Greece Is The Model For A Catastrophe That Is About To Engulf The Entire World
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
Greece is the model for a catastrophe that is about to engulf the
entire world. He also discussed the $113 trillion problem.
Egon von Greyerz: “Eric,
Greece is a country that is an example of not just the problems in the
EU and the eurozone but also the problems in the world. Since 2006
Greek debt is up by 50 percent to 320 billion euros. During the same
time, Greek GDP has fallen by over 20 percent….
Continue reading the Egon von Greyerz interview below…
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“Greece
should never have joined the EU and certainly not the eurozone with the
euro as their currency. Historically, culturally, economically, Greece
does not belong in the same group as say Germany.
The
result of this unhappy union has created a financial wreck that’s been
kept from sinking by the troika, which is the IMF, the EU and the ECB.
The troika has mistakenly done all they can to keep Greece afloat. But
it makes no sense whatsoever to prop up a bankrupt nation with more debt
when they can’t repay any of it at any time.
Greece
does not have and will not have enough money to pay the interest, much
less the principal. But the troika is desperate to give Greece more
money, even if they are only posturing temporarily. And the troika
knows that they have no intention of helping Greece or the Greek
people. Any money given to Greece will go mainly to the banks that
financed Greece in the first place.
The $113 Trillion Problem
And
herein lies the problem, not just for Greece but for most of the
world. The powers that be have overseen a staggering $113 trillion
increase in total debt worldwide. The global debt load has increased
dramatically from $87 trillion to $200 trillion just since the year
2000. This means that global debt has more than doubled in 15 years.
Greece Is The Model For A Catastrophe That Is About To Engulf The World
So
it’s not just Greece that is required to continually increase its debt
in order to remain afloat. Most countries, particularly in the West,
have the same problem. Greece is just a model of the catastrophe that
is about to engulf the world. But central banks, governments and Nobel
Prize winners refuse to recognize the problem. They know that if they
allow Greece to fail today, it will be Spain and Italy next, and then
Portugal, France and eventually the entire financial system.
What
we have to remember, Eric, is that a Greek default would not just lead
to 320 billion euros disappearing from the system because the lending
banks and institutions are all levered up to 50-times that amount. But
even if we only take a figure of 20-times leverage, it would mean that
over 6 trillion euros would disappear out of the system.
But
the carnage wouldn’t stop there. A lot of the world’s $1.25
quadrillion of derivatives would be directly affected by a Greek
default. This would have a dramatic impact on interest rates, credit
risks and volatility in the system. We would see disastrous losses in
the global derivatives market.
There Is No Way The System Can Be Saved
Whether
the unraveling of the world’s financial system starts now or in the
autumn, there is no way the system can be saved. Governments are not
going to create $200 trillion out of thin air, plus potentially more
than one quadrillion dollars for the derivatives.
When
the Great Financial Crisis started in 2006, U.S. interest rates were 5
percent. Today they are at zero. So there is nothing to be gained from
lowering rates. The only tool left will be more money printing from
the IMF and the major central banks. This will lead to a
hyperinflationary period before a deflationary implosion of the
financial system. And any attempted reset would just be a disaster
because of the enormous amount of worldwide debt.
Most
stock markets are oblivious to these economic realities, and instead
are only reacting to money printing. Take Japan for example. The
Nikkei is up 2.5 times since November 2011. This is with real cash
earnings being negative since 2012 and while the Japanese economy is
slowly sinking into the Pacific.
In
the meantime, the king of wealth preservation, which is gold, is simply
biding its time. But gold will reign in splendor as many bubble assets
decline to their intrinsic value, which will be between 75 – 100 percent
below current levels.” ***Later today KWN will release one of the most important and powerful interviews that Dr. Paul Craig Roberts has ever given. Dr.
Roberts discusses why the Greek tragedy is one of the most important
and pivotal crises that the world has ever faced, as well as the
desperate moves being made by Western central banks in global markets
ahead of the resolution of this crisis, and you can listen to it when
it's released by CLICKING HERE.
***ALSO JUST RELEASED: Paul Craig Roberts Warns That The Greek Government May Be Assassinated In This Crisis If The Pivot East To Stop World War III CLICK HERE.
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