Shock And Fear Is Coming – What Every Person Must Know Ahead Of This Collapse

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Today the man who has become legendary for his predictions on QE, historic moves in currencies, and major global events warned King World News that shock and fear is coming.  He also discussed what every person must know ahead of this collapse.

September 25 – (King World News) – Egon von Greyerz:  “So here we are, Eric, at the moment when the world and especially the Western world will have the most unpleasant wake-up call.  What started in 2008 was a warning that was heeded by very few people…

“This was due to the massive money printing and credit create since 2008 of about $60 trillion. So 2008 was merely the first act of a much larger tragedy for the world.

What the world is about to experience is the end of a hundred years of false prosperity based on manufactured money, which has benefitted a small elite but inflicted debt serfdom on the average person.  This is a burden so heavy that the world will suffer for several generations to come.

A Monster Is Created

It all started with the creation of the Federal Reserve in 1913.  Few people realize what the creation of the Fed actually meant.  U.S. Rep. Charles Lindbergh was a exception and KWN posted a great quote by him this week.  Linbergh said at the time:  “The financial system has been turned over to the Federal Reserve Board.” 

Lindbergh realized that the creation of a Fed owned by private banks and operating for the benefit of private bankers would mean that the most mighty central bank in the world would be run for the benefit of these bankers. This is exactly what has happened.

Zero interest rates and quadrillions of dollars of credit derivatives and printed money have earned the bankers incredible wealth and power.  The lower the rates, the more money they can borrow at no cost.  So they leverage 10 to 50 times.

Shock And Fear Is Coming

The chairman of the Fed has no power at all.  He or she is just a figurehead.  The entities pulling the strings are Goldman Sachs and JP Morgan.  All this manipulation has created massive bubbles everywhere and given a false impression that the world is built on a foundation of solid prosperity.  But the true shock and fear in the world are about to emerge.

As stock markets and the dollar begin to collapse, investors will see it as an opportunity and buy the dips. I expect to see money printing from most central banks and that is likely to start this autumn. But QE4 from the Fed will probably be a one-day wonder without any lasting effect on the stock market.

The next near-term target for the Dow is probably 13,000, maybe even 11,000. And before this secular bear market bottoms I would not be surprised to see the Dow fall 90 percent top to bottom. I do realize that few people believe this is possible and that governments and central banks will act to prevent it. But they have no more weapons left in their armory.

The 1929 Collapse

Interest rates are already at zero and to add even more debt to the massive debt bubble will only make the situation worse. Remember that before Black Tuesday on October 24, 1929, no one expected bad times or a fall of 90 percent in the Dow, which actually happened.

The big fall in the world economy has already started. Emerging markets are now in real trouble, with falling commodity prices, currencies, and markets. Inflation is also rising rapidly in emerging countries. We soon will see the dollar turning down, causing a shock to the U.S. economy. In the United States this will trigger high inflation, which will turn into hyperinflation.

What we will also see now is how businesses, banks, and governments have cheated. During the good times this corruption has been swept under the carpet. VW and BMW are just the beginning. Banks will find black holes in their balance sheets and governments will have concealed the truth from their people with propaganda and outright lies.

If there is ever a situation where investors should worry about wealth preservation it is now. Bank assets will disappear as bail-ins become rampant and defaults of many banks become common.

Very Little Available Physical Gold In The West

Meanwhile gold was up almost $25 today and it is still an absolute bargain. But the price doesn’t really matter because holding physical gold outside the banking system as insurance is by far the best way to preserve wealth. There is still gold available near the market price today, but a Comex default will change that. The Swiss refiners are selling virtually all their production to the East, mainly China and India, so there must be very little available gold left in the West.”