KWN weekly – August 29/30, 2014
Podcast – Egon von Greyerz: “I’m looking at the deflationary pressures that we are seeing in many areas like Europe and Japan. Continued deflation will lead to an implosion of asset prices and bank debt. Under that scenario no debts will be repaid and the financial system will fail. With $280 trillion of world debt and $1.5 quadrillion of derivatives, this will lead to a collapse that will take the world back at least 50 years and maybe even further. Governments and central banks are totally aware of the deflationary risks. That’s why they have printed and created tens of trillions of dollars, and lowered interest rates to zero.