Home
Egon von Greyerz Warns The World Now Faces An Economic Disaster
March 28, 2016
On the heels of wild start to the 2016 trading year, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, just warned that the world now faces an economic disaster. He also discussed the historic opportunity in the silver market.
Egon von Greyerz: “We have talked extensively about the financial and economic risks in the world Eric. As you know, my view is that the world will face an economic disaster in the next few years that will be totally devastating and lower the standard of living for all of us for a long time to come…
In Volatile Markets, Is Wealth Preservation King?
In a King World News interview I spoke with the man who predicted the Swiss National Bank would experience staggering losses and that the Fed would also experience massive losses that will destabilize the global financial system! His company is the only one in the world offering a precious metals investment service outside the banking system, with direct ownership and full control by the investor. He has also become legendary for his predictions on QE, historic moves in currencies, and major global events. To find out what he and his company can do to help answer that age old question for you CLICK HERE.
Sponsored
Egon von Greyerz continues: But sadly, the world is also facing a major risk of war, civil war and social unrest. I don’t pretend to be an expert on war but to identify and understand risk is one of my great interests.
Throughout history all empires reach a point when overspending and economic mismanagement lead to their downfall. The USA has now reached that point. This is a nation that by any measure is bankrupt. They have not had a real budget surplus since 1960 nor a trade surplus since the early 1970s. And debts are increasing exponentially.
US government debt has gone from $8.4 trillion since the economic crisis started in 2006 to $19.2 trillion today. It is only because the US dollar is the reserve currency of the world that the country has gotten away with irresponsible deficit spending, combined with credit expansion and money printing. But the life of the dollar will soon come to an end as the US makes a desperate attempt to save itself from the coming collapse of its economy and currency.
In the last stages of an empire, a major war is normally the final act to divert attention from the distraught economic situation. The US has, in recent years, already started wars in Afghanistan, Iraq, Iran, Libya and Syria plus a few smaller wars. But the risk of war drums on a major scale is now getting closer. This would make it possible to print and borrow trillions of dollars to “save” the economy and simultaneously put the blame on an external event.
There are several potential regions that could be the candidate for a US involvement. The dispute with Russia over Ukraine has not been resolved and problems in this region could easily escalate again, leading to a potential nuclear attack of Russia. The US would be incapable of winning a war on the ground against a major nation. The failures in all the recent wars are sufficient proof of that. Therefore, a nuclear attack is sadly the most likely option.
Another area of potential conflict is North Korea, Eric. Their leader Kim Jong-un is getting ever louder in threatening the world, and in particular the US, with nuclear missiles. Few people believe that they have long range missiles capable of hitting the US with accuracy, but the risk that they could achieve this in the next few years could be sufficient for the US to make pre-emptive strikes against North Korea.
China’s Expansion
If we move a bit further south from Korea to the South China Sea, this is an area where a number of rival countries have wrangled over territory for centuries. This dispute has now escalated with China making major claims on the area by constructing islands, and also with a major naval involvement. The US is opposing the Chinese expansion and there is a risk that this relatively minor dispute could escalate to a major conflict between the US and China.
If we move to the Middle East and North Africa, this continues to be a major time bomb with potential conflicts in Syria, Iran, Iraq, Turkey, Saudi Arabia, Israel, Libya, Egypt and numerous other countries plus groupings such as ISIS, Al Qaeda etc. If we just look at the current conflict in Syria, there are so many countries involved from that region plus several Western countries led by the US and Russia of course. The potential for serious internal problems in, for example, Saudi Arabia or major conflicts between Iraq and Saudi Arabia all have the potential to get a major part of the world involved with devastating consequences.
These are just a few of the areas that could lead to a major war Eric, but the risk of civil war and social unrest is also major in many countries. Social unrest is normally the result of economic hardship and empty stomachs. In a country with a homogenous population, the risk of internal strife is smaller since there is no group to blame. But what has happened in recent years both in the US and in the EU countries is that there has been a massive immigration. In the US this is from a number of countries but in particular from Mexico.
