Everything Is At Risk

Everything Is At Risk by Egon von Greyerz – King World News

Today the man who has become legendary for his predictions on QE, historic moves in currencies, spoke with King World News about the biggest crisis the world has ever faced and the silver breakout.

“Risk involves the chance an investment’s actual return will differ from the expected return. Risk
includes the possibility of losing some or all of the original investment.” — (Investopedia)

Everything Is At Risk
Egon von Greyerz:  “So there we have it. Risk means that you can lose part or all of the investment. Normally valuations take risk into account. But is the world really valuing the following risks accurately: 

  • Wars:
    • North Korea – South Korea – USA – Japan – China – Russia incl. nuclear war
    • Ukraine – USA – Russia
    • Syria – Israel – USA – ISIS – Al-Qaeda – Saudi Arabia, Yemen – Iran, Iraq  etc
    • China – India – Pakistan – Afghanistan – USA 
    • Plus many more
  • Civil war and terrorism: 
    • In most countries including USA and Europe
  • Economic risk:
    • Global debt $230 trillion – can never be repaid, nor financed when rates normalized
    • Unfunded global liabilities $250 trillion – will never be honored
    • Central banks’ balance sheets $20 trillion – all insolvent
    • USA insolvent – only supported by overvalued dollar and military
    • China’s debt explosion from $2 trillion to $40 trillion since 2000 – massive bubble
    • Most industrialized and emerging countries only survive with QE – untenable
    • Interest rates at zero or below in 20 countries – unsustainable 
    • Paper money system –  currencies going to zero.
  • Financial risk:
    • Global derivatives of $1.5 quadrillion – will all implode as counterparties fail
    • Bankrupt European banking system – unlikely to survive
    • Over-leveraged global banking system 20x to 50x leverage
    • Bubbles in most asset classes – Stocks, bonds, property
  • Political risk:
    • USA has a lame duck president – risk of irrational or no actions
    • EU elite –  unelected and unaccountable –  destroying Europe 
    • Trend of globalization and socialism – very dangerous for global stability 

The above list of risks is certainly not conclusive. 

To summarize in one sentence: The world is facing risk of major (nuclear) wars, economic and financial collapse, as well as political and social upheaval. The realization of just one of these risks would be enough to change the world for a very long time. We live in a totally interconnected world and the danger is that the domino effect will trigger one event after the other until all the risks become reality…

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King World News

Interviews with market experts from around the world with a focus on precious metals.