September 21, 2016
On the heels of the Fed’s decision not to raise rates, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, just spoke with King World News about the Fed’s decision and why the world financial system is headed for total collapse. There is also an email included from one of our KWN readers as well as a fascinating response.
Egon von Greyerz: “It was no surprise to me that the Fed did not raise rates today because I have repeatedly said on KWN that the Fed would not raise rates. The Fed knows the true economic figures, and the real figures are disastrous…
To hear which legend just spoke with KWN about $8,000 gold and the coming mania in the
gold, silver, and mining shares markets CLICK HERE OR ON THE IMAGE BELOW.
The global situation is incredibly serious and the banking system in Europe is now on the verge of collapse. So the ECB is standing ready to increase money printing because without that, neither Deutsche Bank, nor the Italian banks, nor the Greek banks, will survive.
Gold and silver are on their way, initially, to $10,000 and $1,000 respectively. But they will soar to much greater heights as hyperinflation gets underway as the massive money printing experiment accelerates, and then leads to total collapse.”
In “The Big Short,” which is based on a true story, this is well documented. The banks dumped massive amounts of mortgage paper at full price before the market collapsed. They were, at that time, totally aware that the real value of these securities was a fraction of the price that they sold them for.
The interesting question is how much of this debt that institutions are still sitting on and are they valuing it at full maturity value rather than market?
On top of the mortgage market, we now have car loans and student loans which together are well over $2 trillion dollars with very high default rates and also packaged similarly to the sub-prime housing market.
Eric, we know that none of this will be repaid. Nor will sovereign debt. When the next crisis starts, which might not be too far away, 2007 – 2008 will seem like a walk in the park …