In EU community countries there has been a major inflow from many areas including Afghanistan, North Africa and the Middle East. The bigger the social security benefits, the more migrants enter a country. This is why countries like Germany and Sweden have seen such a major inflow. I was recently in Poland and I asked them if they had many migrants. I was told that they don’t have a problem since they pay no social benefits. So that is a very simple way of reducing the number of immigrants. So Eric, when a downturn in the economically fragile USA and EU starts in earnest, the risk of internal conflict is major.
Interestingly, China could also face a civil war. The massive credit expansion in China could easily lead to an economic downturn and hardship for the Chinese people. Social unrest and a civil war could easily follow. There are many historic precedents for this in China.
Eric, it is not my intention to be a warmonger here. I sincerely hope that all the things I have talked about won’t happen. But just like with the economic and financial risks, the war or civil war risks are today major. Investors must be aware of this and take whatever protection they can. I realize that everyone can’t leave the US or the EU but there will be safer regions even in these countries. Big cities always represent the highest risks. Small towns or villages will always be safer and even more remote areas.
And with all these risks of whatever kind, wealth preservation is critical. Throughout any crisis in history, whether economic or political, physical gold and some silver have saved many people from total misery. In my view, gold is the best form of wealth preservation, but currently I believe that silver also represents an excellent opportunity. Silver is oversold and very undervalued in relation to gold. Global silver stocks have declined by over a billion ounces in recent times and are now virtually nonexistent.
Throughout history an annual wage has been around 50 ounces of silver. But in the last one hundred years this measure has got out of sync. If we assume that an average wage today is $50,000, and that should be the same as 50 ounces of silver, the price of silver needs to be $1,000 to come back to the historical norm. As you know Eric, I said in my interview last week that silver could reach $660 based on my projection of $10,000 gold and a gold silver ratio of 15. So $660 or $1,000 are both potential longer term targets for silver.
But I must stress again that physical gold and silver must be bought to insure wealth against all the risk that I have talked about. Metals should not be bought for speculative purposes but as insurance against a potential total destruction of conventional assets such as stocks, bonds and property.
http://kingworldnews.com/egon-von-greyerz-warns-the-world-now-faces-an-economic-disaster/
March 28, 2016
On the heels of wild start to the 2016 trading year, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, just warned that the world now faces an economic disaster. He also discussed the historic opportunity in the silver market.
Egon von Greyerz: “We have talked extensively about the financial and economic risks in the world Eric. As you know, my view is that the world will face an economic disaster in the next few years that will be totally devastating and lower the standard of living for all of us for a long time to come…
In Volatile Markets, Is Wealth Preservation King?
In a King World News interview I spoke with the man who predicted the Swiss National Bank would experience staggering losses and that the Fed would also experience massive losses that will destabilize the global financial system! His company is the only one in the world offering a precious metals investment service outside the banking system, with direct ownership and full control by the investor. He has also become legendary for his predictions on QE, historic moves in currencies, and major global events. To find out what he and his company can do to help answer that age old question for you CLICK HERE.
SponsoredEgon von Greyerz continues: But sadly, the world is also facing a major risk of war, civil war and social unrest. I don’t pretend to be an expert on war but to identify and understand risk is one of my great interests.
Throughout history all empires reach a point when overspending and economic mismanagement lead to their downfall. The USA has now reached that point. This is a nation that by any measure is bankrupt. They have not had a real budget surplus since 1960 nor a trade surplus since the early 1970s. And debts are increasing exponentially.
US government debt has gone from $8.4 trillion since the economic crisis started in 2006 to $19.2 trillion today. It is only because the US dollar is the reserve currency of the world that the country has gotten away with irresponsible deficit spending, combined with credit expansion and money printing. But the life of the dollar will soon come to an end as the US makes a desperate attempt to save itself from the coming collapse of its economy and currency.
In the last stages of an empire, a major war is normally the final act to divert attention from the distraught economic situation. The US has, in recent years, already started wars in Afghanistan, Iraq, Iran, Libya and Syria plus a few smaller wars. But the risk of war drums on a major scale is now getting closer. This would make it possible to print and borrow trillions of dollars to “save” the economy and simultaneously put the blame on an external event.
