Egon von Greyerz: Global Debt Implosion Coming (Video)

Egon von Greyerz: Global Debt Implosion Coming Video by Palisade Radio

Tom welcomes a new guest to the show Egon von Greyerz. Egon is Founder and Managing Partner of Matterhorn Asset Management AG based in Switzerland.

Egon discusses how today’s events aren’t new; we are in a pattern that repeats throughout history. Governments love to spend more than they receive in revenue, and no currency has ever survived. Deficits have been nearly non-stop since 1930, and often an unrelated trigger can cause the crisis.

Central banks are creating worthless money out of thin air only because people believe it has value. Today, we are in the euphoric final phase of the monetary system as asset bubbles get inflated. Market risks today are far worse than they were in 1929 because this time, they are global. Central bankers will do whatever is necessary to support the system, but it’s a losing game. It remains possible that stock markets double from here, but it’s also likely that gold and the Dow will meet at some point.

Egon is concerned that we will enter a dark period of decline and that only once we are through it will the historians label it. Debt can’t be fixed with more debt; however, central banks and governments don’t seem to understand this fact. Hyperinflation always arises due to currency debasement and collapse, and eventually, interest rates must rise.

Gold today is at the same cheap levels of 1971 and 2000 compared to the total US money supply. He cautions, “Don’t measure your net worth against something that has no intrinsic value.”

We’ve reached the point where decline is inevitable for the west. Lastly, he discusses their ultra-secure private gold vault in Switzerland that is the largest in the World.

Time Stamp References:
0:00 – Introduction
0:45 – Central banks have lost control.
5:00 – Stages of a crisis.
6:45 – Collapsing currencies and US Dollar.
11:20 – Global debt and systemic risks.
15:10 – Debt explosion and coming turmoil.
19:00 – Hyperinflation and derivatives.
25:50 – Chart, gold adjusted for US money supply.
31:30 – China’s role in the future.
35:20 – Switzerland mountain vault.
38:50 – Pensions, ETF’s and Physical.

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