Tuesday, September 13, 2016

Dark Clouds Are Spreading
Over The Economy
Egon von Greyerz: "The autumn of 2016 has for some time looked like a period when dark clouds will move in over the world economy. Therefore, it was not surprising to see the first sign of things to come in the next few months. In one day the Dow erased all the gains since early July with an almost 400 point fall. Since the beginning of the year the Dow is now up a pitiful 2.6%. Almost 8 years of ZERO interest rates have not managed to revive the US economy, nor the world economy .. I talked about the massive credit creation in the USA .. We have seen the same pattern worldwide. China’s debt, for example, has gone from $1 trillion to $32 trillion in the last 16 years. And Japanese government debt is exploding and has reached 250% of GDP. Japan is now printing half of the government expenditure every month and buying all the bonds that they are issuing. Japan is clearly bankrupt and a default is inevitable. In Europe, the ECB is printing €80 billion every month. But that will of course not suffice to save a bankrupt European financial system. Whether we talk about Greek, Spanish, French, Italian or German banks, their balance sheets are all lumbered with billions of toxic assets with the only buyer being the ECB. This is why the current ECB printing program will not end in March 2017 but instead accelerate. But as we all know,
printed money can never save the system."
LINK HERE to the article

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