A Legend Just Issued This Dire Warning To The World
from King World News
As global markets head into what will surely be another wild trading week, today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events, just issued a dire warning.
Egon von Greyerz: “Eric, I have been expecting 2016 to be a horrible year for the world and the dominos are now starting to fall all around us. The Baltic Dry Freight Index is now 98% below its 2007 high and 46% below the 2015 low. Trade is deteriorating everywhere and South Korea for example just came out with their figures for January which showed an 18.5% drop in January. For a country that is totally dependent on its exports this is a disaster. Trade deficits are now increasing in most countries…
“The US is of course the best example of a country that totally mismanages its affairs. The US has had a trade deficit every single year since 1976. This means that the US has been living above its means for 40 years. In simple terms the US cannot afford to pay for its imports and must rely on debt and printed money to finance its extravagant consumption habits.
But that’s not all of course. What is even worse is the US budget deficit. The US has not had a real Budget Surplus since 1960! This is just incredible. The supposedly mightiest economy in the world has for well over half a century needed to borrow or print more money every year just to survive. Any company or individual who did this would have been bankrupt long ago and nobody would have lent them a penny. But the US has managed to hold on to the reserve currency status of the dollar and therefore continued to run deficits by just printing more money.
Legend Issues Dire Warning
As you know Eric, I have been expecting for some time that the dollar will run out of luck and start to reflect the fact that the US government is bankrupt. I believe that we have reached that point now. The most indebted nation in the world cannot continue to finance its malpractice by borrowing from the rest of the world. That is why we will see a major collapse of the dollar starting now and continuing until it has reached its intrinsic value of zero.
The dilemma is that most other nations have also lived above their means and therefore we will see a currency race to the bottom. Of the major currencies, the dollar is likely to win that race but there will be many smaller nations that are currently well ahead in this race down to the bottom. If I take Argentina as an example, gold is up 6,000% against the Peso since 1999. In a world of global currency debasement, Gold is the only proper yard stick as it is the only money which has survived for the last 5,000 years.
– See more at: http://thedailycoin.org/?p=61984#sthash.3PfbQgEQ.dpuf