Global Super Bubble To Implode As A Major Reversal In Global Markets Set To Begin
With interest rates soaring, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, warned King World News that the global super bubble is set to implode as a major reversal in global markets is set to begin.
The Road To Global Collapse
Egon von Greyerz: “Few people realize the coming bargains in all asset markets within the next five years or so. Stocks, bonds and property will then be able to be purchased at fractions of the current prices. I discussed in last week’s KWN interview how I expect stocks and property to possibly decline as much as 90%. Most people will consider this as sensational speculation and impossible, but similar falls have happened in history. And at no previous time in history has there been a credit bubble and of a magnitude that the world is facing today. Previously, individual countries have experienced depressions, often preceded by hyperinflation. But never before has every single industrialized country had a century of exponential growth of credit, asset prices and inflation which is likely to lead to a global collapse…
“It is of course impossible to time the end of a 100-year super cycle bubble. It has already gone on for much longer than many of us thought was possible. But governments, central banks as well as commercial banks have succeeded in pumping endless amounts of money into the system to keep the Ponzi scheme going. Most people do not understand what is happening to their money. They believe that their dollar, pound or euro is worth the same as it was 10 years ago, or 25 years ago.
Since the creation of the Fed in the US in 1913, all major currencies have declined in value by 97-99%. This means that savings have been destroyed by the same amount. Savings are essential for an economy to grow soundly. Savings are the basis of investments for growth in all areas of the economy, whether it is manufacturing, housing or infrastructure. To achieve real growth, there must be savings. The growth that the world has experienced in the last few decades, especially since 1971 when the gold backing of the dollar was abolished, has been based on a massive debt expansion. Credit creation leads to currency debasement and in real terms virtually no growth is achieved. This is why real median wages for ordinary workers are not growing in many countries, like the USA or UK.
Global Super Bubble To Implode
The world will soon experience how false and dangerous global growth has been since it is standing on a foundation of paper money. As this foundation collapses in coming years, the world will realize that all the assets that have been inflated to bubble levels will lose most of their value.