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The Great Financial Catastrophe
GOLD Switzerland ^ | August 20, 2015 | Egon von Greyerz

Posted on 08/21/2015 6:17:51 AM PDT by Diana in Wisconsin

Most people are blissfully ignorant of the fact that 2007-8 was just a mild rehearsal of what we soon are going to experience. The additional $60 trillion in credit and printed money since then and the lowering of interest rates to zero have given the world the impression that all is now well again.

Let me be very clear, nothing is well. As a matter of fact in the 8 years since the start of the Great Financial Crisis the bubble economy has now properly spread to the world’s second largest economy – China. China has had exponential growth in debt from $2 trillion to $28T this century. A major part of this debt has financed white elephant projects and ghost cities. It would be surprising if the total Chinese bad debts were below $10 trillion before all of this is finished.

The bubble contagion has also totally infected most emerging markets. With massive growth in debts, a stronger dollar and collapsing commodity prices, almost every emerging economy is now starring into the abyss. As Michael Snyder of the Economic Collapse Blog recently pointed out, 23 stock markets around the world are now crashing. Of the 23, there are 22 emerging economies and the 23rd is Greece which definitively is not emerging but sinking into the Mediterranean. But don’t believe that this epidemic will just affect EMs. No, the contagion is already spreading to the West and this autumn we will see stock market falls that will shock the world, spreading massive fear throughout the world economy. I expect this autumn to be the beginning of the end of the 100 year old failed experiment of manipulation and repression of the financial system by bankers and central banks.

So the Great Financial Crisis of 2007-9 will now transcend into the Great Financial Catastrophe. This could very well involve a total reset or more likely a collapse of the world economy, financial system and world political system. And it won’t be orderly. It is likely to take a very long time and will involve bankruptcies of major parts of the financial system as well as many major nations. It will also lead to social unrest, escalation of wars, major poverty and famine with the world population going down significantly.

I realise that this forecast sounds very alarmist and like an impossible doomsday scenario. I sincerely hope I will be totally wrong. But sadly the risk that I will be right or at least partly right is major after 100 years of excesses in the world built on no solid foundation but an ocean of debt and printed money. Nobel Prize winners in economics, central bankers and ordinary people will learn the hard way that worthless pieces of paper that they call money cannot create real lasting wealth.

For the privileged few that have wealth to protect, gold and silver outside the banking system is a must. At the end of this reset, we will hopefully see a world based on rewarding real work and investment, with real ethical and moral values and a sound monetary system. But the road there will be very long and arduous.


TOPICS: Business/Economy; Conspiracy
KEYWORDS: stockmarket
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Some Doom and Gloom with your Friday Morning Coffee. So GLAD I'm moving to Der Hinterlands next year. Me, Beau, a handful of laying hens and our Milk Cow will be very happy.

YMMV. ;)

1 posted on 08/21/2015 6:17:51 AM PDT by Diana in Wisconsin
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To: Diana in Wisconsin

hopefully you have some gold, also?


2 posted on 08/21/2015 6:24:47 AM PDT by ConservativeDude
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To: Diana in Wisconsin

There is no escaping Madistan!


3 posted on 08/21/2015 6:26:38 AM PDT by Obadiah (Mr. Obama, the time for honoring yourself will soon be at an end.)
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To: Diana in Wisconsin

Chinese market mirroring 1929 crash: Analyst
http://www.cnbc.com/2015/08/21/china-market-mirroring-1929-crash-analyst.html?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=102938122

Chinese stocks are set to fall another 9 percent in the next four or five days and are in danger of replicating the hefty losses seen in the U.S. exchanges in the Wall Street crash of 1929, an analyst has told CNBC.

Thomas DeMark, founder and CEO of DeMark Analytics, told CNBC Friday that the current turmoil on the Shanghai Composite index is already on course to echo the crash of 1987 and 2001, but could still fall even lower.

“That’s what could happen,” DeMark said, detailing the technical analysis that his company use to predict stock market declines.


4 posted on 08/21/2015 6:29:27 AM PDT by EBH (There's a sucker born every minute)
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To: Diana in Wisconsin
I want to learn more about Egon von Greyerz. This (in my inadequately educated mind) is the most sensible sounding analysis of what probably lies ahead, and why, that I've read.