There are several potential regions that could be the candidate for a US involvement. The dispute with Russia over Ukraine has not been resolved and problems in this region could easily escalate again, leading to a potential nuclear attack of Russia. The US would be incapable of winning a war on the ground against a major nation. The failures in all the recent wars are sufficient proof of that. Therefore, a nuclear attack is sadly the most likely option.
Another area of potential conflict is North Korea, Eric. Their leader Kim Jong-un is getting ever louder in threatening the world, and in particular the US, with nuclear missiles. Few people believe that they have long range missiles capable of hitting the US with accuracy, but the risk that they could achieve this in the next few years could be sufficient for the US to make pre-emptive strikes against North Korea.
China’s Expansion
If we move a bit further south from Korea to the South China Sea, this is an area where a number of rival countries have wrangled over territory for centuries. This dispute has now escalated with China making major claims on the area by constructing islands, and also with a major naval involvement. The US is opposing the Chinese expansion and there is a risk that this relatively minor dispute could escalate to a major conflict between the US and China.
If we move to the Middle East and North Africa, this continues to be a major time bomb with potential conflicts in Syria, Iran, Iraq, Turkey, Saudi Arabia, Israel, Libya, Egypt and numerous other countries plus groupings such as ISIS, Al Qaeda etc. If we just look at the current conflict in Syria, there are so many countries involved from that region plus several Western countries led by the US and Russia of course. The potential for serious internal problems in, for example, Saudi Arabia or major conflicts between Iraq and Saudi Arabia all have the potential to get a major part of the world involved with devastating consequences.
These are just a few of the areas that could lead to a major war Eric, but the risk of civil war and social unrest is also major in many countries. Social unrest is normally the result of economic hardship and empty stomachs. In a country with a homogenous population, the risk of internal strife is smaller since there is no group to blame. But what has happened in recent years both in the US and in the EU countries is that there has been a massive immigration. In the US this is from a number of countries but in particular from Mexico.
In EU community countries there has been a major inflow from many areas including Afghanistan, North Africa and the Middle East. The bigger the social security benefits, the more migrants enter a country. This is why countries like Germany and Sweden have seen such a major inflow. I was recently in Poland and I asked them if they had many migrants. I was told that they don’t have a problem since they pay no social benefits. So that is a very simple way of reducing the number of immigrants. So Eric, when a downturn in the economically fragile USA and EU starts in earnest, the risk of internal conflict is major.
Interestingly, China could also face a civil war. The massive credit expansion in China could easily lead to an economic downturn and hardship for the Chinese people. Social unrest and a civil war could easily follow. There are many historic precedents for this in China.
Eric, it is not my intention to be a warmonger here. I sincerely hope that all the things I have talked about won’t happen. But just like with the economic and financial risks, the war or civil war risks are today major. Investors must be aware of this and take whatever protection they can. I realize that everyone can’t leave the US or the EU but there will be safer regions even in these countries. Big cities always represent the highest risks. Small towns or villages will always be safer and even more remote areas.
And with all these risks of whatever kind, wealth preservation is critical. Throughout any crisis in history, whether economic or political, physical gold and some silver have saved many people from total misery. In my view, gold is the best form of wealth preservation, but currently I believe that silver also represents an excellent opportunity. Silver is oversold and very undervalued in relation to gold. Global silver stocks have declined by over a billion ounces in recent times and are now virtually nonexistent.
Throughout history an annual wage has been around 50 ounces of silver. But in the last one hundred years this measure has got out of sync. If we assume that an average wage today is $50,000, and that should be the same as 50 ounces of silver, the price of silver needs to be $1,000 to come back to the historical norm. As you know Eric, I said in my interview last week that silver could reach $660 based on my projection of $10,000 gold and a gold silver ratio of 15. So $660 or $1,000 are both potential longer term targets for silver.
