- Worldwide money printing continues unabated
- Just In 10 years $120 trillion have been printed making global debt $200 trillion
- World GDP has gone from $32 trillion to $70 trillion 2001-2011
- Thus $120 trillion debt is required to produce a $38 trillion annual increase in GDP
- The marginal return on printed money is negative in real terms
- Thus the world is living on an illusion of paper that people believe is money
- This illusionary paper wealth will implode in the next few years
- The initial trigger will be the collapse of the world’s reserve currency – the US dollar
- The dollar is backed by $120 trillion of US government debt and probably NO gold
- All currencies will continue their race to the bottom and lose 100% in real terms against gold
- This will create a worldwide hyperinflationary depression
- All assets financed by the credit bubble will go down in real terms
- This includes stocks, bonds, property and paper money of course
- The financial system is unlikely to survive in its present form
- The banking system including derivatives has total liabilities of around $1.2 quadrillion
- With world GDP of $70 trillion, the world is too small to save a financial system which is 17x greater
- This is why there will be unlimited money printing and hyperinflation
- Gold has been money for 5,000 years and will continue to be the only currency with integrity
- Western countries’ 23,000 tons of gold is probably gone. See recent article by Eric Sprott.
- The consequence is that most of the gold in the banking system is likely to be encumbered
- This means that Central Banks one day will claim it back against worthless paper gold IOUs
- Thus gold and all other assets within the banking system involve an unacceptable counterparty risk
- Gold should be held in physical form and stored outside the banking system
- The only asset that will maintain its purchasing power is gold see chart below:
All the above via Egon von Greyerz’ GOLD SWITZERLAND website
GoldSwitzerland is the precious metals investment division of Matterhorn Asset Management AG (MAM), a Swiss asset management company specialising in wealth preservation for high net worth individuals and institutions.
GoldSwitzerland advises investors on precious metals investments and buys, sells, transfers and stores precious metals for investors. The metals are stored in the name of the clients in ultra-secure vaults in Switzerland. MAM also assists clients in transferring existing gold and silver holdings out of the banking system to the private vaults. Clients have full control of their gold and silver bars which are allocated and segregated. Clients have personal access to the vaults to inspect or collect their metals.
MAM is associated with the Aquila Group, Switzerland’s largest independent asset management group.
About Egon von Greyerz – Twitter @GoldSwitzerland
EvG forecasted the current present problems in the world economy well over 10 years ago. In 2002 when gold was $300 per ounce, MAM recommended to its investors to put 50% of their investment assets into physical gold stored outside the banking system.
Egon von Greyerz started his working life in Geneva as a banker and thereafter spent 17 years as Finance Director and Executive Vice-Chairman of a FTSE 100 company in the UK, Dixons Group Plc.
Since the 1990s EvG has been actively involved with financial investment activities including Mergers and Acquisitions and Asset allocation consultancy for private family funds. This led to the creation of Matterhorn Asset Management in 1998, an asset management company based on wealth preservation principles. The GoldSwitzerland Division was created to facilitate the buying and storage of physical gold and silver for private investors, companies, trusts and pension funds.
EvG makes regular media appearances such as on, CNBC, BBC and King World News and speaks at investment conferences around the world. He also publishes articles on precious metals, the world economy and wealth preservation.
