will be necessary for these nations is so much bigger.
The fear will also be that much greater as larger nations are engulfed in these problems. Then the world will really start to become concerned and eventually panic. This is when you will see people buying physical gold and silver in much larger quantities. This is also a time when you will see massive panic short covering in the paper gold and silver markets.
The present financial system can fold any time – that is todays reality KWN interview March 22, 2013
Egon von Greyerz: “Eric, Cyprus is a momentous event. Losses could be in the tens of billions of dollars. But like all major crises there is always a catalyst, and whether it was a shot in Sarajevo (assassination of Archduke Ferdinand which started World War I), or the fall of the Credit-Anstalt in Austria in 1931, there is always an event in history which people look back on as the start of tremendous global turmoil. Cyprus could very well be that event.
There will be some kind of solution eventually to the Cyprus problem, but it will be seen as unsatisfactory in the fullness of time. It is unlikely to come from Russia because I don’t think Europe would like to see Cyprus become an entirely Russian state, which would of course be the case if Russians were to give their support in a major way.
“But whether the bailout comes from the ECB or the IMF, of course they have no money.
“The IMF is financed by the US and Japan, and they have no money either. So wherever the money is going to come from, it isn’t there. It has to be printed, and we know this will impact world currencies and gold.
“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 A RESULT OF A VOLUNTARY ABANDONMENT OF FURTHER CREDIT EXPANSION, OR LATER AS A FINAL OR TOTAL CATASTROPHE OF THE CURRENCY SYSTEM INVOLVED” – Ludwig von Mises
CYPRUS
The Cyprus event may later, in the history books, be seen as the catalyst of the fall of a century long Ponzi scheme. This could rank in line with the shot in Sarajevo as the start of WW1 or the collapse of Kreditanstalt in 1931 as the start of the Great Depression.
Isn’t it ironic that exactly 100 years after the creation of the Fed (a private bank created for the benefit of bankers) that the fragile and bankrupt financial system is likely to fall due to the insolvency of a couple of Cypriot banks.
But what is happening in Cyprus will not be the reason for a collapse but just the trigger for what has always been inevitable.
There are only two possible outcomes of the crisis we are now in: - Either there will now be a run on the massively leveraged (25-50 times) banking system which would lead to no debt being repaid and a deflationary collapse.
- Alternatively, we will now see the beginning of the most massive money printing that the world has ever experienced, leading to a hyperinflationary depression.
The second outcome is the most likely although the risk of an systemic implosion is very high if central banks are too slow in flooding the system with money. The deflationary outcome would lead to no banks surviving and no money in the system. And the hyperinflationary outcome would lead to money being totally worthless. In both cases gold will be a major beneficiary.
But printing money will of course not solve anything since worthless pieces of paper with ZERO intrinsic value can never create wealth. At best it will just kick the can down the road for a very short time.
Cyprus is a mini model of the world financial system. The IMF, ECB and the politicians thought they could get away with the depositors taking part of the loss. But they have clearly not considered the consequences. This action (if ratified) will not only lead to a run on the Cypriot banks but also on banks in other weak areas such as Ireland, Spain, Portugal, Italy, Greece etc. Eventually it could spread worldwide.
The IMF, Fed, ECB, BoE, BoJ and other central banks are likely to very soon come out with a concerted action to support the financial system in order to avoid a total collapse.
For well over ten years I have advised investors to get their assets out of the banking system. This doesn’t mean just their money but also all other investments (stocks, bonds, gold etc) which are likely to be lost when banks go bankrupt.
Wealth preservation is now absolutely critical. This involves eliminating counterparty risk whenever possible. EverythIng within the banking system has counterparty risk even if it is segregated or allocated. Lehman, MF Global and Sentinel are all examples of client assets being lost in the financial system.
Gold (and silver) will continue to reflect the total destruction of paper money that the unlimited money printing will lead to. But investors must hold physical precious metals and they must be stored outside the banking system.
Egon von Greyerz
Founder and Managing Partner
Matterhorn Asset Management AG / Gold Switzerland
Greyerz: “Eric, gold is down and investors are nervous. We have to ask ourselves, have any of the fundamentals changed? The answer is no, they haven’t. Government deficits are still increasing at an alarming rate, and world debt is at $220 trillion. In fact, world debt has tripled in the last 10 years.
Egon von Greyerz: “Eric, they have opened, but the problem is still there. Banks still don’t have enough money. The package which has been put forward by the Troika is not going to last. If they ever, which they might not, lift the exchange controls and restrictions on Cyprus banks, then we will see a run on the banks again.
Take your money out of the Eurozone
Categories: Commentary (English), Egon von Greyerz' Newsletters
Tags: Eurozone, Farage, Frits Bolkestijn, Mrs Thatcher
“Nigel Farage – This EU is Power without Limits”
Take your money out of the Eurozone before they come for you
17 April 2013
Today the UKIP leader and MEP Nigel Farage told the European Parliament that the Troika (European Commission, ECB and IMF) are common criminals stealing money from people’s bank accounts. He warns depositors to get their money out of the Eurozone. He calls the EU the New Communism having Power without Limits.
This is a powerful speech by Farage. Getting the money out of the Eurozone is of course not enough. Investors must get their money out of the banking system worldwide. See my recent piece “Get Your Assets out of the Banks – NOW”
The situation in the banking system is critical not only in the EU but also in the USA, Japan and China. The headline in the Financial Times today is “Warning on “out of control” China debt”.
In a bankrupt financial system it is critical to preserve wealth by holding gold outside the system.
Egon von Greyerz
Founder & Managing Partner
Matterhorn Asset Management / GoldSwitzerland