But I must stress again that physical gold and silver must be bought to insure wealth against all the risk that I have talked about. Metals should not be bought for speculative purposes but as insurance against a potential total destruction of conventional assets such as stocks, bonds and property.
http://kingworldnews.com/egon-von-greyerz-warns-the-world-now-faces-an-economic-disaster/
» The President of the Republic: 40% of Iraq's lands are threatened by desertification due to the poli
» American newspaper: Kurdish parties are the biggest beneficiaries of the US invasion of Iraq
» What is the relationship of the "dry canal" with Turkey to the silk project?.. Al-Fatlawi answers
» The decree details the paragraphs of the budget...imaginary numbers in revenues and deficits
» Iraq accedes to Convention 102 on minimum standards for social security
» Parliamentary confirmations to make amendments to the budget related to the canceled contracts
» Al-Sudani: Iraq is serious today in expanding and developing aspects of cooperation with Turkey
» Iraq stresses the importance of activating the terms and paragraphs of the strategic partnership agr
» The Minister of Finance is discussing with a representative delegation the mechanisms of joint coord
» Chihoud: Al-Sudani's regional tours will put Iraq on the right track in improving and investing in i
» Economist: The Sudanese have moved away from the politics of arming with Turkey
» Oil: We aim to increase refining capacity through the implementation of a number of investment refin
» Al-Sudani reveals the details of his meeting with Turkish investors: This is about money transfers
» Iraq launches an appeal to the United Nations: We are facing the worst water crisis in our modern hi
» Electricity: The rise in Iranian gas releases to 25 million will contribute to the stability of proc
» The industry talks about a quantum leap in local cement production
» Iraq's ports are waiting for the largest floating book fair
» The Minister of Labor announces Iraq's accession to an agreement related to the social security stan
» The dollar crisis dominates the rise in food commodity prices... and the "Ramadan effect" is innocen
» Leader in the framework: Doubling the supplies of the Tigris River will not be limited to 30 days
» The Al-Fatah Alliance sets a condition that "the budget will not pass without it" - Urgent
» Investigation: Chalabi "feeded lies by the American media" to achieve the invasion of Iraq for "pers
» A parliamentary address to the integrity related to revealing Al-Kazemi’s financial disclosure befor
» Similar to the revenues of Suez.. Iraq is the "new Silk Road" between the Gulf and Turkey
» Al-Sudani's advisor: The cash leakage generated an illegal market that deals with usury and interest
» The President of the Republic talks about a "great threat" facing Iraq
» "First Bank of Iraq" launches the global instant money transfer service
» Al-Rafidain grants an advance of 25 million exclusively to the original retiree
» Academic: An article in amending the election law is a "rigging party"
» The federation denies the issuance of a decision that the session on voting on the election law is u
» The ministers of oil and electricity agreed to ensure that the release of gas meets the needs of the
» Al-Sudani promises Turkish businessmen to continue making decisions that facilitate the work of inve
» The Road to War in Iraq: Bush, Blair, Intelligence Failure and the Lying Game
» Iraq faces the challenge of securing its western desert to ensure the work of oil companies
» The new Deputy Governor of the Central Bank begins his duties
» The central bank announces the results of selling the dollar through its window, preserving the incr
» Al-Sudani invites Turkish businessmen to settle their industrial and commercial activities in Al-Faw
» In the video.. The Central Bank explains the reasons for the delay in external transfers within the
» Alaq reveals astronomical amounts outside the scope of banking dealings inside Iraq
» An economist explains the importance of the railway link between Faw and Ankara
» The Federal Ministry responds to the request of the state order to stop the disbursement of 400 bill
» A deputy reveals Al-Sudani's strategy to "get rid of" the "illegal" factions
» Al-Sudani promises Turkish businessmen to continue making decisions that facilitate the work of inve
» Deputy: The budget bill has not yet reached the parliamentary committees
» Parliamentary Finance: Discussing the budget in Parliament will not take long
» Al-Sudani: Our government is continuing to implement the priorities of its plans to enhance water st
