Tuesday, June 28, 2016

Global Collapse Edges Closer
"When David Cameron decided to let the British people vote on Brexit, he did not realize that he would open a real can of worms. Before the referendum I declared that Brexit would not be the reason for a collapse of the world economy but that it could be the catalyst for such a collapse .. We have seen heavy intervention from central banks around the world, but judging from the massive volatility we have seen so far, there is now a very high likelihood that a major secular decline in the world economy will now start to unravel. The next few weeks and months are likely to be a lot worse than the financial crisis. The problem areas will not just be in the economy but also on the world political stage .. The dilemma for Europe and also for the world is that this political unrest is happening in a global economy and a financial system which is on the verge of collapse. Since the beginning of the crisis, central banks and governments have created roughly $100 trillion of additional debt, reduced interest rates to zero or negative and manipulated most markets. In spite of that, the very serious problems in the financial system that emerged have not been solved. On the contrary, they have grown exponentially with global debt having doubled and derivatives of $1.5 quadrillion being mostly worthless and out of control. The European banking system is on the verge of collapse and this will also spread to the fragile American and Asian banks."
- Egon von Greyerz
LINK HERE to the commentary

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