Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that governments are now desperately trying to keep the illusion going as crashing stock & bond markets are set to shock the world!
Egon von Greyerz: “Eric, I don’t think the general public has any understanding of what is happening in the world today and the incredible risks we are seeing. Since 2008, world debt is up over 40 percent and so now the world has unsustainable debt levels of over $200 trillion….
Continue reading the Egon von Greyerz interview below…
Governments Desperately Trying To Keep The Illusion Going
Governments have tried to keep the illusion going by moving rates to zero or even negative in many countries. But even with all the money printing and stimulus, the world economy has still not reacted to it and has stopped growing. In fact, economies are actually starting to contract in many countries.
China contributed 85 percent of global growth in 2012. But China is beginning to struggle and their contribution to global growth this year is only expected to be 24 percent. Of course that will have major repercussions for the entire world because China has been a huge buyer of both commodities and machinery. That buying spree is now declining dramatically.
The only thing left in the various governments' tool kits is fiscal stimulus. But with countries mismanaging their economies and running major deficits, it will be impossible to increase the deficits because it will cause the debt to skyrocket. Who will repay the additional printed money and debt?
Japanese Economy Won't Survive 400 Percent Debt/GDP Ratio