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, warned that the governments of the world are now preparing for total collapse.
Egon von Greyerz: “Eric, 25% of government bonds are now negative around the world. On Friday morning Bank of Japan was the latest country to introduce negative rates. There are now 13 countries with yields up to 2 years being negative and 10 countries with negative yields up to 10 years. I have been saying for a very long time that Japan is bankrupt and negative rates will of course not save their economy…
Egon von Greyerz continues: “It will just discourage savings and therefore investments. The main effect will be to lower the yen in the global race for all currencies to reach zero. So this move by Japan was yet another confirmation that the worldwide currency debasement race combined with massive money printing will create hyperinflation.
I said at the time of the Fed rate increase that it will only be a matter of time before rates in the US go negative. Markets are global and it is ludicrous to believe that the US can go in the opposite direction to the rest of the world. Short term we knew of course that the Fed had to continue their face saving strategy. Although economic conditions are deteriorating rapidly in the USA and the rest of the world, the Fed had to close their eyes to what is really happening in order to maintain a smidgen of confidence with the investment community. But as we know, their eyes are closed because they certainly are not seeing what is happening right in front of them.
In their statement, the Fed said that labor market conditions are improving further. The Fed clearly has rose tinted glasses… [read more]
Add This Article to Your Site with: Embed