Gold and Silver • Von Greyerz – Currency Collapse, Hyperinflation & Social Unr
Von Greyerz – Currency Collapse, Hyperinflation & Social Unrest
With the gold price tumbling, along with silver, today King World News interviewed the man who told clients in 2002, when gold was $300, to put up to 50% of their assets into physical gold held outside of the banking system. Egon von Greyerz is founder and managing partner at Matterhorn Asset Management out of Switzerland. When asked about the 2002 call, Greyerz responded, “It was very clear to me, Eric, for quite a long time, well before 2002, that this was going to end badly. There was no chance the world would survive with the banking system intact or even the financial system intact.”
“There were two alternatives, a deflationary collapse, which would mean that no bank would survive and that would be very good for gold. The more likely scenario, which I’ve been predicting for probably ten years, is we would have hyperinflation because governments need to print unlimited amounts of money.
That was clear in 2002 and that’s why we told clients this is the only way to protect your assets, by putting up to 50% of your assets into gold and to store it outside the banking system because we don’t know if the banking system will survive…There is no alternative in my book, everything else is paper which will decline dramatically against gold.
We have an unprecedented situation in the world. There has never been, in world history, a situation where all major sovereign countries are bankrupt. And, in addition, the whole financial system is bankrupt. As we know some countries can print money, like the US and the UK, so therefore their currencies are relatively stable now. It’s not going to last (their currency stability)….
“The EU is under pressure only because there is only one bank, the ECB, that can print money and all of the individual countries can’t. Therefore the US, of course, loves the fact that Europe is under pressure and especially the eurozone because the problems in the US are just the same. The focus will soon shift to the US. The only way they can solve their problem is by printing unlimited amounts of money.
Then you go to the banking system, as we both know, the banking system is bankrupt and is only surviving because banks are allowed, since 2008, the banks are allowed to state all of their toxic assets at full value. If they had stated them at market value no banks would be standing today, no major bank.
So you have both sovereign states and the banking system which is bankrupt and it is only a matter of time before we have a resolution. The resolution is just a resolution and that will be money printing in my view. That will kick the can down the road a little further, but will not solve any problem whatsoever. This problem, sadly, is too big to be solved.
This is the frightening side of what’s happening now. It’s one thing to have a financial system that’s under pressure, and the consequence that we’ll have is all currencies will continue to collapse. For the last 100 years currencies are down between 97% and 99% against gold. So they haven’t got far to go to zero and they will go to zero.
What will happen is speculators will go after one currency at a time. So currencies will become worthless and this is what will create hyperinflation. Sadly, it will be a hyperinflationary depression, which means there will be a lot of hungry people….because of the poverty this will involve and the hunger, this will involve social unrest…It will get a lot worse.”
This is a powerful and riveting interview with one of the few men who saw the collapse coming. The KWN interview with Egon von Greyerz will be available shortly and you can listen to it by CLICKING HERE
Statistics: Posted by DIGGER DAN — Thu Dec 15, 2011 2:08 am
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