» Baghdad Chamber Of Commerce Calls For A Pause In Protest Against The Procedures Of The Central Bank
» The Prime Minister Stresses The Importance Of Including The Draft Budget Law For The Development Fun
» The Arab Group: We reject the removal of Article 35 of the Kirkuk Provincial Council Elections Law
» In the presence of Moayad Al-Lami, the Integrity Commission conference started to announce the annua
» Head of the Integrity Commission: The Supreme Anti-Corruption Commission has made good achievements
» Judge Haider Hanoun: The draft of the second amendment to the Integrity and Illicit Gain Commission
» The Minister of Labor participates in the meetings of the International Labor Organization in Geneva
» Judge Hanoun: We have contacted a number of countries to follow up and recover Iraqi funds smuggled
» Integrity: We worked on 9,902 recruitment orders during the year 2022
» Integrity: The total funds maintained over the past year amounted to more than two trillion dinars
» Ibtisam Al-Hilali: Great corruption, tampering with employees' salaries, and dishonorable claims in
» Integrity... The response rate of the three presidencies to disclose financial assets is 100%, and m
» "Petrogulf" signs a contract with an Iraqi company for a period of 5 years
» Al-Shabki: The oil and gas law will impose the region's authority over areas belonging to Nineveh
» Parliamentary Oil announces the direct study of a very important controversial law
» A deputy calls on the government to limit internal monetary dealings in dinars only
» French Total: We are waiting for the approval of the Iraqi government to complete an agreement worth
» The Supreme Commission for Combating Corruption in Iraq investigated 63 corruption cases, of which 7
» Increased sales of the Iraqi currency auction of the dollar
» Al-Sudani meets Turkish businessmen and invites them to settle their activities in Al-Faw port
» "Without interest".. A parliamentary committee: allocating 400 billion dinars as loans for youth in
» The central bank governor expects a decrease in the "parallel" dollar exchange rate
» Al-Sudani: We agreed with Turkey to move forward on the path of development to link the East with th
» French Total: There is no solution with Iraq to complete the major energy deal
» "It may turn Iraq into a major transportation station." Nabil Al-Marsoumi assesses the importance of
» A reading of the Central Bank's strategy for the next stage to advance the banking sector
» Al-Rafidain: Granting an advance of 25 million dinars to the original pensioner exclusively
» The importance of moving to the innovative development methodology as a driving force to diversify t
» The Ministers of Electricity and Oil are briefed on the stages of developing gas fields in Halfaya,
» The Association of Banks and the Central Bank.. Towards a National Lending Strategy
» Central bank sales exceed $200 million
» Erdogan announces the release of water in the Tigris River towards Iraq for a period of one month
» Advisor to the Minister of Defence, Dr. Salah Al-Saeedi .. refutes (lies and fabrications) the Minis
» The Minister of Water Resources reveals positive signs from Iran to release water
» Al-Mandalawi: Iraq is keen on the strength of its regional and international relations
» Parliamentary Finance: Efforts to include allocations for the general population census in the 2023
» Formation of the {East of the Canal} service coalition
» Baghdadis anticipate Ramadan with community initiatives
» Facilities for building housing complexes for the families of martyrs
» Al-Sudani and Erdogan launch a global strategic project
» Public Pension opens offices in four ministries
» Comprehensive plans for the advancement of education and higher education
» The Relief and Development Association launches the e-Donate platform
» Central Governor to «Al-Sabah»: 70 trillion dinars outside the banking system
» Iraq towards handing over the instruments of accession to the two international social security conv
» An official announcement about the railway connection and the increase in the releases of the Tigris
» Parliamentary Finance: We do not think about reducing budget expenditures, and we will leave it acco
» With a "milestone"... Trade sets the date for the Baghdad International Fair
» Director of Total: Our deal is stalled, waiting for Baghdad, and we will not risk its position fluct
» A slight decrease in the exchange rates of the dollar in Baghdad
» Iraqi central sales exceed $ 213 million
» Nouri Al-Maliki sets a single condition before proceeding with the French "Total" deal