Greyerz - The Risk Of Systemic Collapse Is Now Enormous

kingworldnews.com

Today Egon von Greyerz told King World News, “We’ve had Lehman, AIG, MF Global, PFG, the latest (trouble) is Knight Capital which lost $440 million overnight.  This just shows that it’s not safe for investors to keep their money in the system.”  Greyerz also spoke with KWN about some lofty targets for both gold and silver.

Greyerz, who is founder and managing partner at Matterhorn Asset Management out of Switzerland, also said, “We are being warned that we should not keep the main part of our money there (in the financial system) because the risk that you will be totally wiped out is massive.”  

Here is what Greyerz had to say:  “Short-term let’s just look at some of the figures which have come out.  US unemployment was 8.3%, and Nonfarm Payrolls went up by 163,000.  Well, first of all we know that 8.3% is not a real figure.  I said to you last time that every figure which comes out is false and this figure was incorrect.”

Egon von Greyerz continues:  

“The real unemployment is 23%.  The Nonfarm Payroll going up by 163,000, if you look at the seasonal adjustments and the birth/death model, those two adjustments were 429,000.  So they added 429,000 out of nowhere, on paper. 

If you take those 429,000 off of the 163,000, instead of an increase, you get a 266,000 decline in payroll.  So the figures are nonsense....

“The unemployment situation in the US is much worse than announced, and it’s the same all over the world.  We’re talking about 25% (unemployment) in many countries and 50% youth unemployment.

If we move on to manufacturing, it was just announced in most countries in the world that manufacturing is declining rapidly.  The UK and the eurozone had the fastest decline for three years.  The US is also declining and China is showing slower growth, but that probably means it’s worse than they are saying.

I also just saw that  23,000 shops are empty in the UK.  That’s a 15% vacancy rate.  Vacancy rates in shopping malls in the US are around 11%.  So we are seeing empty shops around the world, and we will see more of this in the future.

Eric, the most important thing I have to say today is that the financial system is a dangerous place for investors to keep their money.  That’s whether it’s cash in the banks, bonds, stocks (where you have a custodial risk), or whether you hold gold in a bank.

Time after time we are reminded that the system fragile and is bankrupt.  We’ve had Lehman, AIG, MF Global, PFG, the latest is Knight Capital which lost $440 million overnight.  This just shows that it’s not safe for investors to keep their money in the system.  These are just examples, there are many more to come.

The risk is enormous with the financial system.  We are being warned that we should not keep the main part of our money there (in the financial system) because the risk that you will be totally wiped out is massive.”

Greyerz also added: “Alf Fields now reconfirmed his target of $4,500.  That means a target for silver of about $158.  These figures sound unreal today, but they will happen.  They will happen as a result of unlimited money printing and problems in the world financial system.

Eric, with the combination of the risk of the financial system collapsing, and with massive money printing, investors must have enough physical gold, obviously stored outside of the banking system, to ensure themselves against a potential wipeout.  That is the most important message I have to stress today.”

自己財 自己理

www.jsmineset.com

Remove Third Parties From Holding Your Assets

August 2, 2012, at 2:23 pm

Dear Jim,

Think back, do you remember Lehman Bros.? How about MF Global and more recently PFG Best?  What do they all have in common?  Yes, they all went bankrupt you are correct but…what they ALL had in common was "how", or more to the point HOW FAST they went bankrupt. All of these entities literally went belly up within a week’s time.
How does a firm "just go bankrupt" overnight? Easy, other firms begin to pull money out at the same time that no one will lend to them in the overnight markets. With 20 or 30 to 1 leverage, the milk spoils pretty quickly!
Now, we have Knight Capital in the exact same situation and it has been reported that they are looking for a buyer. They lost $440 million (chump change in today’s world) when their "algo" trading system "malfunctioned" 2 days ago. There is speculation as to the how’s and why’s. I don’t really care. There is speculation on the conspiratorial level that this is just another "rehypothecated vacuum cleaner" being used to force people out of their commodity contracts or to steal client money, (I hope not and feel for the customers) but this I believe is losing sight of the much MUCH bigger picture.
If these firms (along with Merrill Lynch, Countrywide Mortgage, AIG and many more back in 2008) can become insolvent within 5 trading days and close their doors, what does that say? While reading this piece, please keep in mind that financial institutions now mark their assets to whatever they please, no matter how farcical the price. I would venture to say with few exceptions, none of the firms that have gone under were considered at risk a month or two before their doors were closed.
Looking at the situation from a systemic standpoint you must ask yourself what is to stop this type of scenario from happening to the whole system overnight and not just firm by firm.
The answer is very simple – the printing presses.  Central banks will create as much money as necessary, whenever necessary to prevent a systemic default. Yes I know, I sound like a broken record but this is what will happen because there are no other alternatives. Please think long and hard about this topic because your financial lives depend on it. We know that the system is over leveraged, we know that ALL the monies (currencies) are based on and backed by all of this debt, we know that governments have always responded (including the last 4 years) by debasing their currency. We know all of this yes, yet people are still depressed because their Gold and Silver is down. You can see the falsehoods everywhere and you know what the government responses have been. You also know what those responses will do to the currency and that in a collapsing currency, what it does to the precious metal’s values. Don’t let boredom, frustration or fear separate you from your insurance!

Regards,

CIGA Bill H.

Dear Bill,

I cannot understand why any reader is failing to take delivery of their certificates, their metals and there monies as getting anything back from a clearinghouse is a pure gamble on the unknown. The only reason I can see is dumbed downed laziness.
You are all involved in third parties holding your assets. This is madness and self destructive.
Audits are no good. Insurance is not funded to cover all the risk out there.
Why do you hold securities with a clearing firm? Why do you own any public gold company that will not direct register or deliver certificates for you? Why are you long paper gold and think you really own gold? How do you hold ETFs and really believe you own gold? You do not! How do you buy gold anywhere you never will see or touch.
It is raving madness that affects 9.9 out of 10 people reading this. The system is BROKEN and all the King’s men cannot put it back together again.
Your tax accounts are traps set for you. You are sitting targets that already know that your fiduciary, like all so called fiduciaries, is not worth a lead nickel because that is what your assets will be – worthless.
What can I do for you if the most simple act you need to do you continue to fail to do? Wake up, damn it!

Jim