January 22, 2015
Today Egon von Greyerz, the man who 52 days ago
predicted the collapse of the euro
against the Swiss franc, just issued a second terrifying
King World News
interview takes a trip down the rabbit hole of desperate
central banks, massive losses and total global collapse.
"Egon, the ECB has just announced
this 1.1 trillion euro package in a desperate attempt to fight
"These decisions by the central
banks have virtually no impact whatsoever on the underlying
economy over the longer-term.
They did what they had to do because
the European banking system as well as the economy is in dire
Central banks still believe that by printing money they can
kick-start their economies and save the financial system. That's
not the case. There is no chance whatsoever to change the
outcome of an indebted and bankrupt European economy…
"Even though this will have a
short-term effect on markets, people need to understand that
this just creates even more debt that will never be repaid. But
the ECB is now pushing on a string because, sadly, printing
money is the only thing they know how to do.
As it becomes clear that this new money printing program is also
a failure, the ECB will then accelerate the money printing. This
will have the effect of rapidly debasing the purchasing power of
the euro and it will also lead to even more chaos in Europe.
It is of paramount importance that
investors protect themselves against this coming wealth
Disastrous Prediction Unfolds
"Egon, with remarkable precision you
predicted what turned out to be a 58-sigma market-shocking move
by the Swiss National Bank.
The former White House official, Dr.
told King World News that faith in central banks has
now been shattered after massive losses were incurred as a
result of the Swiss National Bank going back on its guarantee to
keep the peg in place."
"We don't yet know what the total
losses amount to in the aftermath of
the Swiss National Bank's historic
decision but we know they are enormous.
The Swiss franc skyrocketed in
seconds and the losses around the world are staggering and have
already been sufficient to bring down foreign exchange houses
and hedge funds.
But the losses are impacting the
bigger banks and the central banks as well.
Swiss National Bank Still Has To Unwind Massive
As an example, the Swiss National
Bank has a position of roughly 500 billion Swiss francs, mainly
in Euros and dollars.
The losses on those currency
positions were around 30 percent on the first day. So the Swiss
National Bank is now sitting on an unrealized loss of about 80
billion Swiss francs.
In the coming months and years the SNB will have to reduce the
size of its balance sheet. So they will need to sell their Euros
and buy Swiss francs. This is going to have the effect of
further strengthening the Swiss franc, which will put even more
pressure on the Swiss economy.
So it's a vicious circle for them.
Total Global Collapse
This is what all central banks have
done - they've trapped themselves in a corner.
They have zero or negative interest
rates, they are printing more money, and they are buying more
assets that they can't sell and that are worth a lot less than
they are paying for them. So every single central bank in the
world is bankrupt because they will never, ever get
the price for their assets that they paid for them.
This is why the financial system
will not survive, Eric, and a total global collapse is now in
front of us."
Listen to audio interview with the man
who predicted the collapse of the euro against the Swiss franc,
Egon von Greyerz, where he discusses total global collapse and