Friday, April 08, 2016

The World Economy Is Terminally Broken 
After 50 Years Of Misgovernment Since
Gold Backing Of The $ Was 'Temporarily' Suspended
"Returning to my 50 years’ professional experience, I have been lucky to live in an era of peace and economic prosperity. But gradually since the gold backing of the dollar was abolished in 1971, real economic growth based on hard work, savings and investment has been replaced by currency debasement, credit expansion, money printing and financial manipulation or repression. And what is absolutely certain is that the unsound economic climate that we currently have cannot last. It is not a question of IF only of WHEN it will end. Of that I am 100% certain. The massive build-up of debt since the financial crisis is a futile and desperate attempt to put Humpty Dumpty back together again. But sadly the world cannot be put back together this time. If we scratch under the surface, we find a plethora of insoluble problems on every continent and in every country whether it is exponential debt explosion in Japan or China or a bankrupt EU with the added problem of the migrant crisis. Most emerging markets are on the verge of collapse as commodity prices are collapsing and China’s expansion has stopped. But the biggest problem is of course the U.S.. This is a country that has lived above its means for over 50 years. Since 1960 the U.S. has not had a real budget surplus. Debts, including unfunded liabilities, are $230 trillion and to that we can add a worthless derivative position of at least $400-$600 trillion. This guarantees that the U.S. will default at some point not too far away and that the dollar will sink into the ocean."
- Egon von Greyerz
LINK HERE to the essay


Anonymous said...

This man has an axe to grind ..... and his grinding is trite with old age.

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