I'm a Luddite, for sure. I've always felt that globalism is a disaster that can't help but happen. The tidal wave will sink all ships that can't get off that ocean.

JMHO

5 posted on 08/21/2015 6:30:52 AM PDT by grania
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To: Diana in Wisconsin

I miss your tagline?


6 posted on 08/21/2015 6:40:01 AM PDT by Old Sarge (I prep because DHS and FEMA told me it was a good idea...)
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To: Diana in Wisconsin

As I’ve said many times on FR before . . . gold and silver will be pretty worthless in his scenario. A safe water supply, food . . . and a good milking cow . . . will be better.

I guess Tyler Durden changed his name to Egon.


7 posted on 08/21/2015 6:45:20 AM PDT by LRoggy (Peter's Son's Business)
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To: Diana in Wisconsin

I am so glad I am already broke!

(”When you ain’t got nothin’, you got nothin’ to lose...” Bod Dylan)


8 posted on 08/21/2015 6:47:16 AM PDT by left that other site (You shall know the Truth, and The Truth Shall Set You Free.)
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To: Diana in Wisconsin
Good grief. The only respite from this dystopian dream is this sentence:

I realise that this forecast sounds very alarmist and like an impossible doomsday scenario. I sincerely hope I will be totally wrong. But sadly the risk that I will be right or at least partly right is major after 100 years of excesses in the world built on no solid foundation but an ocean of debt and printed money.

Since this is on a gold website, you have to take some of it with a grain of salt. However, the potential for a very sharp correction is, I think, out there, and it could get ugly.

9 posted on 08/21/2015 6:49:25 AM PDT by WashingtonSource
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To: ConservativeDude

Oh, yes. Gold, silver and LEAD! ;)


10 posted on 08/21/2015 6:55:50 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Obadiah

I’ll shoot my way out if need be, LOL! The cops won’t hear it over the everyday random gunfire we have now! :)


11 posted on 08/21/2015 6:56:56 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: WashingtonSource

Well, of COURSE. Always consider the source. :)


12 posted on 08/21/2015 6:57:59 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Old Sarge

Well, cr@p! FR was acting hinky, yesterday! I’ll see if I can fix that!


13 posted on 08/21/2015 6:58:44 AM PDT by Diana in Wisconsin (I don't have 'Hobbies.' I'm developing a robust Post-Apocalyptic skill set...)
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To: Diana in Wisconsin

Bump for the Queens of denial.


14 posted on 08/21/2015 7:02:00 AM PDT by MeneMeneTekelUpharsin (Freedom is the freedom to discipline yourself so others don't have to do it for you.)
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To: WashingtonSource

No need to even go to the gold site. ANY half-way intelligent person can look at the debt fundamentals and realize we are in for a SERIOUS problem globally. We cannot continue on the way we have. Eventually we have to fall off the debt cliff we keep climbing up... it’s inevitable and it doesn’t take a chicken little to see it.


15 posted on 08/21/2015 7:02:14 AM PDT by NELSON111
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To: WashingtonSource; Diana in Wisconsin; LRoggy

I personally do not buy into the precious metals “buy-my-stuff-and-live-thru-SHTF-I-guariontee” scams.

The ONLY three things that will see you through what’s coming is:

* arable land for your own food;
* the means to defend it from the Gibsmedats;
* a more solid faith.


16 posted on 08/21/2015 7:07:11 AM PDT by Old Sarge (I prep because DHS and FEMA told me it was a good idea...)
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To: Diana in Wisconsin

but what’s this got to do with Trump? </ s>


17 posted on 08/21/2015 7:08:36 AM PDT by papertyger (When the left wins, they're in power; when the right wins, they're in office)
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To: grania

He appears here regularly:

http://kingworldnews.com/


18 posted on 08/21/2015 7:30:48 AM PDT by pa_dweller (But 'twould be an ill world for weaponless dreamers if evil men were not now and then slain - JRK)
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To: pa_dweller

Thank you


19 posted on 08/21/2015 7:31:40 AM PDT by grania
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To: Diana in Wisconsin

Stocks not looking too good yesterday

http://www.chicagotribune.com/business/sns-bc-financial-markets-20150819-story.html


20 posted on 08/21/2015 7:35:47 AM PDT by smokingfrog ( sleep with one eye open (<o> ---)
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