Tuesday, September 06, 2016

Our World Is Hanging By A Thread, 
On A Frightening Road To Perdition
"Since Reagan came to power in 1981, the US has had a total of five presidents who in their desire to hold on to power, have spent ever-increasing amounts of money to hang on to power and buy votes. This has resulted in the most extraordinary money printing venture in history. It is not just central banks that print money .. Governments that borrow vast amounts of money are also performing a printing function since money is created out of thin air. And even worse than that, the U.S. government neither has the intention, nor the ability to ever repay the debt with real money. Thus the U.S. debt can only evaporate when the country defaults. Since there is no other way of eradicating this debt, a default by the U.S. is guaranteed to take place in coming years .. But before that
the Fed and the government will flood the market with jumbo jet money since helicopter money won’t suffice.
Jumbo jet money will create hyperinflation but it will never repay the debt since all it does is to increase the amount of debt outstanding from trillions of dollars to quadrillions .. Dark clouds are now moving in fast across the world and this coming autumn could be very troublesome both for the world economy as well as geopolitically and socially. The combined risks are now higher than at any time in world history. When risks are high, it is advisable to stay away from bubble markets. But sadly, the investment world loves owning things that are priced high, totally ignoring the massive loss potential."
- Egon von Greyerz
LINK HERE to the article

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