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Socio-Economics & History Commentary

Egon Von Greyerz: Hyperinflation Will Drive Gold To Unthinkable Heights!

  • 2011 looks like the year when the global economic, financial and monetary crisis will come about! This is an engineered calamity. The Illuminists want a Luciferian New World Order, World Government, Supra-National Global Central Bank (likely to be the IMF) and One World Currency. They know that the USD has just about run its course. They will take it down to collapse America and remake it into their New World Order, the Mystery Babylon Whore of Revelation 17.
     
  • A global currency crisis is a certainty. With it, all major currencies: USD, EUD, JPY, UKP… will collapse. After which, the Illuminist will use this crisis to introduce their pre-planned One World Currency solution. Those countries which refuse to accept this new currency and financial hegemony will have their asses kicked ie: War! My advice to all is the same: Got GOLD yet??
      
  • Egon Von Greyerz in his own lucid way is painting the hyper-inflation (ie currency crisis/debasement) that is coming!
     
    Hyperinflation will drive gold to unthinkable heights
    We now live in a world where governments print worthless pieces of paper to buy other worthless pieces of paper that combined with worthless derivatives, finance assets whose values are totally dependent on all these worthless debt instruments.  Thus most of these assets are also worth-less.
     
    So the world financial system is a house of cards where each instrument’s false value is artificially supported by another instrument’s false value. The fuse of the world financial market time bomb has been lit.  There is no longer a question of IF it will happen but only WHEN and HOW.  The world lives in blissful ignorance of this. Stockmarkets remain strong and investors worldwide have piled into government bonds in a perceived flight to safety. Due to a century of money creation (and in particular since the 1970s) by governments and by the fractal banking system, investors believe that stocks, bonds and property can only go up. Understanding risk and sound investment principles has not been necessary in these casino markets with guaranteed payouts for anyone who plays the game. Maximum leverage and derivatives have in the last 10-15 years driven markets to unfathomable risk levels, with massive rewards for the participants.
     
    In the meantime central banks are cranking up the printing presses but as Bernanke recently said quantitative easing is an “inappropriate” description of what should be called “securities purchases”!  Who is he kidding? What the Fed is buying has nothing to do with “securities”. There is no security whatsoever in the rubbish the Fed is purchasing. They are buying worthless pieces of paper with worthless pieces of paper. This is the Ponzi scheme of all Ponzi schemes.
     
    Let us be very clear, this financial Shangri-La is now coming to an end. The financial system is broke, many western sovereign states are bankrupt and governments will continue to apply the only remedy they know which is issuing debt that will never ever be repaid with normal money.
    So why does the world still believe that the financial system is sound?
     
    - Firstly, because this is what totally clueless governments are telling everyone and this is what investors want to hear.
    - Secondly, whether governments apply austerity like in parts of Europe or money printing as in the US, investors want to  believe that any action by government is good, however inept.
    - Thirdly, market participants are in a state of false security due to shortsightedness and limited understanding of history.
    - Fourthly, as long as they can benefit from inflated and false asset values, the market participants will continue to manipulate markets.
    - Fifthly, there has been a very skilful campaign by the US to divert the attention from their bankrupt economy and banks `to small European countries like Greece, Ireland or Portugal. These nations, albeit in real trouble, have problems which are miniscule compared to the combined difficulties of the US Federal Government, states, cities and municipalities.
     
    Euro zone members can’t print money. Many EU countries are downgraded by US rating agencies which don’t dare to touch the US rating. The AAA rating of the US is an absolute sham and totally politically motivated. True to form, rating agencies will only downgrade debt once it has become worthless but never before.
     
    Hyperinflation Watch
    The result of massive money printing is a collapsing currency, leading to escalating prices and eventually hyperinflation. This is in simple terms how every hyperinflationary period in history has happened. If in addition, there are world shortages of food, energy and other commodities, this will accelerate the process. There are currently a number of indicators all pointing to escalating money printing and an imminent start of a hyperinflationary era. Here are some of them:
     
    1. Fiscal Gap widening at alarming rates in many major economies.
    2. Commodity prices at all-time highs.
    3. Long term interest rates rising.
    4. Most Currencies falling.
    5. Precious Metals at all-time highs against most currencies.
     
    Fiscal Gap
    Tax receipts are collapsing and government expenditure soaring in many major economies including virtually all southern European countries as well as in the UK. James Turk has produced on his fgmr.com site two excellent graphs for the USA and the UK showing the extreme severity of these two countries’ deficits.
       
      …. to continue reading click here!

A global economic, financial and currency crisis is coming in 2011 !

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January 3, 2011 - Posted by | Economics | , , , , , , , , , , , , ,

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