Greyerz – ECB To Issue Emergency Liquidity As Turkish Contagion Spreads

kingworldnews.com

As the world edges closer to the next crisis, today the man who has become legendary for his predictions on QE and historic moves in currencies, warned King World News that the ECB will issue emergency liquidity as the Turkish contagion spreads.

Pockets Of Global Hyperinflation Continue To Expand
 
August 5 (King World News) – Egon von Greyerz:  “Eric, we are often talking about the various problems in the world and what will be the catalyst for a global crisis, which has to happen because of all the risks that we see.  And I now think that Turkey could be a major catalyst…

Egon von Greyerz continues:  “Turkey has massive economic problems, deficits, and their currency is collapsing.  The fact that many banks in the EU have lent money to Turkey will probably lead to a crisis in the European banking system.  As an example, Spain’s second largest banks has lent $18 billion to Turkey, and BNP in France has lent $40 billion.  Many other European banks are involved as well.  

As we have seen, Turkey’s currency is collapsing and gold has been skyrocketing in Turkish lira.  Since 2013, gold is up 4x in Turkish lira.  We have talked about hyperinflation in Venezuela and Argentina.  Well, we are seeing it now in Turkey too, Eric, and it’s going to get worse.  Turkish banks have a lot of currency loans, in US dollars and other currencies, to Turkish borrowers.  That’s 40% of their balance sheets.  That will most likely wipe out the reserves of most of these banks because the clients won’t be able to repay it in Turkish lira.

ECB To Issue Emergency Liquidity
 
I’m sure that the ECB is now standing by in order to issue emergency liquidity.  There is already contagion.  Russia’s stock market is falling, Turkey’s is falling.  So this will spread, Eric.  Many European stock markets also look weak.  So there is definitely risk now of hyperinflation taking place in more countries.  I think the next one could be Japan.  Rates in Japan have been rising slightly. If things get out of control, the whole of the Japanese market will collapse.  You are talking about a government that owns 40% of all the outstanding bonds and they are buying all of the bonds that are being issued now.  They also own a major share of the Japanese stock market.

Time Is Running Out
 
And I think Turkey could very well be the catalyst that starts this. I’ve warned people so many times to get ready and get your house in order.  Buy gold, buy silver in order to protect yourselves because the global hyperinflation is already starting to happen.  It’s going to start sooner than most people think.”