Financial and precious metals expert Egon von Greyerz (EvG) operates the largest private gold vault in the world in Switzerland. More than a year and a half ago, EvG warned here on USAWatchdog.com that “risk is exponential and unmeasurable” because of the estimated two quadrillion of derivatives and debt in the global financial system. He also warned that “at some point, all hell will break loose.” Looks like hell has indeed broken loose because of the China virus, and now EvG contends, “The system is bankrupt. . . . The system is broken and bankrupt.
This did not start now with the Coronavirus. It didn’t start in August and September (of 2019) when central banks said we would do everything we can with the Fed QE, repos and the ECB (European Central Bank) QE. . . . This started a long time ago. The system was broken at the beginning of this century. The 2007-2009 crisis was the first signal that the financial system was not functioning. They threw $25 trillion at it in financing and guarantees, etc., but I always said 2007-2009 was a rehearsal. We are now approaching, sadly, the real thing. This is the end of a two to three hundred year cycle. So, we are going to see some extremely difficult times. The Corona virus is a horrible catalyst, but that is all it is. It’s not the reason for the problem. The reason for the problem is a broken financial system . . . and now we are starting the final stage of the end of this financial system.”
EvG also says the reaction to the China virus is the same worldwide. EvG says, “You are seeing food shops with empty shelves. People are panicking. So, that is the first reaction to the Coronavirus, but they have not realized the big problem is in the financial markets. It is in a system that has no liquidity or money, and it has to print more and more. At some point, people will realize there is no money, and you will have the same reaction. People will be lining up outside of banks or they will go to their ATM machines to get money and, of course, they will have to reduce it. Now, in most countries, there is no cash. So, it is easy for them to shut off the system. There will absolutely be shortages of cash for people, otherwise, you will have bank runs.”
EvG contends, “They have managed to maintain totally false markets with no real price discovery, certainly since 2009, by just flooding the market with so much money. We don’t have any real markets. We don’t have any real prices. It’s all fake. It’s all fake because it’s all supported by fake money.”
EvG also predicts that before it’s over, the stock market will be down 90% or more. EvG says, “In 1929, the market crash took 2 ½ years to go down 90%. The bubble is much bigger now, so it could go very, very fast. . . . The risk is at a level now where the world cannot be saved.”